Rocky Mountain Case

2009 ROCKY MOUNTAIN MUTUAL JOESPH MIROLA obdurate Mountain Mutual Promoting Fun or Fitness? Date of Submission 27th July 2009 Submitted to Submitted by Sanjay Kumar Gupta Rajiv Agarwal WAC instructor Roll 20091034 To Zachery Evans (Vice President) From Joesph Mirola Date 27 July 2009 Please find the detailed analysis of the physical fitness amount in our organization with all the relevant data.Kindly inform me if some more information is required of the same. Regards Joseph Mirola ? confine Sr. noTopicsPAGE NO 1EXECUTIVE SUMMARY 5 2SITUATIONAL epitome 6 3PROBLEM STATEMENT 6 4STATEMENT OF OPTIONS 7 5CRITERIA FOR rating 7 6EVALUATION OF OPTIONS 8 7RECOMMENDATIONS 10 8PLAN OF ACTION 10 LIST OF TABLES 9TABLE 16 ? EXECUTIVE SUMMARY fierce Mountain Mutual is a growing insurance company which has recently opened a leg office in a remote eye socket of Utah. The unique feature of this branch is its fitness substance which boasts of facilities such as swimming pool and track for walking and running.According to company records users of fitness kernel have shown reduction in their medical expense and the cost of operating is too proud and alike less than 50% of employees are apply it. Zachery Evans, the vice president of the operations wants to close it as it is an expensive affair and also utilizing lots of space. The analysis shows that the best option available is to continue using fitness gist but reduce it space area by eliminating some of the unnecessary facilities and also using it as an discussion room in the off hours. No of words140 SITUATIONAL ANALYSISOurs is a growing insurance company and has recently built a headquarter in remote area of Utah with a work strength of 250 employee, which features an fitness content in the campus which was started with an investment of 1 gazillion dollar. Mr. Joe Mirola consider this fitness mall as an added usefulness to the company. Table 1 Non usersUsers Absentism12 days a yearAbsentism6 days a year M edical cost Visiting center once or twice Visiting center thrice No of Emp. personify/Emp. sum up costNo of Emp. Cost/Emp. Total costNo of Emp. Cost/Emp. lTotal cost 2505001250006230018600251002500As seen from the above table the medical expense of employee has reduced considerably with the use of fitness center however one more social function can be noticed that fitness center has not been used by its entire employee. The possible reason for this can be due to respective(a) facts such as Crowding during the peak hours Employee need to come early to use the fitness center Lack of awareness Zachary Evans the vice president of the operations believes that this center is too expensive to run and further consuming up lot of the company valuable space.He is of the view that this center poses a ample hindrance in the expansion of the company and wants it to be shut down unless of course he is allure that fitness center is worth the amount incurred in it PROBLEM STATEMENT The fitnes s center as shown by company records results in reduction of medical cost of an employee and also cause less absenteeism, but the cost incurred in maintenance is too high considering the fact that only 35% of the employee are reservation use of it, so problem lies with Mr. joe Mirola as to how to convince vice president Zachery Evans to continue fitness center or should he close it.STATEMENT OF OPTIONS 1. Fitness center should be continued and more and more employees should be encouraged to join it and some nominal fee must be charged. 2. Fitness center can be discontinued and space might be utilized for expansion of the company. 3. It can be used for commercial purpose by opening it for non-employees also and generate revenue. CRITERIA OF EVALUATION 1. Cost to company 2. Assets Utilization 3. Productivity 4. Competition 5. Risk factor EVALUATION OF OPTIONS OPTION 1 OPTION 2 . Option3 RECOMMENDATIONFrom the above analysis it can be seen that option 3 gives us many advantage over th e other and it looks to be the most viable option available. PLAN OF ACTION 1. The first thing we must do is to run awareness program within the company. 2. Conduct an survey and take the feedback of the populate as in what can be done to make center more useful 3. comme il faut management should be there so as avoid chaos during peak hours 4. Timings should be such that the everybody can easily make use of center 5. Proper marketing should be done so as to attract the non employees. 6. The fees charged must be nominal and give people value for money. Total words1030