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explain in a detail manner the nature and scope of mexican-american political social and community organizations and how these new organizations changed through time specifically after world war II 1950's and 1960's
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Cross Cultural Leadership.
In the article conceptualizing leadership across cultures, the authors provide a research summary on how leadership varies ...
Cross Cultural Leadership.
In the article conceptualizing leadership across cultures, the authors provide a research summary on how leadership varies across cultures. In one ...
PU Management the Industry of Health and Fitness Case Questions
Closing Case
Fitness First and the UK health and fitness club industry
In July 2014, John Wartig, the chief financial offi ...
PU Management the Industry of Health and Fitness Case Questions
Closing Case
Fitness First and the UK health and fitness club industry
In July 2014, John Wartig, the chief financial officer of Fitness First Ltd, was preparing for a meeting with his CEO, Tony Cosslett, to review Fitness First’s capital expenditure plans for the next five years. Both were relative newcomers to the company: following the acquisition of Fitness First by private equity firms Oaktree Capital and Marathon, Cosslett was installed as CEO in June 2012; Wartig was appointed CFO six months later. Fitness First claimed to be the world’s largest privately owned health club group with 540 clubs and over one million members in 21 countries. In January 2014, Fitness First announced a £350 million five-year programme of capital investment which would include £50 million on upgrading and rebranding its UK clubs and £64 million on expanding its presence in Asia, including entry into China. John Wartig’s concerns related to Fitness First’s UK operations: given the intense competition within the UK health club sector, would Fitness First’s investment in upgrading its facilities and repositioning within the market yield a satisfactory return to its owners?
Fitness First Ltd
In 1993, Mike Balfour established the first Fitness First health club in Bournemouth, England. The company’s floatation on London’s AIM in 1996 fuelled rapid expansion, initially in the UK, Germany and Belgium and then into Australia, Hong Kong, Spain, Malaysia, France, Holland and Italy. However, rapid expansion strained its finances and, following a steep fall in its share price, it was acquired by Cinven, a private equity firm in 2003. Following two years of restructuring and refocusing, Fitness First was bought by another private equity group, BC Partners, for £835 million. Yet, despite its market leadership in the UK, financial performance was poor. By 2011, Fitness First was teetering on the brink of bankruptcy and in 2012 was acquired by Oaktree Capital and Marathon Asset Management. The new management team closed some clubs and put others up for sale. By 2014, there were 80 Fitness First clubs in the UK, down from 161 in 2009. During 2014, CEO Tony Cosslett initiated an upmarket repositioning of the chain in an effort to enhance members’ experiences and to avoid direct competition with budget chains. The new strategy comprised using IT to provide fuller information and a more customized experience, rebranding to establish Fitness First as a ‘national authority’ on fitness and exercise, a redesign of the clubs and retraining staff to enhance their knowledge and customer orientation.
The UK health club industry
Development
As in other countries, gymnasiums with facilities for weightlifting and general exercise and for sports such as gymnastics, boxing, wrestling and judo had long been a feature of the social infrastructure of urban Britain. Gymnasiums were operated both by local government authorities and by not-for-profit clubs. The emergence of health club chains owned and operated as business enterprises dates from the early 1980s and was associated with the rise of young urban professionals (‘yuppies’) as a social and cultural group.
The contrast between the new health clubs and the old gyms was stark. Gyms were typically scruffy, male-only facilities with limited equipment and very basic changing and showering facilities. The private health clubs featured sophisticated, technologically advanced exercise equipment; pools, saunas and steam rooms; individual and group instruction in a range of activities from yoga to weight training; individual consultation through personal trainers; and luxurious relaxation facilities including cafés and juice bars.
Early entrants into the industry were typically start-up companies which began with a single establishment then used venture capital funds to expand. These were often founded by individual enthusiasts and former sports personalities.
Early leaders such as Holmes Place (1980), David Lloyd Leisure (1982), Fitness First (1993) and Esporta (1994) initially drew upon venture capital finance and were later listed on the London Stock Exchange or AIM. Subsequently, many were bought out by private equity firms: their erratic profitability but good cash flow potential made them attractive, but more to private equity financiers than stock market investors. In addition to these start-ups, a number of established companies entered the industry. Richard Branson’s Virgin Group entered the business in 1992 when it acquired South Africa’s Health and Racquet Club. JJB Sports, a retail sportswear chain owned by Mike Ashby, opened JJB Sports Clubs (later to become DW Sports Fitness), and several hotel chains (including Marriott and Hilton) introduced health clubs within their hotels. Most of the leading chains owned and operated their individual health clubs, but some, such as the Swiss-based Kieser Training, adopted a franchising model.
Facilities, costs and pricing
Clubs differed in the sophistication and luxury and in the range of equipment and services they offered. Some clubs emphasized particular sports. For example, the David Lloyd club emphasized racquet sports (tennis, badminton and squash). Some clubs were women only.
While a small fitness club comprising an exercise room and changing facilities could be opened in leased premises for a start-up cost of around £400 000, a full-service health club of the type offered by the major chains involved an investment of around £2 million. The principal costs were converting the premises to install facilities such as a pool, Jacuzzi, showers and so forth and the cost of the equipment. Exercise machines have advanced substantially in sophistication and cost – individual items of equipment can cost over £25 000. Leading suppliers include Life Fitness (USA) and Technogym (Italy).
The typical pricing policy for health clubs was through annual membership contracts. These usually involved a one-time registration fee and a monthly fee of between £30 and £80. Because the costs of operating a health club were much the same irrespective of usage, health club operators were under considerable pressure to generate revenue through signing up new members. Competition took many forms. While health clubs were reluctant to compete on published membership fees, substantial discounts from list prices were offered. Initial sign-up fees were often waived, generous incentives were given to existing members for introducing new members, low-cost family deals and off-peak memberships were common and heavily discounted multiyear membership deals were offered.
An important source of profit for the industry was from consumers who signed up for membership but subsequently used their clubs rarely, if at all. However, this source of revenue was under attack. In a May 2011 court ruling, membership contracts of more than one year were declared unenforceable on the basis that such contacts were ‘a trap into which the average consumer is likely to fall’.39
Widening competition
As the market grew, it was also becoming segmented among different groups of providers. A major challenge to Fitness First and the other market leaders was the emergence of a new group of budget fitness clubs. The Gym Group, Pure Gym, Fit4less and easyGym (owned by the EasyJet Group) offered monthly membership for £15 or less and even offered one-day memberships.
Growing competition also came from publicly owned gyms and sports centres. Many local government authorities had invested heavily in sports and fitness centres, including upgrading swimming pools by adding new gym facilities. Typically, these public sports and fitness facilities were much cheaper than private health clubs, even if they did offer less luxury and fewer services. However, the trend to outsource their management to not-for-profit social enterprises had brought greater efficiency, innovation and customer focus to these public facilities. Not-for-profit operators, such as Greenwich Leisure Ltd with 100 leisure centres, were equal in size to some of the biggest private chains. Table 2.3 compares private and public sectors within the industry.
Within the private sector of the health and fitness industry, Table 2.4 shows the UK’s leading operators, while Table 2.5 gives financial information on selected companies.
Reflections
As John Wartig browsed through the most recent survey report of the UK health and fitness sector, he was struck by the basic contradiction that perplexed many of the entrepreneurs and investors who had flocked to the sector. In a society that was becoming increasingly health conscious with greater willingness to spend increasing amounts of disposable income on exercise and well-being, why was it that the private chains of health and fitness clubs found it so difficult to make money? Looking to the future, there were some positive signs – notably the increased growth in health club membership and the consolidation of the sector as the weaker players were bought out by financially stronger companies. At the same time, the prospects for the industry still looked precarious. The rise of the budget health clubs demonstrated the ease with which new companies were able to enter the industry. Even more worrying was the recognition that health and fitness clubs were not the only routes to health and fitness. Digital technology had enhanced the ability of individuals to conduct exercise programmes in their own homes, while traditional and new exercise forms such as running, cycling, yoga, Pilates and martial arts offered a vast array of possibilities that did not necessarily require membership of a health and fitness club.
Table 2.3 Private and public health and fitness clubs in the UK: 2011 and 2014.
Private Public
2011 2014 2011 2014
Number of clubs 3146 3269 2706 2750
Number of members 4.43 4.80 2.91 3.10
(millions)
Average monthly fee £38.39 £41.35 £29.57 £30.45
Sources: Leisure Database Company, Leisure Industry Academy and other sources.
Case Study Questions
-How could this industry be segmented? Is Fitness First right to move upmarket and offer an enhanced range of services to its members? Are there alternative strategies that Fitness First could pursue?
-In what ways could Fitness First influence the course of the industry's evolution to its own advantage?
-What do you think are the key success factors in this industry?
JCC College Degree Worth Research Question
Detailed OutlineKeep in mind: Your detailed outline provides a map of the argumentative research essay that you will write ...
JCC College Degree Worth Research Question
Detailed OutlineKeep in mind: Your detailed outline provides a map of the argumentative research essay that you will write, including your key claims and the sources that support them. You may not have all your sources yet, and that is fine. The outline is a way to organize your essay and determine which areas (e.g. your sub-points) will require researched evidence as support.❒ Headings: one for each paragraph with a brief label of the paragraph’s controlling idea(s).❒ An introduction, at least five body paragraphs, and a conclusion.❒ Introduction includes your working thesis.❒ Body paragraphs should each have their own unique title and key points.❒ Conclusion includes notes on your final thoughts.❒ Subheadings: two to five for each paragraph, below each heading, indicating key points that support the controlling idea❒ Sources: one to three for each paragraph, as relevant, indicating the support for the key points❒ For each source, include the author’s name and the idea or information relevant to your argument (e.g. “Lappé on mono-cropping corn/soy and production”).3. Reflection❒ Have you displayed a clear understanding of the research activities?❒ Have you answered all reflection questions thoughtfully and included insights, observations, and/or examples in all responses?❒ Are your answers included on a separate page below the main assignment?Reflection QuestionsDIRECTIONS: Below your assignment, include answers to all of the following reflection questions.Learning to conduct research is important because it is a skill you will use both in academia and in your professional life. It improves critical thinking and empowers you to find information for yourself. Consider the process of researching as a whole. What was the most challenging aspect of the process for you? (2-3 sentences)The working thesis statement is a proposed answer to your research question. It should clearly identify a debatable topic and take a position on one side of that topic. Analyze the effectiveness of your working thesis statement. (3-4 sentences)A detailed outline is an effective tool for laying out the progression of an argument. It allows you to consider the arrangement and organization of your ideas, as well as choose places to incorporate outside source materials. Review your detailed outline and summarize the argument you've presented. (3-4 sentences)You will use the same topic on three of the remaining Touchstones in this course. What kind of feedback would be helpful for you? What are specific questions you might have as you go deeper into the research process? (2-3 sentences)
Looking for help
What are the components of competitive strategy? Within competitive strategy what is the relevance of a value change fra ...
Looking for help
What are the components of competitive strategy? Within competitive strategy what is the relevance of a value change framework? What are the implications for customers and the competition? Cooperative strategies are the steps taken by two or more organizations to align strategies and resources to achieve a common goal. Discuss some considerations that must be taken into consideration when planning a strategic alliance. What are the critical factors that are necessary in a joint venture to increase the likelihood of success?
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World Literature 2
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World literature consists of all the works of literature beyond the boundaries of one’s own country (Damrosch, 2018). It began in 1827, as predicted ...
ELAC Real Estate Development Looking at Expanding Opening up A New Site Case Study
Assignment 2: Case Problem "Real Estate Development: Select a New Project"Problem Description:A real estate company is con ...
ELAC Real Estate Development Looking at Expanding Opening up A New Site Case Study
Assignment 2: Case Problem "Real Estate Development: Select a New Project"Problem Description:A real estate company is considering the development of one of the following three possible projects: (1) an apartment building; (2) an office building; (3) a warehouse. The amount of payoff (profit) that could be earned by selling the estate depends on the economic conditions, specified as: optimistic, realistic and pessimistic.In preparation for a final decision, the company is considering the hiring of a business analyst. If the company hires the analyst, the decision regarding which project to develop will not be made until the analyst presents a survey.You have to prepare and submit a managerial report where you should answer the question: Which one of the development projects should be selected? And based on your estimates, should the company hire the business analyst?PLEASE read the module 3, and use the Assignment 2's datas to analysis these questions. I have gave you the example, you can use the format but dont plagiarize it.
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4 pages
Cross Cultural Leadership.
In the article conceptualizing leadership across cultures, the authors provide a research summary on how leadership varies ...
Cross Cultural Leadership.
In the article conceptualizing leadership across cultures, the authors provide a research summary on how leadership varies across cultures. In one ...
PU Management the Industry of Health and Fitness Case Questions
Closing Case
Fitness First and the UK health and fitness club industry
In July 2014, John Wartig, the chief financial offi ...
PU Management the Industry of Health and Fitness Case Questions
Closing Case
Fitness First and the UK health and fitness club industry
In July 2014, John Wartig, the chief financial officer of Fitness First Ltd, was preparing for a meeting with his CEO, Tony Cosslett, to review Fitness First’s capital expenditure plans for the next five years. Both were relative newcomers to the company: following the acquisition of Fitness First by private equity firms Oaktree Capital and Marathon, Cosslett was installed as CEO in June 2012; Wartig was appointed CFO six months later. Fitness First claimed to be the world’s largest privately owned health club group with 540 clubs and over one million members in 21 countries. In January 2014, Fitness First announced a £350 million five-year programme of capital investment which would include £50 million on upgrading and rebranding its UK clubs and £64 million on expanding its presence in Asia, including entry into China. John Wartig’s concerns related to Fitness First’s UK operations: given the intense competition within the UK health club sector, would Fitness First’s investment in upgrading its facilities and repositioning within the market yield a satisfactory return to its owners?
Fitness First Ltd
In 1993, Mike Balfour established the first Fitness First health club in Bournemouth, England. The company’s floatation on London’s AIM in 1996 fuelled rapid expansion, initially in the UK, Germany and Belgium and then into Australia, Hong Kong, Spain, Malaysia, France, Holland and Italy. However, rapid expansion strained its finances and, following a steep fall in its share price, it was acquired by Cinven, a private equity firm in 2003. Following two years of restructuring and refocusing, Fitness First was bought by another private equity group, BC Partners, for £835 million. Yet, despite its market leadership in the UK, financial performance was poor. By 2011, Fitness First was teetering on the brink of bankruptcy and in 2012 was acquired by Oaktree Capital and Marathon Asset Management. The new management team closed some clubs and put others up for sale. By 2014, there were 80 Fitness First clubs in the UK, down from 161 in 2009. During 2014, CEO Tony Cosslett initiated an upmarket repositioning of the chain in an effort to enhance members’ experiences and to avoid direct competition with budget chains. The new strategy comprised using IT to provide fuller information and a more customized experience, rebranding to establish Fitness First as a ‘national authority’ on fitness and exercise, a redesign of the clubs and retraining staff to enhance their knowledge and customer orientation.
The UK health club industry
Development
As in other countries, gymnasiums with facilities for weightlifting and general exercise and for sports such as gymnastics, boxing, wrestling and judo had long been a feature of the social infrastructure of urban Britain. Gymnasiums were operated both by local government authorities and by not-for-profit clubs. The emergence of health club chains owned and operated as business enterprises dates from the early 1980s and was associated with the rise of young urban professionals (‘yuppies’) as a social and cultural group.
The contrast between the new health clubs and the old gyms was stark. Gyms were typically scruffy, male-only facilities with limited equipment and very basic changing and showering facilities. The private health clubs featured sophisticated, technologically advanced exercise equipment; pools, saunas and steam rooms; individual and group instruction in a range of activities from yoga to weight training; individual consultation through personal trainers; and luxurious relaxation facilities including cafés and juice bars.
Early entrants into the industry were typically start-up companies which began with a single establishment then used venture capital funds to expand. These were often founded by individual enthusiasts and former sports personalities.
Early leaders such as Holmes Place (1980), David Lloyd Leisure (1982), Fitness First (1993) and Esporta (1994) initially drew upon venture capital finance and were later listed on the London Stock Exchange or AIM. Subsequently, many were bought out by private equity firms: their erratic profitability but good cash flow potential made them attractive, but more to private equity financiers than stock market investors. In addition to these start-ups, a number of established companies entered the industry. Richard Branson’s Virgin Group entered the business in 1992 when it acquired South Africa’s Health and Racquet Club. JJB Sports, a retail sportswear chain owned by Mike Ashby, opened JJB Sports Clubs (later to become DW Sports Fitness), and several hotel chains (including Marriott and Hilton) introduced health clubs within their hotels. Most of the leading chains owned and operated their individual health clubs, but some, such as the Swiss-based Kieser Training, adopted a franchising model.
Facilities, costs and pricing
Clubs differed in the sophistication and luxury and in the range of equipment and services they offered. Some clubs emphasized particular sports. For example, the David Lloyd club emphasized racquet sports (tennis, badminton and squash). Some clubs were women only.
While a small fitness club comprising an exercise room and changing facilities could be opened in leased premises for a start-up cost of around £400 000, a full-service health club of the type offered by the major chains involved an investment of around £2 million. The principal costs were converting the premises to install facilities such as a pool, Jacuzzi, showers and so forth and the cost of the equipment. Exercise machines have advanced substantially in sophistication and cost – individual items of equipment can cost over £25 000. Leading suppliers include Life Fitness (USA) and Technogym (Italy).
The typical pricing policy for health clubs was through annual membership contracts. These usually involved a one-time registration fee and a monthly fee of between £30 and £80. Because the costs of operating a health club were much the same irrespective of usage, health club operators were under considerable pressure to generate revenue through signing up new members. Competition took many forms. While health clubs were reluctant to compete on published membership fees, substantial discounts from list prices were offered. Initial sign-up fees were often waived, generous incentives were given to existing members for introducing new members, low-cost family deals and off-peak memberships were common and heavily discounted multiyear membership deals were offered.
An important source of profit for the industry was from consumers who signed up for membership but subsequently used their clubs rarely, if at all. However, this source of revenue was under attack. In a May 2011 court ruling, membership contracts of more than one year were declared unenforceable on the basis that such contacts were ‘a trap into which the average consumer is likely to fall’.39
Widening competition
As the market grew, it was also becoming segmented among different groups of providers. A major challenge to Fitness First and the other market leaders was the emergence of a new group of budget fitness clubs. The Gym Group, Pure Gym, Fit4less and easyGym (owned by the EasyJet Group) offered monthly membership for £15 or less and even offered one-day memberships.
Growing competition also came from publicly owned gyms and sports centres. Many local government authorities had invested heavily in sports and fitness centres, including upgrading swimming pools by adding new gym facilities. Typically, these public sports and fitness facilities were much cheaper than private health clubs, even if they did offer less luxury and fewer services. However, the trend to outsource their management to not-for-profit social enterprises had brought greater efficiency, innovation and customer focus to these public facilities. Not-for-profit operators, such as Greenwich Leisure Ltd with 100 leisure centres, were equal in size to some of the biggest private chains. Table 2.3 compares private and public sectors within the industry.
Within the private sector of the health and fitness industry, Table 2.4 shows the UK’s leading operators, while Table 2.5 gives financial information on selected companies.
Reflections
As John Wartig browsed through the most recent survey report of the UK health and fitness sector, he was struck by the basic contradiction that perplexed many of the entrepreneurs and investors who had flocked to the sector. In a society that was becoming increasingly health conscious with greater willingness to spend increasing amounts of disposable income on exercise and well-being, why was it that the private chains of health and fitness clubs found it so difficult to make money? Looking to the future, there were some positive signs – notably the increased growth in health club membership and the consolidation of the sector as the weaker players were bought out by financially stronger companies. At the same time, the prospects for the industry still looked precarious. The rise of the budget health clubs demonstrated the ease with which new companies were able to enter the industry. Even more worrying was the recognition that health and fitness clubs were not the only routes to health and fitness. Digital technology had enhanced the ability of individuals to conduct exercise programmes in their own homes, while traditional and new exercise forms such as running, cycling, yoga, Pilates and martial arts offered a vast array of possibilities that did not necessarily require membership of a health and fitness club.
Table 2.3 Private and public health and fitness clubs in the UK: 2011 and 2014.
Private Public
2011 2014 2011 2014
Number of clubs 3146 3269 2706 2750
Number of members 4.43 4.80 2.91 3.10
(millions)
Average monthly fee £38.39 £41.35 £29.57 £30.45
Sources: Leisure Database Company, Leisure Industry Academy and other sources.
Case Study Questions
-How could this industry be segmented? Is Fitness First right to move upmarket and offer an enhanced range of services to its members? Are there alternative strategies that Fitness First could pursue?
-In what ways could Fitness First influence the course of the industry's evolution to its own advantage?
-What do you think are the key success factors in this industry?
JCC College Degree Worth Research Question
Detailed OutlineKeep in mind: Your detailed outline provides a map of the argumentative research essay that you will write ...
JCC College Degree Worth Research Question
Detailed OutlineKeep in mind: Your detailed outline provides a map of the argumentative research essay that you will write, including your key claims and the sources that support them. You may not have all your sources yet, and that is fine. The outline is a way to organize your essay and determine which areas (e.g. your sub-points) will require researched evidence as support.❒ Headings: one for each paragraph with a brief label of the paragraph’s controlling idea(s).❒ An introduction, at least five body paragraphs, and a conclusion.❒ Introduction includes your working thesis.❒ Body paragraphs should each have their own unique title and key points.❒ Conclusion includes notes on your final thoughts.❒ Subheadings: two to five for each paragraph, below each heading, indicating key points that support the controlling idea❒ Sources: one to three for each paragraph, as relevant, indicating the support for the key points❒ For each source, include the author’s name and the idea or information relevant to your argument (e.g. “Lappé on mono-cropping corn/soy and production”).3. Reflection❒ Have you displayed a clear understanding of the research activities?❒ Have you answered all reflection questions thoughtfully and included insights, observations, and/or examples in all responses?❒ Are your answers included on a separate page below the main assignment?Reflection QuestionsDIRECTIONS: Below your assignment, include answers to all of the following reflection questions.Learning to conduct research is important because it is a skill you will use both in academia and in your professional life. It improves critical thinking and empowers you to find information for yourself. Consider the process of researching as a whole. What was the most challenging aspect of the process for you? (2-3 sentences)The working thesis statement is a proposed answer to your research question. It should clearly identify a debatable topic and take a position on one side of that topic. Analyze the effectiveness of your working thesis statement. (3-4 sentences)A detailed outline is an effective tool for laying out the progression of an argument. It allows you to consider the arrangement and organization of your ideas, as well as choose places to incorporate outside source materials. Review your detailed outline and summarize the argument you've presented. (3-4 sentences)You will use the same topic on three of the remaining Touchstones in this course. What kind of feedback would be helpful for you? What are specific questions you might have as you go deeper into the research process? (2-3 sentences)
Looking for help
What are the components of competitive strategy? Within competitive strategy what is the relevance of a value change fra ...
Looking for help
What are the components of competitive strategy? Within competitive strategy what is the relevance of a value change framework? What are the implications for customers and the competition? Cooperative strategies are the steps taken by two or more organizations to align strategies and resources to achieve a common goal. Discuss some considerations that must be taken into consideration when planning a strategic alliance. What are the critical factors that are necessary in a joint venture to increase the likelihood of success?
4 pages
World Literature 2
World literature consists of all the works of literature beyond the boundaries of one’s own country (Damrosch, 2018). It ...
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World literature consists of all the works of literature beyond the boundaries of one’s own country (Damrosch, 2018). It began in 1827, as predicted ...
ELAC Real Estate Development Looking at Expanding Opening up A New Site Case Study
Assignment 2: Case Problem "Real Estate Development: Select a New Project"Problem Description:A real estate company is con ...
ELAC Real Estate Development Looking at Expanding Opening up A New Site Case Study
Assignment 2: Case Problem "Real Estate Development: Select a New Project"Problem Description:A real estate company is considering the development of one of the following three possible projects: (1) an apartment building; (2) an office building; (3) a warehouse. The amount of payoff (profit) that could be earned by selling the estate depends on the economic conditions, specified as: optimistic, realistic and pessimistic.In preparation for a final decision, the company is considering the hiring of a business analyst. If the company hires the analyst, the decision regarding which project to develop will not be made until the analyst presents a survey.You have to prepare and submit a managerial report where you should answer the question: Which one of the development projects should be selected? And based on your estimates, should the company hire the business analyst?PLEASE read the module 3, and use the Assignment 2's datas to analysis these questions. I have gave you the example, you can use the format but dont plagiarize it.
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