CASE 4 ASSIGNMENTS
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Jonas has been in the body building business for many years
in Lagos. His gymnasium, originally built
for men now consists of separate facilities for men and women located beneath a
chicken parlour in main Island Lagos.
Jonas views the primary task of his business as “providing” a full range
of body building and weight reduction services for upper and middle class men,
women and children.
Currently, he has 20 employees who work with the customers in
designing their health programmes. His
gym has separate weight lifting and exercise rooms for men and women, a pool, a
sauna bath and a small running track behind the building. While Jonas states that every customer is different,
he makes men go through his 23 steps conditioning course and women follow the
diet in “Jonas’s Energy Diet” pamphlet. Customers are usually enrolled in a 10-week introductory
course and then left to advance at their own pace.
The gym is molded after the one Jonas first managed on an
army barracks in Port Harcourt. Jonas
maintains that the Spartan atmosphere is necessary to build mental and physical
toughness. With some pride, Jonas notes
that he has all of the latest barbells and slant board apparatus. Jonas has always viewed his major inventory
items as liniments and bandages, which are ordered periodically from a
wholesaler or are purchased from a nearby drug store if stockouts occur. Other
items are purchased from a local sporting goods store.
Jonas is very concerned about keeping all of his staff busy
and keeping the equipment in constant use.
So he requires that customers follow a specific hour-by-hour schedule on
equipment use. If the equipment is
scheduled to capacity, he requests that his customers come at slow periods
during the day or evening. This procedure
has met with some resistance from customers, but Jonas tells them that that is
the price they must pay if he is to provide the most up-to-day health centre services.
Jonas has done a survey of the prices charged by the other
four health centres in the area and his fees are about average. The other health centres have about the same
number of employees, although two of them use licensed beauty consultants. Jonas considers this an unnecessary frill and
tells all of his customers that anybody who works for him is an expert on all
aspects of body maintenance. Jonas has
instituted a policy of job rotation whereby each member of the staff, with the
exception of the clerk typist, changes activities each hour.
Employees are paid by the hour and are primarily graduates
who are interested in athletics.
Turnover has not been a problem, even though Jonas pays only slightly more
than the minimum wage.
Although, Jonas’s capacity is fully utilized, the number of
memberships has dropped off from 500 to about 300 in the last six months and
profits have dropped proportionately.
His accountant is looking into the possibility of raising membership fees.
Questions:
1.
Develop
a new primary task for Jonas’s Gymnasium.
2.
Based
upon your analysis, what steps do you recommend Jonas takes to reverse the
trend in memberships?
Please, read this case over and over again to understand
it. I promise you, later in the day or tomorrow,
I will post the answer. But you should
know that we are not going to have the same assignment workings. So, try and edit yours.
After the reading of the case, you need to do the following
on your own as it will help you edit yours:
1.
Identify the problems in the case. You can identify as many as you see
2.
Evaluate
the problems
3.
Finally,
proffer solution to those problems
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