Students will create a new organizational structure for a selected new or existing organization to make specific recommendations and present to a group of organizational stakeholders. Students will play the role of an organizational manager in charge of planning, organizing, leading, and controlling business processes.

Students will use the business strategies and methods discussed in the readings and class activities to a final Business Report with a minimum of 10 pages but not to exceed 12 pages in length.

 

Alpha Fit Gym and Wellness Facility

Company Overview

Company Description

Alpha Fit Gym and Wellness is a unique facility that aims to offer fitness and wellness programs that enhance the quality of life of its members and clients. The business will be located in Arkansas due to the prevalence of unhealthy lifestyles in that state. The fitness programs will be open to all individuals despite their status or age. The company's mission is to offer whole-class fitness programs that improve the quality of life of people and lower the chances of lifestyle diseases. The company's vision is to become a global fitness company that offers high levels of personal services to members across the globe. It aims to serve different nations and work closely with the healthcare sector to help reduce mortality rate through reduction of lifestyle diseases prevalence.

The business will be a partnership between the two co-founders of the business. The partners will share executive management responsibilities of the business equally. As partners, they will equally share profits and losses and contribute equally to the capital of starting the business. The two partners will be general partners who assume responsibility for the business and its liabilities. This mode of business operation was chosen because of its various advantages. One, a partnership does not pay taxes but rather partners pay taxes individually (Panasenko et al., 2018). This will lower the expenses of the business. Secondly, with a partnership business, the company can easily manage the business without losing control as it would be the case of the business was set up as a company or a public corporation.

Business ethics will be an integral part of our business of the importance on business performance and the value of service to the clients. The partners will ensure that the business remains honest in its representations in terms of our business relationships and the knowledge of training our clients. Secondly, we will guard client confidentiality and personal information. Since fitness is also linked to health, we will guard any information (medical or financial) that we will access in the course of the business. Client confidentiality and privacy is our utmost goal. Thirdly, we will remain in our professional lane and maintain appropriate boundaries in the business (Ferrell, Hirt & Ferrell, 2020). For instance, the Alpha Fit gym and Wellness fraternity will avoid any personal or romantic relationships with our clients. Fourth, we will pursue good business practices by ensuring compliance with the set business regulations and standards. Lastly, we will ensure our professionals are competent and offer ongoing professional education programs that will help them better their skills and competence.

Corporate Social Responsibility

After building a friendly community within the facility, the business will undertake various community outreach programs and corporate social responsibility acts. The business will occasionally host outdoor fitness events that will help people in the community to get fit and encourage them to adopt a healthier lifestyle. These outreach programs will be free of charge, thus encouraging people to sign up and show up. This program is consistent with the company's aim of improving the quality of life of people and reducing the prevalence of lifestyle diseases. Secondly, the company will always support local charitable causes with financial resources every year. The management of the company will set aside a certain percentage of the company's net revenue that will be channeled to CSR activities annually. Different charity groups and organizations engage in different programs and activities yearly. Occasionally, the business will exhibit its fitness programs at a health fair which are often organized to offer solutions to various health issues (Philyaw Perez et al., 2009). Thirdly, the business can engage in yearly boot camps that are aimed to help participants to lose weight and win awards and some money. The top three winners will get a free membership at the club. There are so many initiatives and activates that the business can engage in to bring value to the community. The management will ensure that they explore all viable programs and activities in due time.

Code of Ethics

The partners have created a code of ethics that should be adhered to by all employees. This code of ethics applies to the trainers, clients, and other workers within the business. The Code of Ethics has been given into five categories. Under the professional relationship clause, the trainer is expected to maintain confidentiality, trust, and honesty and adhere to all legal constraints (Philyaw Perez et al., 2009). The trainer should focus on the welfare of the client and ethical concerns. It is deemed unethical by the business for the trainer to recommend programs and diet plans that are not helpful to the client.

Discrimination of any kind is highly commended and punishable by revocation of membership or termination of employment, in case perpetuated by a trainer. Secondly, the trainer practice and conduct clause require the trainer to create boundaries in their competencies and expertise and not take on work they cannot deliver. They are expected to take the precautions necessary to protect clients' welfare and not represent themselves in a misleading or untruthful manner (Macintosh & Doherty, 2007). Thirdly, all potential conflicts of interest that might arise should be resolved in accordance with the clients. Additionally, any promotions and advertisements that might create undue influence should be avoided at all costs. Fourthly, all trainers and clients are expected to maintain professional relations that promote fairness, honesty, and mutual respect. Lastly, under the societal responsibilities clause, the trainers will be required to support health programs and activities by actively participate in them. If need be, the trainers will also be required to give a testimony in courts in regarding their duties. 

Operations Management Processes

Organizational Structure

The business will have a simple organizational structure that consists of two executive partners, two administrative personnel, gym trainers, and a few support staff. The partners will make major business decisions such as the new location of facilities and devise strategies to make the business more successful. The two administrative personnel will oversee all the management functions of the business, such as hiring new staff, procuring needed materials, financial management, and marketing of the business. They will report weekly to the partners and discuss openly with the partner's various challenges and possible solutions (Liu & Peng, 2003). The trainers are integral to the company, and they will be considered as associates of the business since they undertake core business activities of the company. The support staff is responsible for cleaning and maintenance of the offices and the gym facilities.

Communication Dynamics

The business will use direct communication to enhance effective communication between various stakeholders. It employs both downwards and upward communication styles. The management, which is the partner, will set the goals of the company and detail actionable steps that the administrative personnel should undertake to achieve the said goals (Hurley, 2004). The management communicates these goals to the administrators. The administrators will communicate the goals to the other levels of workers by setting performance expectations for each worker (Macintosh & Doherty, 2007). The lower-level workers will also participate in weekly meetings with the administrators, allowing them to communicate their ideas and issues openly. This communication dynamic will ensure effective communication within the organization, which has contributed significantly to its success.

Transformation Processes

The fitness industry has seen various transformations that have shaped business processes and operations. During the idea's inception, opening big facilities that could accommodate more people seemed like a solid plan. However, the partners have been shifting it to adapt to the digital world, allowing the company to grow its markets to overseas markets. Although physical programs are still available to individuals who want to go to the gym physically, most of the activities are now being carried online. This gives the trainers and the clients more flexibility in terms of their schedules (Lagrosen & Lagrosen, 2007). Additionally, through the digital transformation, the business will be able to attract various clients from other countries. The company will build an app and website that gives its clients access to various fitness and wellness programs due to the declining number of physical clients and the increasing number of virtual clients. The company will engage more with virtual trainers (Panasenko et al., 2018). The occurrence of the pandemic and the nature of the virus also contributed significantly to the transformation of the businesses since the country was on lockdown. Even after the lockdown, many clients are still skeptical about meeting physically, and thus they have maintained their virtual membership.

Supply Chain Strategies

The business offers a service; therefore, the supply chain operations aren’t too critical for the business. When starting out, the company will purchase a significant deal of fitness equipment needed for the facilities. The company will majorly focus on programs that allow the clients to work out without machines and emphasized the use of normal and readily available tools such as chairs and skipping ropes (Liu & Peng, 2003). The company will create an advanced program for virtual clients with machines. However, it accounts for a smaller percentage of the company. The company will use the online group sessions with two virtual trainers where they train the virtual clients one on one. This allows the company to deliver quality at lower costs since concurrently having various members saves time and resources. Additionally, the company also has pre-recorded programs that are available on the apps and website where virtual members pay to access them. This supply strategy is key to the company since it will only incur a one-time expense and but the service will generate profits regularly. These programs are suitable for members who have very busy days and want flexible schedules to allow them to access fitness programs at any time.

Total Quality Management

Providing quality services is a priority in the business; therefore, it will ensure that the trainers confirm the set specification of each program. The management will check the quality of work done by comparing output versus the set specification through inspection, quality control, and standardization. Quality management will also be measured through the costs incurred versus the revenue generated (Moxham & Wiseman, 2009). Generally, higher quality is depicted through better inspection and thus higher cost. If the revenue of the company is increasing without a corresponding increase in cost, then the quality of the services being offered might be going down. Quality inspections should be done regularly to ensure that set standards are met.

 

Develop the app

Commence Business

Pert Chart

 

 

Idea & strategies

Hiring

Training & induction

 

 

 

 

 

 

Marketing Management Processes

Service

Alpha fit gym will offer the following services; First, The tone and fitness programs that will allow the company to offer training sessions to groups of people physically and online. The trainers under this program will help clients to achieve their personal health goals. This program combines yoga, weight training, Pilates, strength and flexibility training. Secondly, the private fitness program allows clients to get personalized services that are structured to fit into their schedules and goals. Thirdly, boot camps are held yearly and are tailored to focus on weight loss. Lastly, the private group fitness program is offered to groups with similar goals and schedules. These are mainly offered to corporates who want to enroll their staff in the gym. Other minor services will be Karate, yoga, and nutrition.

Target Market

The target market for the service are adults who are conscious about their physical health and well-being. The business will be set up in Arkansas, which has high numbers of obese and unhealthy people. These people are the target audience for the boot camp and the fitness programs that the business offers since they likely want to lose some weight (García-Fernández et al., 2020).  Additionally, people who want to watch their weight and mental health are also a target audience for the business because of services such as yoga and diet plans (nutrition). Additionally, the market of the business also expands to those who want to learn self-defense mechanisms since Alpha fit has a Karate program.

Place and Distribution

Physical facilities will be opened at Little Rock in Arkansas due to the high population in the area. The gym will be located strategically near corporate offices, and residential areas since people tend to work out just after work. The facilities set out in residential areas aim to serve people who work from home or prefer working out at night or early mornings before going to work (Harvey, Vachhani & Williams, 2014).  The company will also have online programs that will be carried out virtually through the company's app and website. Given the changing dynamic due to the coronavirus and the massive shift by most clients, the company will also host all of its programs online. These services will be accessible to anyone across the globe as long as they sign up and pay the monthly subscription fee.

Price

The business will adopt different pricing strategies for its various services. The tone and fit service will be charged at $15 for physical classes and $10 for online classes. Secondly, the group sessions will be $10 for both options, while the group private fitness programs charges will be tailor-made for each group depending on the number of participants. The private fitness program will be charged at $25 for physical and $20 for an online class. Yoga and Karate will have different charges depending on the stage of the client. Bootcamps will be free of charge, but the participants must pass all the qualifications in order to be considered. Generally, the price of online classes will be lower than those of physical classes because online classes can be done at a lower cost and allow the trainers to train many people at the same time.

Promotional Plan

The business will rely heavily on digital marketing strategies that will create brand awareness. The company will engage various social media influencers to help them push the brand online. The company will use search engine optimization and email marketing to drive traffic to its website and application (Murray & Jarman, 1987). Strategies such as content marketing through the businesses' social media pages and blogs through collaboration with other applications. The company will also use pay-per-click marketing where bloggers and vloggers who share similar content will be engaged to help with the marketing campaign of the service. The company will also use mainstream media for advertising, though not as extensively as social media.

Customer Service Plan

The business will create some policies and procedures that are aimed at establishing, maintaining, and enhancing customer service plans. This plan will be developed sufficiently when the clients have been enrolled and created the basic customer profile. Feedback channels will be used to determine the consumers' expectations on various aspects of the business, such as performance of the service, quality, and support from key personnel. Based on the acquired information, the management will curate programs and plans that meet the customer's expectations in order to improve customer satisfaction and build a customer base.

Recommendations

If the above-mentioned processes and operations are followed strictly, the business will perform well. However, the fitness industry is ever-evolving and changing. Therefore, the company will need to constantly evolve to adapt to these changes. I would recommend the following actions for future performance and innovation (Ferrell, Hirt & Ferrell, 2020). First, I would recommend the adoption of gym management software to streamline the business through online tracking of billing and gym memberships. This will boost the client experience, thus promoting satisfaction and continued subscription. Secondly, I would recommend that the business adopt a consistent marketing strategy used continuously to grow the client base. Particularly, I would urge the management to adopt the digital marketing strategy as the business's long-term strategy since the opportunities are endless in this spectrum and can reach billions of people. Thirdly, I would recommend an adaptable business model that can easily adapt to the changes in the external business environment. As earlier discussed, the fitness industry is ever-changing, and thus, the business should be able to adapt to these changes.

Fourth, I would recommend that the company to hire highly competent people and bring out the best in them. In the fitness industry, a customer's physical results can make or break the business. Customers often want to see how they are progressing in terms of their goals and weight or fitness. The inability of the trainers to deliver these results will drive away customers (Harvey, Vachhani & Williams, 2014). Therefore, the management should ensure that they hire highly competent individuals who will help clients to achieve their goals. Additionally, the business aims to build a community to give the clients a sense of belonging, allowing them to forge positive relations with other employees and members. Having a community will make the clients loyal to the gym. Additionally, clients can easily motive each other to achieve their goals if they have positive relations with each other.

Conclusions

In conclusion, the gym business is viable given the current market trends and conditions. With the pandemic, more people are working from home, and thus they have more time for doing workouts and enrolling in gyms, unlike before, where they had to head out of the house early to beat traffic. Additionally, the massive shift to online has created opportunities for businesses to engage with clients; the fitness industry is no exception. Most fitness enthusiasts now prefer to enroll in virtual fitness sessions due to the pandemic. Businesses that are exploiting this opportunity are becoming successful and expanding faster. The online space is accessible to anyone from all walks of life. Therefore, it gives businesses the platform to access millions of clients, giving them a huge customer base. Alpha fit gym and wellness business will adopt both traditional and online business models to capture all the market needs. However, it will give more emphasis on the online section of the business due to the growing numbers. The diversified services and programs help maintain customer satisfaction as well as exceptional customer service. The business will have a flat organizational structure with few lower business levels. The business will rely heavily on digital marketing strategies to promote the services and to create brand awareness.

Alpha Fit Gym and Wellness Facility -Outline

Thesis Statement: Alpha Fit Gym and Wellness is a unique facility that aims to offer fitness and wellness programs that enhance the quality of life its members and clients.

1. Company Overview

1. Company Description

1. The business will be located at Arkansas due to the prevalence of unhealthy lifestyle in that state.
2. The mission of the company is to offer whole class fitness programs that improve the quality of life of the people and lower the chances of lifestyle diseases.
3. The business will be a partnership between the two co-founders of the business. The partners will share executive management responsibilities of the business equally
4. The partners will ensure that the business remains honest in its representations in terms of our business relationships and the knowledge of training our clients.

2. CSR

1. CSR strategies

1. The business will occasionally host outdoor fitness events that will help people in the community to get fit and encourage them to adopt a healthier lifestyle.
2. Secondly, the company will always support local charitable causes with financial resources every year.
3. Thirdly, the business can engage in yearly boot camps that are aimed to help participants to loose weight and win awards and some money.

2. Code of ethics

1. The partners have created a code of ethics that should be adhered to by all employees.
2. The trainer should focus on the welfare of the client and ethical concerns.
3.  It is deemed unethical by the business for the trainer to recommend programs and diet plans that are not helpful to the client.
4. Discrimination of any kind is highly commended and punishable by revocation of membership or termination of employment, in case perpetuated by a trainers

3. Operations Management processes

1. Organizational structure

1. The business will a simple organizational structure which consist of two executive partners, two administrative personnel, gym trainers and few support staff.

2. Communication dynamic

1. The business will use direct communication to enhance effective communication between various stakeholders.

3. Transformation processes

1. The fitness industry has seen various transformations that have shaped business processes and operations.
2. Additionally, through the digital transformation, the business will be able to attract various clients from other countries.

4. Supply chain strategies

1. The business offers a service; therefore, the supply chain operations aren’t too critical for the business.
2. The company will create an advanced program for virtual clients with machines however, it accounts for a smaller percentage of the company.

5. Total Quality management

1. The management will check the quality of work done by comparing output versus the set specification through inspection, quality control and standardization.

4. Marketing Management processes

1. Product or service

1. Alpha fit gym will offer the following services; Tone and fit, private fit, private group fit, yoga, Pilates and karate.

2. Target market

1. The target market for the service are adults who conscious about the physical health and well-being.

3. Place and distribution

1. Physical facilities will be opened at Little Rock in Arkansas due to the high population in the area.
2. The gym will be located strategically near corporate offices and residential areas since people tend to work out just after work.

4. Price

1. The business will adopt different pricing strategies for its various services.

5. Promotional plan

1. The business will rely heavily on digital marketing strategies that will create brand awareness.

6. Customer service plan

1. The business will create some policies and procedures that are aimed at establishing, maintaining and enhancing customer service plans

5. Recommendations

1. First, I would recommend the adoption of a gym management software to streamline the business through online tracking of billing and gym memberships.
2. Secondly, I would recommend that the business adopts a consistent marketing strategy that will be used continuously to grow client base.
3. Thirdly, I would recommend an adaptable business model that can easily adopt the changes in the external business environment.

Vi. Conclusions