Comprehensive Analysis of Bounce Fitness Business Operations

This report provides a comprehensive analysis of Bounce Fitness's business operations, examining its strategies for obtaining customer and employee feedback, measuring business performance, and identifying key issues. The report highlights the company's strengths in establishing feedback mechanisms and financial policies, while also pointing out areas for improvement such as employee empowerment, survey strategies, and stakeholder accountability. The analysis delves into the impact of these issues on customer satisfaction and provides recommendations for enhancing decision-making through improved employee empowerment and expanded business networks. Statistical data is presented to illustrate the positive effects of employee empowerment on customer satisfaction and revenue generation. The report concludes with suggestions for expanding the company's communication channels to incorporate additional stakeholders and foster innovation.

Running head: BUSINESS OPERATIONS
Business Operations
Name of the Student:
Name of the University:
Author Note:

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Assessment 1.
Part 1.
The management of Bounce Fitness established strong policies to obtain feedback from
staffs and customers. The management of the fitness firm also had well established policies to
measure its business performances.
First, the ‘Industrial Relations Operational Plan’ mentioned the company regarded its
employees as stakeholders which is evident from the table titled, ‘Consultation Strategies – Key
Stakeholders’ which formed a part of the document. The company aimed to reduce the number
of complaints received from each staff to less than 2. The company had policies in place which
enabled the management to obtain feedbacks from employees to incorporate the same in the
business strategies. The stakeholder consultation strategies mentioned that the process of
obtained feedback occurred at as many as four levels. The management of the company obtained
obtained feedbacks from fitness professional unions, groups of employees, the apex management
team members themselves and the general manager, human resource department. Thus, it is
evident that Bounce Fitness had a well-structured employee feedback obtaining system.
The ‘Customer Relations Operational Plan’ clearly mentioned the fitness firm obtained
feedbacks from customers regarding their respective service experiences. In fact, one can point
out that in the fitness firm, the operation of obtaining feedback from customers followed the
official hierarchy. The employees of the gym collected information from customers on regular
basis which the former communicated to the former communicated to the customer care
managers. The customer care managers in turn communicated the feedbacks obtained from the
employees to the management. The customers could also express their expectations and

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requirements from the gym in forms of emails. The company also conducted surveys among the
customers to gain information about the customer satisfaction levels the latter experienced. The
company in fact incorporated the feedbacks received from customers as key performance
indicators to measure the business performance. It aimed to improve customer satisfaction rate
by 10 percent. The company even used customer feedback to appraise its employees. Thus, it is
evident that Bounce Fitness had very strong policies to obtain customer feedbacks and
incorporate them in making business strategies.
Bounce Fitness in order to measure its business performances had well-structured
financial policies and objectives. The ‘Business Objectives and Key Performance Indicators’
document of the fitness firm mentioned that key financial performance indicators which it aimed
to achieve. For example, the first financial aim of the firm was to increase its sales of services at
10 percent while the second aim was to increase its market share in Australia. One can point out
that these KPIs enabled the fitness firm to measure its financial performance in the market.
Part 2.
Part 2(i). One issue related to customer feedback- Lack of employee empowerment:
One can point out from the customer feedback that the employees were not empowered to
take decisions regarding customer services. The ‘Customer Relations Operational Plan’
mentioned that the trainers (employees) communicated the feedback to the centre management
team which in turn communicated the same to the apex management. However, the firm did not
empower its employees to take decisions to handle employee complaints and the latter was
dependent on the management decisions. However, it can be pointed out that trainers, being in
direct contact with the members (customers) would be able to take more prudent decisions to
handle customer complaints. Thus, it is clear that the lack of empowerment among the

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employees was an issue which the strategic human resource management policies adopted by the
management of Bounce Fitness.
Part 2(ii). One issue related to customer feedback- faulty survey strategies:
The consultation strategies adopted by the management of Bounce Fitness mentioned in
the ‘‘Customer Relations Operational Plan’ document stated that firm conducted customer
surveys to obtained feedback from the latter in between March and August and took 6 months to
implement the same. Thus, it is clear that the management carried out the survey only for six
months which did not allow all their members provide their feedbacks. For example, the
members who obtained membership of the gym from September to February were not able to
provide their feedbacks. Thus, their expectations from the gym were not taken into account
which resulted in poor customer satisfaction among these members.
Part 2(iii). One issue related to the business performance data-Lack of accountability to the
stakeholders:
The issue which the business performance data furnished by Bounce Fitness suffered
from was lack of accountability before the key stakeholders like investors, government bodies
and customers. For example, the document titled, ‘Profit and loss-Cairns’ clearly mentioned the
profit earned by the company from the Cairns Centre. However, the company did not provide
financial audit reports which inhibited the investors from authenticating the genuineness or
accuracy of the reports. This lack of availability of the audited financial statements before the
stakeholders like government bodies and the investors showed the lack of accountability of the
firm towards them.

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Part 3.
The issues face by the employees could be proved on the grounds of the ‘Industrial
Relations Operational Plan’ document provided by the company. The issues which were faced by
the customers could be proved on the grounds of ‘Customer Relations Operational Plan’ while
the issue which the business performance measurement of the firm was evident from the
financial statements the firm provided pertaining the different centres like Cairns and Brisbane.
Part 4.
A review of the hierarchical structure of Bounce Fitness WHS Structure and relevant
information about personnel showed that the firm had a strong internal and external business
network. First, the firm obtained information from employees regarding their expectations from
the company. The management led by the board and the CEO incorporated the feedback of the
employees to form strategic human resource management decision policies of the firm.
Secondly, the management implemented the feedback received from customers to form service
strategies. Thirdly, the firm encouraged its employees to communicate on the social media
platforms. Fourthly, as per the ‘Annual Strategic Industrial Relations Plan’, the company also
used social media platforms to advertise the positions vacant. One can point out in this respect
while the feedbacks from the employees and customers acted as the formal communication
network, the social media platforms operated as information networks. Thus, it is evident from
Bounce Fitness had both formal and informal networks.
Part 5.
A review of the present networking opportunities shows that Bounce Fitness could
expand its present business network to derive more business opportunities. The company could
expand its formal network of feedbacks to incorporate more stakeholders like its food partner

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and suppliers of machinery. These stakeholders would communicate their feedback and
expectations to Bounce Fitness which the management of the latter could be able to make
business decisions. Similarly, the company should expand its social media handles to allow
prospective customers to gain information about its services. The additional information gained
from the newly recognized parties to the business network communication channel of Bounce
Fitness namely, suppliers and prospective customers would provide new innovative ideas to the
firm. For example, prospective customers would express their expectations and ideas which may
enable the management of the firm to identify newly emerging customer preferences and market
trends. The management of Bounce Fitness would be able to review the present strategies of the
firm in the light of these newly identified market trends and customer preferences. Thus, it would
be able to form more innovative strategies which would be more aligned to the market. Thus, it
is evident from the expansion of the communication channel of Bounce Fitness would enable the
firm to review the relevance of its present strategies and form more relevant strategies, thus
strengthening its decision making power on the whole.
Part B.
Part 6.
The issue identified would be lack of employee empowerment which is evident from
the document ‘Industrial Relations Operational Plan’. The following section would delve into the
nature and extent of the decisions which otherwise could have been made by the management of
Bounce Fitness had the issue been addressed earlier:

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Nature of the issue-Lack of employee empowerment:
Bounce Fitness did not take steps to empower its employees. The trainers (employees)
used to communicate the feedbacks and complaints from members (customers) to the respective
centre management teams. The latter communicated the feedback and expectations of the
customers to the management which had the power to take decisions to deal with the feedback.
Extent of the decisions:
The extent to which the issue impacted the business outcomes of Bounce Fitness was
huge. One can gauge from the issue that the employees had no decision making power to act on
customer complaints and feedbacks. The trainers, the lower level employees actually
communicated with the customers on daily basis and had more in depth knowledge on their
expectations. Thus, one can point out that the trainers were in better positions to take actions of
the customer complaints. However, the trainers had no decision making power and were
dependent on the management to take decision which required time. Thus, this resulted in
delayed meeting of customer complaints which actually resulted in low customer satisfaction.
One can also point out that this delay in attaining to customer complaints and expectations led to
the gym lose customers, thus suffering business losses. Thus, it is evident that the issue impacted
the business operations of the company to a great extent.
Part 7.
The objective which the analysis of the issue of lack of decision making power among
the lower level employees aim to achieve would be prompt meeting of customer complaint and
higher level of customer satisfaction. The action of prompt meeting of the customer complaints
would be documented in the customer relationship management or CRM software which the firm
should acquire and maintain.

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Part 8.
The marketing team of Bounce Fitness should analyse the number of the customer
complaints met promptly and the resultant increase of customer satisfaction owing to
empowering of the lower level employees to act on the same statistically.
Months Customer complaint nos
Complaints solved
promptly(owing to
empowerment of the
lower level employees)
Solved
promptly
(%)
No. of customer
complaints
escalated to the
management
Escalated
(%)
Jan 10 0 0% 10 100%
Februar
y 5 0 0% 5 100%
March 2 0 0% 2 100%
April 3 0 0% 3 100%
May 4 0 0% 4 100%
June 1 0 0% 1 100%
July 10 3 30% 7 70%
August 5 1 20% 4 80%
Sep 10 6 60% 4 40%
Oct 5 2 40% 3 60%
Nov 5 3 60% 2 40%
Dec 4 2 50% 2 50%
Figure 1. Table showing impact of employee empowerment on customer satisfaction
(Source: Author)

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Jan February March April May June July August Sep Oct Nov Dec
0
2
4
6
8
10
12
Chart Title
Customer complaint nos
Complaints solved promptly(owing to empowerment of the lower level employees)
Solved promptly
(%)
No. of customer complaints escalated to the management
Escalated(%)
Figure 2. Graph showing impact of employee empowerment on customer satisfaction
(Source: Author)
For example, the graph above shows that impact of employee empowerment on the
customer satisfaction. It has been assumed that Bounce Fitness had provided training and
empowerment to lower level employees in June and they started meeting customer grievances
from July onwards. The rate of customer complaints solved promptly would be considered as the

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rate of customer satisfaction. The graph above clearly shows that the percentage of customer
complaints escalated to the management decreased after June which means that the balance of
the complaints received by the company was solved by the lower level employees promptly. It
can also be pointed out that the company experienced higher levels of the customer satisfaction
owing to prompt meeting of their complaints. Considering the fact that customer satisfaction
levels are generally related directly to revenue generation, it could be pointed out statistically
that the company would generate high level of revenue owing to empowering of lower level
employees to solve customer complaints to the feasible extent.
Part 9.
The management of Bounce Fitness could consider several options prior to taking
decisions of employee empowerment. The company should obtain feedback from the relevant
stakeholder groups like middle level managers, lower level employees and the representatives of
the fitness union in the direction.
The company should undertake feasibility analysis prior to finally embarking on the
strategy of employee empowerment. The company should conduct financial feasibility,
technological feasibility, human resource feasibility and environment feasibility in the direction.

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Action plan for
empowering lower level
employees(trainers)
Management of
Bounce Fitness holds
meeting with the
middle level
managers to discuss
on employee
empowerment plan
Managers discuss the
strategy with lower
level employees
(trainers) and obtain
feedbacks
Managers submit
employee feedback
to management
Management hold
final discussion on
the basis of the
feedbacks and
approves the plan
Finance department
release funds to
conduct feasibilty
tests
Financial feasibility test
The management
meets the investors to
inform them about the
strategy and ask for
their feedbacks
The management
meets representatives
of the partner bank to
discuss the strategy
and seek feedback
Management obtains
feedback from the
investors and partner
banks
Technological feasibility
test
Management meets
technical experts to
discuss the plan
Management obtain
feedback from
technological experts
Human resource
feasibility test
Management holds
meetings with HR
consultancy firms on
the plan and asks
them for their
feedback
Management holds
meetings with union
representatives on
the plan and asks
them for their
feedback
Obtains feedbacks
Management of
Bounce Fitness holds
meeting with the
middle level managers
to discuss on findings
of the feasibility
tests(assumed to be
positive in general)
Management hold
final discussion on
the basis of the
feedbacks and
approves the plan

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Figure 3. WBS showing Action plan for empowering lower level employees (trainers)
(Source: Author)
Part 10.
The following are recommendations for business decisions on the basis of the analysis
conducted above:
Training of lower level employees to take decisions:
The lower level employees should be trained to make decisions. The trainer should aim to
boost the level of knowledge and competences of the employees.
Motivation of employees:
The departmental heads should motivate the employees working under their supervision
to take decisions to solve employee complaints. The managers should mentor and guide the
employees to take decisions in the initial days after their decision making training.
Part 11.
The rationale of the risk management plan would be identifying the risks which Bounce
Fitness would face. The plan would also aim to recognize strategies which can be adopted to
mitigate or at least minimize the risks posed to the company.