Develop and Implement a Business Plan for Bounce Fitness (BSBMGT617)

Desklib offers past papers and solved assignments; this is a student-submitted business plan for Bounce Fitness.

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BSBMGT617
Develop and implement a business plan
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Date: 20/04/2018
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STUDENT INSTRUCTIONS
The following Assessment Tasks must be completed by you to enable you to demonstrate these skills.
Using the simulated business Bounce Fitness
The documents you will require if you are using the simulated business BounceFitness can be found on the Bounce
Fitness website:
• Infrastructure tab / Strategic and Business Planning documents
• Infrastructure tab / Current Projects / Bounce Fitness: Fitness in Maturity Brief
• Infrastructure tab Project Outcomes / Bounce Fitness: Fitness in Maturity BriefReview
• People tab / Hierarchal Structure
You may need to conduct further research
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Task 1 Theory – Short Answer Questions
1. This task requires you to demonstrate the knowledge required to run a business operation and covers
the steps required to develop and implement a business plan. You may choose your own business OR
refer to Bounce Fitness.
To enable you to do this, answer the following questions.
1a. Outline the processes you will use to develop a business plan.
Answer The process used for the development plan is as follows:
 Industry overview,
 Market overview
 Service analysis,
 Market analysis
 Marketing and sales
 Management
 Operations
 Financials and
 Funding request
1b. Describe performance objectives and measures that you have identified for the business plan you are
to create for this Assessment.
Answer The performance objectives for the business plan of Bounce Fitness are as follows:
 Increase total membership up to 500 within 5 years,
 Increase the customer base by 100 customers in the initial year of operation,
 Relocate to the large and proper location facility by the first year of operation,
Critical measures
The critical measures required for the cusses of the business plan are as follows:
Customer retention- Retaining new customers in the initial year of operations would be crucial for
achieving the projected sales objectives of the company. In order to ensure the required number of
customers is retained, the business would be able to allocate the significant part of the company's
budget for promotion and marketing activities.
Brand recognition- One of the key measures is building awareness and brand recognition of the
company. This would be the key to retain the new customers and achieve sustainable growth. Once this
factor is achieved in an effective manner, Bounce Fitness would be considered as the market leader in
the specialized and fitness training.
Customer satisfaction- The growth and success depend upon the satisfaction level of the customers in
the industry. By providing superior quality services to the customers, Bounce Fitness would be able to
make the customers loyal for long term basis. The company would also be able to capitalize on the
‘word of mouth’ marketing concept.
Superior facility- By providing superior facility, success, and growth of the company can be achieved.
The superior facility is very important to meet the needs of the clients. The facilities include enough
floor space for the training services, areas to shower and change facilities, easy access by various
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methods of transportation and parking space.
Low attrition rate- By focusing on low attrition rate, Bounce Fitness would be able to increase the
membership of potential customers. In addition to this, the company would also be able to achieve the
sales objectives and increase the customer base.
1c. Identify the key stakeholders.
Answer For the business plan of Bounce Fitness, Key stakeholders are those who have keen interest in the
business operations and profitability of the company. Key stakeholders are described below:
Customers- In the fitness industry, customers are the key stakeholders on whom the growth and
profitability of the business depend. If the company is providing effective services to the customers
then the sales of the business would be increased. So, it is clear that customers are the key
stakeholders that have key role in the success of the business.
Employees- Another key stakeholder of Bounce Fitness are employees who would be helpful for the
company to achieve the set business goals and objectives. Employees basically represent the high
emotional interest in achieving the goals and objectives of the business. So, it is crucial to motivating
them by job satisfaction, promotion, and bonuses. Employees would have the operational influence on
the success of the business operation.
Shareholders-In the fitness business, shareholders have a large financial impact on the success of the
business. They basically require proper information of business and they communicate by annual
general meetings and correspondence i.e. letter and email etc. The shareholders would have high
degree of power in the business. It is very crucial for Bounce Fitness to ensure that the shareholders are
satisfied with the business operations of the company (Eden & Ackermann, 2011).
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Task 2 Practical:Develop business plans
2. You are required to develop a business plan for your business or that of Bounce Fitness.
You are further required to analyse and research the business vision, mission, values, objectives, goals,
competitors, financial targets, management arrangements, marketing approaches and strategic,
business and operational plans to produce a targeted business plan designed to raise funding and
support for the project.
Please refer to the Case Study below if you are using Bounce Fitness as your chosen organisation.
CaseStudy
Although Bounce Fitness is known in the local community, it isseekinganextended
presenceandidentitytopromotetheorganisation’suniqueapproachandlifestyle
visiontoanolderaudience.ThiswillincludebeingcalledBounceFitness: Fitness
inMaturityandfocusonspecificssuchasweight,healthandflexibility.Youhave
threemonthstoplanandadvertisethisnew initiative.
Target Audience:
Bounce Fitness’s target audience is over 50years of age and considered ‘ old school’. Starting f r o m t h e
i n i t i a l c o n t a c t a n d a s s e s s m e n t , these i n d i v i d u a l s are looking for innovative, effective and
convenient solutions for their needs . They may have already heard of Bounce
Fitness,butarelookingfor additional information.He/ shemayhaveweight orhealth issues
orconcerns(diabetes, restrictedmobility)andhaveaninterest in improvingtheirfitness, buthavenot
addressedtheseneedsuntiladvisedbytheirhealthprovider of thenecessity.
Experience,connections,andqualityareimportantfactorsinthedecision-making process.
Thegrouphaslimitedunderstandingof computersanddoesnottendto pursue difficult
processesforgaininginformationonline.Theyhavea comfortable
disposableincomebutspendcarefullyandmustseerealvalue.Theytendtoread
extensivelyandarelargesubscriberstonewspapersandmagazines.
Communication Strategy:
Printadvertisingwill provideinformation,andshouldemphasisethe ‘user-friendly’ andhealth-knowledge
side ofthebusiness fortheolder,lessexperienced andself-conscious individual.Thehealthassessment
andsupportmustbeclear as thiswillprovidesecurityandcomfort.
Theonlineinformationwill provideprofiles,specialoffers,featuredhealtharticles, andcompanyinformation.It
willbemostlya brochure-typesitewithdatabase origination.
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2a. Using the Vision, Mission, Values, Business Strategy, Objectives and Key Performance Indicators analyse
and interpret each in relation to the project. How do they meet the requirements of the organisation in
each area?
Answer Vision- Bounce Fitness is known in the local community, but company is focused now on becoming the
market leader in the fitness industry. The vision of Bounce Fitness is ‘to achieve the leading position in
the market as the health and fitness provider by ensuring everybody has the opportunity to be healthy.’
Mission- For Bounce Fitness, the mission statement is ‘to encourage the employees and members to
live well and achieve the goals and objectives by providing quality services and facilities to the potential
clients in the community.'
Values- In terms of values, the company believes in operating the business with ethics and applied
principles. The company is focused on maintaining transparency in the business for maintaining strong
relationships with the key stakeholders. Integrity, ethics, and morality are the key values adopted by
the company in its business operations.
Business Strategy- Bounce Fitness has effective marketing strategies to gain the desired position in the
market. In addition to this, the company has adopted the proper communication strategy by which the
company can communicate with the potential customers and existing members about the services.
Objectives- The business objectives of Bounce Fitness at the initial level are as follows:
 Increase total membership up to 500 within 5 years,
 Increase the customer base by 100 customers in the initial year of operation, and
 Relocate to the large and proper location facility by the first year of operation,
Key performance indicators- In Bounce Fitness, key performance indicators of the business are as
follows:
 Profile including definition and significant features of the business,
 Resourcing including finance and administration,
 Development including promotions, marketing, and membership, and
 Facilities including upgrades, expansions, and maintenance
2b. Referring to the organisational Hierarchical Structure, discuss who would be appropriate to consult,
how you would consult (include timelines) and your reasoning for consulting with your chosen
individuals. These individuals will be your key stakeholders.
Answer Board of directors- The board of directors would be consulted for the business plan so that they can
proper decisions related to business operations.
Shareholders- Further, the process related to marketing and advertising would be consulted to the
shareholders as they invest their money in the marketing activities
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Employees- These are the key stakeholders as they would convert the plan into actions. All the
activities and actions would be communicated to employees to operate them (Bachar, 2016).
2c. Conduct your own research and report on the market requirements for the Case Study in terms of
customer need and pricing options.
Answer Market requirements-
Australia is a country having a stable economy along with a high percentage of white collar workers.
Among the customers, it is important for the company to create the trust to attract them. Bounce
Fitness is required to target the customers based on different services available for them. The analysed
customer needs in the market is discussed below.
Customer need- Currently, individuals working in small and medium-sized organizations are seeking to
enhance their fitness. In addition to this, there are business executives with intensive working schedule,
athletic enthusiasts and parents with limited schedule. Based on the market analysis and research, it is
observed that customers want to stay fit and lose the extra weight. In Australia, there is a need for the
easily accessible gym for the customers having proper facilities that can encourage and motivate
people to exercise and get fit along with the opportunity to have fun. The main reason for the
customers to join the fitness center is to have a healthy lifestyle and lose extra weight.
Pricing option- Based on the customers' need, it is clear that customers want fitness service services at
affordable prices. The customers are looking for the value and they are aware that qualified personal
trainer has gone through certification programs for providing better services so standard pricing is
implemented.
2d. Develop performance objectives and measures and discuss how you would gain input from key
stakeholders discussed in 1b.
Answer For Bounce Fitness, there are some performance objective and measures which are essential to
achieving growth and success in the business plan. The success measures of the company are as
follows:
Customer retention- Retaining new customers in the initial year of operations would be crucial for
achieving the projected sales objectives of the company. In order to ensure the required number of
customers is retained, the business would be able to allocate the significant part of the company's
budget for promotion and marketing activities.
Brand recognition- One of the key measures is building awareness and brand recognition of the
company. This would be the key to retain the new customers and achieve sustainable growth. Once this
factor is achieved in an effective manner, Bounce Fitness would be considered as the market leader in
the specialized and fitness training.
Customer satisfaction- The growth and success depend upon the satisfaction level of the customers in
the industry. By providing superior quality services to the customers, Bounce Fitness would be able to
make the customers loyal for long term basis. The company would also be able to capitalize on the
‘word of mouth' marketing concept.
Superior facility- By providing superior facility, success, and growth of the company can be achieved.
The superior facility is very important to meet the needs of the clients. The facilities include enough
floor space for the training services, areas to shower and change facilities, easy access by various
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methods of transportation and parking space.
Low attrition rate- By focusing on low attrition rate, Bounce Fitness would be able to increase the
membership of potential customers. In addition to this, the company would also be able to achieve the
sales objectives and increase the customer base.
Inputs from key stakeholders
In order to make the business successful and achieve the set goals and objectives, it is important to
gain input from key stakeholders of the business. In order to enhance customer satisfaction and
customer retention, it is important to take proper decisions related to marketing activities. In this
manner, shareholders and employees should be considered as they have the power to disrupt the
decisions and introduce new ideas to the company. In addition to this, stakeholders can take over some
departments like research and development or human resource to manage the business and ensure
success. In the case of shareholders, they can invest their money as input to improve the marketing and
promotional activities to retain the customers (Husain, 2013).
2e. What financial, human and physical resources will be required to implement your chosen option?
Answer In order to implement the business plan in a successful manner, some of the effective resources are
required in the company. The required resources are discussed below:
Financial resources-This is the most important element at the initial level of the business. In the
starting level of the business, various start-up costs are incurred. Financial resources in the business are
essential to fulfilling the needs of the fund to operate the business without any disruption. Financial
resources can be achieved from various sources. One of the easy methods to achieve financial
resources is the personal accounts of the company's founder. In addition to this, loans and lines of
credit may also be granted by the private investors, bank and other financial institutions. Further, many
grants are also provided from private and public sources to operate the business operations.
Human resources- The success of Bounce Fitness depends upon the strength and talent of the
employees. In order to operate the business in a successful manner, the company needs to hire
experienced professionals having the records of excellence in their area of expertise. By this, company
would be able to ensure that the mission and objectives of the business are carried out in an effective
manner. The company can recruit strong team members by using various methods. In addition to this,
the company can also find the employees by the referrals from individuals presented in the
organization (Hannah et. al., 2014).
Physical resources- In order to operate the business with multiple locations, the company must have
proper physical resources to survive. In the case of Bounce Fitness, the physical resources include
proper workspace, effective marketing materials, supportive team, and proper information systems. It
is important for the company to analyse the requirements of the business.
2f. Are there any licenses or permits that will be required to implement your chosen option? If so, describe
what these are and how you will obtain them?
Answer Some of the licenses and permits are required to operate the business in Australian market. Those
permits are as follows:
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 Australian Business Number (ABN)
 Goods and Service Tax (GST)
 Tax File Number (TFN)
 Pay as you Go (PAYG) withholding
For the company, it is required to consult a legal professional so that all the licenses and permits can be
taken to operate the business in fitness industry.
2g. On the simulated business, Bounce Fitness, you will find a business plan.
However, you are to produce a new business plan appropriate to the Bounce Fitness: Fitness in Maturity
Brief intended to be used to raise funding or promote the venture.
If you are using a project from your own business, you must produce a new business plan intended to be
used to raise funding or promote an initiative to be conducted by your organisation.
Your business plan must include at a minimum:
• Description of the business
• Community awareness or branding
• Environmental impact
• Governance
• Products and services
• Quality
• Financial, physical and human resource requirements
• The workforce
• Permit and license requirements
• Marketing activity
• Sales
• Financial indicators
• Profit and loss
• Triple bottom line (abbreviated as TBL or 3BL) is an accounting framework with three parts: social,
environmental (or ecological) and financial. These three divisions are also called the three Ps: people,
planet and profit, or the ‘three pillars of sustainability’).
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• Productivity and performance targets for key result areas.
Answer Business plan
For Bounce Fitness, the business plan of the company is given below:
Description of business-
Bounce Fitness is a famous Australian fitness company which is engaged in providing excellent services to
potential customers. The company is famous as the premier provider of fitness and wellness in Australia.
The company provides various fitness services including personal coaching, fitness training, and other
health enhancement services to customers. Now, the objective of the company is to raise the funding and
promote the services among the customers in the market.
Product and services-
The company would provide the latest techniques in fitness and material arts. From the group or
corporate, the company would customize specific programs for all the customers, from beginners to
professionals. The fitness services or programs offered by Bounce Fitness would be as follows:
 Private fit
 Corporate fit
 Tone & Fit
 Private group fit, and
 Boot camps
Marketing activity- Bounce Fitness would various marketing and promotional activities to attract potential
customers. In this manner, the company would focus on effective segmentation and targeting strategy to
attract the customers. The company would target the customers into two groups i.e. Group (One with
many) and Private (One on one). Further, young generation having the age of 20 to 50 would also be
targeted (Goodrich, 2013). The marketing activities of Bounce Fitness as follows:
Product strategy- The company would provide designed program to provide enjoyment, diversity and
superior results to the customers. Personal training would be provided to the customers due to demand in
the market. This personal training program is offered by the company to attract couples, families, and
friends. The programs would also attract corporate clients who understand the meaning of being fit.
Pricing strategy- The company would implement prices of the services on the basis of competitive market
pricing. Basically, clients in the fitness industry want value with the services so, they would accept industry
standard pricing.
Promotion and advertising strategy- The company would use the systematic approach of marketing for
effective promotional and advertising strategy. The company would increase new member sales,
improving member retention and increasing member spending etc. In the promotional activities, the
company would use print media, social media, and various events to attract customers (Armstrong et. al.,
2014).
Sales- Bounce Fitness would implement effective sales strategies to achieve expected sales results. The
strategies would include developing unique selling points to attract the customers and communicating to
the benefits to the potential clients. The sales activities include:
 Survey the members to improve retention,
 Implement lead generation system to provide new member lead,
 Use referrals from existing members to attract candidates,
 Providing necessary tools to sales department to sell the products and services
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Task 3 Theory: Review Marketing Performance
3 This task requires you to monitor the performance of your business plan. To enable you to achieve this,
discuss each of the following points relating to the business plan that you created.
You must complete the following Tasks using the business plan designed for Task 2
3a How will you communicate the business plan to all relevant parties and ensure understanding of
performance requirements and timeframes?
Answer Communication plan
By the effective communication process, the company would be able to provide information about the
products and services to the customers in an effective manner. In this manner, the company would
provide information to all the relevant parties through brochures. In addition to this, electronic and
social media channels would also be used as effective tools. Various social media channels i.e. FaceBook
and LinkedIn would be used to communicate with the parties. Emails and official website of the
company would also provide significant information to all the relevant stakeholders (Agnes, 2016).
3b. How will you ensure skilled labour is available to implement the plan and how will your manage training
if required?
Answer For the success of the business plan, skilled labour is required so that the plan can be implemented
successfully. Based on the performance review and performance analysis, it can be analysed whether
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the skilled labour is available or not. If the employees are performing well and meeting their targets,
then they are skilled for implementing the plan.
In order to conduct the training, human resource department would be responsible. Human resource
manager would conduct the training sessions for the weak areas of the employees and motivate them
to enhance their competencies.
3c. How will you test and evaluate the performance measurement systems and refine, if necessary?
Answer There are some steps which can be used to test and evaluate performance measurement systems.
Those steps are as follows:
 By conducting survey of selected employees and managers on their experience on performance
management process to achieve the desired goals,
 Asking proper questions related to performance management in the employee attitude survey,
 Focus groups and conduct interviews to analyse the responses on performance management
systems, and
 Reviewing the sample of objectives and personal development plans for the quality system
(McEwan et. al., 2017).
3d. How will you ensure timely reports on all key aspects of the business are available, user-friendly and
balanced in terms of financial and non- financial performance?
Answer In order to ensure timely reports on all the key aspects of the business, there are some steps that would
be adopted in the company. In terms of financial and non-financial performance, it is important to
ensure that the information and facts in the reports are accurate. This can be done by monitoring the
reports on a daily basis. The controls on the reports on daily basis would be beneficial on providing
performance reports in proper manner. Marketing and sales reports, employee performance report,
balance sheet, and trial balance should be monitored on daily basis.
3e. Discuss how you will report system failures, product failures or variances to the business plan, if these
occur?
Answer In order to report the system failure, product failure and variances, Failure reporting, analysis, and
corrective action system is used. This is the system that can analyse and record problems related to
product or system. This system is helpful informally reporting of the failure in the standard form.
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