Hawthorn leisure club is a

recreational club.

Introduction
about the provides wide range of fitness
facility including playing tennis

company
Has 2000 members that provides
both annual and hourly membership
depends upon the choice and
preferences of the members.
New Management
Strategies or
practices involve
PLANNING OF CASH REVENUE CHANGES IN THE FEE
RECEIPT MANAGEMENT STRUCTURE AND
MEMBERSHIP PLAN
 Unlike the initial strategy which relied on hourly
fees charged to members, the proposed plan will
see the organization draw the majority of the
income from the annual payments.

Evaluation of new
membership plan Before considering new plan, perception of the
members should be taken care of.

and fee structure

Regular survey from the members regarding the
services and changes in the plan.
Evaluation of Financial Analyses

HWL should conduct several analysis which ensure that it makes the best
financial decision. The decision should based on-
Growth rate- It should consider historical data and current situation to
determine the future trends. Therefore choose the plans which offers best
growth prospects.
Profitability Analysis- Critical evaluation of income statement and some
profitability ratio like gross margin, net profit ratio and EBIT.
Liquidity Analysis- Liquidity position of the company should consider to measure
the financial status of the company
 Revenue forecast based on new
management plan

Cash flow forecasting- Business cycle planning- Working capital

The new management Elimination of business management
involve cash inflows once cycle, alternatively ensure Revenue collected based
a year unlike the previous annual subscription at the on hourly time spent by
beginning of the financial
plan that take place year. This can be done the members.
throughout the year. through aggressive
marketing activities.
 The above changes in the
management structure requires
better budgeting in order to ensure
that day to day activities have
sufficient funds.

Conclusion In addition to this heavy marketing

strategies should be lay out in order
to meet the annual subscription
numbers and this should be done
prior to the new financial year.