Premium Essay

Rocky Mountain Mutual

In: Business and Management

Submitted By shrutioberoi
Words 1270
Pages 6
Rocky Mountain Mutual
Utah

Date: June 19, 2015

To
Zachery Evans
Vice President, Operations

From
Joseph Mirola
Claims Manager

Memo: This report entails discussion on the viability of the fitness centre. Cost vs benefits have been studied and ways to decrease cost and increase revenue have been looked at. The options have been evaluated considering the need for space and the high cost to maintain the place. Based on this analysis it is recommended to open the fitness centre to family members of employees at a membership fee which would increase enough revenue to lease a facility to accommodate the Information Systems Department

Executive Summary
Viability of the Fitness Centre at Rocky Mountain is discussed. Investments and maintenance cost is very high. They are not justified by the usage of the facility. Space is needed to accommodate Information Systems Department and management is contemplating closing the fitness centre. This is would lead to decreased morale among regulars to the fitness centre.
Solutions have been discussed and the most feasible alternative is: 1. Formally introduce the Wellness Program 2. Make it open to families of employees at a membership fee 3. Use funds generated in the process to lease a place for the Information Systems Department
Upon evaluation this option looks viable and should be implemented.

Situation Analysis
Rocky Mountain Mutual, an insurance company built its head quarters in Utah, given its remote location they opened a fitness centre alongside as the management considers exercise to be important for employee benefit and also assuming that it would serve as a attraction while hiring new employees.
Details of the users of the Fitness centre and a comparison of the medical bills and absenteeism rate between them and the non users is given below:
Table 1 Comparison of

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