BSBMGT616 Develop Strategic Plans: Bounce Fitness Case Study

This report outlines a strategic plan for Bounce Fitness, a fitness center established in Cairns in 2001. The plan details the company's mission, vision, current performance, and business objectives, emphasizing the importance of employee wellness and market penetration. A PEST analysis, competitor analysis (Forever Fit Gym, Better Bodies), and SWOT analysis inform the future strategy and initiatives, including raising productivity, lowering costs, and recruiting talented staff. The report evaluates cooperative ventures through cost-benefit analysis and due diligence, and includes a strategic plan timeline with responsible parties and a communications plan. Measurable performance indicators are identified to monitor progress, with provisions for change requests. The plan emphasizes continuous monitoring, feedback collection, and adherence to legal and ethical requirements, particularly anti-discrimination and privacy laws, to ensure the achievement of objectives and sustained growth for Bounce Fitness.

DEVELOP AND
IMPLEMENT
STRATEGIC
PLANS
BSB60215 Diploma of Business
BSBMGT616

OVERVIEW OF THE
PRESENTATION
 Introduction & Background
 Company’s mission and vision
 Company’s current performance
 Company’s business objectives
 PEST analysis
 Competitor’s Strengths and Weaknesses
 SWOT analysis
 Company’s future strategy and
initiatives
 Evaluation of cooperative ventures (risk,
cost benefit analysis, due diligence)

OVERVIEW OF THE
PRESENTATION
 Strategic plan timeline, responsible
parties
 Communications plan
 Measurable performance indicators to
monitor progress in implementing plan
 Making provisions for change request in
the plan
 Evaluate achievement of objectives at
agreed milestones
 Monitor and review
 Feedback, support and endorsement

INTRODUCTION & BACKGROUND
Bounce Fitness is a fitness center at Cairns with various other centers that caters to a
number of customers. Established in 2001 as a single studio.
Healthy employees are considered more productive as compared to chronically ill
employees
The cost associated to prevent injuries is less as compared to treatment before that
by remaining fit and healthy (Wolf and Floyd 2017)
Marketing is essential component to maintain growth as well as market penetration
Basic market need means reduction of corporate costs as well as increases in
employee efficiency, which can be achieved by conducting long-term wellness

COMPANY’S MISSION AND
VISION
The Mission Statement of Bounce Fitness serves the community with quality, unique,
comprehensive as well as distinctive health services and programs (van Buuren et al.
2014). In addition, the employee team of Bounce Fitness will be expanded who will
provide preventive services to bring improvement in the quality of life among the
participants. This can be done by providing health and fitness services by utilizing the state
of art equipment as well as practices. Therefore, the programs will show the needs of the
members and that should be financially viable across all the stakeholders.
The Vision Statement of Bounce Fitness aims to become premier provider of wellness
integrated services. Bounce Fitness will conduct comprehensive programs and services to
empower the employee culture and creative acquisition of resource use (Smith 2013).

COMPANY’S CURRENT
PERFORMANCE
Increased use regarding fitness facilities for
individuals
Incorporating fitness memberships in basket of
benefits and that is added to the total compensation
package (Phillips and Moutinho 2014)

COMPANY’S BUSINESS
OBJECTIVES
To generate 10% yearly increase in sales
To sustain in the current marketplace and be recognized as premier
long-term wellness program provider (Peppard and Ward 2016)
To increase market penetration for each quarter
To decrease customer’s acquisition costs 4% on each 2 quarters
To low cost of delivery of service each 1% a quarter (Latif et al. 2013)
To maintain customer expenditure as against sales percentage and on a
steady rate

PEST ANALYSIS
Political factors
Legislation
Political power
Regulation
Economic factors
Inflation
Tax
Interest rates
Growth
Social factors
High standard of living
Attitudes towards work
Demographics change
Technology factors
Research
Improvement to process
Inventions

COMPETITOR’S STRENGTHS
AND WEAKNESSES
The primary competitors for Bounce Fitness are:
Community fitness programs as well as school facilities aims at appealing to lower-income
families and student who desire to have proper access to fitness facilities (Jeston and Nelis 2014)
Forever Fit Gym services mainly targets individuals who are dedicated and motivated to
workout 5-7 times per week (Hill, Jones and Schilling 2014).
Better bodies’ targets casual fitness seekers that not working with high intensity yet desire the
status as well as recognition.
 The above competitors of Bounce Fitness have already captured the large demographics
especially in Australian market. In addition, the advertisement campaign conducted by Bounce
Fitness may face threats while promoting the wellness strategy for facilitating personalized health
programs as well as enhancing the volume of sales as a whole (Haines 2016).

SWOT ANALYSIS
Strengths Weakness
Trained and experienced staff members
Detailed health wellness program
Results-oriented approach for attracting and
maintaining customers (Gordon 2013)
Cost of attracting a large corporate client
High cost arising from catering to personal service
customisation
Inability to function in high business model (Ericksen,
Berke and Dixon 2017)
Opportunities Threats
Participation n a developing market
Capability in leveraging quantitative analysis as it
provides the contention in the long run
Large increase in clients
Lack of capability to function during economic
slowdown
Intense competition arising from large competitors
Societal changes where individuals starts to take
responsibility for client maintenance

COMPANY’S FUTURE
STRATEGY AND INITIATIVES
Raising productivity
Providing services to companies as well as individuals
Lowering overall costs
Recruiting talented staff members
Dedicated as well as hardworking founders (Ellinger and Ellinger 2014)
Signing up a sufficient member of medium-sized companies
Continuing to move down cost that is connected to serving a customer

EVALUATION OF COOPERATIVE
VENTURES (RISK, COST BENEFIT
ANALYSIS, DUE DILIGENCE)
Cost Benefit
Cost for new staff members
Brochure
Advertisement
$ 1000
Bounce Fitness will get goodwill in this market as well
as raise their income
This company can survive in the competitor market
Cost of the employee training that is main need for
Bounce Fitness and it will cost around $3000
Bounce Fitness could get more experienced as well as
talented employees who will provide better services to
the customers and attract the potential customers.

STRATEGIC PLAN TIMELINE,
RESPONSIBLE PARTIES
Main
Activities
1st week 2nd week 3rd week 4th week 5th week 6th week 7th week 8th week
Advertise
ment
New Staff
Members
Brochure
Induction
for new
staff
members
Review of
the plan
Feedback

Advertising Start Date End Date Budget Manager Department
Advertising
Campaign
Number 1
1/8/2017 30/8/2017 $6,000 General Manager
in Marketing
Marketing
Advertising
Campaign
number 2
1/12/2017 25/12/2017 $8,000 General Manager
in Marketing
Marketing
Total Advertising
Budget
$14,000
Public Relations
Pamphlet
completion
22/8/2017 30/8/2017 $1,600 General Manager
in Marketing
Marketing
Total PR Budget $1,600
Direct Marketing
Marketing Plan
Completion
22/8/2017 30/8/2017 $0 General Manager
in Marketing
Marketing
Total Direct
Marketing
Budget
$0
Web

COMMUNICATIONS PLAN
The main purpose of the communication plan is to serve the
community with quality as well as comprehensive and unique
health service programs (Cassidy 2016)
The main objective of the advertising campaign is to position
Bounce Fitness as one of the most effective physical service
provider based on wellness examination, health assessment as
well as fitness centre in areas such as Sydney, Melbourne and
Brisbane

MEASURABLE PERFORMANCE
To generate 10% increase in sales volume as well as increase in
the market penetration at every quarter (Basadur, Gelade and
Basadur 2014)
Bounce Fitness aims at becoming long-term wellness provider
to the people who lives in Brisbane, Sydney and Melbourne
To accomplish lower cost per unit of service delivery
To decrease customer acquisition cost
Holding the percentage of sales at steady rate

INDICATORS TO MONITOR
PROGRESS IN IMPLEMENTING PLAN
 Continuous monitoring is required for
this strategy.
 A KPI (Key Performance Indicator) score
needs to be accommodated for
continuous evaluation and monitoring of
key parameters.
 The KPI will be evaluated on monthly
basis to check for various parameters.

MAKING PROVISIONS FOR
CHANGE REQUEST IN THE PLAN
Any change request can be adjusted to the final
plan according to recent needs and expectations of
the customers (Austin and Pinkleton 2015)
Change should suffice according to laws and
regulations.

EVALUATE ACHIEVEMENT OF
OBJECTIVES AT AGREED MILESTONES
Meeting legal as well as ethical requirements in the areas of
Bounce Fitness
The advertisement objective is to abide by the anti-
discrimination legislation as well as privacy law that are the
basic requirements for a fitness brand (Arvidsson,
Holmström and Lyytinen 2014)
Promotes equal opportunity to its members

MONITOR AND REVIEW
FEEDBACK, SUPPORT AND
ENDORSEMENT
The profile of the client at Bounce Fitness takes into accounts
mostly employees and regular clients where the CAGR of
corporate employees are 35% and regular clients are 15%.
Information is needed about the targeted audience that include
lifestyle, demographics, attitudes as well as existing product
usage by the customers (Arena et al. 2015)

MONITOR AND REVIEW
FEEDBACK, SUPPORT AND
ENDORSEMENT
After implementing the campaign, it is important for
the management of Bounce Fitness to collect feedback
from the existing clients on matters relating to any
improvement for further generating profits (Armstrong
and Taylor 2014)
Spread advertisement message to the targeted audience

REFERENCE LISTS
 Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource
management practice. Kogan Page Publishers.
 Basadur, M., Gelade, G. and Basadur, T., 2014. Creative problem-solving process
styles, cognitive work demands, and organizational adaptability. The Journal of
Applied Behavioral Science, 50(1), pp.80-115.
 Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC
press.
 Drummond, G., Ensor, J., & Ashford, R. (2010). Strategic marketing. Routledge.
 Mullins, J., Walker, O. C., & Boyd Jr, H. W. (2012). Marketing management: A
strategic decision-making approach. McGraw-Hill Higher Education.
 Peter, J. P., & Donnelly, J. H. (2011). Marketing management: knowledge and skills:
text, analysis, cases, plans. Plano: Business pub., INC.
 Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.

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