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Rocky Mountain Mutual

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Rocky Mountain Mutual

Date: July 9, 2015


Zachery Evans

Vice President, Operations


Joseph Mirola

Claims Manager


Memo: Thank you for giving me the opportunity to express my views regarding the fitness center. According to company reports the users of the Fitness Center had lower medical costs than the non users. Also employees who visit Fitness Center miss half the amount of work days than employees who do not use the fitness center. Productivity in the Claims Department has increased by 18 percent and the amount of sick days has decreased by 5. To replicate this scenario throughout organization I propose we put greater emphasis on Wellness program. We can balance cost of fitness center through greater productivity and lesser medical costs. Also it could become a distinguishing factor for our company when compared with the rest, and also contribute to improve the external image of the organization.

I hope you consider keeping the Fitness Center in the company for the long run.

Executive Summary

Rocky Mountain is a growing insurance company which has recently opened up its headquarters in a fairly remote suburban area in Utah. The headquarters are equipped with professionally landscaped grounds, elegant offices, and a million dollar Fitness Center featuring an indoor walking/running track, a small lap swimming pool, and an exercise room with free weights and exercise machines. According to the company records people who use Fitness Center have lower medical costs but only a few people use it. The Vice President of operations Zachary Evans is considering the shutdown of fitness center as its quite expensive for the company. In this situation, three options have been identified as the possible solutions to the problem. The analysis shows that the best option available is to keep the Fitness Center Open by reducing the space and eliminating unnecessary costs.

Table of Contents

1. Situation Analysis 5

2. Problem Statement 5

3. Options for Solution 5

4. Criteria for Evaluation 6

5. Evaluation of the Options 6

6. Recommendation 7



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