Strategic Plan for Bounce Fitness

Running head: DEVELOP AND IMPLEMENT STRATEGIC PLANS
Develop and implement strategic plans: Case study analysis
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DEVELOP AND IMPLEMENT STRATEGIC PLANS
Task 1: Strategic plan for Bounce Fitness
Bounce Fitness is the corporate healthcare provider operating in Brisbane, Sydney and
Melbourne with an aim to help the corporate worker to be more productive while reducing the
total costs of the corporate organizations by offering innovative wellness strategies and
programs. For developing a strategic plan for Bounce Fitness, environment analysis, vision and
mission, critical success factors, actions and strategies for the objectives will be examined and an
implementation schedule will be provided.
1. Environmental scan
This includes internal and external environment and cost benefit analysis for Bounce
Fitness.
SWOT analysis
Strengths  Ties the employee productivity directly with good health
 Helps the employees to choose healthier lifestyle for having good
health, be more productive, reduce absenteeism and reduce
treatment cost for the companies
Weaknesses  Lack of adequate number of healthcare counselors and trainers for
providing personalized service
Opportunities  Increased usage of fitness facilities in individual lifestyle
 Fitness membership is being provided as a part of the
compensation package by organizations
Threats  Number of skilled workers available to fill new jobs is decreasing
 Increasing competition in this market from rivals, such as,

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DEVELOP AND IMPLEMENT STRATEGIC PLANS
Forever Fit Gym services, Better Bodies and various community
fitness programs and school facilities.
PEST analysis
Political  Political environment in Australia is quite stable and liberal which
is beneficial for all types of business growth
Economic  Australia has been experiencing uninterrupted economic growth
for more than two decades, resulting in more disposable income
to the customers and over the decades investments in the fitness
industry has increased, which have improved the equipment and
services.
Social  Market for fitness industry has been expanding due to rising
awareness about healthcare, benefits of good heath, impact on
daily life and lifestyle changes which have increased the demand
for fitness regime
Technological  Similar to other industries, the fitness industry is also
incorporating latest technology to provide more precise and
advanced fitness equipment.
 R&D investments are being made for producing advanced
equipment in the home market, so that import of equipment can
be reduced.

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DEVELOP AND IMPLEMENT STRATEGIC PLANS
Cost benefit analysis
Revenue sources (In AUD
million)
Year 1 Year
2
Year 3
Corporate membership 10 12 15
Private training
subscription
0.5 0.6 0.75
Franchise 1.2 1.4 1.8
Total revenue 11.7 14 17.55
Cost (In AUD million) Year 1 Year 2 Year 3
Rent 0.75 0.52 0.58
Salaries of employees and
trainers
2 1.2 1.6
Equipment cost 1.5 0.7 0.6
Marketing cost 0.6 0.65 0.55
Total cost 4.85 3.07 3.33
Profit margin (Revenue -
Cost) (In AUD million)
6.85 10.93 14.22
Table 1: Cost Benefit analysis for Bounce Fitness for the next three years