CASE STUDY
 
Although Bounce Fitness is known in their local communities, it is seeking an extended presence and identity to promote the company’s unique approach and lifestyle vision to   an older audience. The organisation tendered for, and won, a health initiative to conduct a three-month pilot project involving older typical non-users to improve their fitness and lifestyle in each of the four (4) Bounce Fitness Centres.
The CEO and Board of Directors have asked you to manage the operational plan.  Once of Bounce Fitness objective is to increase revenue by 10% and one of the projects the CEO has decided to embrace is to encourage the over 50s to join the club.
Bounce Fitness’s target clients for this project are those over 50 years of age. Starting from the initial contact and assessment, these individuals will be looking for innovative but comfortable, effective, and convenient solutions for their needs. They may have already heard of Bounce Fitness but will be referred and encouraged by their health providers   and the staff of accommodation catering to a senior age group. Classes will cater for up to 30 and be held weekdays before work at 8.30 am.
He / she may have weight or health issues or concerns (diabetes, depression, restricted mobility) and have an interest in improving their fitness, but rarely commences until advised by their health provider of the necessity and benefits. The advertising will be managed by the Health Department and the Tender covers all costs but catering. There is no cost to clients so it is expected there will be a good uptake.
Bounce Fitness will take pre- and post- weight, body mass and blood pressure measurements.  They will supply a daily class on weekdays.   Each class is designed to   be encouraging and fun and also deal with weight, flexibility and diet. Those attending will be encouraged to stay and enjoy a free lunch that is healthy and light and to converse   with others pre- and post- training. They will also be shown how to use the equipment and how to maintain their fitness through additional daily gentle exercise at home and    diet changes. The lunch will cost Bounce Fitness $15 per head per class.
It is recognised that the emotional needs including managing depression, companionship, and general interest in becoming more active in their lives generally should also be impacted positively.
Testing supplied by Bounce Fitness will include weight, body measurements and mass and blood pressure initially and monthly thereafter. This will require the purchase of 6 Mobile Mercury Sphygmomanometers for each Centre at a cost of $199 inc. GST each.  All other testing will be undertaken by the Ministry of Health. So the outcomes for Bounce Fitness will be in terms of client physical success factors and profitability. As this is a government tender, complete and accurate record keeping is essential.
Current staff will be able to manage the new clients but will need to update their training    in the monitoring and recording of the client physical markers and diet appropriate to that age group. This training cost will be budgeted in the infrastructure costs for one month before the commencement of the program at $1,500 for the month. Otherwise they need no further development. Infrastructure costs include use of the facility, wear and tear on carpet and equipment, cooling, and administrative costs. This is $3,000 per Centre.
There is a month to prepare and the plan will run as a pilot project for three months. The budget for this pilot follows.

CASH FLOW BUDGET
	Planning Month	Actual	Pilot October	Actual	Pilot November	Actual	Pilot December	Actual	Total
Beginning Cash Balance	$0		$139,224		$91,224		$43,224
Cash Inflows (Income)
Total Cash Inflows	$150,000		$0		$0		$0		$150,000
Available Cash Balance	$150,000		$139,224		$91,224		$43,224
Cash Outflows (Expenses)
Infrastructure costs	6,000	6,000	12,000	12,000	12,000	12,000	12,000	12,000	84,000
Sphygmomanometer	4,776	4,776							9,552
Light Lunch			36,000	36,000	36,000	36,000	36,000	36,000	216,000
Total Cash Outflows	$10,776		$48,000		$48,000		$48,000		$154,776
Ending Cash Balance	$139,224		$91,224		$43,224		($4,776)

• Once you have obtained approval from your CEO, explain how you will you inform the teams so that they understand and can implement the plan.