.1 Assessment Item 2 BFA534 2017 Case Study With rising obesity levels around the world and a greater focus on health, there has been increased participation in the fitness industry. In Australia the fitness industry produced revenue of around a billion Australian dollars annually, with close to 3 000 fitness centres (McMalcolm 2013). In Japan the health club industry accounted for revenue of 6.8 billion Australian dollars in 2015 (Statista Inc.). Australia and Japan led the Asian-Pacific region for revenue in this area in 2015 (Statista Inc.). However at the beginning of the second decade of the 21st Century, growth in revenue in the industry in Australia slowed because of market saturation (McMalcolm 2013). Joe Brooks is a veteran of the health industry, having managed, and then owned gyms and fitness centres in the Melbourne area since 1991. In 2005 he teamed up with a partner, Takashi Sato, to increase access to capital and help expand his successful business. Sato is originally from Yokohama in Japan, and as a wealthy businessman has many investments in Australia, Japan and some South East Asian nations. Sato met Brooks at one of the two Brooks Fitness centres in Melbourne’s east in 2002, where he went to work out. Sato was impressed by Brooks’ drive, charisma and confidence, along with his knowledge of the fitness industry. Although Sato was reserved and cautious by nature, the two first became trusted friends, and then business partners. They co-owned a chain of eleven fitness centres around Melbourne, which Brooks oversaw with a manager at each location. Sato was largely a silent partner. While on a trip to the US in 2016 to select new exercise machines for the fitness chain, Brooks became aware of the potential of the ClassPass business arrangement that operates in 20 US cities. ClassPass offers unlimited lessons for a relatively modest monthly fee to allow clients to choose from a diverse range of fitness studios that included yoga, dance, martial arts, Pilates, strength training and other choices. Clients were limited to choosing no more than three classes from the same studio in a month. However they could take an unlimited number of classes from other studios while conforming to this requirement. The arrangement benefited clients by enabling them to trial exercise options and increase their awareness of what was available in an affordable way. Small fitness studios benefited too by having more clients aware of their offerings, and encouraging clients to trial classes, utilising slots that otherwise may have been vacant. The incremental cost of participating for the fitness studios was small. The aim was that some of the trials would convert into ongoing membership and future recommendations with a fitness studio (Greenwald 2015). Brooks saw the potential of the scheme, and was aware that it was not implemented in Australia. He was able to confirm the scheme was not in use in Japan, either. After a sixmonth limited trial, the partners established their new business, SelectFit, which operated in Australia and Japan with managers in each nation, but was largely controlled from Australia by Brooks. Brooks had not travelled to Japan, but was confident the operation would be successful there. His networks in the Australian fitness industry and his ebullient and selfassured nature resulted in excellent take-up in Australia. Sato’s business contacts in Japan, and his reputation, led to SelectFit being embraced enthusiastically by fitness studio managers and customers there. The partners started action to list their combined fitness interests on the Australian Stock Exchange (ASX) as an Initial Public Offering (IPO). They met the profit and asset tests of the2 ASX. The owners’ motivation for listing arose from wanting access to a larger capital market, to set up SelectFit in other Asian areas where there was no similar competition. Conforming with ASX’s advice on how to list as an IPO on the ASX, the partners appointed professionals to advise on SelectFit’s corporate structure, financial matters, marketing and distribution of securities, as well as communication strategies (for investor, public and government relations) and other legal matters. Now the owners sought to retain specialist advisers on the requirements for compliance with the third Edition, ASX Corporate Governance Principles and Recommendations 2014, once their company is listed on the ASX. They want to learn about compliance and disclosure requirements relating to their first annual report once listed, and other key ways in which the corporate governance regulatory environment could affect them as a listed company. They wondered whether the corporate governance compliance requirements in Australia will detract from the benefits of listing on the ASX, and were concerned about any specific risks that the future company may face. References: Allan, G. (2006) The HIH Collapse: A costly catalyst for reform, Deakin Law Review, Vol. 11, No. 2, pp. 137-145 (only). Damiani, C., Bourne, N. and Foo, M. The HIH Claims Support Scheme, Available: http://treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/R oundup%2001/Downloads/PDF/Roundup_01-2015_article3_HIH.ashx, Accessed: 4th March, 2017. (to end of p. 9 only) Greenwald, M. (2015) Top 11 Innovative Products and Services of 2014, CMO Network, Forbes, Available: https://www.forbes.com/sites/michellegreenwald/2015/01/12/top-11- innovative-products-and-services-of-2014/#b0a0d0f5ce99, Accessed: 28th February, 2017. McMalcolm, J. (2013) Australia’s Fitness Sector Sees Growth in the Billions, Australian Business Review, November 22, Available: http://www.businessreviewaustralia.com/leadership/153/Australia's-fitness-sector-seesgrowth-in-the-billions, Accessed: 28th February, 2017. Statista Inc., Revenue of the Health Club Industry in Asia-Pacific Countries 2015, Available: https://www.statista.com/statistics/308841/revenue-of-the-health-club-industry-asia-pacificcountries/, Accessed: 28th February, 2017. BRIEF You have been retained by SelectFit as a specialist Corporate Governance Advisor. Your brief is to present a written paper on corporate governance practice to SelectFit at its next company meeting. You are required to: 1. Outline how to maintain and establish good corporate governance once the company is listed, in accordance with the Third Edition ASX Principles and Recommendations 2014 and other relevant statements, law or guidance (and address any specific risks SelectFit may have). 2. Discuss the advantages and disadvantages of corporate governance, demonstrating the benefits to the business as a listed entity in having good corporate governance, together with any disadvantages.3 3. Assist your client to understand the importance and benefits of adhering to the ASX Principles and Recommendations by referring to HIH’s situation. Inform yourself about 2001 HIH’s collapse before you start this assignment, by doing some searching and reading. Two references are provided above on HIH to get you started. 4. Follow the business report structure, order and guidance as outlined in https://www.business.unsw.edu.au/Students-Site/Documents/Writingareport.pdf. However do not include a letter of transmittal. You will need a brief title page that replicates the requirements needed in business (and not those of a student cover page that you will provide in a TSBE cover page). A brief executive summary is needed with all the components mentioned in the link above, and an automatically generated table of contents. Search Google to learn how to generate a table of contents for the version of Word you use. ASSESSMENT CRITERIA: This Assignment accounts for 25% of your assessment in this unit. Word Limit: 1500 words NOTE: Record your paper in either Word or pdf format, and submit in to the appropriate MyLO drop box. Be aware that your submission will be analysed by sophisticated TurnItIn software for plagiarism. Assessment Item 2 requires a list of references and use of citations. Please use the Harvard style for both. There is a guide to the Harvard style at: http://utas.libguides.com/referencing/Harvard. Make use of headings and subheadings. Spell- and grammar-check your work using Word just before submitting. You are encouraged to incorporate the text of the Principles within the document rather than in appendices, as it will assist the flow. Note that title pages, table of contents, reference list and appendices are all included in the word count. The TSBE cover page is not included in the word count. Please refer to the Unit Outline for information about submission requirements and penalties, over length submissions and plagiarism. The Intended Learning Outcomes Table on page 5 of the BFA534 Unit Outline shows how Assessment 2 relates to the relevant Learning Outcomes. All the BFA534 Learning Outcomes need to be passed to pass this Unit. ASSESSMENT 2 RUBRIC An Assessment Item 2 Rubric on MyLO sets out how your work will be marked. Refer to this Rubric as you develop this assessment.MBA_OD_ASG_2017 © Regenesys Business School 1 MASTER OF BUSINESS ADMINISTRATION ORGANISATIONAL DEVELOPMENT ASSIGNMENT ASSIGNMENT SUBMISSION DATE: Please refer to the Academic Calendar for the assignment submission dates. TECHNICAL REQUIREMENTS AND ASSIGNMENT INSTRUCTIONS • Please ensure that your first name, surname, student number, the course code number and total number of pages appear on the front cover of your assignment. • Assignments must be submitted online via the Turnitin link on your course subject page. Assignments may not be submitted via e-mail. Here is an example of the assignment submission link: • You will find instructions on how to upload assignments in the Turnitin guide to submitting papers here: https://portal.regenesys.net/course/view.php?id=43 • Please answer this assignment according to the guidelines in the Assignment Submission Guide, which you can download here: https://portal.regenesys.net/pluginfile.php/1400/mod_resource/content/10/Assignment_Submission _Guide_Acad_ver7.pdf • We recommend that you start this assignment as soon as possible. You will then get a good idea of the subject content early in your studies.MBA_OD_ASG_2017 © Regenesys Business School 2 Assignment Notes: • Full referencing of all sources, including page numbers in in-text referencing, is essential. For example: (Gitman, 2010:15) in-text reference, and then in your reference list: Gitman, L.J. 2010, Principles of Managerial Finance, Cape Town: Pearson Education. • Extensive and credible academic references are required to demonstrate that you have researched the topics fully and so that you can substantiate your arguments critically. • Please respect the introduction, body, and conclusion format for answering questions. Assessment Terminology: Ensure that you have a thorough understanding of the frequently used terms in assessments. For an explanation of assessment terminology, go to: https://portal.regenesys.net/pluginfile.php/1400/mod_resource/content/10/Assignment_Submission_G uide_Acad_ver7.pdf INTRODUCTION TO THE ASSIGNMENT • Please remember that this assignment may not exceed 17 pages, excluding the title page. • The font must be Arial 11 and single spacing must be used. • Students are required to use the in-text referencing method prescribed by Regenesys under guidelines and policies on the student portal. Further, students are encouraged to refer to the referencing mark allocation guide to see the minimum number of references needed for this assignment. • Please do not copy directly from the text unless absolutely necessary, and remember to put this in inverted commas and include an in-text reference. Paraphrase all the reference comments that you use and include the appropriate reference and page numbers. Plagiarism is a serious offence in the academic field. • The appendices must be a maximum of three pages each and the information must be relevant and summarised. Please provide the relevant links referenced in your appendices, in order for the assessor to evaluate the source further if necessary. NOTE: At postgraduate level, students are expected to substantiate their answers with evidence from independent research. • Responses should be in ESSAY AND PARAGRAPH FORMAT. Bullet type responses should be avoided. • If you decide to work as a group or team in doing your assignment, please make sure that you write your assignment individually and in your own words. o If NOT, you will be told you have copied and you will have to do a brand new assignment, which will be capped at 60% and for which you will have to pay a resubmission fee.MBA_OD_ASG_2017 © Regenesys Business School 3 ASSIGNMENT QUESTIONS QUESTION 1 [50 MARKS] Conduct an academic review of any organisational development and behaviour concept of your choice. (5-6 pages) QUESTION 2 [50 MARKS] Conduct an academic review on any organisational development and behaviour intervention of your choice. The review may include its usefulness, success and failures. (5-6 pages). Total Marks: 100