Leadership in Business: Analysis of Bounce Fitness Performance

This report provides a comprehensive analysis of leadership within Bounce Fitness, a fitness club in Australia. The report begins by gathering information from customer feedback, staff feedback, and business performance data to identify key issues. These issues include customer relationship problems, staff concerns, and business performance issues related to registration, management, and funding. The report then investigates these issues by examining the hierarchical structure, networking opportunities, and budget considerations. Part B of the report analyzes the identified issues, outlining the objectives of the analysis and exploring market trends, such as increased fitness facility usage and the rise of obesity as a health crisis. The report then evaluates the business's performance, customer feedback, staff feedback, and the need for a risk management plan. Finally, the report concludes with a risk management plan to address potential issues and provides recommendations for improvement.

Running Head: LEADERSHIP IN BUSINESS 1
Leadership in Business

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Table of Contents
Part A...............................................................................................................................................4
Information available for identification of issues........................................................................4
Customer feedback..................................................................................................................4
Staff Feedback.........................................................................................................................5
Business performance data......................................................................................................5
Business issues.............................................................................................................................6
Staff feedback..........................................................................................................................6
Customer feedback..................................................................................................................6
Business performance..............................................................................................................7
Information required for investigating issues..............................................................................7
Hierarchical structure...................................................................................................................7
Networking opportunities............................................................................................................8
Part B...............................................................................................................................................8
Analysis of the issues...................................................................................................................9
Objectives of conducting analysis...............................................................................................9
Trends and Analysis..................................................................................................................10
Options for relevant business decisions.....................................................................................10
Recommendations......................................................................................................................11
Part C.............................................................................................................................................11

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Risk Management Plan or Contingency Plan............................................................................12
Rationale behind Risk Management Plan..................................................................................13
References......................................................................................................................................14

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Part A
Information available for identification of issues
Customer feedback
From a very long time, the centre of the philosophy of business of Bounce fitness has
been building their clients into the best possible self (Sam & Bounce Fitness Sydney, 2016). The
customers have reported that, the company having a flexible and diverse range of fitness
programs which it tailors to its customers and clients, helps them in the achievement of their
fitness objectives. The team of the work force of Bounce fitness recognises the various benefits
and advantages which indulging into exercises and having a healthy body could possibly have
towards leading a happy, successful and fulfilling lifestyle, according to the feedback of the
business' customers (Argan, Argan, Kose & Soner, 2015). The organisation and its team not only
has the capability of managing the fitness facilities, but also provides wellness and fitness
programs including group fitness classes as well as personal training sessions which their clients
or the residents could participate in. At the bounce fitness organisation, the team has the potential
ability of understanding the reasoning of its clients regarding offering fitness services and
programs to all the residence and customers (Bounce Fitness, 2016). Their services and programs
have the ability of creating an environment for the community or society, which enables them to
communicate can help them in interacting in establishing relationships which could last for a
long period of time. According to the customers of Bounce fitness, bringing forward the
specialised fitness services for the residential areas is a great way of taking the stress out of
travel for the people who have very busy schedules (Baker & Parkinson, 2016). These programs

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and services have helped people in building a healthier and happier lifestyle within the
community and society which they live.
Staff Feedback
According to some current employees as well as former contractors at the bounce fitness,
working at the organisation is fun and fast paced. The work environment of the organisation is
considered to be laid back in the team of the workforce is closely knit. The potential of growth is
wide according to the opinions of the staff members. Some of the former contractors working
with Bounce fitness suggested that if an individual working with the organisation is close with
the clients, he is bound to receive a decent pay. The work force is suggested not to argue with the
senior members and be more professional as well as accept criticism openly.
Business performance data
Bounce fitness has a great deal of Information and knowledge regarding the market as
well as the typical or usual attributes of the loyal and prized customers. The employees working
with the organisation or the potential clients are mostly corporate employees and manufacturing
employees. According to the statistics, there has been a growth of 35% and 15% in the potential
clients of the company which are the corporate employees and manufacturing employees
respectively. The total growth within the workforce was the recorded at 28.57%. The targeted
population served by the organisation is around 15,800 employees. The ratio of male and female
workers is almost balanced. The clients and customers of the company very well recognise the
needs of having physical activities in their lives. These people have Incorporated some or the
other type of exercise programs and services within the day to day routine for many years. These
people are highly willing to optimally utilise the fringe benefits which are offered by the
organisation as a part of its compensation package.

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It was analysed that the monthly revenue break-even point of Bounce fitness lied at
$10,101. The primary assumptions taken for calculating the break-even point are the average
percentage of the variable cost which was 10% and the estimated fixed cost on monthly basis
which was assumed to be $10,000 per month. The previous sales numbers of the company
suggest that the same could potentially increased by 50% within the next 2 years. An increment
in the direct cost of sales can also be expected. The monthly expense budget of Bounce fitness
mainly consists of expenses related to pamphlet production, maintenance, website production
and other expenses.
Business issues
Staff feedback
In accordance with the opinions an experience shared by the staff of the organisation,
some issues were found within the business of the Bounce fitness. The probationary period of an
employee was reported to be longer than other corporate environment. The communication an
interactions held between employees was of poor quality. The procedure of getting payroll setup
was reported to be quite slow and overall environment of the organisation who is argumentative.
Customer feedback
Some customers suggested that potential improvements could be made within the
relationships of the customers and the staff members of the organisation. Better customer
relationships would help the company in retaining customers in the long run (Pedragosa, Biscaia
& Correia, 2015). The trainers are expected to pay a greater level of attention to the customers.
The total costs associated with serving individual customers is quite high.

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Business performance
One of the primary issues faced by the organisation include requirement for registration
for the gymnasium. The organisation can incur losses since the registration is free. The way of
conducting business does not seem to be accurate are significant. The management system of the
organisation lacks accuracy. The company has been consistently facing issues with signing up
with small-sized enterprises for leveraging funds.
Information required for investigating issues
There are some information which would be required for investigating the issues and
testing it as appropriate for validity and reliability. In order to take decisions, the organisation
would require certain information such as its budget (Chernev, 2014). The monthly expense
budget of Bounce fitness mainly would include expenses related to pamphlet production,
maintenance, website production and miscellaneous expenses. The complaints of the customers
are clients as well as trainers good also be taken into consideration before taking decisions
(Foxall, 2014). One of the most requirements what decision making would also include the
description of the jobs of all the employees and members within the training centre. Finally,
brainstorming session would be required for taking important decisions (Funk, Alexandris &
McDonald, 2016). For ensuring that all the information and data are reliable and valid, the
research should be conducted by using a statistical analysis and only the organisational
documents of Bounce fitness should be addressed.
Hierarchical structure
Bounce fitness several centres across many cities of the world. Every centre is allocated
with a head who is responsible for looking after the day to day operations and subsequently

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sending a report to the head office every week. The head has several trainers under him who are
responsible for sending a performance report to the centre heads in which they state the reviews
of the performances of every individual. Information and Communication Technology is one of
the means which is used throughout the organisation for connecting the formal and informal
networks (Williams, et. Al., 2014). Hence the organisation is tied to and regularly communicates
with the community through the means of social networks.
Networking opportunities
Bounce fitness is a leading member-based organisation within the fitness industry of
Australia. The organisation provides online courses, marketing templates, videos, magazines,
roundtable meetings, eNews as well as insurance. In order to ensure accessibility to current
information and data for the management and staff, Bounce fitness is available with the
corporate account. According to the organisation, it is at the front foot when it comes to the trend
in equipment. The company sells equipment as well as assists in the maintenance of the same. It
is well equipped with the ability of informing about the monitoring of electronic fitness,
equipment and latest trends.
For ensuring that all the information are well characterized with reliability and validity,
only the organisational documents should be addressed and the research should be conducted by
using a statistical analysis (Mullin, Hardy & Sutton, 2014). Furthermore, the information and
data that are used required to have proper and significant reasoning and they should be concise
and clear in manner. The data that is not held within the formal networks of the organisation is
required to be obtained from the diagrams which have an effect and cause relation.
Part B

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Analysis of the issues
Bounce fitness is a high rated fitness club that provides superior facilities to its
customers. It aims to enhance the brand image of the fitness club in its existing market by
facilitating its clients with excellent services and expertise by establishing itself in the premier
provider of fitness and wellness in Australia (Bounce Fitness, 2019). The company has a lot of
scope to its organizational development. The main issues as a business type identified by Bounce
Fitness is customer feedback. Customers suggest that there can be potential improvements made
in the relationship between the staff members and the clients. This is of utmost importance
because effective communication between the clients and staff members along with providing
improved services is the key to success of Bounce Fitness. Giving attention to the clients and
understanding their specific requirements will create a sense of trust between the clients and the
trainers. Since training individual clients can be challenging for Bounce Fitness, the costs will
always tend to remain high. Another issue identified is the way of doing their business and its
performance. Since the registration fee is free, there can be potential losses to the gym. The
management style is not accurate and hence lacks accuracy. The issue also lies with supporting
its employees.
Objectives of conducting analysis
The rationale behind conducting an analysis of the information gathered is to understand
the business environment of Bounce Fitness and how its conducts its business operations. The
working pattern of the business is also analyzed in order to take necessary measures that would
improve the performance of the business to a significant level. The analysis is to understand the
specific areas where the business is lacking and should improve.

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Trends and Analysis
There are two specific market trends identified in the last five years. There is an increased
usage of fitness facilities by individuals. Since remaining fit and active has become the way of
living a healthy for majority of people in Australia, exercising is now more of a mainstream
activity. Obesity is the leading cause for the fitness regimes in Australia. Since the last decade
Australians have been facing the issues related to obesity and become a health crisis now and
compared to other countries has shown more issues due to obesity. As opined by Hayes, Lung,
Bauman & Howard (2017), the country has shown a trend of its unhealthy food habits and poor
choices of food leading to increasing health risks of obesity. The trends show that the country as
a whole has been inactive constituting to 19% of the population. People between the ages 20-40
are highly prone to health risks that any other age group in the country especially due to
consumption of fried food and lack of exercising. But the scenario has changed in the recent
times which show that people have become conscious about their health and are aware of the
facilities around them to reduce the effects of obesity (Halse, et. al., 2015). People are enrolling
into gyms and taking healthy living memberships. People are aware that being active and healthy
is better than opting to live without it. There has been an increase in the gym activities as well as
incorporating of some sort of outdoor activity in the daily lives of people.
Options for relevant business decisions
Bounce Fitness has options to improve its position and brand image in the market by way
of its operations. The proposed plan can be to incorporate fitness memberships. Since taking
fitness memberships are now a common phenomenon among Australians due to the risk
concerns of staying active and fit. In order to keep its employees satisfied, Bounce Fitness can

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offer fitness membership as a part of the benefit package for their staff members. This will not
only be a flexible option to compensate the benefits to the employees but also create a positive
impact on the brand image of Bounce Fitness. Since employees are an important part of any
company, they should also remain fit and active to contribute to the productivity of the company
(Steingold, 2017). It is a smart-cash benefit decision to keep the trainers and other associated
employees fit and happy. Apart from that, Bounce Fitness will try to minimize its costs incurred
from the personal training facilities. The information gathered to conduct the statistical analysis
as one of the best ways to conduct an analysis and provides relevance to the analysis.
Recommendations
Although Bounce Fitness is a prominent player in the market, it faces the issues of
managing its business operations and managing its staff. In addition to that, it faces the issue of
maintaining its costs with regards to individually training its clients. To make recommendations,
in order to understand the cause and effect relationship, relevant information is required by the
Board of Directors. The Board of Directors will try to understand the relevant information from
the sensitive analysis and try to improve the status of the company. The product and service
relationship can be improved. The main recommendations will include framing the contingency
plan that would help Bounce Fitness to mitigate its current and potential risks. It is recommended
that Bounce Fitness should attract more customers and understand the need of building a wider
customer base. The country may face the issue of economic downturns on its business operations
but the contingency plan will help them to analyze the potential risks and accordingly cater to the
needs of the market.
Part C

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Risk Management Plan or Contingency Plan
The risk management plan for Bounce fitness will include considering the issues the
company is facing. Factors that should be taken into consideration are use of effective strategies,
analyzing its weaknesses and the threats, and analyzing the changes in environmental factors.
The risk management plan generally includes the following steps:
1. Identifying the underlying risk Bounce fitness is facing
2. Analyzing the nature of risk
3. Evaluating the risk
4. Treating the risk
5. And finally, monitor and review the risk (Turner, 2016).
The risk management plan for Bounce Fitness will include:
1. Recognizing the incidents that may potentially impact the business operations of the
company
2. The company will analyze its past events and learn from them in order to improve its
image and attract more customers
3. To know about the existing risk profiles and its qualification analysis
4. Future risk identifying analysis
5. Making improved policies and committees in alignment with the Governance policies
6. Managing significant economic downturns
7. Identifying the worst case scenarios such as determining that the business can no longer
itself and there can be a need to liquidate the equipment of the gym to cover the liabilities
8. The risks associated with managing good relationship with customers and staff by
understanding the needs of the customers.
The quantitative methods include the utilization of Simulation and Linear Programing to
conduct the analysis. The hierarchical structure of Bounce Fitness follows a top to bottom
approach and the information can flow from either ways. Bounce Fitness has branches in every