Page 2 - CIMA MCS Workbook August 2018 - Day 1 Suggested Solutions
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CIMA NOVEMBER 2018 – OPERATIONAL CASE STUDY
Question Response
What is GymFiT’s pricing strategy? Gym managers can set their own fees (p5). If clients want
additional lessons with fitness instructors, say, then they
negotiate these with the instructor.
What type of organisational Functional (p7)
structure does GymFiT have?
Does GymFiT have an HR director? No – this is covered by the Operations Director (p6)
How important is IT to GymFiT? Critical – clients join/pay on the website, clients can view
schedules on mobile devices, electronic entry to gyms, etc
(p8 and 9) -all these allow the company to employ fewer
staff.
How many new gyms does GymFiT Between 15 and 20 (p10)
plan to open each year?
What are the three key elements Page 11
of the company’s strategy in order (1) Improvements in operating efficiency,
to deliver long-term profitable (2) Offering a strong member proposition and by,
growth? (3) Focusing on its people.
How does GymFiT plan to improve (1) Economies of scale,
operating efficiency? (2) Use of data and technology and also by
(3) Managing its cost base – e.g. outsourcing support
functions.
What was the growth in the 6.3% (p12)
Celtland health and fitness gym
sector in 2017?
Is there any further scope for Yes - average penetration rates of 16-19% in other European
growth in Celtland? countries but only 14.3% in Celtland (p13).
How does Gym4All differ from Fit4Life offers members a lifelong membership fee which
GymFiT in its market positioning? will not increase provided the customer remains a member.
Its rapid growth has also been driven by its use of
specialised fitness apps which have been developed using
data analytics.(p13)
Is there any scope for GymFiT Yes – a number of smaller gym groups still remain (p13)
making further acquisitions?
How profitable was GymFiT in Profit after tax of C$6.3m, an increase of 29% on 2016. (p14)
2017?
44 KAPLAN PUBLISHING
