Rocky Mountain Mutual
EXECUTIVE SUMMARY:
The fitness center from Rocky Mountain Mutual was a result of a strategic decision taken by the higher management to woo young employees into the organization. It was built at a cost of $1000000 and the yearly maintenance cost at present is $100000.
Due to the recent initiatives of optimizing costs to increase revenues a question has been raised whether to continue the operation of the Fitness center or close it down.
Two options have been provided and each option has been validated by considering common parameters like Cost vs Savings (Economic benefit), Employee benefits, Effects on softer factors and competitive advantage.
The analysis shows that Option two which is to continue the operations of the fitness center has far more benefits than Option on which is to close down the Operations of the fitness center. If we proceed with option two, a wellness program will have to be initiated throughout the organization as to maximize the economic and employee benefit.
TABLE OF CONTENTS
SR NO PAGE NO
SITUATION ANALYSIS 1
PROBLEM STATEMENT 2
CRITERIA FOR EVALUATION 2
OPTIONS 2
EVALUATION OF OPTIONS 2
RECOMMENDATION 5
ACTION PLAN 5
CONTIGENCY PLAN 5
EXHIBITS 6
SITUATIONAL ANALYSIS
The Fitness center which was built by Rocky Mountain Mutual offers an Indoor walking/ running track, a small lap swimming pool, and an exercise room with free weights and exercise machines.
Costs Incurred by the Fitness