Company Analysis - Copy

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METTA REST SPA PERFORMANCE ANALYSIS 1 Metta Rest Spa Performance Analysis By Name Subject Tutor Institution City Date

METTA REST SPA PERFORMANCE ANALYSIS 2 Introduction The company's performance is critical for stakeholders because it increases their capacity to trust the company's promise to maintain consistent performance in the foreseeable future. For example, investors, suppliers, employees, and customers should always associate with a company that can guarantee it will serve them for as long as possible. Metta Rest Spa, being in the recreation industry, must be very strategic to guarantee that they compete effectively and remain committed to creating value for their customers. The Metta company is often associated with a high initial start-up cost, but in the long term, they become more financially sustainable. As a result, the study will take Metta Rest Spa performance into account. Company financial analysis and advice to Parents on whether or not to invest in the company. 1. Performance industry Considering the retreational industry is more social, the firm must perceive their customers as more relationship oriented. The Metta Rest Spa has entered the market and aims to compete with entertainment hotspots (Jackson-Cook,2023). The industry is known for its fierce competition, with razor-thin margins for top company categories and a requirement to give customers with value for money spent on recreational facilities. Metta Rest Spa Place is at a disadvantage because it is attempting to enter a market that already has large participants. The firm must consider the expense of the investment, their commitment to their customers, and their customers' ability to acquire value propositions. The industry players, such as Float House, have considerable market share, and Metta will need to be strategic to guarantee that they remain relevant and have devoted clients on their side.

METTA REST SPA PERFORMANCE ANALYSIS 3 2. Consumer The industry has a varied variety of consumers who can commit to purchasing their services. Floating is done for a variety of reasons, including stress and anxiety relief, pain management, improving creative and idea production, and athletic performance. Thus, there is a gap that Metta may fill in order to engage the majority of the people who need the services but have not committed to them. Giving clients an offer and allowing them to bring a friend to the Metta recreational location is the greatest method to persuade them. At this point, Metta must be strategic, in the sense that it must provide value for money in order to acquire customers before submitting them to the standard pricing of the company's services (Backmanet al., 2023). That is, the company must examine competitive advantages to help improve customer satisfaction, which can only be achieved if the value of the company's floating activities is larger than the cost of providing the service.. As a result, it is clear that Metta Rest Spa's center items and administration are skewed toward the health and wellbeing of its clients, but it still shows signs that it has failed to profit from its center business due to the failure to attract the right type of clients to help improve company profitability. As a result of its status as the industry's smallest participant. 3. Competitors In every industry, there must be more than one player providing equivalent services to consumers at any given time. To be competitive, the company must do things differently and provide value that is superior to that of other industry participants. Metta is in the entertainment and recreational industry, and it has a larger competitor who has dominated the market throughout the years. The Vancouver-Lower Mainland has a high market share and a strong

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METTA REST SPA PERFORMANCE ANALYSIS 4 brand with its clients, making it tough for a corporation to infiltrate and take them over (Rufeng et al., 2023) . The Metta must play well, examine what its competitors are doing to ensure success and do better, rebrand their recreational centers, and improve socialization with their customers to ensure that they understand the dynamics of the industry's customers, as they have not been in the industry long enough to make accurate strategic decisions to overcome those of its customers. Another important rival is the Float House, which is a few kilometers away from its operation site and is situated in a busy vehicle and road traffic area. This means it is available to potential customers and has the ability to raid Metta from them. With more leisure center locations, the organization can serve a bigger geographical territory. This implies that Metta must be creative enough to provide an additional feature that will provide a distinct advantage. Corporate Capabilities In terms of corporates, the Metta Rest Spa is on the verge or has the capacity to make suitable modifications that are sustainable given the guarantee that it can withstand (Jackson- Cook,2023). That is, it may opt to narrow its market segment to senior citizens, who are the working class, in order to improve revenue generation consistency. This is likely to result in more clients and increase their capacity to reduce losses. It will also improve the company's ability to increase its market share and meet the capacity required to compete effectively in the market. Analysis of the Company. 1. Cost Classification and BEP

METTA REST SPA PERFORMANCE ANALYSIS 5 The cost classification is important for the firm since it helps determine the fixed and variable costs that exist inside the company. The nature of the cost is crucial in making cost- cutting decisions. According to the information presented, the fixed costs include insurance, rent, interest expenditures, property expenses, salaries, utility bills, advertisement, equipment expense, and accounting and legal expenses. Cost Classification Fixed Cost Variable cost Insurance 7138 Business Fees and Licences 699 Rent Paid 16027 2 Cleaning Services 3,900 Interest Expenses 719 Courier and Postage 434 Property Expenses Office Supplies 4,178 Salariies 72659 Meals and Entertainment 178 Utility Expenses 13268 Research 1,143 Adversiments 42772 Repair and Maintenance 771 Equipmental rental 5809 Supplies 17,42 5 Accounting and Legal expenses 6918 Telephone 2,082 Total Cost 30955 5 Total Variable Cost 30,81 0 The break even point is 4127.4, which represents the number of units required for the Metta Rest to begin profiting. The break even unit might rise when sales, input costs, and equipment requirements rise, among other things. 2. Unit Sales Break Even Point Total Fixed cost/ Contribution Per Unit Contribution per unit 75 Total fixed cost 309555

METTA REST SPA PERFORMANCE ANALYSIS 6 Break even Point Unit 4127.4 Metta Rest will need to sell 4127.4 units to break even. This is because it is the bare minimum for covering recreation company expenses. Thus, if Metta Rest sells more than 4127.4 units, it will benefit, however units sold less than this quantity will result in losses (Rufeng et al., 2023). According to the analysis, the corporation sold fewer than 4127.4 units, resulting in losses because costs exceeded sales . 3. Seasonality The industry viability and seasonal pattern are critical in determining the company's potential future performance. According to the prior research, more customers are taking physical fitness and emotional health seriously. According to the study results during the year, there is an evidence of increasing awareness to the degree that a recreational company can raise their unit sales by 87.65 percent compared to 31 years before. This is a substantial and encouraging result, indicating that the industry will attract more customers in the future (Backmanet al., 2023) . As a result, it can serve as a foundation upon which investors, namely parents, can base their decision to invest in the Metta Rest firm. However, targeted interventions are required to ensure that as the market grows, the recreation site's market share grows as well. When did you open your doors? percentag e In the last 5 years 14 9 87.65% 6-10 years ago 1 8 4.71% 10-20 years ago 9 5.29% 21-30 years ago 3 1.76% 31+ years ago 1 0.59% Totals 17 0 100.00%

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METTA REST SPA PERFORMANCE ANALYSIS 7 In the last 5 years 6-10 years ago 1 10-20 years ago 21-30 years ago 31+ years ago 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Seasonality The graphical representation indicates that the market space is likely to expand in the future to accommodate enterprises with significant sales potential. Metta Rest Spa should work on molding its services so that it can consistently provide distinctive service to customers while also growing with the industry. 4. Membership Sales When it comes to earnings, membership sales are critical. When a corporation believes that its members are able to pay at the rate, it can enhance membership sales. When the fee is prohibitively expensive, customers are more likely to seek for an alternate recreational facility (Jackson-Cook,2023). Metta Rest Spa offers a membership package, thus it can change the package to boost profit margins. For example, based on the agreement with the clients, the corporation may propose a one-month unlimited membership at $350 and a yearly membership at $2500. This will allow them to grow sales and cashflows within the organization, which will help them meet their short-term obligations. This adjustment can be biased toward acquiring

METTA REST SPA PERFORMANCE ANALYSIS 8 more funds to develop the facility and create the necessary equipment that meets the customers' requirements, resulting in a rise in profitability. 5. Staffing Schedule and Wages Staffing was planned and based on the specializations and abilities of each Metta employee. Charlie worked at the front desk and was in charge of staffing, Kimberly was in charge of marketing, and Natasha was in charge of operations and financial management, as well as being a trainer in the facility (Naidoo et al., 2023). The timetable appears to be effective, but it requires that personnel hired under contract be paid a fair pay. Wage costs are significant, and they contribute to one of the primary financial headaches for the rehabilitation institution. The cost can be decreased by offering a customer the option of doing the leisure activities alone or requiring assistance, in which case an additional fee should be charged. This will allow the corporation to recoup the money invested on paying trainers within the facility. 6. Float per Day and Hour The company ability to charge a reasonable amount and one which is affordable to its customers and potential customers makes while remaining profitable ensures that its financially sustainable. From the analysis , in the case of three pack float, the Metta Rest charges 75 dollars for a single float same to the float house , while their significant difference in the three pack, where the Metta Rest charges 165 dollar while Rest house charges 180 dollar. The managers have freedom to increase the prices for Mettta Rest to accommodate some fixed cost and reduces losses but still retain their customer (Jackson-Cook,2023) . For example, corporate management can charge up to $175 to add ten dollars to every three pack and improve the company's sales.

METTA REST SPA PERFORMANCE ANALYSIS 9 The company can also introduce ten packs and charge a slightly lower price than the rest house to help catch clients who are familiar with the arrangement and enhance their sales capacity. 7. Market Breakdown The industry is evolving quickly, and more people are becoming aware of the benefits they derive from recreational activities. The Metta Rest should define their target clients, that is, classify customers according on their level of need and charge based on their ability to pay and commitment to using the given services. For example, a high school student may not have enough money to fully enjoy their recreational pursuit, but they may be a prospective customer in the future. This means that Metta Rest must find a solution to accept the amount they are comfortable with in order to gain referrals and focus on acquiring long-term consumers (Naidoo et al., 2023) . The market in the recreation and administration industry is broad and contains large and varied age group. The organization may also consider categorizing clients based on their demands and providing them with the right service. The advertiser should target consumers depending on their needs; some may merely need to relieve stress and anxiety through therapy, while others may require treatment for pain, back, neck, or pregnancy. This means that Metta Rest should categorize the market based on needs in order to include all possible clients and create advertisements that are directly related to the target customers. Recommendation and Conclusion The analysis and performance of the Metta Rest Spa are still being scrutinized before committing to a further investment in the company. The parent should allow management to take some strategic actions and make adaptable changes aimed at securing market share and being

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METTA REST SPA PERFORMANCE ANALYSIS 10 more trustworthy to their customers. According to the analysis, doing anything may result in a probability of expenses overhaul, which is required to be managed to avoid overspending. The Metta Rest Spa has the capacity to continue conquering the market sector with merchandise and appropriate administrations and become one of the leading dinner entertainment site and relaxation center for the majority of the consumers (Rufeng et al., 2023) . That is, by targeting working-class customers, there is a chance that the expense of its services and administrations will provide the necessary life saver to maintain its duty. It is critical to remember that every investment in the Metta Rest Spa should bring value to the parent in terms of return.

METTA REST SPA PERFORMANCE ANALYSIS 11 References Backman, S.J., Huang, Y.C., Chen, C.C., Lee, H.Y. and Cheng, J.S., 2023. Engaging with restorative environments in wellness tourism. Current Issues in Tourism , 26 (5), pp.789-806. https://www.tandfonline.com/doi/abs/10.1080/13683500.2022.2039100 Jackson-Cook, L., 2023. Combatting Counselor Exhaustion: Neurofeedback Versus Mindfulness (Doctoral dissertation, The University of Texas at San Antonio). https://search.proquest.com/openview/efc25bc12a7c1b409d7f49f726e607c7/1?pq- origsite=gscholar&cbl=18750&diss=y Naidoo, D., Schembri, A. and Cohen, M., 2023. Vacation or therapy? Demographics, motivations, and experiences of wellness retreat guests around the world. International Journal of Spa and Wellness , pp.1-14. https://www.tandfonline.com/doi/abs/10.1080/24721735.2023.2225970 Rahmani, Z., Mackenzie, S.H. and Carr, A., 2023. How virtual wellness retreat experiences may influence psychological well-being. Journal of Hospitality and Tourism Management . https://www.sciencedirect.com/science/article/pii/S1447677023000372 Rufeng, L., Nan, Z. and Jianqiang, Z., 2023. Impact of Employee Well-Being on Organizational Performance in Workplace. International Journal of Management and Human Science (IJMHS) , 7 (2), pp.87-95. https://ejournal.lucp.net/index.php/ijmhs/article/view/2201

Company Analysis - Copy

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