Fitness Centre at Rocky Mountain Mutual
Feasible or Non-feasible
Letter of Transmittal
To, Zach Evans Vice President-Operations Rocky Mountain Mutual Utah
Date: 27th July, 2009
Sir, Regarding our discussion on the Fitness Centre please check the attached final report on the feasibility of Fitness Centre. Through analysis of the situation, problem statement and evaluating option on each criterion it is recommended to buy a new small land nearby and relocate the Fitness Centre. The recommendation is based on productivity of the firm. I hope this will help you to take proper decision. I will be happy to talk to you anytime on this matter.
Joseph Mirola Manager-Claims Department
The situation is whether keeping Fitness Centre can improve productivity, employee satisfaction and growth of the company. The options include 1. Expansion of Fitness Centre with minimum facilities and encourage employees to join. 2. Relocate the Fitness Centre to nearby reduced area with minimum health facilities available. Make the earlier location an office to expand business. Evaluating the on the basis of criterions (productivity, employee satisfaction, image, space) it is advantageous to buy and build a new Fitness Centre.
Fitness Centre of the Rocky Mountain Mutual is a part of the firm. The cost of the Fitness Centre was almost one million dollars and staffs were hired to supervise all activities. Due to remote location, non availability of other sports centre, to recruit young employees the firm invested at the Fitness Centre. After introduction of the fitness centre absenteeism rates and medical cost has reduced. Absenteeism rate of users is almost half of the rate of nonusers and thus productivity of the firm has risen up by 18 percent. In addition sick days decreased by 5 percent. It is a factor of productivity and is inversely related to...