Business Decisions within your company

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Fitness decisions

TUI University

Roy A. Kuhn

BUS 303

Case Assignment Module 2

DR. Salnikova


You are the administrative assistant to Joseph Mirola, the Claims Manager for Rocky Mountain Mutual, a growing insurance company which just three years ago built a new headquarters complex in a fairly remote suburban area in Utah. No expense was spared for the complex, which included professionally landscaped grounds, elegant offices, and a Fitness Center featuring an indoor walking/running track, a small lap swimming pool, and an exercise room with free weights and exercise machines, The cost of the Fitness Center alone was almost a million dollars, and a small staff was hired to supervise the activities. A major reason for building the Fitness Center was that no sports club facilities were conveniently available near the firm's headquarters, and management considered exercise to be an important benefit to offer its employees.

In fact, with its plans to grow the company in the next few years, management touted the Fitness Center as a major draw for young employees, especially because of the somewhat remote location of the firm's headquarters.

TO: Zachary Evans, Vice President of Operations

FROM: Joseph Mirola, Claims Manager

DATE: October 21, 2008

SUBJECT: Promoting Fitness from the top

MR. Evans the purpose of this memo is to make you aware of the importance of continuing to keep our exercise facility for its employees, to offer you proof of how exercise benefits your employees and how cost is really irrelevant when it comes to one's health. You made it very clear that you are opposed to continuing to keep the exercise facility for our company due to its cost and lack of usage.

After years of research, it has been determined that exercise...