Essay
Unit 6 Multifits gym plc
- Institution
- PEARSON (PEARSON)
Essay of 7 pages for the course Unit 6 Main issues that Multifit Gym plc is facing at PEARSON (case study)
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Introduction:Multifit Gyms plc (MF Gyms plc) is a fitness brand with 20 gyms that was established in the
late 1900s. It has a reputation for excellent customer service and innovative online classes
and employs 300 people in its gym and 15 head office employees for support activities such
as marketing, finance, and human resources. Most of the employees at MF Gyms plc
appreciate the laid-back management style and flexible work opportunities, but there are
issues with the lack of a system to monitor the success of staff appraisals and training
opportunities, which has led to low customer satisfaction and a lack of skilled staff. At the
end of 2020, rumours circulated that MF Gym plc would be taken over by local gym plc, and
staff turnover increased as a result. The two gyms officially merged on June, 2021, with the
enlarged business trading under the local Gym plc name and Endris Hunt, the managing
director of local gyms plc, becoming the CEO. After the merger, the senior managers of MF
Gyms plc either left or were made redundant, and Endris Hunt implemented changes to
increase efficiency, including replacing some full-time staff with part-time staff and
outsourcing certain services. The changes have led to discontent among the employees and
a decline in morale.
Business goals and how I hope to help them achieve it:,
To help Endris achieve his goals, I would suggest the following strategies:
To increase net profit by 10% by the end of 2026, I suggest focusing on improving
operational efficiency, expanding into new markets, and introducing new revenue streams.
This could involve optimizing the use of resources, streamlining processes, and identifying
opportunities for growth.
To increase market share by 5% by offering a wider range of fitness classes, you we can
recommend expanding the range of classes and activities available, as well as promoting
these offerings to attract new customers. This could involve introducing new types of
classes, such as boutique fitness or online classes, which are growing in popularity.
To increase customer satisfaction by the end of 2026, I would recommend implementing
strategies to improve the customer experience, such as providing excellent customer
service, offering flexible hours to accommodate time-pressed customers, and using fitness
apps and other technologies to make it easier for customers to access and track their
workouts.
Additionally, I would also suggest that Endris consider providing training and development
opportunities for employees to help them become more multiskilled and efficient, as well as
implementing systems to monitor and measure employee performance. This can help to
ensure that all workers are able to deliver high-quality service and support to customers,
which can in turn help to drive customer satisfaction
, Main issues that Multifit Gym plc is facing:
Issue 1:
lack of monitoring and accountability – the company does not have a system in place to
monitor the success of new activities or to budget for them, and there are no staff appraisals
or consequences for missing profit targets or declining customer numbers. This can lead to
low profitability and customer satisfaction. The lack of monitoring and accountability at MF
Gyms plc has an impact on business goals in several ways. Firstly, it can lead to low
profitability, as there is no system in place to track the success of new activities This means
that some activities may not be as successful as they could be, and the company may not be
making the most of its resources. Additionally, the lack of staff appraisals means that there is
no way to measure employee performance and identify areas for improvement. This can
result in low customer satisfaction, as staff may not be providing the level of service that
customers expect. Finally, the lack of consequences for missing profit targets or declining
customer numbers may demotivate employees and create a culture of complacency within
the company. The cause of MF gym plc facing issues such as lack of accountability and
monitoring is due to its laid-back management style, lack of training opportunities for staffs
and a shortage in staff appraisals. This has led to low customer satisfaction rates as well as
a decrease in skilled staffs to run popular classes and finally a high staff turnover.
Additionally, the merger with local Gym plc may have also contributed to the change in
management and increased focus on efficiency and results.
To prevent the lack of monitoring and accountability at MF gyms plc, the company can
take the following steps:
Implement a system for tracking and evaluating the success of new activities and initiatives:
this can include setting clear goals and objectives, regular reviewing and analysing data on
the performance of these activities. By tracking this information, the company can better
understand what is working and what is not, and from there they could make necessary
adjustments to help improve the success rate of these initiatives.
Furthermore, they could establish a more structured approach to employee appraisals and
development: this can include conducting regular performance evaluations, providing
training and development opportunities to help them grow and succeed in their roles. By
investing in employee in employee development, the company can improve the overall skills
and capabilities of its workforce, leading to higher levels of customer satisfaction and
success. In addition to this measure, MF gyms plc may also want to consider improving
communication and transparency with its employees, especially in the event of significant
changes such as merger or acquisition. By keeping employees informed and included in
important decisions, the company can help to build trust and maintain a positive working
Environment.
It appears that MF gym plc has a laid – back management style that emphasizes trust and
flexibility for its employees, however, this style has not been very effective in addressing the
issue of monitoring and accountability as demonstrated by the lack of a system for tracking
and evaluating the success of new initiatives, the absence of staff appraisals, and the low
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