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Assignment No.

Rocky Mountain Mutual: Promoting Fun or Fitness?

A report
submitted to

Faculty Member

In partial fulfillment of the requirements of the course

Written Analysis and Communication-I

On

MM/DD/YY

By

Participant

Rocky Mountain Mutual
Utah, USA

MM/DD/YY

ToZachary Evans,
Vice President of Operations

FromJoseph Mirola,
Claims Manager

Subject: Report on the future of the Fitness Center at Utah headquarters complex.

I am submitting herewith he report on the future of the Fitness Center at Utah headquarters complex.

The options of eliminating or retaining the Fitness Centre have been analysed after taking into consideration various factors. While doing so, economic considerations have been prioritized above all others.

I sincerely hope that the analysis satisfies your concerns.

I shall be glad to provide any further clarifications that you seek.

Regards,

Joeseph Mirola
Claims Manager

EXECUTIVE SUMMARY
The Fitness Center (FC) in Utah headquarters complex was started in order to provide health benefits to Rocky Mountain Mutual’s (RMM) employees. RMM spent close to $1,000,000 to build it, while the maintenance cost per year is $100,000.

RMM now has the option of either eliminating or retaining FC.

Each option has been evaluated in terms of the economic gain to RMM, benefit to employees, effect on softer factors and competitive advantage in recruitment.

On basis of this evaluation, it is recommended that RMM must retain the FC and a Wellness Program must be formally instituted in the whole organisation in order to maximize economic and employee benefit.

Word Count: 108

TABLE OF CONTENTS
SR. NO. CONTENT PAGE NO.
1. SITUATION ANALYSIS ……………………………………………...........1 2. PROBLEM STATEMENT ……………………………………………….......2 3. CRITERIA FOR EVALUATION …………………………………………..2 4. OPTIONS……………………………………………......................................2 5. EVALUATION OF OPTIONS...…….………………………………….........2 6. RECOMMENDATION……………………………………………………… 5 7. ACTION PLAN……………………………………………………………… 5 8. EXHIBITS ……………………………………………………………………6

SITUATION ANALYSIS

The three year old Fitness Center (FC) in Rocky Mountain Mutual’s (RMM’s) Utah headquarters complex provides the company’s employees the convenience of having exercise facilities near office. Owing to the remote suburban location of the complex, RMM has even considered using FC as a recruiting device for attracting young employees.

The FC offers an indoor walking/running track, a swimming pool, and an exercise room with free weights and exercise machines.

Cost incurred by the company:
Building the FC has costed RMM close to $1,000,000. Additionally, the cost of maintaining the facility (including staff salaries, maintenance of machines and other expenses) is $100,000 per year.

Observed Usage pattern:
Out of 250 employees, 35% (87 people) are users while 65% are non-users. Out of the 87 people who are users, 25 people use the facility more than twice a week, while 62 people use it once or twice a week. (See Exhibit 1)

In the context of usage of this facility, it is worthwhile to note that, in the Claims Department, since the “Wellness Program” was instituted (i.e. in the last 8 months); most of the departmental employees have been using the FC at least twice a week. During this period, the Claim department’s productivity has risen by 18% and absenteeism has decreased by 5%, compared to the previous 8 months.

Recently, a cost cutting and revenue improvement initiative has been taken up and therefore a review of the economic justification for retaining the Fitness Centre is being carried out.

Problem Statement
A decision regarding whether the Fitness Centre must be eliminated or retained, needs to be made after considering the overall interests of Rocky Mountain Mutual (RMM).

Criteria...
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