The business outlined in this proposal is a fitness center that will offer variety of exercise techniques, which target the female office workers, students, and tourists. This market is profitable and has the possibility of bringing in over $1.2 billion annually (Australian Bureau of Statistics, 2011, 4). Reports suggest that the memberships of private clubs have increased yearly.

ABC Fitness Center seeks to offer its members and patrons quality benefits and services, which are rivalled by no other fitness center. The investments will be used wisely in order to have sports facility that caters for the needs of the customers. It has been identified that the top three profitable services are massage therapy, personal training, and health foods and beverages. The ABC Fitness Center will provide these top three services thus increasing productivity.

Through our knowledge of Sidney CBD area and the existing willingness to take risks, the ABC Fitness Center will be a to-go-to fitness center leading to productivity. The Sidney CBD where the fitness center will be located has a large population of female office workers and students. The location is also a high traffic area for tourists. This therefore means that the clientele pool is large and the target clients have the socioeconomic status that will be required to maintain our service.

The fitness center will be coordinated among four employees including the owner to create “the ultimate sport’s fitness.”

Objectives

The objectives of the ABC Fitness Center are the following:

1. To exceed 75% class capacity by the end of the first year of operation
2. To enroll 350+ memberships by the end of the second year of operation
3. Increase the number of new members by the 15% by the end of the third year.

Mission Statement

The mission of the ABC Fitness Center is the following:

1. To create a quality client focused fitness environment that seeks to meet the fitness goals and promote confidence in the clientele.

Target market

The target market is the office female workers who are interested in an active lifestyle, students from the various colleges and universities who may not be able to afford the expensive memberships, and the tourists. The target market is good since there is a large volume of people in the category who are able to access the ABC Fitness Center.

Location

Location of ABC Fitness Center is one of the most important aspect of the proposed business. This will decide on the number of the target market who will be able to access the fitness center. The Sidney CBD where the fitness center will be located has a large population of female office workers and students. The location is also a high traffic area for tourists. The identified rental space is conveniently located between the junction of Bathurst and Elizabeth Streets. It has a total floor space of about 10,000 square feet. It is not only ideal because it has sufficient parking area, but also because of the spacious area that allows for the hosting of several facilities. Additionally, it is easily accessible and it is located in a high traffic area. To lease the property, ABC would have to pay $2 per square foot monthly. It therefore means that the fitness center will pay $ 20,000 every month.

Personnel plan

Owner- C.E.O

The owner will not draw any salary from the business for the first six months of operation. Thereafter, he will be paid $40 per hour.

Job description: to carry out the day-to-day management of the fitness center and to meet with the prospective clients, and financiers

Finance and marketing officer

Available position: one

The finance and marketing officer will be employed on a permanent basis. S/he will be paid $ 25 per hour.

Job description: come up and outline the marketing strategies that the fitness center will implement. Responsible for the maintaining the books of account of the fitness center

Trainers

Available positions: three

The trainers will be working on commission basis and they will be paid according to the number of clients that they meet with. They will be paid $12 per hour.

Job description: the trainers will train the individuals to use the facilities in the fitness center safely to achieve maximum benefits.

Cleaner

Available positions: one

The cleaner will receive $ 5.80 per hour and will be a part time employee.

Job description: ensure that all the fitness center’s facilities are clean. Pick up the luggage left behind by the members and mop the floors

SWOT Analysis

Below isa list of Strength, Weaknesses, Opportunities, and Threats (SWOT) for ABC Fitness Center. The fitness center will use the list to maximize on its strengths and opportunities while at the same time minimize its weakness and threats.

Industry Analysis

A fitness center is a service facility that provides physical health care and exercises to its members with the help of specialized equipment. The fitness center environment is casual to provide the customers with a comfortable experience. The health and wellness industry is highly competitive. Each fitness center seeks means of competing effectively within the industry. The high returns and the growing trend of the multitude of people to seek health and fitness centers attract new entrants into the industry. There are no significant barriers to entry of new firms. The threat of substitutes in the health care and exercise industry is negligible (Michael, Nicholas, and McGahan, 1998, 44). Physical health requires the use of special equipment and personalized guidance from a trainer: can only accessed in a fitness center. The industry is customer oriented. Due to the cutthroat competition, the customers have a wide variety of offerings (Porter, E. 2008, 12-15)

Plans and Strategies to gain competitive advantages (strategic management process)

ABC Fitness Center will provide employ value proposition. It will ensure it acquires state of the art facilities fitted with the latest equipment from quality manufacturers. Additionally, it will employ a low monthly and annual subscription plans. The members who sign up will enjoy personalized attention from the qualified trainers, so that they achieve the results they want (Stauffer, D. 2003, 56-58).

Capital

The proposed start-up capital for ABC Fitness Center is $300,000. The investor has put down half of the amount ($150,000) as part of the starting capital. There is however a deficit of $150,000. The investor proposes to apply for a loan from the XYZ Bank to cover the deficit. ABC Fitness Center has a unique opportunity to tap into the large number of people who are becoming health conscious. The target market of the employed women, students, and tourists will ensure there is the required cash flow to repay the loan.

References

ABS (Australian Bureau of Statistics), 201. Perspectives on Sport. Commonwealth of Australia, Canberra.

Michael, P., Nicholas, A., Anita, M., 1998. An Interview with Michael Porter.The Academy of Management Executive16:2:44.

Porter, E. (2008) The Five Competitive Forces That Shape Strategy, Harvard business Review.

Stauffer, D., 2003. The Power of Competitive Intelligence. Cambridge: Harvard Business School Publishing,

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Order DescriptionManagement and Organisation / English for Academic Purposes
Case study scenario: You are a manager in a multi-national manufacturing company who has been sent to set up a large subsidiary in South Africa. Prepare a management report for the Chief Executive Officer (CEO) of the company giving your recommendations on the following:

Part one: The Management Model that should be chosen to organise the business in South Africa. Explain the reasons for your choice
Part two: The organisational structure, leadership style and methods of motivation that should be used to manage the South African staff.
Explain the reasons for your choices

Mark scheme (M&O)
Introduction: explains context, scope, key questions, approach ………………….…..5%
Main body: communicates theory, demonstrates analysis and evaluation ………….75%
Section 1, Management model ……………………………………………………25%
Section 2, Structure, leadership style, motivation methods ……………………50%
Conclusion: questions/key points that have been answered ……………………….….5%

Presentation and structure …………………………………………..……………….……5%
Referencing and evidence of research ………………………………….………………10%

Mark scheme (EAP)
Task: overall communication and task fulfilment, thematic development,
Incorporation of sources ………………………………………………………….50%
Language: vocabulary, grammar and cohesion, writing conventions ………………..50%

Distribution and Submission Details

Notes to students
• The assignment will be distributed on Blackboard on Wednesday 3rd February 2016.
• One copy should be submitted through Turnitin by midnight on Tuesday 1st March.
• Two hard copies should be submitted to the Welcome Desk on the first floor on Wednesday 2nd March 2016 at 9am (1 copy for M&O and 1 copy for EAP).
• A copy of the originality report should be included with the assignment that is submitted to the Welcome Desk.
• Include a title page for M&O with: module code, module title, assignment number/title, your name, student number, class tutor’s name, due date.
• For the EAP copy only, include (a) one photocopied page from one of the sources which you have paraphrased or summarised from in your assignment. On the photocopy, highlight the specific section of text that you have used and write the page number of your assignment which includes your paraphrase and (b) include a photocopy of the title page (showing author name) and the page of publisher information (showing year of publication) from your photocopied source
• Write in a report style using headings and subheadings.
• Use font style Arial
• Use line spacing = 1.5
• Font size = 12
• Include page numbers and a word count – do not include title page, contents page or references in the word count. Refer to the module guide for more information about this.
• Late or plagiarised assignments will be penalised in line with the policy set out in the Programme Guide.
• Failure to submit an electronic copy will result in the work not being assessed.
• Do not use Wikipedia or other non-academic sources as references.
• You are expected to use references from a range of resources including Boddy, D. (2014), “Management: An Introduction”, Harlow: Pearson Education (6th Edition).

Possible structure:
? Introduction
o Including a brief background, thesis statement and outline of the assignment.
? Main body of assignment
o Management model
o Structure
o Leadership style
o Methods of motivation
? Conclusion
o Summarise key points
? References