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In 1980, the UR UMUC Healthy Fitness Center was opened in a growing area of a bedroom community, by Tom Ellington, a UMUC Business Management graduate after he retired from the US Marine Corps. It has an exercise room with many different kinds of specialized equipment, rooms for various exercise and martial arts classes, and locker rooms with showers for men and women. In addition, there is a small snack area where members can buy bottled water, soda, fruit juices and snacks, with tables and chairs where people can relax. There are several part time staff members that man the counter where people check in; they also sell memberships and collect payments. There are trained exercise room attendants to assist members, and a maintenance staff to ensure cleanliness of the facility and minor maintenance of the equipment. Recently you were hired by the owner and founder as the manager, and you are very excited about this opportunity!
UR UMUC Healthy is a for-profit Fitness Center and must cover its variable costs, fund future improvements and produce a reasonable profit for the owners. Unfortunately, business has been steadily declining over the last five years. Although your predecessor did a good job at the Center, it has become out-dated. You recognize that some of the equipment really needs to be replaced, but you are not sure which equipment should be replaced first. The classes and exercise programs available have also become out-dated. There is little known about the makeup of the membership (age, sex, goals, interests, problems, complaints, etc.). You don’t know if there are long waits for particular equipment. If you had more information in these areas you feel that you could increase membership and income. For instance, if you knew which equipment was most heavily used, perhaps you would opt to replace that first, or add more similar equipment. The membership fee structure has not been reviewed in many years, and your contracts with outside firms that perform preventative and major maintenance, and those that provide cleaning supplies, vending machines, and towels have not been reviewed in a number of years. Recently, there have been weeks when the Center has run out of clean towels and the vending machines were out of the most popular items. In addition, customers have been requesting WiFi reception in the Center as well as cardio monitoring features on the cardio equipment.
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