Rocky Mountain Mutual: Promoting Fun or Fitness
Autor: Utkarsh Gupta • August 16, 2015 • Case Study • 1,188 Words (5 Pages) • 896 Views
WRITTEN ANANLYSIS OF CASES
ROCKY MOUNTAIN MUTUAL: PROMOTING FUN OR FITNESS?
VIBHOR MATHUR
15PGDM127
PGDM 2015-17
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INTERNATIONAL MANAGEMENT INSTITUTE- NEW DELHI
From: Mr. Joe Mirola
Claims Manager
To: Mr. Zach
VP Operations
Date: 1 April, 1998
Subject: To avoid closure of fitness centre.
This report includes my recommendations and insights in favour to avoid closure of fitness centre
Analyzing all concerns of Mr. Zach regarding very high running cost of Fitness centre, we can actually turn it in favour of business by adopting listed measures.
Executive Summary:
Mr. Zach , New VP operations for remotely located Rocky Mountain Mutual favours shutting down of well furnished , modern equipped Fitness centre citing reason of High running and maintenance cost of approximately $100,000 annually.
This fitness centre can actually be used to increase productivity, improve man work hours, attract new applicants and encourage existing employees without compromising financial aspects of the company.
Serial No. | Contents | Page No. |
1 | Situation Analysis | 1 |
2 | Problem Statement | 1 |
3 | Criteria | 1 |
4 | Evaluations of options | 2 |
5 | Recommendations | 2 |
6 | Action Plan | 2 |
Situational Analysis :
Mr. Joseph Mirola is the claims manager for the Rocky Mountain, a growing insurance company headquartered in a suburban Utah. Due to unavailability of any sports club facility near the headquarters, a million dollar Fitness Club was established to draw young employees.
Joseph Mirola used fitness center 5 days a week and described an increase in energy and productivity. Rocky mountain employees who used fitness centre had lower medical cost. Among those employees, 25% of employees (62 people) who used the centre once or twice showed medical cost of approximate $300 per person, for 10% of the employees (25 people) who used the facility 3 times or more were only $100 per person and among those who never used the fitness center i.e 65% of the employees( 163 people) rang up medical bills of approximately $500 per person.
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