Rocky mountain case

Rocky mountain case - EXECUTIVE SUMMARY The Fitness...

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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
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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
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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 1 : 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. expertize 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
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