Cleveland Fitness Center How Not To project Manage Case Solution

1. There were a number of issues when it came to the project management of CFC Phoenix. The following PEST analysis will elaborate on the issues the project management team faced while undergoing the expansion of the center.

i. Political

From a political point of view, the center faced some trouble when it came to their air conditioning equipment because according to local inspection authorities and legislation there were new laws in place which outlined certain requirements for all cooling units. These requirements were supposedly better for the environment.

If the internal political system of the center is analyzed, it is seen there was a power struggle, and everyone wanted to do everything. For example, Pete Jackson was getting involved in electrical specifications. Moreover, everyone wanted to show their administrative efficiency Bob Jones not involving the operational team when deciding on the construction company to go with. Hence, it seemed the management lacked harmony and coordination, which resulted in failure. Therefore, as a project manager, there should be a clear definition of roles and responsibilities.

ii. Economic

The fitness industry was expanding rapidly, with a growth rate of 1.4% per annum, which was valued at $26 billion. The industry was also a provider of employment, giving employment to some 575,000 people. Moreover, the number of fitness-related companies were growing at a fast rate, with currently, 32,000 registered locations (Parker and Downie, 2014). Where the economic situation was favorable for the center’s expansion, however, it failed to capitalize on the market, with delays in opening and usage of the new equipment, the center lost many of its existing memberships. It also failed to attract new members, which was the initial goal of the expansion project.

iii. Social

There was an increasing trend towards a healthier lifestyle, and more and more people wanted to become fit. Due to this social change, many new fitness centers were coming into being, and there was increasing competition in this growing sector. Moreover, there was a shift in marketing practices as highlighted by Mark, where the need for consumer engagement had now become integral for a business to be successful. Furthermore, the use of social media in advertising practices was also a crucial part of marketing for many businesses. Hence, the identification of the opportunity was correct; however, the center failed to capitalize on it due to management issues.

iv. Technological

Mark identified that there was a need to introduce more technologically advancement equipment, one which allowed consumer engagement and to update their data directly onto the center website. A software was designed to fulfill this; however, due to the involvement of Pete, the almost done software needed to be scraped and changes needed to be made, which increased errors and delays.