Strategic Planning for Bounce Fitness: A Case Study Analysis

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Module 7
Term and Year: Term 3 2019
Qualification : BSB61915 Advanced Diploma of Leadership and Management
Unit Code: BSBMGT616
Unit Title: Develop and implement strategic plans
Assessment :
Task 1 Case study and short questions
Task 2 Observation/ demonstration on presentation and short questions
Student Name:
Student ID No:
Assessor’s Name: Svetlana Arutyunyan/ Andrey Loburets
Student Declaration: I declare that this work has been completed by me honestly and with integrity. I understand that the Elite
Education Vocation Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to these
assessment tasks.
Student Name:
Student Signature: Date:
Assessment submission (new) requirements
Please save this file as PDF format(include your name to the filename) before uploading onto Moodle.
Assessment deadlines penalty
It is expected that unless a simple extension, special consideration or disability services adjustment has been granted, candidates
will submit all assessments for a unit of study on the specified due date. If the assessment is completed or submitted within the
period of extension, no academic penalty will be applied to that piece of assessment.
If an extension is either not sought, not granted or is granted but work is submitted after the extended due date, the late submission
of assessment will result in a late penalty fee. For further information, please refer to the Assessment Policy.
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory(S) or Not Yet Satisfactory(NYS). A student can only achieve
competence when all assessment components listed under procedures and specifications of the assessment section are
Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS is
eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did Not Submit (DNS) will be
recorded.
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Principles of Assessment
Based on Clauses 1.8 – 1.12 from the Australian Standards Quality Assurance’s (ASQA) Standards for Registered Training
Organizations (RTO) 2015, the learner would be assessed based on the following principles:
Fairness - (1) the individual learner’s needs are considered in the assessment process, (2) where appropriate, reasonable
adjustments are applied by the RTO to take into account the individual leaner’s needs and, (3) the RTO informs the
leaner about the assessment process, and provides the learner with the opportunity to challenge the result of the
assessment and be reassessed if necessary.
Flexibility – assessment is flexible to the individual learner by; (1) reflecting the learner’s needs, (2) assessing competencies held
by the learner no matter how or where they have been acquired and, (3) the unit of competency and associated
assessment requirements, and the individual.
Validity – (1) requires that assessment against the unit/s of competency and the associated assessment requirements covers the
broad range of skills and knowledge, (2) assessment of knowledge and skills is integrated with their practical
application, (3) assessment to be based on evidence that demonstrates that a leaner could demonstrate these skills
and knowledge in other similar situations and, (4) judgement of competence is based on evidence of learner
performance that is aligned to the unit/s of competency and associated assessment requirements.
Reliability – evidence presented for assessment is consistently interpreted and assessment results are comparable irrespective of
the assessor conducting the assessment
Rules of Evidence
Validity – the assessor is assured that the learner has the skills, knowledge and attributes, as described in the module of unit of
competency and associated assessment requirements.
Sufficiency – the assessor is assured that the quality, quantity and relevance of the assessment evidence enables a judgement to
be made of a learner’s competency.
Authenticity – the assessor is assured that the evidence presented for assessment is the learner’s own work. This would mean that
any form of plagiarism or copying of other’s work may not be permitted and would be deemed strictly as a ‘Not Yet
Competent’ grading.
Currency – the assessor is assured that the assessment evidence demonstrates current competency. This requires the
assessment evidence to be from the present or the very recent past.
Resources required for this Assessment
 All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
 Upon completion, ensure that you have completed your coversheet details, i.e. your name, student ID and signature. If these
details are not present, the assessment would need to be resubmitted again.
 The document is then required to be converted to PDF and uploaded to the student learning management system for
assessment.
 Refer the notes on eLearning to answer the tasks or any additional material will be provided by Trainer.
Instructions for Students
Please read the following instructions carefully
 This assessment is to be completed according to the instructions given by your assessor.
 Students are allowed to take this assessment home.
 Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided
with feedback on your work within 2 weeks of the assessment due date.
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 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will
be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment and re-enrolment policy for more information.
Procedures and Specifications of the Assessment
Task 1
You will be required to demonstrate the skills and knowledge required to research planning requirements. You will be also
required to demonstrate the planning skills and knowledge required to develop & implement strategic plans. You will be
required to demonstrate the skills and knowledge required to consult with your Management in the implementation of the
human resources strategic plan, as the organization’s General Manager, Strategic Management.
Read all materials required for this assessment task: this procedure and the Bounce Fitness Simulated Business
In response to the Bounce Fitness Simulated Business (provided). You will conduct research to discover what vision or
mission statements and discuss its coherence toward its business objectives and deliberate in a meeting (simulated), which
addresses all questions in this task and seek feedback from consultant/ expert (trainer) as well asobtaining approval from
Management for the company’s Strategic Plan.
Task 2
You are required to create a PowerPoint presentation to the Board of Directors and Management of Bounce Fitness which relates
to Assessment Week 1. The objectives of this PowerPoint Presentation are:
 Document relevant research and background for inclusion in the strategic plan
 Formulate strategic objectives and strategies needed for the future
 Detail each strategy with an assigned priority, a timeframe, responsible parties and measurable performance indicators
 Circulate strategic plan for comment, support and endorsement
 Communicate strategic plan to all relevant parties
 Brief people with a specific role in relation to strategies
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Case study
Bounce Fitness comprises of four fitness centers where its head office is currently established in Cairns, Queensland. The other
centers are in Brisbane, (Queensland), Sydney, (New South Wales) and Melbourne, (Victoria). It is the intention of the Board of
Directors that a new center will be opened in Perth, (Western Australia).
It was established in 2001 by Margaret House as a single aerobic studio. After two years’ membership increases demanded the
small leased center be expanded and a new facility was built on land purchased by the organization. In 2004 a second center was
established in leased premises in Brisbane and then Sydney and Melbourne in the subsequent two years.
The Head Office remains in Cairns and a Board of Directors has been established to oversee the function of the business in all of
the centers. Each center has a Manager, who reports to the CEO in Cairns, and a team of permanently employed fitness instructors
and other casual instructors, all of whom report to the Center Manager. The business is operated on best business practice and
complies with all legislative requirements, local by-laws and is registered with the national body.
Bounce Fitness intends to market its brand through excellence in service and expertise to establish itself as a premier provider of
fitness and wellness in Australia. Much time is invested in training the Center staff to upgrade their professional skills and in
customer service to foster a loyal member base. Classes are innovative and varied with regular changes to routines and activities.
Bounce Fitness has developed choreographed fitness moves with accompanying music which is geared to the varying interests,
needs and goals of the member group. It is intended that all around Australia, gym and fitness center members will continue to be
enhancing personal performance through classes designed and produced by this business. Classes are coupled with state-of-the-
art fitness equipment to cater to those who prefer resistance training to aerobic workouts. Additional free weights allow for use by
even die-hard lifters.
All centers are carpeted in areas used for stationary activities, spacious, well-ventilated and air-conditioned to make the
environment as safe and comfortable as possible. They are light and feature wrap-around mirrored walls. The decor was designed
by a Brisbane firm and is updated every three years. There are showers, toilets, lockers.
Each center features a retail section selling fitness shoes, clothes and other related fitness items. There is a small cafeteria which is
leased to a provider who supplies healthy, low calorie drinks and light food. Each Center has regularly scheduled aerobic classes
ranging from high intensity to low intensity. The scheduling is left to each Center but must sustain a minimum average of twelve in
each class for them to continue to be held. The style of classes changes as new methods are developed to sustain interest and
provide variety.
Circuit classes are also scheduled for groups who move in a circuitous rotation around the different resistance equipment
sequentially as instructed by the Instructor. They are required to complete interval aerobic exercises during the completion of a
class to enhance the value of the workout.
Very low intensity classes are also held in age care facilities to keep residents active and incorporate light weights to keep them
healthy. This exercise contributes to the physical and mental health of participants as well as providing an interest in their day.
Special classes are held in high schools for senior students, sheltered workshops and other special situations as requested and are
operated at minimal or no cost as a community service.
Funding is primarily from memberships. Memberships are sold on one, three, six and twelve monthly basis on a decreasing fee
scale. Casual members are welcome, but the daily rate is a premium one.
Each Center sells memberships to 120%. This means that at peak times it could be quite crowded, but experience demonstrates
that there is a maximum of 80% usage.
The retail arm of the business accounts for about 30% of the takings from each center. The strategic plan for retail is set to increase
investment in sales this year to 35%. Each Center will be given a budget to develop and implement a sales and marketing plan to
trial. The most successful may be implemented nationally and will attract an incentive for the most successful Center.
The catering facilities are currently leased to private operators, and this is reconsidered during each annual planning session by the
Board, which produces 5% of the income, less than the rent off-set.
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Task 1
1. You are required to determine the organization’s vision and mission statement with the CEO (your trainer would
undertake this role)to establish each of the proposed strategic objectives to ensure appropriate alignment or
requiring any amendments/ refinements needed to support this initiative.
Demonstration/observation checklist
Candidate’s name
Assessor’s name Svetlana Arutyunyan/ Andrey Loburets
Work activity Validation of Bounce Fitness’ vision, mission and values
Date
Validation of the organization’s vision, mission and values(refer to the Corporate Marketing Plan)
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a. Name of company Bounce Fitness
b. Mission statement
Bounce Fitness wants to develop the organisation as a brand in the fitness industry in market of
Australia as well. The company’s core focus is to become a fitness brand which is able to
provide different types of new, advance fitness programs and excellent services to its customers
in order achieve its target in next few upcoming years as well. Company wants to provide
advance and comfortable environment along with facilities of healthy cafeteria, lockers and
showers to the customers that will help them to not only physically fit but also mentally fit as well.
c. Vision statement
Bounce Fitness want to become a leading fitness brand in the Australia which develops a
reputation of excellent and expertise services to the customers in Australian market. Company
wants to train their staffs belongs to all the centres, not only for providing excellent services but
also for professional skills for customer services as well which will be helpful to the company in
order to lead the brand with a strong and loyal customer base in the country itself.
d. Values
Customer satisfaction & services
Encourage people for being fit and healthy
Core aim is to develop the company as brand through providing different excellent services to
the customers
Understand the requirements of the customers and fulfil them so far.
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2. Provide a brief discussion on whether Bounce Fitness would need to make any changes or refinements to its
vision or mission statement in order to achieve its business strategic objectives
Strategic/ business
objectives Evaluate how this objective aligns to the company’s vision or mission statement
a. New Fitness Centre
in Perth within 2
years
Expansion to this large location will be helpful to the company to take step towards its target to
becoming leading fitness brand in Australia
b. Investment through
excellence of
facility, staff and
operational
management
It will help the company to make growth, if the company would investment in excellence of
facility, staff and operational management as well. Customers should be the first priority of the
company then only these changes can develop because the changes are completely consumer
based (Lopez, et. al., 2019).
c. Invest greater time
in customer
relationship
management
For becoming a leading brand in fitness industry of Australia, it is very important that the
company and customers share a good relationship which will encourage the customers to stay
with the company for longer run as well which will defiantly going to impact the profitability of the
company.
d. Increase staff
training in line with
their job roles
Staff training is one of the most important skill in order to maintain and successful run the
business, especially when it comes to fitness industry because customer follow the trainers so
the must be trained and authorized as well so there will be no injuries and loss to the customers.
e. Considerations for
franchising or
licensing as options
in the next 5 years
Franchising would be good option for the Bounce fitness, in order to expand its business in next
five years, it will be helpful to bring awareness of the company to customers and improve the
brand value as well (Equihua, et. al., 2018).
Licensing would be an option for the company in order to expand its business in Australia. It has
its risks associated with it though.
Prepared by
Student’s Name
Student’s Signature Date:
Approved by
Trainer’s Name Mr Andrey Loburets
Trainer’s Initials Date:
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3. You are to participate in a meeting simulation activity to discuss in consultation with Bounce Fitness’ managers on
the development of the organization’s strategic planning process.
Demonstration/observation checklist
Candidate’s name
Assessor’s name Svetlana Arutyunyan/ Andrey Loburets
Work activity Strategic Management Planning Meeting
Date
Meeting Activity Template
i. Meeting activity Discussion on the role of managers on the development of organisations’ strategic planning
process will be discussed in meeting.
ii. Date 2nd August
iii. Venue Office conference room
iv. Attendance
CEO Margaret House
General
Managers
Marketing Kath Jones
Finance Steve Brinkley
Human Resources Laura Irish
Strategic management(student’s name)
Consultant/ expert Assessor’s name
x. Absence with
apologies N/A
xi. Introduction
This meeting will be going to discuss about the role of the managers in the development of the
strategic planning process of the Bounce fitness as well. All the aspects of managers will be
discussed as well.
xii. Meeting objectives
Company should conducted effective R&D for better research about the franchisees who can
come to join the franchisee in next 5 years. Effective promotions should run for increase
awareness about the franchising of the company (Lundstrom, et. al., 2019).
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4. Relate in the meeting, what are the consideration for determining information requirements and undertake research
to deliver relevant strategic information
a. Methodology Research will be conducted using two methods quantitative and qualitative for data
collection.
b. Accuracy Some data has been collected from previous annual reports of the company which helped to
get the accurate data for research as well.
c. Validity The validity of the data will be for longer period as the research shows current data so far.
d. Reliability
Bounce fitness is one the most renowned brand in fitness industry in Australia and data has
been collected from various reliable sources which will improve the reliability of the research
as well (Hurd & Nourozi, 2019)
5. Deliberate briefly the organization’s political, economic, social and technological developments within the fitness
industry in Australia.
a. Politics
i. Fitness Australia, the National Health and Fitness Industry Association, governs and administers the
National Exercise Professional Registration System and its aim of the system is to ensure that registered
exercise professionals practice in accordance with national professional standards and subsequently
safeguard the health and interests of people using exercise professional services. Refer to supplementary
case study material (Fitness Australia Position Statement: Scope of Practice for Registered Exercise
Professionals)Provide an understanding on the following terms:
 The role of a
registered
exercise
professional
Each country has to follow its own guidelines and rules & regulations for different industry as
well. In fitness industry, it will be one of the most important requirements that company will
hire registered exercise professional as well because the company has been operating
different types of exercises in its centers. It required registered exercise professional who will
be able to understand all the requirements of human body while exercising because only a
registered exercise professional will be able to manage intense body workout without
harming its customers. It brings a deep faith in the customers that company concerns about
the customers which was required to fulfill the objectives of the company as well the for
following the national professional standards (Nurmi & Niemela, 2018).
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 Qualification and
continuing
education
The qualifications for registered exercise professional will be mentioned below.
For fresher with no experience
Level 2 certificate in fitness instructing.
Level 2 diploma in health, fitness and exercise instruction.
Level 2 diploma in instructing exercise and fitness
For experienced trainer the following will be the qualification.
Level 3 diploma in fitness instructing and personal training.
Level 3 diploma in personal training.
Besides all the above mentioned required education, membership of different reputed
professional organization would be required such as register of exercise professional (REPs)
or National register of personal trainers (NRPT) as well.
 Professional
scope and
boundaries
The scope of the become registered exercise professional that it will be helpful to the an
individual in order to maximum utilize of their professional knowledge and education and
safely deliver the prescribed exercises to the customers of the company because customers
are the biggest requirements of the company in order to successfully grow the company in
next upcoming years as well. The boundaries of registered exercise professionals would be
to clear the tasks and its risks to the customers and support collaborative practices to the
customers as well. it will be helpful to the registered exercise professionals to complete their
tasks with the customers more effectively in order to achieve their goals of practicing as well.
if the professionals are well aware about their scope and boundaries of their job roles, it will
help to become more effective in their works as well.
 Professional and
ethical practice
Registration of any exercise professional will be helpful to understand that an individual
exercise professional has understood and met the basic standards of effective training
professionally and personally development as well including the effective and appropriate
adoption of the ethical practices so far. For developing the company successfully, it will be
one of the most crucial requirements that the exercise professional of the company,
understand and follow the professional and ethical practices as well which will be helpful to
the company to develop a strong and loyal customer base so far (Huda & Teh, 2018).
a. Politics(cont.)
 List types of
legislation and
regulations
relating to the
fitness industry
The fitness industry is far more largely self regulated industry, but there are some specific
regulations has to follow in Australia, especially related to consumer protection laws so far.
The fair trading act has to follow in order to provide different services to the consumers
reasonably. The code of practice is mandatory and must be required to become a member of
the national registration scheme as well. Fair trading regulations must be followed, as well. A
registration certificate from Registered Training Organization (RTO) would be mandatory as
well. For successfully running the fitness centers, it would be required that the company
understands the importance of following all theses legislation and regulations in the country
which will be helpful to the company to grow effectively as well (Wilkinson, et. al., 2018). It
will be beneficial to achieve the company’s objectives in the next upcoming years as well.
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ii. Business
principles and
guidance
relating to the
fitness industry
(refer to Fitness
Australia Business
Guidelines for
Fitness Business)
Fitness Australia is a part of committed supporting the fitness industry as well. There are
business principles and guidance from fitness Australia, which should be followed. The
principles help in promoting and facilitating the activities of the fitness business to achieve
good business outcomes. There is some legal compliance also, which must be followed as
well. Every responsible business member should follow these laws. These principles will be
helpful to align with and support the code of practice of the National Fitness Industry as well.
c. Economic
i. General market
growth for
Australia(refer to
Corporate
Marketing Plan)
The fitness industry has been growing fast in past few years; the awareness among the
people could be the best possible reason for this as well. The franchisee cultural is highly
developed and adopted by the customers. This rapid growth will be helpful to attract the
customers and increase the revenue of the industry as well. The products and services
provided by the fitness centres have been increasing rapidly as well (Foster & Guttmann,
2018). The following factors help to understand the general market growth for Australia.
 The demand of require specific skills and certification increased.
 The third & fourth certificate is must to carry.
 The market of different intense workout programs developed.
 Sports based programs in demand.
 Awareness of people for fitness been increased rapidly.
 Social media is helpful to develop the fitness trend in the country as well.
ii. Perth’s current
and potential
business growth
The company is planning to open a new fitness centre in the Perth which will be one of the
helpful decisions to the company in order to expand its business as well. Perth is again one
of those places where the trend of being fit is growing in past few years. Most young
population likes to join a fitness centres for being fit and socialising as well. It will be helpful to
the company because it will be helpful to the company to expand their business because
social media made the fitness trend very popular. People love to share their workout routines
and fitness regime on social media as like celebrities which increase the demand of
advanced fitness centres in Perth. People there are particularly very aware about the
advance types of exercise and different equipments’ as well.
e. Social
i. Australian
consumer
spending
patterns
Australian passion for being fit has been growing from the last few years. From 2009, the
overall gym expenditure has been increased by 49% in Australia. In 2018, Australian spent
$2.23 billion on fitness, beauty and health categorise as well. The industry spent on cost has
been increasing, but the per capita cost has been reduced as well. The popularity of gym,
fitness centres have been growing by 58% over the last four years and spend per person has
been doing down by 12% as well.
The customer likes to take the advantages of competition and wait for the best offers and
deals because customers like being offered more choices as well. The consumers would be
high in the summertime, and dark and wintery conditions would affect the spending pattern
negatively of customers. Summer will be the high time when it comes to the highest
enrolment in fitness centres as well (Sultan, et. al., 2018).
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ii. Market trends
(refer to Corporate
Marketing Plan)
The following are the market trends of the fitness industry in Australia as well which are
growing rapidly from last few years.
Wearable and fitness technology
Group training classes
Fitness of older people or medical fitness programs
High intensity interval training programs (HIIT)
Fitness programs in open areas
g. Technological
i. Growing
popularity of
wearable fitness
devices
The popularity of wearable fitness devices has been increasing in the past few years,
especially among young people because In Australia, fitness devices are top-rated among
young consumers in the market. The access of tools is not just limited with the young criteria,
but it will be helpful to the middle and old age people so far because it will help to count their
daily basis intakes and burn calories. It helps the consumers to track the number of their daily
food requirements and inputs. The calories which burn by the consumers by regular day to
day activities would be helpful to follow as well (Jonas, 2018).
Overall, these devices are trendy, cool and beneficial to the consumers to maintain their
fitness routine as well.
ii. Access to
substitute
fitness services
via the Internet
Wearable fitness devices will be helpful to access some fitness services which are
substitutes of exercises or fitness centres as well. These devices allow accessing the fitness
services such as online videos, classes and different programs with the help of Internet as
well.
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