lOMoAR cPSD| 16290539
Part A Set Task Information
Multifit Gyms plc
Multifit Gyms plc (MF Gyms plc) was a successful fitness brand with 20 gyms. The business
was set up in the late-1990s. Over the past five years it had developed a reputation for
outstanding customer service and innovative online classes.
The business employed 300 people within its gyms. It also had 15 head office employees
who carried out support activities such as marketing, finance and human resources.
All employees had to complete a supportive six-month probationary period. They were
then given permanent contracts. 75% of employees were full-time and the rest of the
employees worked a fixed number of hours each week.
Most of MF Gyms plc’s employees liked the laid-back management style and found
it empowering. They liked the flexible work opportunities, for example branch
administrators and personal trainers were allowed to carry out some of their duties
from home. The personal trainers could also create their own client schedules and
deliver some classes online. The managers trusted employees to be professional and
work their contractual hours each week. They thought the employees did not need a lot
of monitoring.
The managers organised weekly team meetings to discuss the performance of the
gym. However, these meetings were usually social events and no one was ever made
responsible for missed profit targets or if customer numbers declined. The staff were
encouraged to make suggestions to improve the business, such as adding new classes
or facilities. Making suggestions made them feel empowered and working relationships
were positive. However, there was no system in place to monitor the success of these
new activities or to budget for them. As a result, the activities did not often make a profit.
MF Gyms plc did not conduct staff appraisals and although training and development
opportunities were available to all staff, not many people used these opportunities. This
lack of training often led to low customer satisfaction rates and a lack of available skilled
staff to run popular classes.
At the end of 2020 rumours started to circulate that MF Gyms plc was going to be
taken over by the UK’s leading gym brand Local Gym plc that had over 130 gyms. The
management of MF Gyms plc said the takeover would not happen, but employees
were still worried because Local Gym plc’s conditions of employment were significantly
different. As a result, staff turnover at MF Gyms plc rose from 5% to 18% in the following
12 months.
In June 2021 there was a story on the front page of a national newspaper confirming the
two gyms were going to merge. The enlarged business planned to trade under the Local
Gym plc name.
MF Gyms plc’s employees were disappointed that they had not been consulted and that
they found out about the merger from a newspaper story.
The gyms officially merged on the 1 January 2022. Endris Hunt, the Managing Director
of Local Gym plc, became the Chief Executive Officer (CEO) of the enlarged business.
After the merger the senior managers of MF Gyms plc either chose to leave or were
made redundant. Endris has 30 years’ experience of working for Local Gym plc, starting
as a fitness instructor. He is results driven, has a reputation for pushing for efficiency
increases, and expects staff to follow instructions without question.
4 W74393RA
Part A Set Task Information
Multifit Gyms plc
Multifit Gyms plc (MF Gyms plc) was a successful fitness brand with 20 gyms. The business
was set up in the late-1990s. Over the past five years it had developed a reputation for
outstanding customer service and innovative online classes.
The business employed 300 people within its gyms. It also had 15 head office employees
who carried out support activities such as marketing, finance and human resources.
All employees had to complete a supportive six-month probationary period. They were
then given permanent contracts. 75% of employees were full-time and the rest of the
employees worked a fixed number of hours each week.
Most of MF Gyms plc’s employees liked the laid-back management style and found
it empowering. They liked the flexible work opportunities, for example branch
administrators and personal trainers were allowed to carry out some of their duties
from home. The personal trainers could also create their own client schedules and
deliver some classes online. The managers trusted employees to be professional and
work their contractual hours each week. They thought the employees did not need a lot
of monitoring.
The managers organised weekly team meetings to discuss the performance of the
gym. However, these meetings were usually social events and no one was ever made
responsible for missed profit targets or if customer numbers declined. The staff were
encouraged to make suggestions to improve the business, such as adding new classes
or facilities. Making suggestions made them feel empowered and working relationships
were positive. However, there was no system in place to monitor the success of these
new activities or to budget for them. As a result, the activities did not often make a profit.
MF Gyms plc did not conduct staff appraisals and although training and development
opportunities were available to all staff, not many people used these opportunities. This
lack of training often led to low customer satisfaction rates and a lack of available skilled
staff to run popular classes.
At the end of 2020 rumours started to circulate that MF Gyms plc was going to be
taken over by the UK’s leading gym brand Local Gym plc that had over 130 gyms. The
management of MF Gyms plc said the takeover would not happen, but employees
were still worried because Local Gym plc’s conditions of employment were significantly
different. As a result, staff turnover at MF Gyms plc rose from 5% to 18% in the following
12 months.
In June 2021 there was a story on the front page of a national newspaper confirming the
two gyms were going to merge. The enlarged business planned to trade under the Local
Gym plc name.
MF Gyms plc’s employees were disappointed that they had not been consulted and that
they found out about the merger from a newspaper story.
The gyms officially merged on the 1 January 2022. Endris Hunt, the Managing Director
of Local Gym plc, became the Chief Executive Officer (CEO) of the enlarged business.
After the merger the senior managers of MF Gyms plc either chose to leave or were
made redundant. Endris has 30 years’ experience of working for Local Gym plc, starting
as a fitness instructor. He is results driven, has a reputation for pushing for efficiency
increases, and expects staff to follow instructions without question.
4 W74393RA
