Management Function Controlling Study

Background to the Organisation

FitLife is a privately owned Sydney based Australian health club chain with 70 health clubs and 182,000 active members in Australia. FitLife serves as one of the industry leaders in the sport and fitness segment providing multi-purpose fitness venues across the country providing state of the art health clubs to swimming pools, sport clubs, squash courts, and many other facilities.
FitLife has its base of operations in Parramatta (Health Club and Head Office), Sydney and operates in each state:

StateTotal Health ClubsTotal Members
NSW3898,800
QLD1026,000
VIC923,400
SA410,400
ACT37,800
WA37,800
TAS25,200
NT12,600
Grand Total70182,000

Each health club offers the following facilities and services:

  • Swimming
    • 50 metre outdoor pool
    • 25 metre indoor pool
  • Gym for weightlifting and cardio
  • Gymnastics hall (martial arts, boxing and kendo)
  • Recreation hall (squash, basketball, table tennis, badminton, and netball)
  • Classes (Pilates, Yoga, BodyPump, Cycle, BodyAttack, Full Body Lift, and FatBurner).

Mission, Vision and Values

Our mission, in engagement with the community, is to provide innovative health clubs delivering cutting-edge fitness and lifestyle programs that will motivate people of all ages, backgrounds and abilities to lead active, healthy lives.
Our vision is to be regarded as a premier provider of quality fitness, gymnastics and wellness through innovative programs and services that result in measurable and transformational changes in the lives of those we serve.
We are passionate for promoting the quality of life for everyone on the basis of the following values and attitudes in all of our staff, members and the community:

QualityAccountabilityEnergy
Mutual Respect Diversity Enthusiasm
  
IntegrityAccountabilityCare
   
Honesty Responsibility Professionalism

Background to the Business

FitLife is a privately owned Sydney based Australian health club chain with 70 health clubs and 182,000 active members in Australia. FitLife serves as one of the industry leaders in the sport and fitness segment providing multi-purpose fitness venues across the country providing state of the art health clubs to swimming pools, sport clubs, squash courts, and many other facilities.
The health and wellbeing industry is a dynamic sector and plays a critical role in the Australian economy. The industry has grown substantially within the last decade, generating $2.2billion revenue on an annual basis (with 3.5% annual growth rate) through 3265 health clubs housing 32,875 employment opportunities across the country. The industry also plays a key role in improving the health and fitness of Australians.
An evaluation of the company’s internal strengths and weaknesses, external opportunities and threats, market trend analysis, and macroenvironment study established a groundwork to prepare this strategic analysis and marketing plan. The main motivation is to mine and develop new market opportunities targeted to specific customer niches.
For the present situation, the following key drivers shape the health and wellbeing industry:

  • health consciousness
  • real household discretionary income
  • availability (time)
  • accessibility (location, budget and operating hours)
  • levels of obesity
  • education
  • household savings ratio.

Analysis on current market trends have yielded the following opportunities:

  • Wearable Health and Fitness Devices and Apps
  • Bootcamp Health and Fitness Holidays
  • Group Training Programs
  • Customised Daily Meal Delivery
  • Health Bar
  • Training and Employment
  • Physio-Gym Culture
  • Online Health Coaching.

The Parramattaoutlet (seven branches) located in the Sydney Central region has the highest potential to research and develop new market opportunities due to having the highest lead generation potential. Therefore, the Executive Management has decided to research and develop new market opportunities for the Parramatta branch.
The breakeven point for the Parramattaoutlet is 2739 members based on last year’s lead generated, 9129 members in total. Due to its healthy outlook, the Executive Management has allocated a total of $1,061,059 budget to research and implement new market opportunities, where the budget includes the costs for research and development, distribution, promotion, training, equipment, labour, and any other operational costs to develop and implement opportunities for new markets.Order Now

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