Fitness Plus

You as a small group of 3-4 students are asked to choose one of the following scenarios and answer the questions listed below. The manner in which you as a group choose to present your case study is up to groups consensus. What is important is that your address each of the criteria listed on the Criteria Reference Assessment sheet.

This case is nondirected, in that it does not contain a specific list of questions that students must answer. Rather, the case contains general guidance or concerns expressed by various parties that students should consider when developing their solutions. If you, as the instructor, want to convert this case to a directed case, and hence provide your students with very specific guidance questions, you can make available the applicable questions for this case contained in the Case Questions section of the online material for instructors.

Through this case study I will be discussing strategic management. Strategic management can be defined as a process where an organization attempts to determine what actions need to be taken to achieve the overall objectives and more importantly how to meet them (Mello, 2015, p. 114). For a company to strive and meet their goals, deadlines, and missions they must stay conscious of the strategic plan put in place for the success of the company. If the company does not have a good strategic plan the company could fail. With correct planning a company could succeed without fail. Something that needs to be taken into consideration in the strategic plan should be investing into the company’s human assets. At first it may look like it is causing the company more issues however in the long run it will strengthen the company and moral making a more successful company. This could help with customer relations, and the organization status which will help produce additional revenue for the company.

My assignment is to write a critique paper on the facility named “Planet Fitness”. Planet Fitness is a gym that labels itself rather as a “fitness club” that aspires people of all ages, weights and heights to come and hit the gym. Planet Fitness promises a judgement free environment, allowing for even your most introvert and shy gym goers to enjoy their workout without feeling self-conscious because of other gym attendee’s opinions. On the workout floor, their facilities are equipped with mostly cardio machines, with some weight machines and an abdominal exercise area. Within the locker rooms, they come well equipped for serving mass amounts of gym goers at a time. The locker rooms include showers, sinks, and toilets, urinals in the male locker

The health club industry has continued to see an increase in the amount of health clubs/fitness centers. Since 1992, the United States has seen the number of health clubs increased by almost 40 percent, from 12,635 to 17,531 facilities. It has also seen an increase in membership by almost 60 percent, from 20.8 million to 32.8 million. What this all means for Fun 4 Life Fitness Center, LLC is that the market is ever growing which translates to more competition. Most fitness centers offer a variety of services to address the needs and convenience of the customers. Some of these services includes personal trainers, facilities with state-of-the-art equipment, and programs that cater to mostly every demographic.

Fitness is in. The percentage of people belonging to health clubs and gyms has doubled over the past 20 years. More growth is expected, fueled by an aging Baby Boomer generation in search of eternal youth and the reality that regular exercise can prevent or control diseases that are driving health care costs relentlessly upward. The 24/7 fitness opportunity is the newest model of fitness centers today.

“How much to increase capacity depends on (1) the volume and certainty of anticipated demand; (2) strategic objectives in terms of growth, customer service, and competition; and (3) the costs of expansion and operation” (Russell & Taylor, 2011, p. 259).

Determining capacity is a very important of company day to day operations as it considers whether the amount of work that a company is putting out is capable of meeting supply and demand. Management must make correct decisions that consider product mix issues, whether or not processes and capacity can be improved without adding risky staffing or machinery investments, how to avoid bottleneck areas and whether quality is at expected consumer standards (Vonderembse & White, 2013).

1. What are the two capacity options that Robbie needs to consider? What are their fixed and

3. How does demand variability impact capacity issues at LAA? What can the company do to control variability in demand?

This case can be used in several ways. In the introductory course, the case can be used as the basic structure for a lecture or as a written assignment in conjunction with lecture and text material. In our more advanced courses, which usually have smaller enrollments,

1. Consider Exhibit 10 on page 22 of the case; does it include the factors you consider most important in the selection process? Which factors would you be inclined to weight most heavily?

Psychographic profile for customers most likely to use the gym’ s services: (Min. 200 words required)

Health and fitness clubs were small and only consisted of tennis and racquetball during the 1960 's. The populations for theses clubs were minimal to members. The

To ensure that SWA is managing capacity, revenue, and customer satisfaction, the long-term focus should be on forecast accuracy and to incorporate capacity planning that provides capacity cushions that are a strategic fit for the overall process and supply chain. SWA must determine what effective capacity can be economically sustained under normal conditions; focus on sizing capacity cushions to ensure that reserve capacity is sufficient to the utilization of production capacity; utilize timing and sizing expansion to know when expansion is appropriate and whether to be attempted in large or small capacity jumps. Finally, capacity strategy should link capacity and other decisions together so that the overall process strategies and operations of SWA are balanced and work cohesively by looking at how capacity cushions being utilized strategically fit with: