Introduction
The operations management and supply chain functions of an organization play a significant role in the development, productivity, and customer satisfaction. The vision of Fitness Plus is to provide the best first-class services to its clients at the most affordable price. The facility operates globally with most of the centers in the U.S. The majority of the clients are middle-aged people. Numerous companies have been affected by operational challenges despite having an improved market share and Fitness Plus is not an exception. Fitness Plus is a health, fitness, and sports facility situated in an economically advancing area. Since it opened its doors for membership, the club focuses on supplying its customers with fitness activities, recreational activities, and relaxation. It also sponsors sports activities, such as volleyball, swim teams, and softball. In health, the facility provides clinical services to the members. The charges on health care are deducted from the membership contribution except for serious injuries that require special treatment. Fitness Plus operates more like a family care facility, whereby clients are given the best training and medical care for well-being spiritually, emotionally, and physically. The facility recruits employees from the best team of doctors, physicians, and sports professionals.
Despite offering lucrative services to the consumer, Fitness Plus has been currently experiencing a significant shift in revenue and a reduction in the consumer population. The facility provides the services in four sessions, including the aerobics room that could host up to 35people per session. That includes the weight lifting hall, a room for working out that contains 24 Nautilus equipment, and a spacious cardiovascular room, having 29 pieces of equipment. Fitness Plus-commenced business in 1995. Moreover, within the first two years, the membership was low and most of the facility’s equipment was under-utilized. At the end of the second year, in 1997, customers realized the importance of exercising and membership started increasing. Therefore, this paper aims to analyze the issues experienced by Fitness Plus and attempt to present various recommendations that will enable the company to stay competitive within the already growing market.
Fitness Plus Operations
The increased demand for fitness centers and modern equipment has enabled Fitness Plus to attract a significant number of consumers, thus fully utilizing the available equipment. In 2000, it was recorded that during a typical day, 15 members visited the club hourly. The peak of members was recorded on Mondays since more people flocked the club as per the attendant list indicating 40 members between 4:00 p.m. to 7:00 p.m. (Patten & Newhart, 2017). Moreover, the club’s opening times are as follows; from 6:30 a.m. to 11:00 p.m. from Monday to Thursday. On Friday and Saturday, the institution shut its operation at 8:00 p.m. Sundays it operates from noon to 8:00 p.m. The equipment’s that the fitness contains are nine stair steppes, six trade-mill, six lifecycle bikes, three air dyne bikes, two cross calisthenics machines, two sculling machines, and one climber. There are eight racquetball yards, six tennis lawns, and an enormous outdoor swimming pool on the side of recreational activities.
Issues Faced by the Organization
According to the owners in the case research, as the popularity of fitness and health grew, so did the need for more people to register for membership at the club. However, members began complaining of overcrowding and a lack of sufficient training and workout equipment. The most affected areas were calisthenics, cardiovascular, and nautilus. These problems pushed the proprietors to contemplate whether membership had outgrown the facility.
Furthermore, research that was carried out by the institution’s managers revealed that customers train and work out for an average of 60 minutes per session (Patten & Newhart, 2017). It was also discovered that on average, 30% of members used aerobics, 40% worked cardiovascular machines, 25% Nautilus machinery (Patten & Newhart, 2017). The number of consumers using weight lifts also increased by 20%, while clients who utilized racquetball yards and tennis pitches improved significantly by 15% and 10%, respectively (Patten & Newhart, 2017). The data made the owners question whether they should use it to estimate the club’s carrying capacity to its members. The managers were uncertain if the statistical information would solve the gradually growing capacity of consumers.
Furthermore, as the popularity of fitness and health continued to develop among consumers, the company also grew its operations. The rapid change in consumer demand created a consumer gap as the clients started demanding for the reinstallation of additional and new equipment. However, the high cost of operation and maintenance significantly impacted the facility’s financial standing. The institution’s financial standing made it difficult for the managers to acquire new equipment and expand its area of operations. Finally, the constant growth in the area’s population enabled the entry of new health and fitness facilities which created a competitive environment. However, Fitness Plus management had not adequately prepared for future threats from competitors hence leading to the loss of consumers who were constantly seeking developed fitness facilities.
Objectives of the Study
The research aims to conclude whether the club has reached its full capacity of membership and whether there is a need for expansion. Furthermore, the study aims to define the facility’s exact carrying capacity and enable its managers and proprietors to add more equipment to the institute. The current machines are being overutilized. The study also examines the significance of expanding or opening another fitness and health club.
The study pursues to respond to the various questions entailing capacity increase strategy, which is the most appropriate for the institution’s performance. The methods that should be implemented to link the capacity decisions to other operations of the company will also be considered. Finally, the research will aim at answering the question of the method which can be employed to measure the capacity of Fitness Plus.
Significance of the Study
The study offers the owners a set of volume organization concerns from the perspective of a facility business. Information in the case study provides the prospect to tackle issues, such as the following: how the facility’s population is measured, the general quantity of the facility’s size, and the suitability to dwell in private areas (work centers) and calculate their population. Consequently, various areas may need diverse forms of capability measurement. The strenuous exercise area can house only 29 persons, and it resembles a trade shop, whereas the Nautilus zone is comparable to a congregation line where individuals stream using the gears. Moreover, measuring population capacity and differentiating the exploitation of aptitude at peak against the normal requirement level is the question of measuring population capacity. To this end, the assessment should discuss how enormous capacity mitigation is preferred in this service location.
The research also presents the managers with a clear understanding of their target market and competitors within the industry. Understanding the organizational environment plays a significant role in the development of strategies that will foster capacity building and expansions. Therefore, the proprietors will attain a clear understanding of the behaviors of the target market and its competitors thus developing other strategies that will ensure effective operational functions.
Additionally, a vital choice facing the facility after the quantity concerns have been handled is the aptitude development matter. The study is also aimed at addressing and providing solutions on timing, sizing, and location concerns. Finally, the case study should tackle the competitive urgencies problem while the management decides on a capacity expansion strategy. The expansion approach should be a key factor since there are new entrants in the company’s marketplace. Moreover, Fitness Plus managers should ensure that they actively participate in the competitive market by establishing a full-service gear sequence, presenting suppleness and excellence. The administrators should also consider proximity to infrastructures since it plays a significant role in competitiveness. Finally, the proprietor should establish a strategy that will enable them to understand pricing in drawing and retaining clients. The study will also play a significant role in reviving the facility to its former glory by presenting various policies that can be employed by its managers to enable them to deal with the challenges such as reduced productivity and market position which are usually associated with competition
Limitations of the Study
The study limitations are the factors of design that significantly impact on the understanding of research findings. The main limitation is that there is inadequate space and land for significant expansion in this location. Due to the rapid urbanization over the years, Fitness Plus is facing a challenge in acquiring land for its expansion since most of its lands have already been occupied by various businesses. Another hindrance issue was the insufficient funds for this expansion as the owners are operating on a tight budget. The facility was operating under a tight financial space, which restricted them from expanding and purchasing new equipment for its facility to accommodate the growing number of consumers. Additionally, due to the growing population, the number of service consumers had significantly grown. The facility, however, has limited equipment thus restricting it from accommodating a large capacity of people at a specific time.
Scope of the Study
The study’s scope elaborates the level to which the study area will be explored in the research and specifies the limitations of the investigation. Therefore, the research attempts to determine the Fitness Plus club’s carrying capacity, and it is to be carried out in Greensboro, North California, USA. However, the study will limit its assessment to capacity building rather than the company’s management and provide various findings that will be employed with the proprietors to boost competitive advantage.
Literature Review
Introduction
The literature review intends to present the reader with a general impression of the research paper on knowledge sharing and intranets. The chapter usually involves a framework for the research that involves the study’s key focus described in the thesis. Therefore, as expounded in this chapter, the literature review helps to recognize and underline applicable conclusions that serve as a basis for the theoretical ideal. The research will be based on a positivist foundation philosophy. Therefore, this chapter critically studied the models which discovered the hypothetical base that provided coherent opinions into new patterns.
Theoretical Framework
The theoretical framework defines the main concept of the research paper, proposes the relationship between them, and discourses applicable models founded on the literature review. Therefore, a solid hypothetical outline will give the research a direction, thus facilitating the interpretation of the data collected and generalizing the findings of this paper. The study will have the theoretical underpinning of two theories, the systems theory, and the legitimacy theory; the theories will help n understanding the relevant areas that need to be adjusted by Fitness Plus to boost its competitiveness by attracting new clients while retaining loyal customers.
Systems Theory
The systems model defines the connection between various departments in a company and how a change in one area can impact other sectors (Kuntsevich et al., 2018). Establishments act as structures relating to their surroundings as steadiness is regularly shifting as the institute familiarizes to its fluctuating environment. The basis of the model is that all the constituents of a business are interconnected and that altering one aspect will influence the others (Kuntsevich et al., 2018). Establishments are regarded as exposed organizations, frequently networking with their surroundings. They are at a point of active balance while they familiarize themselves with ecological variations.
The system model views the structural arrangement as the recognized form of associations between the company’s division of specific standing and the designs in associations and responsibilities. These comprise subjects of incorporation (the way activities are coordinated), separation, the arrangement of the classified relations (administrative systems), and the formal procedures, measures, and controls that guide the organization (administrative systems) (Kuntsevich et al., 2018). Establishments are exposed organizations that rely on their surroundings for backing and maintenance. The association between an institute and its surroundings is described by a two-way flow of data and momentum (Giachetti, 2016). Various establishments still strive to impact their environment and gain total control over it. Numerous researchers have consequently examined the progressive influence of these established gravities on conservational earning (Giachetti, 2016). Thus, the structure model backs corporate social responsibility, which illustrates how establishments relate with their corresponding environs to cooperate and merge with other companies.
The model is significant to the research because converse logistics, which is an administrative arrangement, influences an institute’s economic standing. Concentrating on the association and managing of merchandise and properties after the trade and provision to the consumer. Inverse logistics is a procedure that facilitates establishments to develop into further ecologically proficient units through reprocessing, recycling, and decreasing the number of raw materials utilized to manufacture goods and services.
Legitimacy Theory
The preliminary point for accepting this intriguing question is the assertion that legitimation has a crucial influence on how an organization is established, managed, perceived, and assessed in the business market. Legitimacy can function as either a foundation of supplementary external means or an instrument for merging structural status, either externally or internally (Zelditch Jr, 2018). Legitimacy explains the presence of a collective contract between an institute and its stakeholders. However, scholars define it with a fluctuating level of specificity; hence one of the largely accepted descriptions of legitimacy is that it is a universal opinion or supposition that the activities of an institute are suitable within some communally created system of standards, morals, principles, and explanations (Zelditch Jr, 2018). Considering its distinctive capability to link managerial actions to shareholder prospects, there is extensive backing for the concept that appropriate behavior can lead to significant rewards and profits.
The legality of establishments is generally managed from two contrasting hypothetical viewpoints, such as institutional and strategic approaches. From the institutional standpoint, legality is projected as a procedure of institutionalization, whereby outside standards and principles are accepted without much contemplation (Amir et al., 2020). Conversely, the strategic hypothetical perception regards acceptability as influential, practical, and, more prominently, a thoughtful goal that can eventually improve external views, thus building new and improved validity points. Considering its capability to clarify administrative enterprises that do not depict revenue expansion laws, the adequacy placed opinion offers a comprehensive hypothetical foundation for clarifying environmentally-oriented creativities.
Research based on the established theory recommends that compressions from a company’s formal ground will propel it to pursue legality in its stakeholders’ eyes. According to researchers, a company’s reaction to external gravity stresses the significance of gaining legality for the commitments of indicating social merit (Amir et al., 2020). At the same time, it assumed that institutionalization outlines “administrative skepticism” when legal-pursuing behaviors clash with other company goals, such as revenue expansion. The established model also indicates that organizations can follow only simple conservational creativities that can adequately fulfill shareholder demands. Ensuring these principles in the organized opinion of acceptability, the present study has recognized the economic disadvantage of two other health and fitness clubs and financial limitations.
Research Design and Methodology
Introduction
This section discourses elements of the procedural decision and process of the research. The chapter significantly relies on the ethical position and study difficulty to direct the methodological decision. Moreover, it elaborates why a chronological mixed procedures research strategy is regarded as suitable for the investigation. It also sets the procedures to compile, analyze, and report information since the chapter employs distinct processes for the qualitative and quantitative approach, as both include different purposes to achieve. Besides, the strategies employed to boost the research’s reliability and validity are also intensively explained in this chapter. Finally, the chapter defines the study’s procedural concerns, including the integration decisions, timing, weighing off the study, and presenting solutions to the issues.
Research Design
The research design is to compile, assess, understand, and record data in investigation studies. It is the overall idea of connecting the theoretical investigation issues with the applicable and investigational study. Therefore, based on the data the research design sets the guidelines on the required data, the techniques to be employed to compile and examine the information, and how it will respond to the research question. Furthermore, the study plan is the general strategy for performing the study to respond to research questions; the assessment intention is to indicate the steps to be monitored in directing the research. The study will adopt a case study research design in which an in-depth study of membership was conducted to determine the club’s actual carrying capacity. The method was implemented to enable the investigator to acquire and evaluate appropriate data regarding employees’ feelings around the effect of the expansion of the Fitness Plus Club in Greensboro, North California.
Target Population Analysis
The target population analysis usually occurs before research can be started and the researcher must first identify an agreed-upon population. Conversely, a populace is a group of people, substances, or objects from which illustrations are taken for dimension or a group or element that shares a common feature. For example, if the research was to determine the number of consumers who demand a specific good, then the target population would be the consumers and the researcher can interview or issue questionnaires to the target population which will serve as the sampling frame. In this case, the focus population will be from Greensboro, North California, senior administration, supervisors, and employees of this fast-growing area. The researcher will target a population of club members from the club that work out and use each section of the club’s facilities. This is to find out exactly which of the facilities and equipment are being used more and underutilized. Furthermore, the researcher can improve capacity approximations related to the following:
- Calisthenics
- Assumption: Classes commence continue for 50 minutes.
- Capacity: 1 session per hour with 35 members
- Cardiovascular
- Assumption: During high-demand periods, the use of machinery is limited to 30 minutes per individual.
- Capacity: With 29 pieces of C-V equipment it can however58 members per hour peak capacity
- Nautilus
- Assumptions: Each member takes 1 minute to complete each exercise. The machines are set up, so participants flow through chronologically.
- Capacity: Maximum capacity at a steady-state; cycle time 1 minute. 60 members per hour.
Sampling Design
A sample is the number of items selected to represent the whole population. Conversely, the sample size is the subject on which the capacity is being taken as the assessment unit. A sampling design is used in selecting items to be observed for given research (Patten & Newhart, 2017). Over the three hours of peak demand, the Nautilus area should accommodate 156 members since it will take 24 minutes for one consumer to complete the whole 24-machine sequence. The following three areas of the club are the key aspects of concern due to consumer complaints, and they are where the facility’s management should focus on their assessment. The tennis and racquetball areas can service the following number of members per hour:
Table 1. Tennis and Racquetball (Patten & Newhart, 2017)
Since there was no specific measure of the number of participants in the weight-free areas, combining the single capacities into a general measure, the club can house a capacity will approximately range from 181 to 209 memberships per hour at peak. Conversely, the discounting of the free-weight zone will be able to accommodate 80 persons per hour. However, the most significant factor is not the collective demand intensity but rather the need mix and how it equals the singular area volumes.
The next step in the study is to enlighten the management in approximating the club’s facilities’ demands. The focus should be on looking at the club’s ability to satisfy peak demand since it is a service institute. Therefore, managers should focus on deriving the following estimates at the peak demand:
Table 2.
The table above highlights several issues that need to be taken into consideration. From the calculations earlier, the club session areas have extra spaces. Second, during workout sessions, members use more than one area. The club currently hosts 80 members despite the available space that could contain 122 people per hour. Hence, under-utilization.
The trainer, therefore, has to give attention to members’ concerns despite a large number of trainees. The management has applauded the trainers’ good customer relations over time. However, there have been minimal complaints from the clients. The complaints are majorly based on the facility usage capacity. A member may enter the club, warm up in the cardiovascular room for a few minutes, and then go through a Nautilus. Then finish with cardiovascular training or an aerobics workout. For instance, the assumption in the first analysis was that members’ utilized one session of the club for an hour during visiting hours. These are simplifying assumptions that ease the burden of analysis. However, assumptions such as these and the use of averages in measuring demands and capacities can lead to underestimating the capacity required to meet demands at some established service level.
Once the discussion of “capacity cushions” has taken place, the final capacity expansion issue needs to be addressed. The fact is, members are complaining, and expected service levels are not being met. The analysis should focus on both short-term and long-term solution alternatives and look at each’s pros/cons. Exhibit TN.1 gives an example of how to present this analysis. Be sure to tie the alternatives into other operating decisions and discuss how each may impact different competitive priorities, such as convenience and location, full-service range of activities with quality facilities, availability of services promptly, or low costs/price.
Data Collection Methods and Instruments
Data collection instruments refer to the tools employed in collecting data, such as computer-assisted interviewing systems and questionnaires. Therefore, a researcher needs to decide on the devices to collect information since the investigation is done in distinct ways and for different objectives. Data compilation is usually to capture quality proof, which fosters analysis to lead to the formulation of credible and convincing presentations to the questions initially passed by the investigator to the target population. Therefore, this research employed the use of computer-assisted interviewing to collect data from the Fitness Plus customers. The interview method allows each respondent to receive the same set of questions in the same way and yield data, which is more comparable than information obtained through questionnaires.
The validity of Data Collection Tools
Validity refers to the accuracy of the data collection method and what it was intended to measure. Therefore, research is considered to have high validity when it produces results that complement real variations, properties, and physical environment characteristics. Specific questions will be incorporated into the interviews, aiming to capture specific information from the respondents. These questionnaires will be sent to the respondents to fill out and send them back for evaluation. A pre-test will be done on the questionnaires using a selected sample of respondents and evaluated data acquired. The pilot study will be undertaken to pre-test the methods and tools of data collection.
Reliability of Data Collection Tools
Reliability refers to how consistently a measurement method is used to measure something and if the same results can be achieved using the same method under similar conditions. Therefore, the data collection process for this research was unique to ensure the data provided would reflect a similar outcome when conducted by another researcher. Therefore, the variables and data collection instruments are scrutinized by experts, mainly my supervisors, who have ascertained their validity (Patten & Newhart, 2017). Furthermore, the data collection tools were reliable as they worked effectively on the target population and ensured that secondary data was also factored in the data collection period.
Data Analysis
Data analysis is the process of modeling, cleaning, and changing useful information for organizations’ decision-making process. The main aim of the procedure is to retrieve appropriate information from the compiled data. The data will be collected by using personal interviews, which were first edited to get the relevant data for the study. The tabulated data will be analyzed quantitatively by calculating various percentages where possible. Data collected will be calculated by the use of statistical inferences such as a mean mode where applicable. The presentation of data will be in tables, pie charts, and bar graphs which it provided a successful interpretation of the findings. Descriptive data will be analyzed qualitatively and the results provided in the form of explanatory notes.
References
Amir, M., Rehman, S. A., & Khan, M. I. (2020). Mediating role of environmental management accounting and control system between top management commitment and environmental performance: A legitimacy theory. Journal of Management and Research, 7(1), 132–160.
Giachetti, R. E. (2016). Design of enterprise systems: Theory, architecture, and methods. CRC Press.
Kuntsevich, V., Gubarev, V., & Kondratenko, Y. (2018). Control systems: Theory and applications. River Publishers.
Patten, M. L., & Newhart, M. (2017). Understanding research methods: An overview of the essentials. Taylor & Francis.
Zelditch Jr, M. (2018). Legitimacy theory. Stanford University Press.
Appendix I
Work Plan
