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Rocky Mountain/Mutual

In: Business and Management

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INTERNATIONAL MANAGEMENT INSTITUTE,NEW DELHI

Assignment
Written Analysis of Cases

Rocky Mountain Mutual : Promoting Fun or Fitness?

Submitted By :
Sachin Watts
14PGDM046
Persuasive Memo on Fitness Center at Rocky Mountain Mutual

To: Mr. Zachary Evans, Vice President of Operations
From: Joseph Mirola JM
Date: July 13,2014 Subject: Company Fitness Center makes a profit
Thank you for allowing me to explain to you the benefits of having the company fitness center. Company reports indicate that the Fitness Center has led to an overall decrease in employee absenteeism, reduction in employee medical costs, and an increase in productivity. Employees who have taken advantage of the Fitness Center miss half the amount of work days than employees who do not use the fitness center. This claim can be substantiated by the data attached with the memo.

Also the medical costs are affected in a huge way given below :
• Frequent users (10% using 3 times a week): Average medical cost of $100 per year.
• Average users (25% using once or twice a week): Average medical cost of $300 per year.
• Non-users (65% not using center at all): Average medical cost of $500 per year.

Also Productivity in the Claims Department has increased by 18 percent and the amount of sick days has decreased by 5. To replicate this scenario throughout organization I propose we put greater emphasis on Wellness program. We can balance cost of fitness center through greater...

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