Private Fitness

To: Ravi Thirmalaisamy

From: Nesreen Makhdom

Subject: Private Fitness Inc.

Date: 02/20/2016

Business Brief

Rosemary has a facility called “Private Fitness Inc.”. It is a small health club business located in Rancho Palos Verder, an upscale community located in the Los Angeles, California. The Private Fitness club provides classes and private trainer. The charges are considered low and no membership is required for the classes and equipment workout as the case in other health clubs. Private Fitness Inc. has been operating for six months. its working hours are 5:30 am. to 9:00 pm. Monday to Friday, 6:oo am on Saturdays, from, and to 3:00 pm on Sundays. Rosemary established the Private Fitness by using $150,000 from her savings in addition to a bank loan. The Private Fitness club has five instructors to run classes and give PT (private training) session and pays commission to the instructors range between 20% and 50% of revenue. The commission depends on the experiences the trainer has. It also depends on customer that attracted to the Private Fitness Inc. Kate, a friend of Rosemary’s, has been hired as a manager whose task is to do marketing, facility up-keep, scheduling of appointments, and record keeping. Kate is paid a salary plus a commission based on gross revenues. She’s been successful in marketing as clients increase. The business is still in process to build up the volume necessary to make profits. Some classes are for public and scheduled during open hours, while others contain one or two students. Some classes are cancelled due to lack of clients. Rosemary hopes at the end of the year to do some profits. One day, Rosemary found that Kate was stealing from the cash of the facility, and Kate was sorry for this dis-honesty. Rosemary realized that she couldn’t follow her business due to the family responsibilities.

Rosemary Decision Making:

After this incident Rosemary has to think of the proper action she needed to take against Kate. She had two...