Assessment 2
Part A: Role play – Vision, Mission, and Values
Notes from the Business Plan
Current Vision, Values, and Mission
Vision Statement:
To establish CrossFit Endurance as the largest CrossFit affiliate in Queensland, in terms of membership size.
Mission Statement:
To offer the highest quality fitness experience in the following by:
l ensuring coaches have CrossFit skills and strong communication skills
l ensuring that all members receive both individual attention and a sense of community in a group setting to maximise motivation
l ensuring that equipment and programming is on par with standards in the CrossFit industry
Values:
1. Striving for ultimate human performance
2. Staying compassionate to the needs of clients
3. Serving the largest possible number of people
4. Quality of quantity
5. Becoming the best coaches
Changes in Strategic Direction
l Increased focus on older target market
l Availing services to clients of all ages
Proposal of vision, mission, and strategy
New Vision Statement:
To provide functional training and encourage pursuit of good heath and fitness among people of all ages
New Mission Statement:
To expand inclusion of community-based programs and reach more clients in Queensland
Organisational values:
n To comply with social responsibility requirements through active participation in the local community
n To keep up the high standards of safety
n To maintain professionalism by improving staff knowledge and skills
n To use strategic alliances and collaborative ventures to achieve the objectives of the future programs
n To provide health and fitness opportunities to the largest number of people
[Next is Role Play part to be organised by the assessor]
Expected outcomes:
n I confirmed understanding and use of the existing mission and vision of the company
n I proposed changes to mission and vision status based on strategic direction of the business and gained agreement from the business owners
n I obtained feedback on the proposed (5) organisational values and finalised that 3 most relevant ones are:
i. To comply with social responsibility requirements through active participation in the local community to promote health and fitness
ii. To maintain professionalism by improving staff knowledge and skills
iii. To use strategic alliances and collaborative ventures to achieve the objectives of the future programs
Part B: internal and external environment
Information types | Sources |
Business strengths | Annual reports Performance reports |
Business’ weaknesses | Performance reports Statement by business owners or employees during an interview |
Opportunities | Information on industry trends Strategic plan documents (that reveal the organisation’s future plans) |
Threats | Data on industry trends Performance reports of competitors |
a) Analysing the internal environment of CrossFit Endurance
b) Analysis of external environment of CrossFit Endurance
Information Type | Sources |
Political factors that affect the business | Government’s tax policy and regulations Political issues and trends |
Economic factors | Bureau of economic analysis Macro economic analysis report |
Social factors | Consumer demographic data Reports on lifestyle or spending behaviour of the local community |
Technological factors | Industry trends data Research and development reports |
Environmental factors | Regulations of environment protection Environmental policy documents |
Legal factors | Regulations on taxes Laws on employment |
c) Outcomes of a PEST (political, economic, social, and technological) analysis for CrossFit Endurance
Political | Economic | Social | Technological |
CrossFit Endurance and other ventures that promote physical activity receive support from the World Health Organisation (WHO). Ronieri (2020) explained that since 2018, WHO pursues a universal action plan on physical activity as one of the ways of achieving it health promotion goals. | Governments use tax rates to support fitness and health business. Some governments and states offer tax incentives to encourage creation and running of business that encourage physical activity (von Tigerstrom, Larre, & Sauder, 2011).
Others even give tax exceptions to bicycle sellers and organisers of physical activities. In the United States and Australia, for example, State and federal bills can apply tax deductions or offer credits to individuals with membership of fitness health programs or clubs (von Tigerstrom et al., 2011) | Wealth or income status affects the success of a health and fitness venture. According to Kari et al. (2015), individuals from the highest income category show increased readiness to take part in physical activity and even spend 26% more in this regard. The authors further added that persons from the highest income class are 3% more involved in physical activity than those from the lowest income group.
Educational attainment level also affect fitness and health business. Less educated or illiterate people do not understand the importance of physical activity and are, thus, less likely to purchase the services offered by fitness ventures (Droomers et al., 2001) | Billions of people use digital communications technologies daily, across the globe. This provides a great opportunity for fitness and health businesses to interact with current customers and reach potential buyers. Dwivedi et al. (2021) argues that business can easily use digital and social media technologies to create awareness of public programs and services. Digital technologies, thus, enable businesses to achieve their marketing objectives. |
d) Competitors of CrossFit Endurance
Competitor | Product Offering | Value to customers | Location | Strengths |
Activate Health and Fitness | Personal training | Quality (they motivate and help clients to train smart, and avoid injury) | Brisbane CBD | Has skilled and knowledgeable personnel hence offers integrated health and fitness services
Has several personal training solutions to meet the goals and needs of individuals and groups |
Jetts Fortitude Valley | Personal training | Quality (trainees are tended by both personal trainers and exercise psychologists to provide both short- and long-term services | Fortitude Valley | Is a popular brand with additional branches in Brisbane CBD, Woolloongabba, and Lutwyche
Offers short- and long-term training
Makes personal training accessible to populations with special needs |
Anytime Fitness | Functional training and personal training | Convenience (Offers 24/7 access to its facilities to allow clients workout at their preferred time) | Indooroopilly | Is a global company with over 3,200 branches worldwide
Has state-of-the-art equipment, friendly staff, and dedicated trainers |
e) New SWOT Analysis of CrossFit Endurance
Strengths | Weaknesses | Opportunities | Threats |
Increased participation of clients in scheduled classes and personal events | High costs of personal training services | Increase business operations in more locations like Fortitude Valley and Indooroopilly | Existence of businesses with cheaper yoga and mobility training |
Highly professional, skilled and knowledgeable staff | High competition in all the potential markets | Use digital and social media technology to market the training services | Possibility of new entrants due to promotions of physical activity by WHO and tax incentives by governments |
Active participation in local community |
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Part C: Role Play
[Submit PEST analysis and hold a discussion]
Part D: Role Play
[Present competitor analysis and SWOT analysis and hold a discussion]
Part E: Analyse suitability of cooperative ventures
A Comparative Report
a) Alignment with Mission, Vission & Values
Proposal | Mission | Vision | Value |
Proposal 1 - Family Health Medical Clinic | Can help CrossFit Endurance to reach more clients in Brisbane City | Supports Crossit Endurance’s goal of promoting good health | Is a way of using strategic alliances and collaborative ventures to achieve health and fitness goals
Provides CrossFit Endurance a chance to work with experts in the field of health |
Proposal 2- Brizzy Childcare | Offers CrossFit Endurance a chance to serve more Australian families and children | Matches CrossFit Endurance’s objective to serve people of all ages | Brizzy Childcare values integrity and relationships hence a great partner for strategic alliances and collaborative ventures aimed at promoting physical activity
Brizzy Childcare embraces diversity and inclusion, and could be helpful when organising local community programs that encourage physical activity |
b) Cost Benefit Analysis
Proposal | Costs involved | Benefits associated |
Proposal 1- Family Health Medical Clinic | $100 per referral from Family Health Medical Clinic
Send more referrals to get more enrollments | At list 3 referrals from Family Health Medical Clinic per month
No set limit on minimum number of referrals
Potential for competitive advantage as some of CrossFit Endurances’s competitors lack arrangements of this kind |
Proposal 2 - Brizzy Childcare | Avail space and make it fit for children
Stock puzzles, books, toys, games and movies
Secure the space for ease of ease of dropping and picking of children, by parents
Install CCTV cameras for safety and liabilities associated with care provision
Settle insurance costs due to child care facilities
Invest $10,000 in each of the company’s facility locations | Expansion of membership base
Competitive advantage as certain gyms lack qualified childcare Additional revenue from charging service fees
Pass the associated costs to parents/customers through increased membership fees or through hourly charges |
c) Strengths and Weaknesses
Proposal | Strengths | Weaknesses |
Proposal 1- Family Health Medical Clinic | Does not require CrossFit Endurance to invest in any facilities | CrossFit Endurance earns $30 less per referral to Family Health Medical Clinic (It pays $100 per referral but Family Health Medical Clinic pays $70) |
Proposal 2 - Brizzy Childcare | Can really pay off if CrossFit Endurance successfully transfers the associated costs to customers or parents | Requires CrossFit Endurance to invest a lot of money, and may be impossible to implement if the organisation lacks adequate financing |
d) Risk Analysis
Family Health Medical Clinic
Risk | Likelihood (1-4) | Impact (1-3) | Risk score (l X i) |
Commitment issues - if CrossFit Endurance fails to refer more clients to this clinic, its enrolment will not grow much | 3 | 1 | 3 |
Financial problems - CrossFit Endurance may demand an equal pay for referrals. No partnership may happen if Family Health Medical Care reject this idea. | 2 | 1 | 2 |
Total risk score |
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| 5 |
Risk rating is Moderate(M) - (possible to correct through planning and budgeting)
Brizzy Childcare
Risk | Likelihood (1-4) | Impact (1-3) | Risk score (l X i) |
Differences in management style - causes conflicts and inability to balance practices from either sides | 3 | 2 | 6 |
Trouble setting boundaries - Could compromise professional and personal relationships if unexpected circumstances arise | 2 | 2 | 4 |
Total risk score |
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| 10 |
Risk rating is High (H) - immediate corrective action is necessary
e) Sufficiency of information for due diligence
Proposal | Answer |
Proposal 1 – Family Health Medical Clinic | Sufficient - The goals for the proposed partnership a and importance of the process are explained
States undertakings from the management of CrossFit Endurance |
Proposal 2 – Brizzy Childcare | Sufficient - Financial value of investment is stated,
timeline is stated, and
prior investigation must have been done to establish resource availability
Undertakings from CrossFit Endurance management are identified |
f) Recommendations for best fit
Proposal | Answer |
Proposal 1 – Family Health Medical Clinic | NO |
Proposal 2 – Brizzy Childcare | YES |
Justification | Proposal 2 has more risks and requires huge investment but the idea of standardised child care is unique and particularly beneficial if the costs can possibly be transferred to customers. Besides, CrossFit Endurance got $136,078.50 as Net Profit in 2019, meaning it can easily finance the proposal. |
Assessment 3 – Project 2 – Develop strategic plan
Part A – Prepare strategic plan
CrossFit Endurance Strategic Plan
a. The organisation’s:
Strategic Plan | Answer |
New Vision | To provide functional training and encourage pursuit of good heath and fitness among people of all ages |
New Mission | To expand inclusion of community-based programs and reach more clients in Queensland |
Values | To comply with social responsibility requirements through active participation in the local community to promote health and fitness
To maintain professionalism by improving staff knowledge and skills
To use strategic alliances and collaborative ventures to achieve the objectives of the future programs |
b. the organisation’s background
Product Profile | CrossFit Endurance gyms are safefor adults and children of all ages. Engagement in low intensity functional movement training help to build health and fitness skills, for better living. Training takes place in two modes: group classes; and personal training Training happens in specifically fitted out gyms, with different weights, bikes, rowers, gymnastic rigs, and Olympic lifting platforms
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Management Profile | Venessa Choi Is a co-owner of CrossFit and manages class programming and functions related to operations management Has 21 years experience as strength training coach, and 16 years as a personal trainer Arvin Krishnan Co-owns CrossFit Endurance with Venessa Choi, and manages financial functions and coaches a class at Fortitude Valley branch of CrossFit. Has 11 years experience in Australia’s and overseas fitness industry Maria Lorenzo Is the heach coach and manager at Indooroopilly centre. Has 6 years experience working as a trainer at CrossFit Endurance |
Changes in Strategic direction | l lIncreased focus on older target market to exceed the previous commitment level l Availing services to clients of all ages |
SWOT Analysis Strengths | Increased participation of clients in scheduled classes and personal events
Highly professional, skilled and knowledgeable staff
Active participation in local community |
SWOT Analysis Weaknesses | High costs of personal training services
Resistance to change, at a time when competitors |
SWOT Analysis Opportunities | Increase business activity in more locations like Fortitude Valley and Indooroopilly
Use digital and social media technology to market the training services |
SWOT Analysis Threats | Existence of businesses with cheaper yoga and mobility training
Possibility of new entrants due to promotions of physical activity by WHO and tax incentives by governments |
c) Key trends and forecasts for fitness industry in Australia that affect CrossFit Endurance
Key Forecasts and Strategy | Significance |
1. Fitness Australia has established working relations with ThinkGP for the purpose of profiling the fitness industry and mitigating issues with pre-exercise screening and ensuring safety and effectiveness of physical activity using referrals (Fitness Australia, 2018). | As a registered exercise professional, this program will help CrossFit Endurance get the opportunity to access successful referral relationships. |
2. Consumers are increasingly seeking cheaper program memberships and alternatives, causing the fitness industry to generate lesser revenue (George, 2019). | CrossFit may have to reduce its program membership charges. To maintain its current prices, CrossFit Endurance may have to provide convenient, unique, and innovative services. |
References
From recommended readings:
Fitness Australia. (2018). Fitness Australia joining GPs in the quest for a fitter, healthier Australia.
George, K. (2019). The future of Australian fitness industry.
d,e,f:
Objectives | To grow membership in all centres that belong to CrossFit Endurance | Participate more in local communities within Indooroopilly and Fortitude Valley |
Strategy | Use digital and social media technologies and other media to market Mindfully Fit and CrossFit in the old target markets | Make innovative and unique programs and services to attract new members and turn referrals from Collaborative ventures into permanent members |
Time-frame of completion | 2 years | 2 years |
KPI | At least 10 new memberships every 4 weeks | At least 7 full time memberships out of 10 GP referrals in every 3 months. The minimum conversion should be 70% in 2 years |
Personnel responsible - implementation | Marketing manager | Centre managers |
Monitoring schedule | Review: Monthly sales; quarterly reports; semi-annual and annual reports | Evaluate: monthly sales; quarterly, semi-annually, and annual reports· |
Personnel responsible - Monitoring | Business development manager | Business development manager |
Email
To: Venessa Choi
CC: Arvin Krishnan
From: Business Development Manager
Date: 5/22/2022
RE: THE NEW STRATEGIC PLAN FOR CROSSFIT ENDURANCE
The first objective of the strategic plan grow members in centres of CrossFit Endurance. Digital and social marketing technologies along with others will help to expand marketing of Mindfully Fit and CrossFit so that this objective is achieved. The second objective is to increase active participation in the local community through innovative and unique services.
The plan is the product of extensive research and analysis of mission, vision, and values of the organisation. Evaluation of the organisation’s background details such as project profile, strategic changes, results of SWOT analysis, and key industry forecasts and trends.
I will appreciate your feedback and advice on this plan.
I would also like your support and endorsement for this strategic plan.
Part B: Role play – Presenting strategic plan
[See PPT]
Assessment 4: Evaluation of Strategic Plan
Evaluation Report
1. Performance of each strategy towards achieving strategic objectives
Strategy applied for objective 1 did not reach the expectation as 5 more new members are required to reach the expected rate of 72.
Strategy assigned to objective 2 did not meet expectation as the results were 6 units less than the expected number (which is 16).
2. Capacity of current strategies to achieve organsational objectives (within original time frames
The current strategies for objectives 1 and 2 are not capable of achieving the strategic objectives. For instance, the strategy for first objective 1 has brought 67 new membership in 6 months. This means that in 2 years, if the activity of strategy is maintained, there will be 67*4 or 268 members. The target over 24 months according to plan is 800 members. The plan will, thus, achieve 532 less memberships. For objective 2, the current strategy will lead to 10*4 or 40 permanent members from GP referrals in 2 years. The expected membership is at least 65 memberships, meaning there will be 15 memberships less.
3. Reasons for unsatisfactory performance of plan
The objectives are too demanding and the timeframes are shorter than necessary. CrossFit Endurance needs 7 to 8 years to achieve objective 1, and 3and a half to 4 years to achieve objective 2.
4. For each objective, discuss:
l challenges that CrossFit Endurance must overcome to achieve objective
Extend the initial time frames or find alternative strategies that will boost the attainment of the objectives withing the preset timelines.
l Is objective, strategy and KPI realistic and achievable
The objectives and KPIs are not realistic, and cannot be achieved using the current strategies.
l is the scheduled timeframe realistic
The timeframe is not realistic as it cannot enable the organisation to attain the planned objectives, with the identified strategies.
5. Refined strategic plan
Objectives | To grow membership by 250 in all centres that belong to CrossFit Endurance, in 24 months | Participate more in local communities within Indooroopilly and Fortitude Valley |
Strategy | Use digital and social media technologies and other media to market Mindfully Fit and CrossFit in the old target markets; and a new program for adults aged 60+ | Make innovative and unique programs and services to attract new members and turn referrals from Collaborative ventures into permanent members |
Time-frame of completion | 2 years | 2 years |
KPI | At least 11 new memberships every 4 weeks | At least 5 full time memberships out of 10 GP referrals in every 3 months. The minimum conversion should be 50% in 2 years |
Personnel responsible - implementation | Marketing manager | Centre managers |
Monitoring schedule | Review monthly sales; quarterly reports; semi-annual and annual reports | Assess monthly sales; quarterly, semi-annually, and annual reports· |
Personnel responsible - Monitoring | Business development manager | Business development manager |
6. Recommended Improvements to the plan
1. CrossFit Endurance should invest in new products and services, improve its existing technologies, and focus on discovering new knowledge while also improving its current products and services
2. Once in awhile, CrossFit Endurance should give membership offers and discounts to encourage enrolment among customers that seek cheaper alternatives.
