Terms of Reference
This report is to analyse the performance of the Health club by interpreting data received by a survey carried out on 60 members. This data is then to be transferred into statistical tests such as pie charts, scatter plots, standard deviation and the mean. From this conclusions on how well the health club is performing will be able to be drawn. This will enable the management team to take action once recommendations have been made referring to real life examples.
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Importance of Business Analysis
The importance of business analysis has grown in importance in recent years. The impact of business analysis on the performance of a firm has become a fundamental stage in a business management plan to ensure appropriate decisions are made. It is shown that “based on the data collected from 204 medium-high level business executives in various industries, the results indicate that the adoption of business analysis positively influences business process performance” (Aydiner et al., 2018). As well as this business analysis is a way of determining consumer acceptance of a firms marketing abilities. The key factor of the success of a performance analysis comes down to how the management team “translates the results into actions” (Martilla and James, 1977) without this being done effectively the analysis would be a waste of time and capital.
60 people were surveyed in the health centre and 21 data points were collected to profile the member, their understanding of the services, their satisfaction and how they rank them.
The analysis of the data is to determine the performance of the health centre and make recommendations. The first step is to determine which indicators or data points are a reflection of performance. For example the satisfaction quality of service and the speed of service is determined as an important reflection of the health centre performance to the customer. Additionally, the awareness of Food until 7pm is an important indicator if the Health Centre is trying to get more of its members to buy food. Finally, the attraction of mature members could be an indicator of performance as they are deemed less likely to cancel their membership and therefore important measurement for the business.
The pie chart in Figure one shows the age profiles as percentages. It shows that the majority of those surveyed were between the age 46-56 years, followed by 57-65 year olds, then the 37-45 year olds, then 26-36 year olds and finally 18–25 year olds. The health club may be targeting more senior members as a means to reduce the risk of the younger members cancelling members as it is likely older people are more committed as they have more relaxed schedules and free time. The age bracket of 18-25 year olds holds the lowest percentage of 10%. This indicates that the health club needs to make some improvements to appeal to the younger audience.
The pie chart in Figure two shows that 40% percent of those surveyed were not aware of the food being available up to 7pm. Figure 3 shows that 38%, the largest sector of the surveyed members, used the facilities between 4pm – 7pm. The performance of food sales could be a key indication of performance. As they are lowest at the peak time at the health club this shows marketing of the food sales is not at its best and performance in this area is low. Taking action in this area will improve performance and financial accounts.
The scatter plot in figure 4 compares the satisfaction of the quality of service and the speed of service. The plot shows that the majority of the members rating both the speed and the quality of the service as 3 out of 5 which is satisfactory however shows that there is room for improvement in both of these areas of satisfaction measurement. Speed and quality of service are both key factors of a well-functioning business as it shows how good employees are at their job. They are based around the skill of customer service which is important in any business. Customer service can easily be improved using training or even something as simple as some encouragement from the manager. This will mean that the health cub could be scored 5 out of 5 in the next survey indication a high performance in this area.
One recommendation that could be made to the health club to improve the equipment and décor available. In the modern day the younger generation have become more conscious of fashionable trends and “Teens are brand conscious but not brand loyal. They look for quality and social media to advertise this” which JD gyms are using to their advantage (Kaplan, 2018) as this which may also be reflected in their choice of where to go the gym. With 57% of members being between the ages of 46 and 65 it is likely that the facilities available are not of the standard that 18+. An example of a gym that has been successful in this area is JD gyms. They focused on creating an environment that was on trend and with the latest smart technology equipment at a low price drawing in the younger members (JD Gyms, 2018). However JD gyms are likely to have an alternative age profile to the health club as this up-beat, fashionable and high tech environment will not be where 46 to 65 year olds would choose to go. This shows that many gyms have the problem of satisfying all consumers such as pure gym who have a similar concept as JD but for students (Puregym.com, 2018).
As well as this it is shown that the majority of members attend the gym between 4pm and 7pm (38%) however 40% of members said they were unaware that the food was available until 7pm. This is a missed opportunity for the health club as between 4 and 7pm should be the peak time that the restaurant is being used. With the right marketing the sales and the high activity at the health club at this time sales for food would massively increase, improving the revenue which would allow them to depend less on the membership fees and spread costs more. This can be done through larger advertisement as people walk into the health club in the form of banners, loyalty cards which come as an add to the membership or to offer discounts at these time periods until the awareness is increased.
Another recommendation that would improve the performance of the health club would be by improving the way they carried out the business analysis. The health club management team only surveyed 60 people, this sample size is relatively small and was most likely only done once. It is stated that “a large sample size is more representative of the population, limiting the influence of outliers or extreme observations” (Uniteforsight.org, 2015). For the survey results to be an accurate representation of the members levels of satisfaction the sample size should be larger and done up to three times to make the results more reliable, which would allow the right course of action to be taken.
Aydiner, A., Tatoglu, E., Bayraktar, E., Zaim, S. and Delen, D. (2018). Business analytics and firm performance: The mediating role of business process performance. Journal of Business Research, [online] 96, pp.228-237. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0148296318305800 [Accessed 13 Dec. 2018].
JD Gyms. (2018). JD Gyms | Low Cost Gym Membership | Join from only £15.99. [online] Available at: https://www.jdgyms.co.uk/ [Accessed 13 Dec. 2018].
Kaplan, M. (2018). Teen Shopping Habits and Trends | Practical Ecommerce. [online] Practical Ecommerce. Available at: https://www.practicalecommerce.com/teen-shopping-habits-and-trends [Accessed 13 Dec. 2018].
Martilla, J. and James, J. (1977). Importance-Performance Analysis. Journal of Marketing, [online] 41(1), p.77. Available at: https://archive.ama.org/archive/ResourceLibrary/JournalofMarketing/Pages/1977/41/1/4997426.aspx [Accessed 13 Dec. 2018].
Puregym.com. (2018). Low-Cost 24 Hour Gym Memberships | No Contract | PureGym. [online] Available at: https://www.puregym.com/ [Accessed 13 Dec. 2018].
Uniteforsight.org. (2015). The Importance of Quality Sample Size. [online] Available at: https://www.uniteforsight.org/global-health-university/importance-of-quality-sample-size [Accessed 13 Dec. 2018].
|Rank personal fitness||2.733||1.087|
|Rank for social||3.3||1.183|
|Rank for special event||1.767||0.981|
|Rank special occasion||4.35||0.685|
|Satisfaction speed of service||2.683||1.255|
|Satisfaction quality of service||3.117||1.091|
|Satisfaction value for money||3.25||1.159|
|Satisfaction equipment availability||2.75||1.052|
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