Fitness and health club industry

[tees1987]

Hi, can someone please give me some information on what adive should be given to the following problem:

The managing director in a Fitness and health club business has little or no interest in the financial side of the company and instead leaves this solely to the finance department, the head of which is a close friend of his so can be trusted.

I need to know what problems can arrise from this situation and how the situation can be sorted out.

Thanks

 

[Matthew_28]

Sorry, what problem and situation is there to sort out?

The MD may not be too comfortable or have enough time to deal with the financial side of the business hence he has employed a close trusted friend to run this for him.

Regards

Matt

 

[tees1987]

I just need to know what problems can arrise from this situation and how the situation could be sorted out.

 

[sanjiv]

I just need to know what problems can arrise from this situation and how the situation could be sorted out.

Why? You must have some problem in mind if you are posting here.

 

[oldeagleeye]

As Mathew said. There is no situation. The MD appoints a Finance Director so what every major corporation does the same thing.

You don't employ a dog and then expect to have to bark yourself and why should this concern you anyway.

May I ask what role you play in the company ???.

Rob

 

[tees1987]

no its for a case study i have to do for a interview and thats one of the questions

 

[oldeagleeye]

The answer is that there is no situation. The MD is obviously a good businessman and knows how to delegate areas of expertise leaving him free to guide the company forward.

Otherwise what would you have him do. Take keep fit classes as well as do the accounts and ensure the company is always on a sound financial footing.

Who are these people that set such stupid questions.???

Rob

 

[tees1987]

Its for one of the top 10 professional services firms and the case study is about advising a client

 

[oldeagleeye]

Pratts is the only word that comes to mind. have they never seen how the board of a plc is made up of. as a leading sujpport service do they not have a finance director on their own board.

Blimey. Even DWP knows more about biz than this company.

 

[Cloughie]

Ok, I'll bite a little.

You stated that the MD has little or no interest in the financial side of the company - that can be very dangerous and in fact is a little odd. Ultimately he is responsible to the owners/shareholders for the business making money so he has to care a little (Unless he is the owner and it's fully his company) - even then I would care about my money a bit more!)

This could cause a lack of oversight on the financials and I am sure this has been the crux of many businesses failing.

If the FC is a good guy, honest, reliable and is able to present the right things at the right time to the MD it probably won't cause any problems, but if he takes his eye off the ball, the business could be heading for bancrupcy and the MD could know nothing about it!

 

[Bri]

There still is no situation, as long as the reporting structure is there, so what, you need to go and read the control freak thread.

 

[tees1987]

Thank you Cloughie im guessing thats probably the type of thing they are looking for. Wasnt sure if they would expect something about the md and the head of finincial department been friends?

 

[sanjiv]

Only problem I can see is if he is not interested in finances, then how can he decide on new products etc. because costings and things will have to be done.