ABC is a youth development company that operates youth community centers and provide diversified physical and mental services for youth development. The company was founded in 2001 with just two centers and was very successful. Throughout the years, with the patrial fund the company receive from the government and the variety of services, it continued to turn a consistent profit while slowly building 30 more centers. This low-profile approach changed forever in 2012 when John River decided to make a major investment in expanding ABC in return for more profits. The competitive enrolment fees he offered, has attracted more and more users and the number of centers exploded. ABC was operating 180 centers by the year 2016.

The company now has 220 facilities in the United States, with an average of 115 gymnastics

facilities and a total of nearly 30,000 employees. In addition to youth development services, it also provides skilled services to selected schools & clubs. For years ABC has been one of the best in the region, and it has won numerous awards for its achievements in the field. Its ability to attract and retain qualified trainers who are passionate about what they do, contributed to its reputation. With increasing public awareness, larger segments of the population demanded this kind of services and several competitors entered the market in recent years. ABC wants to make sure it is in a good position to sustain its achievements and meet the growing demands. This means the company must continue expanding rapidly.

The problem

The pressure for growth is one significant challenge, but it is not the only one. The

industry has come under increasing government scrutiny following investigations that turned up widespread frauds in the industry. ABC has always had outstanding services and reputation, and no substantiated claim of bad services has ever been made, but the need for increased documentation and monitoring is a must, plus the fact that as the government tries to trim expenses, ABC may face a reduction in funding.

Moreover, the Board of Directors wants to see renewed commitment to the firm’s mission and core values that emphasizes excellence and customer care, not a diffusion of its culture. Strategically, the board would want ABC to be “The place to be for youth and physical development”. Not just ahead of competitors, but also far away ahead. The chairman of the board has emphasized that “All plans & strategies have been developed, so there is no reason for not achieving our vision”. However, some members express worries that there might be problems to address before moving forward. Data acquired from interviews with employees suggest there is plenty to worry about.

Shift leader, Norman, has been with ABC for fifteen years, he stated that “Now that the government keeps a closer eye on our staffing levels, I’ve seen management do what it can to keep positions filled, and I don’t always agree with who is hired. Some of the basic job skills can be taught, sure, but caring for  youth cannot be taught—a lot of these new kids (employees) just don’t pick up on that.” He continued; “Some of the staff just thinks of this as any other job. They don’t see the our client  as people, more like inventory. If they want to work with inventory, they should get a job in retail.”

“The problem isn’t with staff—it’s with ABC’s focus on filling the centers,” says one of the sport trainers. Chad Ronald . “When I started here, ABC’s reputation was still about the service. Now it’s about numbers. No one is intentionally negligent—there just are too many people to see.” Plus. these customers are demanding. They complain about everything, probably because most of them think they are entitled to be here. A lot of times, their complains amount to nothing, but we have to cater for them anyway.”

Nancy N., a strong female board member, praised the company for dealing with the pandemic. With the Covid-19 Pandemic the company had to alter many of its services to virtual and an online service offering awareness sessions and an online mentoring for exercises were established. What helped the company to do that is the recent investment the company made in improving their electronic system.  However, Nancy raised a concern about the readiness to comply with the continually challenging government’ regulation, as well as the readiness to deal with the competition that will result from the recent announced merger of two strong competitors.

With the pandemic, the company has faced several challenges. The company struggled to pay their excellent trainer the incentive they used to pay them.  It also had to close some of the facilities. This has with no doubt affected the moral and motivation of some of the staff.

The staff of the center has always been committed to excellence, most of them were selected because of their passion to work with people in addition to their skills. The company also invest a considerable amount of money to take care of the staff and reward them, which was difficult to do recently. Staff have always been  treated like family members with a lot of understanding and flexibility to ensure work life balance. As the CEO puts it, “we need to take care of our staff so that they take good care of our customers”

Last month, the company’s human resources department pulled the following information from its records at the request of the Board of Directors. The numbers provide some quantitative support for the concerns voiced by staff. The table below show the numbers related to the northern area centers

Injuries to staff occur mostly because of lack of good training. incidents reflect injuries due to slips, falls, errors, or other accidents. Certified absences are days off from work due to medically verified illnesses or injuries. Other absences are days missed that are not due to injuries or illnesses; these are excused absences (unexcused absences are grounds for immediate firing).

Year	client (members)	Injuries Per Staff Member	Incidents Per member	Certified Absences Per Staff	Other Absences Per Staff	Turnover Rate
2011	21,200	3.32	4.98	4.55	3.14	0.31
2012	22,300	3.97	5.37	5.09	3.31	0.29
2013	22,600	4.87	5.92	4.71	3.47	0.28
2014	23,100	4.10	6.36	5.11	3.61	0.35
3015	23,300	4.21	6.87	5.66	4.03	0.31
2016	23,450	5.03	7.36	5.33	3.45	0.28
2017	23,600	5.84	7.88	5.28	4.24	0.36
2018	24,500	5.62	8.35	5.86	4.06	0.33
2019	24,100	7.12	8.84	5.63	3.89	0.35
2020	25,300	6.95	9.34	6.11	4.28	0.35

The Board wants to collect more data on the work environment and resources needed, this is to be done in order to take an informed decision on creating change and re-energize its sense of mission, which is a must to be able to achieve its ambitious vision.

Your Assignment 

ABC has taken some initial steps toward a new direction, but clearly it has a lot of work left to do. You have been brought in as a consultant to help the company in its efforts to be the leader in the youth development industry. Create your report as if for the Board of Director of a major corporation. When you write your recommendations, make sure you touch on the following points, and indicate their corresponding number:

 

1. Based on the information available in the case above, conduct an analysis of the Macro as well as the Internal environments of the company. (6 Marks)

 

2. Do you think the company has the required capabilities to be ahead of its competitors? Reflect and explain the company’s capabilities and the role each capability plays in organizational success. (6 Marks)

 

3. What corporate level strategy do you think the company is adopting? Justify your answer with evidence from the case. (6 Marks)

 

4. If you are to advice the company about its next strategic move as part of the efforts to lead its competitors, what would be your advice (6 Marks)

 

5. Reflect on the major elements of good strategy execution (at least 3 elements and explain their role to create an environment that facilitate good strategy execution.  Use good elements of strategy execution studied to guide your proposal. (6 Marks)

6. If you are to design a survey to collect information needed for long term planning and good strategy execution for the company, what kind of data you require and questions to ask (A list will be enough). (6 Marks)

 

 

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