Research proves that poor management skills are one of the reasons why most employees quit their jobs and that not getting along with their bosses leader to the increase in the widespread employee turnover in the modern society. In this manner, there is a need to carry out holistic analysis into the issue of management skills of new managers in various firms to help in eliminating the challenges associated with poor management skills in the society (Alexander, 2013, p89). Many of the exit interviews that have been conducted in various firms in the society prove that poor relationship with the managers of the various firms lead to the widespread turnovers because it leads to low employees morale in their various places of work. There is, therefore, the need for the managers to consider the impact that they have on the employees of various firms in their respective workplaces and develop proper attitudes that improve employee effectiveness and efficiency at their respective workplaces.
There are various attributes that prove that a manager has poor management skills and that there is a need to acquire management skills to avoid relationship breakdown between staff and management of the firms. Due to the increase in diversity in the modern society and at the various workplaces, there is a need to ensure that managers take an interest in the employee development and participation in the growth and development of the organizations (Robbins, 2013, p132). Unless managers acquire proper management skills, there is bound to realize difficulties in the achievement of organizational goals and which come with various challenges to the economies of the countries in the modern society. Moreover, poor management skills also lead to employee turnover which leads to increase in unemployment rate and to lead to increasing in societal challenges among them various kinds of criminal activities.
PEST analysis is the analysis of the external factors that affect business projects and focuses on the political, environmental, social and technological components of the business and how they affect the success of the business with regards to the success of the income generating activities of the society. PEST analysis finds great use in almost every business and has various benefits to the organizations in the modern society. First, the PEST analysis helps the businesses in the modern society to spot opportunities in the business either business or personal and helps in identifying the threats in the businesses (Widjaya, 2015, p290). Secondly, the PEST analysis helps in identifying the situations where there are changes in the business environment and when there is a need to effect the changes in the business operations. By identifying the changes in the business environments, managers can then examine ways of shaping the businesses rather than working against the changes in the business environment.
Third, PEST analysis helps in determining the likelihood of success of any income generating activity in the society and guides entrepreneurs in engaging in business activities that are likely to succeed. This also ensures that the business managers have proper control of their business and can guide project the revenues and profits from their businesses. Finally, PEST analysis ensures that the entrepreneurs avoid unconscious assumptions when they enter a new market and country since it gives the entrepreneurs the opportunity to develop an objective view of the new environment in which they operate. In this manner, there is a need to carry out a PEST analysis before starting a gym business within a busy hotel (Guidi, 2013, p33). Mary Ryan upon being asked to develop a PEST analysis of a gym is required to carry out holistic analysis of the external factors that affect the environment in which the gym operate. This, therefore, would help in evaluating the probability of operating the gym successfully within the hotel and help in generation of income.
Starting and operating a gym within a busy hotel in the Limerick city area, require keen formulation of the PEST analysis, and this would help in making the business opportunity a success. First the political component would help in creating the gym a success for the neighbors. This is because of the various governmental campaigns in Limerick city to have active citizens and most specifically active kids. Such campaigns help in improving the health of the citizens by participating in activities that enhance healthier lifestyle, the campaigns within the city aim at improving fitness levels of the citizens that then help in improving participation at the gym. The citizens thereby respond by purchasing more gym memberships (Andreasson, 2015, p12). Moreover, there are government agencies that work to ensure the safety of individuals and the possibility of having a gym situated within a hotel, therefore, gives the citizens ample time to engage in fitness activities and relax with their families and friends at the hotel. This is due to the safety of individuals at the gym.
The economic factors related to the situation of the gym within a hotel are such that it would help in saving water for use by the participants at the gym, and this would then reduce the cost of operations. This is because the gym management would be able to share various costs with the hotel management among them water costs, electricity bills, staff wages and the cost of renting the location for the gym. In this manner, there is a probability that the gym would be run at a much lower cost that if situated as a single business (Hougaard, 2016, p52). Furthermore, locating the gym within a hotel also save on the cost of advertisement and this is because most of the customers in the hotel seek leisure and they therefore get better opportunities at the gym.
The social component of PEST analysis of operating the gym within a hotel is that it creates an opportunity for various people to meet and interact and this greatly helps people of the same age to meet and socialize as they engage in the gym activities. This is because the hotel provides a venue where people socialize therefore having the gym located within the hotel provide a greater opportunity for socializing and bonding with different people (Johns, 2013, p98). The aged members spend would then get the opportunity to spend time at the hotel while discussing business deals and various issues and make use of the gym to get more health benefits. This improves the living standards of the society. The high population of the Limerick City area would ensure that the membership at the gym would remain all-time high and lead to high revenues and profits at the gym.
Finally, analysis of the technological component in the PEST analysis of the gym in the Limerick city area proves that there would be easy installations of required machines at the venues. The exercise machines need to be up to date, and this would be easily installed within the location of the hotels without creating noise to the neighbors. Some of the equipment to be installed at the gym include the elliptical iPod holders as opposed to the weight bearing iPod holders. This would work to improve participation of the members of the gym and the increased membership at the venues. Finally, after participating in the activities at the gym, the participants would want to refresh themselves, and they would get the opportunity to the hotel where they would then have a meal as they relax (Widjaya, 2015, p292). Having a gym located within a hotel in the busy Limerick area helps in improving the living standards of the citizens in the area.
The plans that Mary had to carry out the PEST analysis is of great importance to the business as it helps in the examinations of all components of the business and identify possible threats and create solutions to the threats that have been identified. In this manner, the plans that Mary took included obtaining a professional certification to ensure that the business is credible and that it meets the regulations as stipulated by the laws of the land. Identifying the sources of funds and securing the required amount of funds is the next step in readiness to the purchase of the required equipment for the business opportunity (Guidi, 2013, p35). Another decision that required review is the evaluation of clients that would visit the gym and the projected income from the business. This requires the determination of appropriate customer base and identifying ways of securing the most probable customer base.
Seeking the gym location is greatly determined by the PEST analysis and Mary was successful in securing a location within a hotel that serves to improve membership and participation at the venue. Selection of the fitness equipment is another decision that Mary successfully made; this is because she would decide on choosing the equipment that best suits the members of the business venture (Andreasson, 2015, p11). This is because there is a very high probability that the users of the services at the gym in the specified location would be the aged members of the society. The decisions that Mary made with regards to the securing of the location and finances, the choice of the equipment to be used, choosing of the personnel to run the business and the acquisition of relevant certification proves the effectiveness of her decisions.
The positive approach that Mary gave towards the starting of the gym was carrying out the analysis of the business venture before starting the business. This helped her in identifying the threats that the business could face and providing solutions to the challenges that had been identified. However, the weak point of Marys approach was the purchase of the equipment without carrying out a pilot testing of the business venture. Despite the fact that the study expected that more aged people would be expected to have their exercises at the center, the younger generations have a greater interest in engaging in gym activities as opposed to the aged people (Hougaard, 2016, p53). It is advisable to carry out test operations of the gym and get to know the reality of the operations of the business before fully committing the funds to the purchase of the equipment for the business. This would then greatly help in maximizing the use of funds and avoid impulse purchases for the gym.
To start and run the gym business in the most effective manner, Mary should effect various changes in the planning and implementation of plans. First, she needs to put great focus on the styling of the gym regarding the number of clients and all possible sources of revenue from the business. This would ensure that the business does not produce any loss and that the capital is not lost. The second area of focus that Mary should put great focus on is the expenses and operating costs of the gym, this also relates to the management of employees and ensuring that the gym has qualified instructors that relate well to the customers and add value to the whole business venture (Johns, 2013, p99). Moreover, Mary should develop different strategies that would help him in starting and operating the gym and not rely on a single plan.
One major area of focus that would ensure that the business becomes successful is to start by accumulating wealth before committing in the business. Having cash crunch is one of the major stumbling blocks for various business organizations in the modern society there is a need to ensure that one has sufficient amount of money before engaging in the business opportunity. Accumulating sufficient funds involves proper budgeting and having a budget that exceeds the projected cost of starting the business. The second area of great f...
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