03/03/2011    

Strategic  Planning  Report    
Natasha  Gasic  
Abstract:  This  strategic  planning  report  discusses  the  developed  mission  statement,  that   encapsulates  Hedley  Trayners’  vision  of  the  organization.  It  sets  the  key  organizational   values  that  are  consistent  with  Hedley  Trayners’  vision,  and  gives  an  overview  of  experts   consulted  to  execute  these  values.  Also,  a  competitive  analysis  is  put  together  to  determine   Club  Trains’  overall  competencies,  competitive  advantages  and  disadvantages,  with  a   timeline  to  execute  strategic  objectives  to  improve  all  standards  of  the  business.  

C l u b   T r a i n  

03/03/2011  

TABLE  OF  CONTENTS  
1.0   EXECUTIVE  SUMMARY   2.0     OVERVIEW  O F  T HE  O RGANIZATION   3.0     OVERVIEW  OF  THE  HEALTH  AND  FITNESS  INDUSTRY   4.0     VISION  STATEMENT   4.1     CLUB   TRAINS’   VISION   STATEMENT   5.0     MISSION  STATEMENT   5.1     CLUB   TRAINS’   MISSION   STATEMENT   6.0     KEY  ORGANIZATIONAL  VALUES   6.1     KEY   ORGANIZATIONAL   VALUES   7.0     PREPARATION  FOR  PLANNING   7.1     PURPOSE   OF   THE   PLAN   7.2                  OVERVIEW  OF  EXPERTS   7.3                  CONSULTATION  PLAN   8.0     COMPETITIVE  ANALYSIS   8.1   SWOT  ANALYSIS   8.2   EXISTING  AND  POTENTIAL  COMPETITORS  AND  ALLIES   EXISTING  COMPETITORS  AND  ALLIES   POTENTIAL  COMPETITORS  AND  ALLIES   8.3   POSSIBLE  STRATEGIC  ALLIANCES  AND/OR  JOINT  VENTURES   8.4   PEST  ANALYSIS   8.4(A)  POLITICAL   8.4(B)  ECONOMIC   8.4(C)  SOCIAL   8.4(D)  TECHNOLOGICAL   8.5          STRATEGIC  OBJECTIVES   8.6   TIMELINE   REFERENCE  LIST   ACADEMIC  REFERENCES   NON-­‐ACADEMIC  REFERENCES   APPENDIX  1   APPENDIX  2   APPENDIX  3   APPENDIX  4   4   5   6   9   9   10   10   11   11   12   12   12   14   17   17   18   18   19   20   23   24   24   24   25   26   31   32   32   32   33   34   35   36  

APPENDIX  5   APPENDIX  6   APPENDIX  7   APPENDIX  8   APPENDIX  9  

37   38   39   40   41  

   

 

3  

1.0 EXECUTIVE  SUMMARY    
 

 

This  report  evaluates  evolvement  of  the  leisure  industry  within  Springfield  and  Australia,   with  an  exclusive  focus  on  the  effects  that  they  have  had  on  the  fitness  club  industry.   Furthermore,  the  report  examines  the  current  issues  facing  Club  Train  and  recommends   possible  solutions  for  overcoming  the  challenges.  Reforms  within  society  due  to  current   media  and  medical  commentary  on  Australian  obesity  levels,  has  been  brought  on  by  the   Australian  Heart  Foundation  2008,  having  a  fundamental  impact  on  the  company  and  the   industry’s  strategy.  In  response,  it  is  recommended  that  Club  Train  change  their  marketing   strategies  to  tailor  to  the  current  market  demands  to  reduce  the  risk  of  future  competitors.   Furthermore,  a  critical  aspect  of  company  growth  is  focus  on  fostering  a  motivating   workplace  for  employees,  and  addressing  the  current  human  resources  issues,  which  have   not  been  entirely  concentrated  on  within  the  company.  Currently,  many  specialised  trainers   are  unable  to  acquire  complete  flexibility  for  the  reason  that  the  club  is  understaffed  within   its  other  revenues  and  rosters  are  conducted  with  split  shift  strategies.  All  employees  abide   by  the  Individual  Workplace  Agreements  (AWA)  approved  by  the  ‘Work  Choices  Legislation.’   It  is  recommended  that  Club  Train  implement  a  rostering  and  workplace  agreement  format   that  enables  the  company  to  respond  to  more  flexible  working  arrangements.  In  analysing   the  company’s  strategy  towards  workplace  relations,  and  marketing,  a  strategic  plan  will  be   illustrated  for  the  next  three  years.          

 

4  

 events  and  beauty  treatments  (Kate  Evelyn.   thus  the  name  Club  ‘Train’.  the   company  prides  itself  as  a  customer  service  focused  organization  which  has  built  a  strong   balance  over  more  then  a  decade.  and  health  and  wellbeing  professionals  available  to  members.  is  one  of  Springfield’s  largest  fitness  and  personal  wellbeing   centre.  with  a  strong  focus   on  specialized  programs  for  women.  in  future.0     OVERVIEW  OF  THE  ORGANIZATION     Club  Train.  the  company  specializes  in  extended  facilities  such  as   swimming  pool.  however.  Over  the  years.   Club  Train  is  based  in  Springfield.  Club  Train  has  evolved  into  a  certified  fitness  and  personal   wellbeing  centre  with  an  outstanding  reputation.  it  has  undertaken  possibilities  to   expand.   Additional  income  is  made  from  catering.  exclusive  women  zones.  In  addition  to  annual  subscription  income.  impressive  financial  capacity  and  a  flexible   approach  to  membership  requirements  and  social  lifestyle  endorsements.  together  with   sophisticated  catering  and  social  programmes.  With  an  extensive   program  list.  circuit   television.  facilities.  joining  fees  —   a  one-­‐off  initial  payment  —  are  common  among  the  more  expensive.2.  exclusive  clubs.  with  estimated  annual  turnover  of  more  than  a  million.  Today.  extensive  fitness  programs.  with  another  gym  based  between  Brisbane  and  Gold  Coast  region  or  Brisbane  and   Ipswich.             5   .  health  and  wellbeing  professionals  and  beauty  treatment  facilities.  established  in  1998.  solarium.  2011).  The  organization  began  by  offering  a  range  of  ‘lifestyle’  products.  and  new  members  in  the  early  stages  of  their  exercise.  Club  Train  derives  most  of  their  revenue  from   charging  annual  membership  fees.

 and  it  is  estimated  that   1.  growth  within  the   industry  has  estimated  at  a  7  per  cent  year-­‐on-­‐year  growth  between  2004-­‐2005  and  2007-­‐ 2008.  Over  the  last  decade.  The  industry  is  dominated  by  a  number  of  private  small  to  medium   sized  businesses  and  a  couple  large  national  corporations.  The  fitness  industry  is  similar  to   the  services  sector  and  has  a  high  ratio  of  part-­‐time  employment.  Australia’s  fitness  centre’s  contribute  extensively  to  the  Australian  economy.  This  increase  in  the  fitness   industry  is  due  to  the  society  becoming  more  aware  of  their  health  and  fitness  needs  and  a   trend  in  becoming  a  healthier  and  fitter  nation.   employment  directly  and  indirectly.  with  over  80  per  cent  of   staff  being  employed  on  a  casual  or  part-­‐time  basis.73  million  Australians  are  now  using  fitness  centre  services.   3.  and  the  key  benefit  of  improving  the  health  of  the   community  (Access  Economics.  2009).  The  fitness  industry  impacts  on  the  health   and  fitness  of  Australians  and  delivers  a  range  of  long  term  social  and  economic  benefits   across  the  community.                 6   .0     OVERVIEW  OF  THE  HEALTH  AND  FITNESS  INDUSTRY     The  fitness  industry  has  expanded  significantly  over  the  last  decade.

  reported  that  the  health  and  fitness  industry  significantly  has  a  lower  rate  of  persons   employed  in  sport  and  physical  recreation  occupations  as  their  main  job  (12%).   Indirect  contribution  value  added  achieved  $386.021  direct  employees  and  4060  indirect  employees  (Access  Economics.9  million  to  the  Australian  economy  in  2007-­‐2008.  Demonstrating  over  half  (52%)  of  all  persons   Table  1.  with  $374.  The  lower   income  is  related  to  the  higher  incidence  of  part-­‐time  employment  within  the  fitness   occupational  sector  (refer  appendix  2).  2009).   The  industry  holds  a  direct  value  added  contribution  of  $486.  Fitness  Australia  July  2009.  with   only  13.  representing  the  additional   economic  activity  generate  by  the  fitness  industry  across  the  broader  economy.   Source:  Access  Economics.3  million  returned  to  capital  owners  as  operational  profits.   http://www.1  Overview  of  Workplace  Economic   Contribution     7   .au/the_economic_contribution_of_fitness_centres_in_australia_rep ort___july_09_2.  Report  viewed  20  February  2011.  The   employment  contribution  in  2007-­‐2008  is  estimated  to  be  17.  data  gathered  in  2006  by  the  Australian  Bureau  of  Statistics  (refer  appendix  1).081  on  a  full  time  basis.2  million   being  paid  in  wages  and  $112.org.fitness.  conducted  by  the  Access  Economics.4  million.pdf           Data  gathered  in  a  survey.     Further.  reported  that  Australia’s   fitness  centres  contribute  a  total  of  $872.5  million.

                                                                                8   .  2006).employed  in  sport  and  physical  recreation  occupations  received  a  gross  weekly  income   between  $250  and  $799  (Australian  Bureau  of  Statistics.

4.1     CLUB  TRAINS’  VISION  STATEMENT   The  Healthy  individuals  and  communities.0     VISION  STATEMENT     4.     4.  who  embrace  physical  fitness  as  a  lifestyle  and   social  activity.                       9   .2        CLUB  TRAINS’  STRATEGIC  VISION  STATEMENT   Springfield  community  understands  the  increasing  Australian  obesity  levels  are  a  habitual   culture  emergence  that  can  be  successfully  prevented  and  treated  with  a  social  and  lifestyle   change  for  a  healthier  future.

 realistic  goals   and  optimize  chance  for  a  successful  experience.  Expressing  education.                     10   .  or  fitness  level.5.  facilities.0     MISSION  STATEMENT     5.  regardless  of  age.  the  value  of  health  and  fitness.  motivation  and   support  for  lifestyle  changes  made  by  those  within  the  Australian  community.  a  state-­‐of-­‐art  gym  that  serves   through  fitness  philosophy.     5.  regardless  of  age  or  fitness  level.  programs.   planned  valuable  fitness  and  nutritional  programs  that  obtain  measureable.1     CLUB  TRAINS’  MISSION  STATEMENT   To  provide  every  member.  and  products  and  to  introduce  in  the  lives  of   people  everywhere.  sex.  through.2        CLUB  TRAINS’  STRATEGIC  MISSION  STATEMENT   To  enhance  the  quality  of  life  in  the  communities  we  serve  by  inspiring  people  to  change   their  lives  by  becoming  more  physically  active.

1       KEY  ORGANIZATIONAL  VALUES   Organizational  values  are  important  as  they  reflect  the  personal  and  societal  context  within   which  business  operates  its  changes.  Who  you  are  as  an  organization.  The  values  that  an  organization  lives  by   are  important  to  a  variety  of  stakeholders:         11   .6.  and  what  you  stand   for.0     KEY  ORGANIZATIONAL  VALUES       6.  are  becoming  just  as  important  as  what  you  sell.

 to  give  structure   and  direction.  identify   roadblocks  and  contingencies.       12   .0     PREPARATION  FOR  PLANNING     7.  Capezio.   and  the  desired  input  they  play  within  the  plan.  however  does  not  retain  the  power  to  have  a  stake  in  the  outcome  of  the   meeting  or  be  involved  in  the  decision  making  process.     Independent  Facilitator  –  External  Consultant   An  independent  facilitators  input  is  to  attend  an  organizational  meeting.       7.7.’  is  a  ‘sole  proprietorship.     Chief  Executive  Officer  (Stakeholder)  –  Hedley  Trayner   The  chief  executive  officer  (CEO)  is  the  most  important  role  within  the  management  of  an   organization.1     PURPOSE  OF  THE  PLAN   The  purpose  of  strategic  planning  is  to  consult  everyone  who  has  input  that  determines   where  the  company  needs  to  go.  The  independent  facilitator  is  solely   there  to  provide  everyone  a  fair  chance  to  present  their  concerns  and  find  opportunities  to   look  at  agreements  during  the  meeting.  (2010).  keep  the  business  on  track  to  reach  its  targets  and  manage   departmental  and  individual  performance  as  discussed  by  Peter  J.  the  targets  that  will  make  the  company  successful.’   meaning  he  is  taking  the  singular  organizational  position  that  sets  the  direction  and  oversees   the  operations  of  an  organization.  Hedley  Trayners’  position  of  ‘chief  executive  officer.2      OVERVIEW  OF  EXPERTS   Below  is  an  overview  of  relevant  experts  that  take  part  in  the  strategic  consultation  process.

      Operations  Manager  –  Chan  Connell   The  operations  manager  has  the  responsibility  of  developing  an  environment  that  improves   the  efficiency  of  the  employees  and  work  force.General  Manager  –  Natasha  Gasic   As  a  general  manager.  strong  leadership  skills.  input  includes  applying  direction  and  coordinating  the  day-­‐to-­‐day   operations  of  an  organization.  This  is  done  by.     13   .  These  include  the  day-­‐to-­‐day  reporting.  Must  be  skilled  at  making   difficult  decisions  under  pressure.   teamwork  and  creativity  among  the  employees.     Administrative  Staff     The  administrative  assistants  work  for  managers  and  executives.  facts  and  figures  to   determine  and  track  budgets.  listening  and  addressing  the  problems  of  each  department  and   leading  the  employees  by  example.  Also  to  ensure  that  the   company’s  goals  are  understood  by  all  employees  and  that  the  staff  are  working  towards   achieving  Club  Train’s  mission  and  vision  statement.  having  sound  judgment.  stimulating  positive  vibes.  but  also  to  administer  control  over  all  departments.  consistent  directives  and  organize  their   divisions  to  achieve  excellent  performance  from  their  support  staff.  Also.  Must  deal  with  the  client  complaints  and  employee   grievances.  and  discuss  issues  with  clients  and  staff  members.  The  input  of  an   administrator  is  to  collect  and  research  relevant  information  and  produce  computer  graphics   and  reports  for  meetings.  display  effective  leadership  skills  and  needs  to  make   difficult.  It  is  the   general  manager  who  takes  direction  from  the  (CEO).  fast  and  effective  decisions  for  helping  to  run  the  company  smoothly  and  for  solving   problems  and  preventing  them  from  re-­‐surfacing.  within  this  role.  The  operations  manager  must  conduct   meetings  with  employees.  and  takes  the  responsibility  of   understanding  the  executives  overall  plan  for  the  organization.  give  clear.  demonstrate  ideas  clearly  to   executives.

 (2)  quality  of   materials  and  services.  The  information  needed  is  the  (1)  cost  of  materials  and  services.  Helps  to  plan  an  effective  timeline  for  the  strategic  plan.  having  motivated  and   happy  employees  as  a  result  will  increase  the  services  that  they  provide  to  Club  Train   customers.  to  the  strategic  plan   and  allows  management  to  find  out  what  motivates  them  for  a  happier.Employees   Employees  need  to  be  involved  as  their  input  creates  a  shared  vision.       Suppliers     Suppliers  are  beneficial  to  the  strategic  plan  as  their  input  is  valuable  to  the  cost  centre’s  of   the  plan.  and  (3)  speed  at  which  the  materials  and  services  are  delivered  to   the  organization.3  CONSULTATION  PLAN     Stakeholders   Reason  for   Selection   Employees   Reflects  on  the   customer   management   processes  which   enhance  the   How  will   consultation  occur   Staff  will  be  briefed  (2)   weeks  prior  to   scheduled  staff   meeting  to  discuss  the   internal  and  external   What  information  needs  to   be  sourced   The  employee  sector  is  the   human  capital.  It  is   important  to  extract  needs   14     .  which  affects   the  productivity  of  the   organization  as  a  whole.     7.  This  is  critical  as  if  a  customer  has  a  bad  experience  with  an  employee  they  might   choose  not  to  come  back  to  Club  Train.  more  productive   workplace.  Past  projects  of  this  nature  had  involved  management  personnel  only  and  often   goals  were  not  achieved  because  few  employees  felt  motivated  by  the  "top-­‐down"  directive.     Customers   Customer  input  relates  directly  to  feedback  that  involves  creating  a  satisfying  experience  for   customers  at  every  interaction  they  may  have  with  the  company  representatives.     In  most  cases  employees  are  the  first  point  of  contact  for  customers.

  knowledge.  These   stakeholders  are   beneficial  as  they   produce  and  grow   revenue.  and   enforce  processes.   sole  proprietor.   and  services  needed.  as  he  is   strategic  planning  team  is   the  only  stakeholder   employed  to  fully  execute  the   able  to  make  financial   organizational  directions   approvals  and   desired  by  the   decisions.  The   discussions.  to  develop  an   Trayner.     15   .   The  consultation   Need  to  obtain  the  basic   occurs  by  completed   requirements  of  customers   surveys.  databases.  which  enhances   customer  value  and  in  return   expands  revenue   opportunities.customer  value  in   products  and   service  attributes.  Hedley   networks.   who  retains  the   sole  decision   making  and   approval  for  all   strategies   proposed.  Also.  create   the  vision  and   mission   statements.  to   complaints.  customer   and  how  age  and  sexes   feedback  or   differentiate  in  needs.   the  administrative   Information  is  sourced  from   staff.  training  and   knowledge  and  staff  benefits   to  achieve  appropriate   performance.   innovative  process  that   creates  new  products  and   services.   implementation  of   personalized  marketing   strategies.     and  goals  that  will  motivate   staff  to  provide  the  most   efficient  skills.   Involve  the  CEO  in  the   Needs  and  requirements  of   workshops  and   the  stakeholders’  values.   Hedley  Trayner.     provide  all  collected   information’s  from   suppliers  and   presentations  for   proposals.   Management   Execute  the   organization  and   the  culture   attributes.   need  to  be   renewed  or  new   products.   issues  they  feel  could   be  improved.   Collaborating   The  managerial  staff  members   workshops  and   work  across  the  information   discussions  with  all   and  organization  capital.  and   personalize  experiences  and   database  inventories   create  a  strategy  where  its   which  monitors   open  to  multiple  channels  and   customer  behavior  and   mobile  market  due  to  the   demand  patterns.  A  staff   group  meeting  will  be   held  by  the  Operations   Manager.   General  Manager   Main  input  from  suppliers  is   sources  all  products   cost  of  materials  and  services.   Members   Members  are  the   current  and  new   customers.  managerial  staff   the  systems.   quality  of  materials  and   meetings  with  relevant   services  and  speed  at  which   suppliers  to  obtain   the  materials  and  services  are   quotes  and  product   delivered  to  the  company.   stakeholder/shareholder.   Suppliers   Suppliers  provide   all   products/services   that  are  existing.  and   and  the  CEO.   Experts   Stakeholder/CEO.

 being   targeted  as   potential  new   members.  Marketing   and  advertising  is  the   selected  consultation   base  type.Community   Members   These  are  people   from  within  the   community  of  the   suburb  or  near  by   suburbs.   Work-­‐shopping  to  create  a   mission  statement  that   encapsulates  the  vision  of  the   organization  will  define  a   current  target  market  and   future  target  market  needs.   Deriving  needs  and   expectations  of  future  target   market.   This  type  of   consultation  is  based   on  how  the  gym   presents  itself  to  new   members.                                         16   .  and  their  earnings   and  expenses  to  formulate  a   marketing  solution.

0     COMPETITIVE  ANALYSIS     8.8.1   SWOT  ANALYSIS       17   .

 allows  you  to  offer  products.  Club  Train  must  continuously  profile  these  competitors  to  form   strategic  objectives  that  capitalize  on  other  organizations.  Club  Trains  competitors  are  obviously  other  centre’s  that  have   similar  profiles.  modern.      Fitness  First    Goodlife    Gensis    Curves    Fernwood    Go  Health  Clubs    Pure  Health  Clubs    Jetts  Health  Clubs.  Superior  knowledge  of  existing  competitors  and  allies  offers  a  chance  to  construct  a   competitive  advantage.8.  state-­‐of-­‐art  gym  businesses.  such  as.  personnel  and  customer  service   strategies  will  allow  to  compete  with  these  organizations  regardless  of  chain  organization   sizes.  that  offer  professional   staff  members  who  provide  supervision  and  instruction  for  members  if  need  be  and  run   programs  that  the  centre  offers.   Understanding  their  market  share  position.  Organizations  that  Club  Train  competes  against  are  other   highly  exclusive.   These  are  all  potential  competitors  as  they  offer  the  same  opportunities.  and  changes  in  the  industry.  services  and   products  as  Club  Train.     18   .  Always  being  one  step  ahead.  other  exclusive  facilities  and  other  incentives  that  gives   members  variety  and  fulfils  needs.2   EXISTING  AND  POTENTIAL  COMPETITORS  AND  ALLIES     Existing  Competitors  and  Allies   With  a  business  organization  it  is  important  to  understand  your  competitive  market  and   profile.  their  facilities.  such  as  other  health  and  fitness  wellbeing  centre’s.  services  and  competitive   pricing  to  retain  customer  satisfaction  and  fulfilling  their  needs  and  expectations.

 yet  is   surrounded  by  a  large  amount  of  educational  institutes  and  could  benefit  from  involving  the   younger  generation  by  ultimately  becoming  open  to  all  ages  and  fitness  levels  and  provide   services  catering  all  their  needs  and  expectations.  Club   Train  has  not  marketed  strategically  to  involve  the  younger  generation  and  families.  is  the  new  national  chain  health  and  fitness   organization  that  lodged  a  development  application  with  the  local  Council  to  open  a  ‘family   oriented’  facility  at  Springfield.  and  is  burdening  the  ongoing  memberships.  Now.  the  new  chain  health  and  fitness  organization  will   definitely  have  an  impact  on  competition  as  Club  Train  has  formed  a  ‘cult’  market  that  is   targeted  by  the  trendiness  of  the  gym.Potential  Competitors  and  Allies   Potential  Competitors  that  have  arisen.                                       19   .

      20   .’     Forming   an   alliance   with   major   water   and   drink   provider.  at  the  same  time  receive   advertising  rights  on  staff  clothing  and  t-­‐shirts.   in   return   providing   product   loyalty   and   advertising   for   Gatorade.  sex  and  fitness  levels  all  have  impacting   needs  of  their  own  (Dynamic  Business.3     POSSIBLE  STRATEGIC  ALLIANCES  AND/OR  JOINT  VENTURES     Exploring  possible  strategic  alliances  and/or  joint  ventures  is  a  form  of  understanding  your   customer  needs  and  expectations.  flyers  and  letter  paperwork.  2011).   Having   a   sponsor   such   as   Gatorade   would   push   the   Club   Train   brand   awareness  and  trust  within  the  fitness  and  health  wellbeing  industry  to  a  whole  new   competitive  level.   would   be   to   approach   and   ask   for   sponsorship.  on  Club  Trains’  website.        ‘Scientifically   formulated   a   new.  in  return  would  receive  retail  market  share  within  the   gym  facilities  and  earn  their  profits  through  product  sales.  Gatorade.  2008).  aswell  as  always  having  the  newest  products  and  services   that  entice  satisfaction  and  loyalty.  Having  a  well-­‐known  brand   behind   you   is   a   quick   road   to   success.  and  on  all  marketing  and  advertising   e.g.   word-­‐of-­‐mouth   and   expansion   and   people   have  reassurance  and  trust  a  smaller  company  once  they  have  a  large  corporations   products  and  services  offered  within  their  organization.8.   They   called   their   concoction   ‘Gatorade’   (Gatorade   History.  Strategic  alliances  happen  when  you  identify  your  target   market  needs  and  wants  and  identify  that  age.   precisely   balanced   carbohydrate-­‐electrolyte   beverage   that   would   adequately   replace   the   key   components   lost   by   Gator   players   through   sweating   and   exercise.

’   An  alliance  can  be  structured  with  a  professional  zumba  business.’  and  the  personal  trainers  as  each  would  be  receiving  a  pay-­‐check   from   the   profits   made   to   cover   costs   of   renting   the   space   to   conduct   group   training.   women   locker   rooms.  In  return.  where  the  monthly  repayments  are  an  amount  set  at   10%  of  the  organizations  profits  earned.   and   pension   discounts   would   apply.   2011).   student.   It   is   a   form   of   outdoor   training   sessions   combined   of   cardio   and   strength-­‐training  using  equipment  such  as  suspension  cables.  the  agreement  would     21   .  Different  rates  would  apply  to  age  and   occupations   for   members.  It  would  be  a  separate  cost  to  the   gym   membership.  Arrangements  need  to  be  made   with  the  ‘YMCA.   children.’   for   a   new   program   called   ‘BOOT   CAMP.   toilets   and   exercise   areas. Equipment   Suppliers   are   another   form   of   venture.   promoting   a   10%  discount  for  classes  booked  through  the  gym.   especially  new  members  hope  to  lose  weight.  another  upcoming  trend  is  ‘Zumba.   Boot   camp   is   a   program   that   would   attract   all   age   groups   and   fitness   levels.g.   A   joint   venture   would   be   to   agree   on   terms   and   conditions   for   these   supplies.   E.  and  medicine   balls  and  other  outside  playing  field  equipment.   especially   with   agreements   to   supply   machinery   and   re-­‐new   every   3   years.      Just  like  the  Boot  Camp  training  is  an  alliance.  boxing.   as   personal   trainers   run   these   programs   in   an   outside   park/or   area  over  a  6-­‐8  weeks  period  of  3  sessions  a  week.’   Boot   camp   programs   are   a   new   upcoming   trend   in   the   fitness   and   health   industry   (The   Daily   Telegraph.      Providing   new   services   for   members   is   always   exciting   –   a   joint   venture   would   be   ideally   formed   with   a   ‘YMCA.   providing   the   company   sets   your   gym   up   and  a  form  of  leasing  is  used.  to  provide  poster   and  flyer  advertising  within  Club  Train  for  zumba  dance  classes  at  the  front  counter   and   entrance   area.

’   who   are   ‘personal   trainers.  2010).   and   on   websites.   An   incentive   would   be   placed   for   personal   trainers   who   join   3   members   a   week.provide   a   10%   discount   on   staff   and   client   jointing   from   the   zumba   business.  would  be  to  make  an  alliance  with   ‘sole   contractors.   flyers   and   promotional   packages   for   new   members.   advertising   and   gaining   clients   by   splitting   earnings   by   50%   with   the   organization.   Advertising   as   a   service   provided   would   done   through   the   gym   on   a   billboard   with   personal   trainer   advertisements   and   contact   details   for   current   members.   from   personal   advertisement  and  word-­‐of-­‐mouth.                   22   .   advertising   and   recommendations   to   members   to   encourage   personal   training.      Another  reform  that  would  fix  the  staffing  issues.  would  decrease  the  earning  split  percentage  to   40%  with  the  organization.’   that   the   gym   can   provide   a   training   facility   for.   This   strategy   is   formed   to   engage   new   women   memberships   within   the   organization   and   keep  the  variety  going  for  members  (The  latest  exercise  and  fitness  trends.   Personal   Trainers’   would   cover   the   cost   of   the   space   rent.

  social.   externally.   economic.   political.  a  pest  analysis   will  be  used  alongside  other  analyses  that  focus  on  internal  factors.                                   23   .  The  combination  of  the   pest   analysis   with   other   factors   will   allow   a   company   to   create   a   strategic   management   plan   of  how  to  move  its  business  forward  in  a  way  that  maximizes  the  opportunities  available  to   it.   and   technological.8.4     PEST  ANALYSIS   A  pest  analysis  is  one  of  the  most  popular  and  effective  methods  of  analyzing  the  external   factors  that  could  impact  on  a  business  within  a  specific  industry.   A   pest   analysis   comprises   of   four   factors.  Commonly.

  Key   areas   for   the   pest   analysis   include   inflation   rates.   Where   individuals   have   less  disposable  income  due  to  high  inflation  levels.  Health  clubs  are  usually  considered  luxury  products.  this  could  certainly  fall  in  line   with  the  political  drive  to  encourage  students  to  work.  when  there  is  an   economic   downturn.4(c)  Social     When  conducting  a  pest  analysis  on  health  clubs.       8.  The  current  economic  climate  is  relatively  weak  and  individuals  are  not  feeling   sufficiently  wealthy  to  spend  large  amounts  of  their  income  on  health  club  services.   this   could   include   reduction   in   costs   in   relation   to   part   time   staff   or   generating   additional   revenue   with   discounts  and  enhanced  services  for  clients.  With  the   government   currently   encouraging   students   to   work   on   a   part   time   basis   at   least.   the   health   club   industry   should   see   a   growing   number   of   workers   available.  evenings  and  weekends.  this  to  be  a  particular  threat  to  the  health  club  industry  and  this   should   be   something   that   management   looks   at   mitigating.   For   the   purposes   of   the   pest   analysis   of   a   health   club.  the  area  of  socio-­‐culture  presents  a  much   more  positive  outlook.4(a)  Political     Political   issues   as   part   of   the   pest   analysis   include   all   sorts   of   factors   that   normally   derive   from   the   government   in   the   form   of   policies   or   legislation.  they  will  be  less  inclined  to  spend  money   on  luxuries.   As   peak   times   within   a   health  club  are  generally  mornings.8.4(b)  Economic     The  pest  analysis  then  goes  on  to  look  at  the  economic  impact  on  the  health  club  industry.   interest   rates   and   general   economic   conditions.   there   is   little   in   the   way   of   trade   restrictions   and   tariffs   to   be   concerned  about.  This  part  of  the  pest  analysis  considers  demographics  such  as  age  and     24   .  As  the   pest  analysis  has  indicated.   the   number   of   customers   is   likely   to   reduce.  therefore.     8.  Many  employees  within  the  organization  are  part  time  workers.   Typically.

     As   established   in   the   earlier   part   of   the   pest   analysis.   There  is  a  growing  demand  from  younger  and  older  people  for  health  club  services  and  an   increasing  ability  by  these  individuals  to  be  able  to  afford  such  services.wealth  as  well  as  issues  including  career  aspirations  and  general  interest  in  health  issues.  it  becomes  clear   that   the   health   club   industry   as   it   stands   has   relatively   high   barriers   to   entry   by   virtue   of   the   level   of   expertise   and   technology   required.   8.   showing   that  in  order  to  establish  a  truly  competitive  position.  As  such.  With  a  growing  number  of  young   women  carving  lucrative  careers.  there  is  an  increasing  demand  for  health  club  facilities.  technological  developments  may  not  appear  to  be  particularly  relevant  to  a   health  club  business.                   25   .  there  is  a  growing  need  for  health  clubs  to  ensure  not  only  that  they   have   the   latest   technology.  However.4(d)  Technological   On  the  face  of  it.  In   this  case.  in  conducting  a  more  detailed  pest  analysis.  the  health  club  industry  is  doing  extremely  well.  These  changing   demands  have  led  to  substantial  diversification  and  new  opportunities  within  the  health  club   industry  such  as  health  and  fitness  weekends  and  sports  therapy.  companies  will  have  to  offer  the  latest   technology  and  a  wide  range  of  options  (refer  appendix  3).  consumers  are  becoming  more  demanding  and  experimental  in  the  area  of  health   and  fitness.   but   also   that   staff   members   are   suitably   trained   to   use   such   equipment.   The   pest   analysis   for   technologies   relates   to   the   socio-­‐cultural   issues.

  any   future   ambitions   and   if   they   could   suggest   any   improvements  for  the  club    One   month   after   that   –   to   review   the   employees   responses   and   put   actions   plans   into  place  as  a  result  of  employee  needs/feedback    3  months  –  to  put  career  plans  into  place  and  start  working  towards  meeting  some   of  employees  and  company’s  goals    6  months  –  review  employee  satisfaction      12  months  –  review  turnover  rates  and  cross  check  improvements             26   .  and  expectations  for  all   employees    One   month   –   to   meet   with   all   employees   within   Club   Train   to   understand   their   current   job   satisfaction.  responsibilities.        Have  a  comprehensive  career  development  program    Achieve  an  employee  turnover  rate  less  than  5%    Define  and  communicate  organization  roles.8.5     STRATEGIC  OBJECTIVES   Strategic  Objective  1   Human  Resources.  (refer  appendix  4)  must  be   addressed  immediately  as  it  is  an  ongoing  subject  that  needs  constant  improvement  to  keep   the  organization  growing.  selection  and  development  of  employees.

Strategic  Objective  2   Market  standing.   understand   any   future   ambitions  and  if  they  could  suggest  any  improvements  for  the  club    One  month  after  that  –  to  create  and  review  the  business  marketing  segmentation   plan    3   months   –   to   place   plan   into   action   and   start   working   towards   meeting   some   of   market  segmentation  goals    6  months  –  review  segmentation  strategy      12  months  –  review  turnover  rates  and  cross  check  improvements                   27   .   internet   based   marketing.  and  educational  marketing    Each  market  segmentation  group  to  grow  by  10%  in  new  memberships  annually    One   month   –   to   complete   research   of   target   marker.  desired  share  of  the  present  and  new  markets.  (refer  appendix  5)      Have  a  comprehensive  business  development  plan  for  market  segmentation    Have   3   major   marketing   strategies   running   in   3   months.   promotional  marketing.

 (refer  appendix  6)                        Have   a   comprehensive   business   development   plan   for   strategic   alliances/joint   ventures    Develop  strategic  alliances/joint  ventures  with  businesses  that  will  benefit  your   products  and  services      Provide   customers   with   variety   in   the   latest   products.   enticing   with   ‘members   only’  benefit  incentives    Increase  business  revenues  by  10%  at  least    One  month  –  to  complete  research  of  new  fitness  trends  and  possible  strategic   alliances.Strategic  Objective  3   Innovation:  development  of  new  goods  and  services.  and  of  skills  and  methods  required   to  supply  them.  suggest  any  improvements  for  the  club    One  month  after  that  –  to  create  and  review  the  business  strategic  alliance  plan    3  months  –  to  place  plan  into  action      Quarterly  Review  of  strategic  alliance  performance    Annual   Review   of   strategic   alliance   performance   –   review   turnover   rates   and   cross  check  improvements             28   .

Strategic  Objective  4   Physical  resources:  equipment.  (refer  appendix  7)      Have  all  digital  equipment    Have  a  replacement  equipment  financing  plan    Have  a  technology  development  and  implementation  plan    One   month   –   to   complete   research   of   fitness   technologies.   and   further   upgrades                   29   .  and  facilities  and  their  use.   suggest   any   improvements  for  the  club    Four  months  after  that  –  create  and  review  the  business  development  plan    One  month  –  to  place  agreement  and  contract    Quarterly  Review  of  equipment  performance  and  maintenance    Annual   Review   of   equipment   performance   and   maintenance.

 (refer  appendix   7)    Achieve  $2  million  in  annual  revenues  with  $840  thousand  in  profits    Maintain  net  profit  rate  equal  to  or  better  than  the  best  national  companies  in  the   health  club  industry    Have   investment   policies   and   financial   procedures   to   foster   aggressive   growth   and   profitability    Have  a  comprehensive  business  development  plan  for  expansion    Performance  reviews  on  all  products  and  services  provided  within  facility    Weekly  Financial  Reviews    Monthly  Financial  Reviews    Quarterly  Financial  Reviews    Annual  Financial  Reviews                 30   .  identification  of  the  sources  of  capital  and  their  use.Strategic  Objective  5   Financial  resources.

                                        31   .8.6   TIMELINE   A  timeline  has  been  formed  to  outline  the  key  steps  that  will  need  to  be  undertaken  to   implement  and  monitor  the  strategic  plan  (refer  appendix  8).

 1-­‐19).  Canberra.dailytelegraph.   http://www.ehow.  from   http://www.  Capezio.  Australian  Capital  Territory:  Embargo.au/export/what-­‐is-­‐a-­‐joint-­‐venture.   http://www.  2011.html     The  Daily  Telegraph.  United  States  of  America:  The  McGraw-­‐Hill  Companies.  (2006).0).  (2010).  Plan  to   Fail  (pp.  4156.gatorade.  Brief  Case  Books.  2008.femaleforum.com/s/article/the_latest_exercise_fitness_trends/     Gatorade.     Non-­‐Academic  References     Dynamic  Business.  Sport  and  Recreation:  A  Statistical  Overview.  Australia.  Retrieved  24  February.aspx     Kate  Evelyn  (2011).  from  AusStats  database.  25  February  2011.au/lifestyle/body-­‐soul/new-­‐fitness-­‐trends-­‐to-­‐wow-­‐you-­‐in-­‐ 2011/story-­‐e6frf01r-­‐1225980503567                 32   .pdf       Peter  J.  2010.com.  Report  viewed  20   February  2011.  Fitness  Australia  July  2009.au/the_economic_contribution_of_fitness_centres_in_australia_report___jul y_09_2.  Article  sited  23  February  2011.com/history/default.  History.  What  is  a  joint  venture?.  from  http://www.org.  How  Does  a  Gym  Make  Money?.fitness.  The  Latest  Exercise  and  Fitness  Trends.   http://www.  Exercise  and  Fitness.  2011.  Fail  to  Plan.com/how-­‐does_4600515_gym-­‐money.  eHow  Business  and  Finance.  New  fitness  trends  to  wow  you  in  2011.com.  Report  viewed  20  February  2011.   Summary  of  findings  (No.dynamicbusiness.     Access  Economics.  from   http://www.  Manager’s  Guide  to  Business  Planning.REFERENCE  LIST     Academic  References     Australian  Bureau  of  Statistics.html       Female  Forum.

APPENDIX  1                                                     33   .

  APPENDIX  2                               34   .

company. technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues • • • • • • • • • • • competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access. grants and initiatives home market lobbying/pressure groups international pressure groups wars and conflict home economy situation home economy trends overseas economies and trends general taxation issues taxation specific to product/services seasonality/weather issues market and trade cycles specific industry factors market routes and distribution trends customer/end-user drivers interest and exchange rates international trade/monetary issues Social • • • • • • • • • • • • • Technological lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand. licensing. patents     35   . Political • • • • • • • • • • • • Economic • • • • • • • • • • • • ecological/environmental issues current legislation home market future legislation European/international legislation regulatory bodies and processes government policies government term and change trading policies funding.APPENDIX  3     PEST analysis of Club Train The relevant points are highlighted that have a strong influence on Club Train.

 training  module  and  incentives  clearly   Individual  goals  of  staff  members  set.     Possible  Obstacles   Possible  Solutions   Rosters     Define  staff  needs  and  maximum  hours  able  to  undertake  and   rostering  accordingly  to  performance.  discussing   the  working  conditions  which  are  resulting  such  a  high  turnover  in  staff.  Higher  performance  achievable.      Incentives.   Specific  Action  Steps  for  Achieving  this  Goal     Discussion/  Staff  Meeting.  Employee  satisfaction  creates  motivated  team  players.    Create  their  performance  criteria’s  and  job  descriptions  aliened  with  their  needs  and  expectations  of  their  employer   and  managers.   Individual  Goals   Action  Plan  that  describes  steps  that  need  to  be  taken  to   achieve  the  goals.  conducted  by  Operations  Manager   Relevant  staff  requirements  reported  to  General  Manager   Training  module  and  incentives  created  by  General  Manager   Workshops  with  Consultation  Team  and  CEO.  can  be  provided  to  motivate  staff  and  make  them  feel  apart  of  the   organization.  finding  out  staff  needs  and  expectations  of  their   employer.   Performance  criteria’s   Clear  job  descriptions  and  training  provided  to  conduct   performance  reviews.  and  reviewing  staff  (individual)  goals.  explaining  job  descriptions.  Results  in  more  ideas  on  how  to  improve  the  business  on  a  day-­‐to-­‐day  basis.   2.  such  as  free  gym  memberships.  Retains  and  attracts  the  best  employees’  for  the  business  growth.APPENDIX  4   HUMAN  RESOURCES  GOAL  PLAN  |  1   May  2011.   4.  achievable  goals.       I  will  have  obtained  all  notes  on  the  staff  meetings  that  were  conducted  by  the  Operations  Manager  –  Chan  Conell.  Employee  loyalty  and  dedication.   5.  wage  reviews.   3.  consultation  via  Operations  Manager   Individual  Action  Plans  for  staff  members   Individual  Career  Plans  for  individual  staff  members   Training  provided  by  the  Operations  Manager   Performance  reviews  and  discussions   Target  Date   March   April   April   May   May   March   May   August   May   August  2011   Date  Completed   April   April   May   May   June   April   August   December     March  2012         36   .  ongoing  training  and  regular  staff  meetings  provided  for   organizations’  staff  members  to  ensure  the  high  staff  turnover  is  being  addressed  appropriately.  approval  gained   Staff  Meeting.    Performance  reviews.       Benefits  from  achieving  this  goal     1.

 Higher  performance  achievable  within  revenue  due  to  new  memberships     Possible  Obstacles   Possible  Solutions   Competition  Customers   Offer  free  weekly  gym  trial.  for  corporate  companies.  on  6  month  contracts.  and  advertising  through  educational   speeches  at  customer  venues.   providing  flyers  and  brochures  on  gym     Advertisement  prepared  for  joint  venture     July   September   July   September   Target  Date   March   April   April   May   March   June   June   July   Date  Completed   March   May   May   May   May   September   September   September         37   .  corporate   group  concessions  and  discounts  through  strategic  joint   ventures.APPENDIX  5   MARKET  STANDING  GOAL  PLAN  |  2   May  2011.     Benefits  from  achieving  this  goal     1.  conducted  by  General  Manager   Assigned  research  for  existing  and  new  customer  needs  assigned  to  Administrative  Staff   Marketing  strategy  and  customer  incentives  created  by  General  Manager   Workshops  with  Consultation  Team  and  CEO.  Plan  is  to  develop  an  internet  based  website  for   online  marketing.  beating  competition   3.   Unsuccessful  Marketing  Strategy   Research  possible  areas  of  failure.   Specific  Action  Steps  for  Achieving  this  Goal     Discussion.  customer  feedback.  on  the  demographics  of  identified  customers.  and  families.  advertising  through  strategic  alliances.  Growth  within  market  share   2.  Find   solutions  to  handle  these  risks.  what  your  competitor  may   be  doing.  staff  performance.  segmenting   overall  market  and  research  market  for  existing  and  new  competition  areas.  Targeting  current  and  potential  customers.   Offer  to  beat  competitor  prices.    Incentives  for  women  to  join  gym  through  careful  strategic  alliances    Incentives  for  children/students.      Incentives.  pensioner  concessions.  Adding  value  to  company  profile  and  community  awareness   4.  advertising  on  a  company  car.   Cost   Offer  student  concessions.  approval  gained   Costs  of  marketing/  advertising  tools  are  sourced  and  approved  by  the  CEO   Internet  marketing  strategy  begins   Marketing  promotional  flyers  and  brochures  completed  ready  for  dispatch   Approach  corporate  companies  by  flyers  and  organize  promotional  and  educating  speech   night   Approach  educational  institutions  and  organize  educational  health  and  fitness  speeches.       I  will  have  obtained  all  research  completed  by  the  Administrative  staff.

 Improve  customer  service  and  satisfaction   4.   Create  specific  packages  for  clients  of  joint  ventures.  adding  value  to  company  profile   2.  approval  of  CEO   Appointments  with  joint  ventures   Written  Agreements  drawn  up  legally   Marketing  promotional  flyers  and  brochures  completed  ready  for  dispatch   Target  Date   May   May   July   August   May   November   December   Date  Completed   May   July   August   December   July   December                 38   .  to  approach  with  intention  to  create  agreements   that  benefit  both  business  and  create  marketing  strategies  to  promote  each  other  through  our  venues.  on  the  possible  joint  ventures  and  alliances.APPENDIX  6   INNOVATION  GOAL  PLAN  |  3   December  2012.       I  will  have  complete  all  research.      Incentives.  for  corporate  companies  joining  forces  –  service  discounts    Incentives  for  clients  through  joint  ventures  for  discount  rates    Products  and  services  distributed  easily     Benefits  from  achieving  this  goal     1.   Specific  Action  Steps  for  Achieving  this  Goal     Discussion.  Increase  profit  margins     Possible  Obstacles   Possible  Solutions   Cost   Offer  discounted  rates  through  joint  ventures  that  you  will   only  receive  if  you  are  part  of  both.  Create  a  more  emotional  connection  with  clients   3.  do  not  all  need   to  be  run  from  the  gym.  but  can  be  revoke  at  any   given  time  if  the  performance  of  the  joint  venture  is  not   benefiting  the  strategic  marketing  to  customers.  Make  brand  more  distinctive.  Increase  member  rates   5.  are  possible  alliances  to  benefit  gym   members  and  increase  gym  sign  ups.   Diluting  Company  Profile   Joint  ventures  are  designed  to  provide  variety.  conducted  by  General  Manager   Assigned  research  for  possible  alliances  and  joint  ventures   Selected  beneficial  joint  and  strategic  approach  created  by  General  Manager   Business  Plan  Development.

 on  the  terms  that   repayments  are  made  on  a  monthly  basis.  Improve  customer  service  and  satisfaction   4.  being  10%  of  the  gym  profits.  Increase  profit  margins     Possible  Obstacles   Possible  Solutions   Usage     Equipment  supplier  must  provide  appropriate  training   packages  and  instruction  manuals  for  equipment  use.  Use  a  form  of  leasing.      Lease  products  to  maintain  competing  technology  development.       I  will  have  complete  all  research.     Benefits  from  achieving  this  goal     1.  Increase  member  rates   5.  Create  a  more  emotional  connection  with  clients   3.  to  approach  with  intention  to  create   agreements  that  benefit  both  business.   Maintenance   Provide  quarterly  services  on  products  or  whenever  there  is  a   malfunction  with  equipment.  on  the  possible  joint  ventures  with  a  equipment  supplier.  and   the  dispose  of  maturity  of  technology  substantially  easy.  Ideal  agreement  would  be  to  create  a  contract  with  the  equipment  supplier  to  provide   and  set  up  the  gym  with  the  latest  technology  and  machinery.  conducted  by  General  Manager   Assigned  research  for  equipment  suppliers   Strategic  approach  and  agreement  proposal  created  by  General  Manager   Approval  gained  from  CEO   Appointments  with  joint  venture  –  equipment  suppliers   Written  Agreements  drawn  up  legally   Target  Date   May   May   June   October   October   November   Date  Completed   May   June   October   October   October   November                     39   .  Make  brand  more  distinctive.  make  replacement  of  technology  and  solutions.  adding  value  to  company  profile   2.APPENDIX  7   PHYSICAL  RESOURCES  GOAL  PLAN  |  4   June  2011.  with  a  renewal  of  products  every  3/4  years.     Specific  Action  Steps  for  Achieving  this  Goal     Discussion.

 Manage  and  evaluate  major  cost  items  and  how  to  build.  Allocations  of  funds.  use  strategies  that  pay   themselves  off.  Optimum  service  delivery  and  the  re-­‐allocation  of  resources  and  funding     Possible  Obstacles   Possible  Solutions   Cost   Stakeholders’  approval  of  cost.  These  will  allow  the   following  process.APPENDIX  8   FINANCIAL  RESOURCES  GOAL  PLAN  |  5   March  2011.  analyse  and  respond  to  changes  in  the  budget   3.  accounting  practises  and  the  use  of  key  accrual  statements   2.g.  all  exercises  must  be  carefully   research  to  justify  cost   Budget   Budgets  are  a  estimated  figure.  the   management  of  financial  resources  and  guidelines  that  shape  the  organizational  budgetary  processes.  Assessing  performance  and  use  of  information  management  systems   4.  Management  of  financial  resources  to  achieve  objectives.  they  change  all  the  time.       I  will  have  obtained  all  financial  reviews  from  the  Administrative  staff  experts  to  assess  the  budgeting.  allow   for  increase/decrease  to  budget  distributions   Risk   Manage  risk  carefully  with  a  back  up.  accounting.  rather  then  investing  and  hoping  for  a  return.   E.  authorise  and  monitor  expenditure    Relevant  financial  management  information  systems     Benefits  from  achieving  this  goal     1.      Develop  a  Budget    Allocate.  leasing  equipment  supplies  with  a  monthly  repayment  of   10%  of  profits  earned   Specific  Action  Steps  for  Achieving  this  Goal     Business  Plan  Development   Cost  Plan   Budget  Distribution  Plan   Estimated  Revenue  Return   Risk  Management  Plan   Weekly  Review   Monthly  Review   Quarterly  Review   Annual  Review   Target  Date   March  2011   March   March   March   March     Weekly   Monthly   Quarterly   Annual   Date  Completed   May  2015   April   May   April   April   Weekly   Monthly   Quarterly   Annual             40   .  monitoring  and  reporting  of  their  expenditure   5.

APPENDIX  9         41     .

Sign up to vote on this title
UsefulNot useful