Functionality Report: Business Plan for Australian Fitness Company

This report presents a comprehensive functionality analysis for a proposed fitness business in Australia. It begins with a business description, outlining goals, objectives, and location, focusing on the Queensland area. The report details the marketing mix, including pricing strategies for various services like home services, center services, and online plans. It identifies the target market as young adults facing obesity challenges and highlights competitive advantages such as lower pricing and diverse service offerings. The report further examines industry trends, key market players, and long-term plans for technological integration and quality service delivery. It covers business legislation, including business setup, codes of practice, consumer protection, WHS regulations, and taxation. The report also addresses contracts, insurance, environmental considerations, and risk analysis, including internal and external risks like competition and cost sensitivity. Finally, the report outlines marketing strategies, performance analysis, roles and responsibilities, communication methods, and staffing requirements, including the need for fitness coaches and nutritional experts.

Running head: FUNCTIONALITY REPORT
Functionality Report
Name of the Student
Name of the University
Author Note

1FUNCTIONALITY REPORT
Task 1
Business Description
Business Goals and Objectives
In this new business process we will mainly concentrate on the business of the fitness
business of the country and the main goal of this business to reach high position in the
market. The main objective of this current business is to make people physically fit as much
as possible in the country. The short term goal of this business is to reduce the expenses of
the current business process by 5 to 10 per cent within next 1 year time period. In case of
long term goal of the company, it can be stated that the company aims to be in the top 5 list of
this fitness companies in Australia.
Location
The company will mainly operate in the Queensland area and surrounded other cities
of the country.
Marketing Mix of the Company
This fitness business company will deliver the fitness services to the customers that
includes various types of fitness care, diet plan, online exercise chart their customers. While
discussing about the price of the products/ services offered by the company, it can be stated
that the price of those products will be within lower to mid- range so that most of the people
can access the service of the company. Initially the company will start their business in the
Queensland area and after that the company plans to expand their business in all the regions
of the country.

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Pricing Model of the Products/ Services
As the company different types of products/ services to their customers the company
will use different type of pricing for the different kind of products or services. The products
and the pricing strategies are as below-
Name of the Products Pricing Strategy
Home services Hourly Pricing
Service Provided in the Centre of the
Company
Package Pricing
Online Diet and Exercise plan Package pricing
Group Training Hourly Pricing
Target Market
In this regard, it can be stated that the services will mainly target the youth population
of the country as per the data of the Australian Government, it can be stated that a huge
number of youth population is suffering from the problem of obesity and overweight.
According to the data of the Heart Foundation, it is reported that the in the age group of 18 to
24 years, almost 22 per cent of the population are suffering from the problem of obesity. In
case of the age group 25 to 34 years, this overall rate of obesity is almost 33.4 per cent.
Therefore, the main target group customer will be this age group people of Australia (Heart
Foundation 2020).
Competitive Advantages of the Company
The lower pricing of all the services and hourly basis pricing strategy will encourage
the customers to choose this company. According to the study of Huang, Kauffman and Ma
(2015), it is reported that the use of hourly pricing will allow the customers to choose their
services as per their own choice and this liberty is associated with the issue of customer

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satisfaction. Moreover, diverse nature of the services of the company will also encourage the
customers to choose this company.
Industry Trends
The main market players in the fitness business industry in Australia are Fitness and
Lifestyle Group, TopCo Pty Ltd, Anytime Australia Pty Ltd and F45 Aus Hold Co Pty Ltd.
As per the data of the Ibis World, it is reported that within 2022-23 this market will
contribute almost 2.4 billion to the overall revenue of the country and it is reported that in last
five years this industry has grown a lot (IBIS World 2020).
Long Term Plan
For running the business a long period of time, the present company will focus on
using more technology and delivering quality services to their customers.
Business Legislation
Business Set-up Structures
While starting this business in the fitness industry, the company will start this
business alone and there will not be any type of partners or issue of partnerships in this new
business.
Code of Practices
While discussing about the relevant codes of practices in the fitness industry in
Australia, it can be stated that health related legislations, work health and safety legislation,
consumer protection legislation, privacy legislations, laws for protection of the workers
should be followed by the company (Fitness Australia 2014).

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For managing the cultural differences of the clients and workers, the company will
recruit the workers of different cultures and it will help them to overcome the cultural
boundaries of the customers as workers of the same cultures of the customers can work
easily. Therefore, such initiatives will also help the organization to grow (Fitness Australia
2014).
Consumer Protection
As per the Competition and Consumer Act (2010), during conducting and planning
the business, it is the duty of the business organization to reveal all the details such as pricing,
joining fees, cancellation charges, late payment and other related fees, rights and
responsibilities of the fitness company in the consumer agreements (Pearson 2017).
WHS Regulations
According to the Workplace Health and Safety Act 2012, it is the duty of all
employers to provide safe and secure work places to their workers and consumers. In case of
fitness industry, it is very common to use different types of equipment and so the chances of
having accidents are also very common. So, following this act by the company is mandatory
(Bong et al. 2015).
Business Registrations and Licences
As the business operates throughout the country, so licence is required to follow the
regulation and legislation of Australia (Business.gov.au 2020).
Taxation
For discussing about the taxation of the fitness company, it can be stated that the
company needs to pay the company tax, capital gains tax as the company gain capital by

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carrying out this specific business. For keeping the records of the present business the
company must keep all the receipts and invoices of the services which they have offered to
the customers (Australian Government 2020).
Contracts and Insurances
For running the business properly and legally, the company must use agreements so
that they can be legally correct in all aspects of their business. In terms of insurance coverage,
it can be reported that insurance is required in various sections such as health insurance of the
consumers and the service providers, insurance of the equipment used by the professionals,
accident coverage insurance (Business.gov.au 2020).
Environmental Considerations
The company should follow the Environmental Protection Act while running the
business and as per this law it is the duty of the organization to manage any type of wastages
properly so that any damage to the environment can be inhibited (Hobday and McDonald
2014).
Management of Compliances
In order to maintain compliance in the business organization, the company will
arrange regular audit programs and inspections in all the sectors of this business and in case
any flaws are detected by the experts the company will do the needful to act responsibly in
the business market.
Business Risk
Along with the work safety risks of the fitness business, there are various other risks
associated with this fitness business and these may be faced by the trainers during providing

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care to the consumers. In this regard, the issue of cultural disparity can be marked as risk
associated with business operations. In order to mitigate this risk associated with the business
operation, the company may recruit people of different cultures so that they can allocate
trainers to specific customers of the same cultures. While performing the risk analysis of the
company, it can be stated that external risks of the company can be the presence of other
competitors in the market is one of the barriers to enter into the business market of fitness
industry (Perera et al. 2014). Along with costs of the acquiring fitness facilities is another
serious threat to the company that can alter the business growth of the company. According to
the study of Bishop (2014), it is stated that the price sensitivity is a crucial factor the
business players in the market. Therefore, it is stated that the consumers of the Australian
market are very much price sensitive thus a high price of the facilities can restrict the people
to access those services. In order to manage these risks the company must maintain an
affordable price range and it may help the company to sustain in the market. Moreover, in
order to manage the issue of competitors the company the company must maintain the quality
of their services so that the clients automatically opt for their services.
External Risks Internal Risks
Presence of Other competitors Presence of consumers and employees of
different cultures
Cost sensitivity of the customers
Table.1- Risk Analysis of the Market
Establishment Cost
Establishment costs Amount
Cost of building 50,000
Cost of equipment 5,00,000
Legal expenses 3,000
Initial market research related
expenses
15,000
Registration Charges 34
Marketing Costs 3580
Insurnace Costs 30400

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In order to acquire funds for starting this business, the new company will depend on the
independent investors, money from their sponsors, loans from the banks. Moreover the
money may acquire financial loan from the government banks as well.
Marketing Strategies
The company will use an internet marketing strategy, social media marketing and
word of mouth of marketing strategy for their business. As the main target market of this
new business is the youth population of the society, hence the use of the social media and
internet based marketing will be effective as most of the youths are now addicted due to
internet or social media. For the health service in the place of the client word of mouth
strategy will be used. For promoting the new business the company can give discounts to the
services if the consumers book services through their social media page. The low costs to
implement this marketing strategy are the primary reason to use this type of marketing by the
company (Tuten and Solomon 2017).
Performance Analysis
For analysis the performance of the company will consider the fact that whether the
goals set previously is achieved or not. In order to maintain the business sustainability, the
company will maintain the pricing strategy and quality of their services.
Roles and Responsibilities
All the stakeholders of the company should participate in the growth of the company
and as a part of this the organization should take initiatives to engage them in this process.
The management should arrange meetings along with the employees so that they can provide
their viewpoints regarding the improvements of the services. In case of external stakeholders,

8FUNCTIONALITY REPORT
the company should try to know the viewpoints of the customers so they can make changes
according to their needs as well (Scott 2015).
Communication with Staffs
For communicating with the staffs the management should use the E-mail so that all
the information can be shared with them easily.
Monitor and Evaluation
For monitoring and evaluation of the current marketing plans the company may take
follow ups of the reactions of the customers as they are primary stakeholders of the company
and the new business is completely dependent on the client. Following the needs of the
customers will also allow them to improve the issue of customer satisfaction as well (Scott
2015).
Staffing Requirements
We are now looking for an efficient fitness coach for our organization and help to
implement training programs for our clients. As we are new players, in the industry, we are
looking for those who can serve us for a long and make our clients satisfied as per their
needs. We are offering different types of exercise facilities such as fat loss exercise, cardio,
weight loss, body building, diet plan etc. We also have initiated home services for our clients
and so the candidate may have to travel to other places and travel allowances will be
provided. We also plan to hire nutritional experts for our organization as we also provide diet
plans to our clients.
Requirements
Certification in fitness services

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Focus on client satisfaction
Focus on safety of the customers
Ready to travel
Certification in Nutrition
Communication skills
Expertise in equipment handling
Business Operations
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For monitoring the success of the business, the company will analyse the market
reaction and if it is observed that the competitors of the market are doing the same, then it can
be stated that the company is in the right track. Another important parameter of analysing the
success of the business is the cost-per-acquisition (CPA) that is referred to the real return on
the investment of the company. Therefore, it can be stated that if the marketing CPA can be

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reduced then the margin of profit of the company will increase. For assessing the key
performance indicators of the business, the company management will assess the client
retention rate, revenue per client rate, margin of the profit and revenue per session rate can be
examined. In order to evaluate the success of the business, policies and structures of the
organization, the net income ratio can be evaluated (Necsulescu 2015). According to the
study of Purnamasari (2015), it is stated that an improved net income ratio is the indicative
factor for assessing the success as it is the assimilative factor for customer retention,
employee retention, customer satisfaction, quality of the services and so this evaluation
method can be used.
Technological Systems
In order to assist the company in managing stocks, payments, income and expenditure
by using the modern technology, the SAP software can be used by the organization.
According to the study of Legaspi (2019), it is very effective to use this software for
managing the whole business by using this software.
Strategies to Improve Productivity
In order to improve the productivity of the staffs, firstly the problems of the staffs
should be recognized. In order to improve the productivity, motivational sessions and stress
reducing sessions for the workers should be conducted by the management as in various
studies it is reported that the productivity of the workers is hampered due to the work related
stress and job burnout. Hence, such kind of sessions will improve the productivity of the
workers (Harzer and Ruch 2015).
Management of Quality Standards

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For maintaining the quality of the products and services of the company, the company
should invest more in the use of technology as it will help the company to deliver better
quality services to their customers. As a consequence, the level of satisfaction will also
improve due to the improved level services of the organization. Moreover, the organization
should take feedbacks regarding the quality of the services and should take initiatives to
improve their services as per the customers’ needs (Chang 2016).
Review of Business by Using Business Life Cycle
As per the stages of the business life cycle, the company management should review
their business plan at the maturity stage of the business life cycle. According to the study of
Muzellec, Ronteau and Lambkin (2015), it is stated that maturity is the phase in which most
of the business organization review their business process and if there are any flaws in the
business process, the company decides to invest more in new technologies so that there
business can be improved. Therefore, it can be stated that it is the best phase of business life
cycle to review the condition of the business.
Identification of New Business Opportunities
For identification of new business opportunities, the company should analyse the current
market trends and identify the potential competitors of their company. By incorporating this
technique, the company can also incorporate new business ideas in their present idea in order
to capture the new business opportunities (Jansen 2017).