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by asamanta » Thu Jun 05, 2008 11:39 pm
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The following appeared as part of an article in a health club trade publication.

"After experiecing a decline in usage by its members, Healthy Heart firtness center built an indoor pool. Since usage did not increase significantly, it appears that health club managers should adopt another approach - lowering membership fees rather than installing expensive new features."

Discuss how well reasoned.....etc

____________________________________________________________________

The article in the health club publication regarding Healthy Heart is incompelete to reach the conclusion stated. The argument claims that the club must lower membership fees because, despite building an indoor pool the membership did not increase significantly. The article needs to state additional information to make this claim stonger. I have listed some points below that would be required to reach such a conclusion.

Firstly, I believe one needs to know if Healthy Heart's new indoor swimming pool was well advertised. Were people aware that the club had a new swimming pool? If people were not aware then the solution to incease membership would be to advertise this new addition rather than to lower membership fees.

Secondly it would be important to know whether the prospective new members would be interested in an indoor swimming pool in the first place. May be the vicitiny aldready had a number of swimming pools! The solution here would be to find out other indoor/outdoor activities that would attract people.

Thirdly, one needs to know how the membership fee structure of Healthy Heart compares with that of other health clubs in the neighboorhood. If the club's membership is aldready lower than its competitors then further lowering the fee would probably be of no consequence.

Finally, one needs to know if there was any other reason for the decline in membership such as a shift in the population of the entire town to a neigboring town. In this case no club improvements or lowering of fees would help to increase the club's membership.

Theefore, to reach a conslusion that Healthy heart must lower its membership fees, one needs to consider all factors that could have led to a decline in membership and a lack of increase despite the new addition of the indoor swimming pool.
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Source: — GMAT Essays (AWA) |

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