Implementation, Evaluation and control

Case 16, Town Sports Page 71

VI. Strategic Alternatives and Recommended Strategy

A. Strategic Alternatives

TSI had the right idea in how they implemented their strategy when it came to all the additional programs and equipment they placed for their membership services. With having traditional classes (yoga, Pilates, dance, etc.), new sport courts, and even having a babysitting service. All these were good ideas, but now with people not having to energy to go to a gym and going straight home, they could have within the membership a schedule for their members where either a trainer could come to their house for a small fee, have classes be recorded live so members can still feel like they are in the class but be in the comfort of their home, or provide DVDs that members can obtain by mail as part of their membership fee. These strategies help TSI come back up in the market, since they are competing with new companies that are adapting to this new age of technology and providing different services to what the customers of this market want to see and buy into. The major practical alternative strategies available to TSI is to incorporate ways for members and new customers to feel comfortable and to be able to choose the location they would like to be when exercising. Giving consumers options shows that the company cares about them and in turn gives consumers an incentive to want to stay with the company, which helps TSI keep their members and obtain new members as well. These options can be from the options listed above (personal trainers going to their homes, live recording of classes, or monthly DVDs ship to members houses). TSI can also extend their hours of operation, maybe even to 24 hours from the different hours people get out of work. They could implement this strategy for a month to calculate the number of members or new members that come in and see if it would be worth staying open 24 hours. The company could also have an option for new members to either use their services in classes the company provides for two weeks free of charge or use the equipment TSI has to offer their members for two weeks free of charge. This could help the company in having new members test their services and hopefully sign up for a membership within a week of the two-week trail. The pros for these strategies is in finding a balance in the new consumer market for corporations like TSI, once the company can determine how much revenue they can make by implementing these strategies they can either continue with the changes or adjust the strategies to help better the company’s services. Another pro from these strategies, TSI would be able to convert their services into a more convenient way for members to exercise, whether they are getting out of work and do not want to go to the gym or if they are shy and do not want other people looking at them. The cons would be the cost of shipping the DVDs to members, having to be responsible for both their trainer’s and members safety if the members would like the trainer to go to their home, and the cost of cameras and making their own page for members to log into to be able to see the class. Another con would be from the strategy in having their business open 24 hours, the extra cost of light, machinery operations, classes, and trainers. Unless the company would just have their machines operating and the rest of their services closed from a certain time, it will still be an additional cost to the company. Also, having a two-week trail is an additional cost from new customers using their services and equipment without being charged, making the company the one to pay for these uses.

Considering if the corporation can agree on developed scenarios from the alternatives fitting the natural physical environment, societal environment, industry, and corporation for the next three to five years. When it comes to stability, there is the possibility of increase profit, but changes will have to be made in adding additional operations and forms. The company will be able to show growth in the market, as the company will have new accommodations that will move the company up in the market. As for the retrenchment, the company may need to cut off a few expenses to adjust to the new strategies. The company would need to cut off a few of its services, it could be classes or one of their courts to make a beneficial turnaround. In cost leadership, the company’s competitive advantage would be having their classes recorded live, babysitting service, and giving a two-week trail. TSI can also cut the cost of the first two memberships they provide that are the “least expensive” and take off $20 to have an additional advantage from other corporations that have similar equipment and classes at a high price but provide a membership that is lower and reasonable. TSI would differentiate itself from having live classes being an option and also having the option of one of their trainers going to the members house, this is something not typical or if at all seen in the market, TSI distinguishing itself from competitors. Reinforcement from a mail carrier would be FedEx, UPS, U.S. post office, to help with shipping DVDs. Also, a reliable website to make a contract within order to place their live classes as well as obtain new customers.

B. Recommended Strategy

I recommend product and market development; these are crucial for the company in order to excel in the market and not be left behind and forgotten. No, I do not recommend any strategies be made for the different units in the corporation, but I would recommend improving their strategies and having the units come up with some new ideas to better lift the company so that it can compete in the market with more updated strategies.

For product development, TSI has the right idea in the products to provide their customers but the company needs to have a bigger variety if they want to survive in todays market where everything revolves around technology. TSI just need more options for those members that want to exercise in the comfort of their home or that cannot make it on time to the gym. Having these options open more opportunities for the company to make a higher profit. In marketing, the company needs to be more in where the eyes of customers always are… their phones! Creating an Instagram, Snapchat, gets the exposure they need and showing what their gym offers, from services/class to equipment/ trainers. These two recommendations will help in the short-term in catching the eyes of the consumers to take a look in person or call and in the long run, creating new relationships with other companies and customers. There should be form that protects the company and its members if/when an equipment gets damages, in cases of accident or the equipment itself was lose should not be the members obligation to pay. As well as, having a policy that trainers and members have to be a certain feet apart, unless the member ask for help, in the event trainers to go members home (mentioned as a new strategy the company could implement) trainers and members sign a form to where the company can not be at fault for any misconduct but can use the information provided from both parties to decide what should be done. Additionally, the company could incorporate a policy for their babysitting service in providing a sanitary place for the children and throwing away any toys or equipment that can not be cleaned and used again. The impact on my recommended strategy would give the company an advantage, as well, having more options available for its consumers. It would be a bit of a struggle at first, given that the company has not gone online or worked with technology in this way. The recommendation will also help in improving the company’s development in the market and leveling up from itself. TSI will be unique in having a webpage that gives classes, giving out DVDs in one of their memberships, and having their own trainers be available for house calls. These are strategies that will elevate the company from where it is to becoming a high competitor.

VII. Implementation

A. What Kinds of Programs or Tactics Should Be Developed

to Implement the Recommended Strategy?

1. Who should develop these programs/tactics?

2. Who should be in charge of these programs/tactics?

B. Are the Programs/Tactics Financially Feasible? Can Pro Forma

Budgets Be Developed and Agreed On? Are Priorities and

Timetables Appropriate to Individual Programs/Tactics?

C. Will New Standard Operating Procedures Need to Be

Developed?

VIII. Evaluation and Control

A. Is the Current Information System Capable of Providing

Sufficient Feedback on Implementation Activities and

Performance? Can It Measure Strategic Factors?

1. Can performance results be pinpointed by area, unit, project, or function?

2. Is the information timely?

3. Is the corporation using benchmarking to evaluate its functions and activities?

B. Are Adequate Control Measures in Place to Ensure

Conformance with the Recommended Strategic Plan?

1. Are appropriate standards and measures being used?

2. Are reward systems capable of recognizing and rewarding good performance?