The Quiet Ascension of LA Fitness Harvard Case Solution & Analysis

The Quiet Ascension of LA Fitness Case Study Analysis

Alternative 1: Organizational culture transformation

Pros:

  • The implementation of the right culture in the organization allows the organization to bring significant improvement in the daily interaction with the employees and assists in the creation of a smooth and streamlined workplace environment.
  • Change in the cultural traits is known to increase the performance and productivity of employees through increased focus on learning ability.
  • Effective culture serves as the fuel for the organizational operations; improvement in the individual performance of the employees translates into gains throughout.
  • Considering the value adaptability in the employees, the organization itself serves better for continuous change and adaption.

Cons:

  • Failure of the incorporation of the new values in the organization might negatively influence the organizational culture.
  • Increased focus on the change in the organizationalculture might distract the management to achieve their core objectives.

Alternative 2: Merger

Pros:

  • It is known to provide the fitness club with economies of scale i.e. resulting in the more efficient operations of theorganization.
  • The merger with a leading fitness cluboffering its services in the fitness industry using strategic approaches would help the organization to improve the way how the business operations are conducted.
  • A significant increase in salestends to allow the LA fitness to assist to manage and bring a reduction inits debt amount.

Cons:

  • The market share growthis known for the provision of monopoly power to the organization and the higher services prices making it difficult for LA to follow its approach to offer nice products at relatively low price ranges.
  • A leading fitness club tends to experience diseconomies of scale i.e. making coordination harder and resulting in the communication gapi.e. further worsening of the organizational culture and the management of its operations.(Goddard, 2018)

Alternative 3: Development of security culture

Pros:

  • The development of security culture would allow the customers to remain satisfied with the action performed due to continuous monitoring.
  • This will lead to a significant reduction in the incidence rate which was quite high related to safety, discrimination, and harassment.
  • The security culture in any organization serves as a key factor in improving the organizational reputation among its potential customer base.

Cons:

  • The development of security culture requires the high cost to set up a separate security system in the club and hire a team to manage the security options.
  • Security culture might create insecurity among the employees regarding their performance in the clubs.

Decision matrix:

AttributesAlternative 1Alternative 2Alternative 3
Customer satisfaction978
Security868
Employee engagement866
Sales987
Employee retention766
Financial stability987
Successful expansion876
Expansion of client base877
Total Score665555

Recommendation:

Based on the analysis of each alternative based on their pros and cons and their probability to improve the organizational operations through decision matrix, LA fitness is recommended to bring change in the organizational culture. This is due to the reason that changed organizational policies are known to bring significant changes in the organization. A significant change in the hiring process which would be based on employee retention would lead to loyal services by the employees. Improved employee performance tends to bring improvement in theconsumer and employee interaction, a secured environment, customer satisfaction, and increased sales. Whereas the other two alternatives were to resolve one particular issuerather than resolving each issue faced by the organization.

Implementation Plan:

Free-up employees and provide incentives:

The ultimate priority is to make work processes and jobs redefined and automated through freeing-up the employees, allowing them to deliver great value to the business as a whole, rather than focusing on the administrative task.

Hiring of Professionals:

The hiring of professional expert trainees in order to provide high-quality services to the members would allow the organization to maintain a professional working environment at the fitness club.

Training for new and existing employees:

Training of new and existing employees would assist the management to improve the organizational operations i.e. reduction in the incidence rate and employee satisfaction.

Contingency Plan:

Risk FactorLikelihoodRisk mitigation
Change ReluctanceExtremely likely Through Communication
ComplexityVery LikelyOrganizational learning an improvisation
Diverse focusSomewhat likelyIncorporate cultural change in the business model
Lack of consistencyNot very likelyProvide incentives and rewards
Difference in perceptionNot at all likelyInvolve employees in the process of decision-making

Conclusion:

LA offered time-bound memberships to the people over the age of 55 years and group classes i.e. SilverSneakers and Senior Fit. The company lack employee retention as the hiring of the sales force was quite common due to which more part-time employees were working at the fitness club.Based on the analysis, LA fitness is recommended to bring change in the organizational culture.Change in the cultural traits is known to increase the performance and productivity of employees through increased focus on learning ability...............................................

 

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