Task 1: Introduction of PureGym
This report will focus on analysing the management strategy of PureGym Company. The first part will include the introduction of the corporation and the unique characteristics that it possesses. The second section will evaluate the organisational structure adopted by the PureGym Company. The third section will provide a management approach which can be implemented by the administration of PureGym Corporation. The fourth part will focus on analysing two specific innovative strategic management objectives of the PureGym Company, such as SWOT and Ansoff.
PureGym limited is a fitness club chain situated in the United Kingdom; the company has gyms all across the country. With more than 450,000 members, PureGym is the largest gym chain in the United Kingdom. Currently, the company has more than 180 gyms, and they plan to open 300 gyms by 2020 (Kilgannon, 2017). The company has a team of dedicated staff members, and they focus on improving the business and the development of their members. The corporation has also won the best place to work awards in 2016. The company’s motto is making their member’s each day memorable.
The company provides reasonable and flexible access to its members with superior quality. The corporation also has an online membership plan through which members have to pay less than £20 a month without filling any form. All the gyms are open for 24*7, and they are easily accessible throughout the country (Kingsley, 2012). PureGym gained a lead in UK’s gym industry by focusing on their customers’ demands and utilising the modern technology. The company is changing the gym industry by introducing gyms for old peoples. Various offers provided by the firm to its customers such as autumn offer concessional rates, giving one-year membership at a discount rate and 20 percent of the rebate for the students’ members in the gym. The corporation also provides around 50 to 80 free fitness sessions to its members each week by over 2000 personal trainers (Duggan, 2014). The firm is known for their superior quality fitness equipment and the widespread free mass area in the gym. PureGym also invests in multiple areas of fitness industry to provide a better experience to their members.
As per Fisher, Campbell and Svendsen (2012), an organisational structure describes how the actions of a corporation including supervision, task allocation, and coordination are directed towards the achievement of the common objective. A company divides its functional departments to ensure the success of organisational goals. Below mention is the organisational structure of PureGym:
Humphrey Cobbold is the CEO of PureGym, and he was appointed in 2015. Cobbold possesses significant experience in the field of fitness business which he acquires by performing various roles such as Director of Strategic Development, Chainman or Fish4 and many others (PureGym, 2017).
Adam Bellamy is the CFO of PureGym, and he was appointed in 2012. Bellamy possesses experience in the field of hospitality, retail business, and many others. In PureGym, the primary focus of Bellamy is towards financial transactions, serving as a team leader, planning development strategies and other critical actions which assist company into achieving their organisational objectives.
Task 2: Organisational Structure of PureGym
Jacques De Bruin is appointed as the COO of PureGym in 2011. He is responsible for managing and controlling the day to day operations in the company. As per the management structure of PureGym, all the final approvals and permissions are collected by the chief operating officer to CEO.
Richard Zannino and Thomas Walker hold the position of non-executive director and their responsibility is to make proposals for the strategies, policies, integrating financial position and many others. Their primary focus is on the employees to direct them in achieving organisational objectives. They assist COO in formulating future policies and goals.
PureGym employees assist in efficiently operating the function of day to day business. The employees are motivated and work hard to achieve estimated objectives within the stipulated time frame. The CFO operations employees of financial department, COO maintain operations department and non-executive directors perform various functions along with personnel department.
Figure 1: Organisational Structure of PureGym
a. The system approach of PureGym considers it as a dynamic and inter-related arrangement of different parts; every such section is communicated with an office or sub-framework. PureGym has allotted each part a specific sub-framework. The efficient and continuous communication between small frameworks allows bugger frameworks to achieve their targets. In this manner, each big structure has its smaller sub-frameworks which perform together in a collaborative association to ensure that common goals are achieved (PureGym, 2017).
b. PureGym analyse the market trends and update their interior and outer operational framework because the system approach influenced by both upcoming and inaccessible future activities. The companies maintain and dynamic and aggressive attitude towards the market competitors.
c. The system approach of PureGym coordinates with the multiple parts of the company, which include officers and sub-frameworks, to maintain a general association. The corporations collaborate their goals with the objectives of society and environment in which they operate their business. The collaboration and mixture of objectives maintain a harmony in the organisation and it empowers the management to formulate progressive policies in the firm (Moore, 2016).
d. PureGym integrates the knowledge of multiple fields such as science, demand research, data framework, humanism, commercial aspects and many others. PureGym manages a various diverse section of the society, therefore, it utilises the knowledge from multiple fields to improve the cooperation with its partners.
e.The system approach assists in collaboration of the organisational goals of PureGym with the social purposes. The social framework, culture, morals and social values are a vital part of the system approach and business operations of the PureGym.
PureGym focuses on the demand of its members and formulates policies according to their desires, for example, they decide to remove the extra fat food to make it healthier. The company also fulfills the primary demand of members that was reasonable membership fees by proving their minimum subscription at £20 per month and removing the clause of prescribed commitment. The procedure of joining and leaving the membership is significantly simple which makes it easier for members to join and attend their sessions (Sassatelli, 2010). The corporation also has a convenient process for leaving the gym membership. They provide their members a humble, vibrant, forthright and flexible experience.
Task 3: System Approach
The major weakness of PureGym is lack of appropriate space for the member to work out. This makes the gym equipment available only to the regular members and not for the individuals who have joined recently. The lack of parking space is another considerable problem in PureGym since it makes peak season an inconvenience experience for the members. The lack of parking space wastes the time of members because they are not able to find a parking space near the gym.
PureGym has the chance to expand their business outside the United Kingdom and approach to a worldwide audience. The number of members in gyms is proliferating throughout the world as peoples being more aware regarding their health (Anderasson and Johansson, 2014). PureGym has enormous opportunity to expand their business worldwide and approach to a younger audience.
The primary risks for PureGym are increasing rate of competition in the fitness industry (BBC, 2015). Other threats include a change in government regulations and lack of reasonable equipment suppliers.
PureGym can expand its business by capturing the members of other competitors, attracting younger peoples and motivating the current members to retain their membership. The free swimming initiative taken in the UK can assist PureGym in penetrating the market (Bolton and Martin, 2013).
PureGym marketing should be in new areas of operation, and company can adopt segment strategy to develop a new market. The policy should include provision for attracting and enhancement of PureGym’s business. The strategy can consist of a geographic area that is still not targeted by the company. The company can adopt outreach services which can expand the business of PureGym in low operating regions.
The product development requires resources, identification, and advertisement of new products to current members. Various factors influence the development of a new product such as customer requirements, future policies, risk factors and many others (Ferrand, Robinson and Valette-Florence, 2010). The risk factors can be reduced by conducting a thorough customer requirement research. PureGym should focus on producing excellent fitness and health products to attract members.
Diversification is a significantly risky strategy which requires considerable research of both product and market (Stern, 2008). Many corporations are introducing newer products and services for the young members, and it is difficult for PureGym to keep up with them. The company should establish an effective business strategy for diversification.
Conclusion
In conclusion, PureGym is well-known fitness chain in the UK, and it offers multiple services to both old and young members. The report focuses on organisational structure and system approach of the company to formulate a strategy for new market capture; the SWOT and Ansoff matrix was also explained. Further, the analysis provides a new strategy for PureGym which they can implement in order to enter a new market by efficiently using their strengths and abilities.
References
Andreasson, J. and Johansson, T., 2014. The fitness revolution. Historical transformations in the global gym and fitness culture. Sport science review, 23(3-4), pp.91-111.
BBC., Pure Gym to buy rival LA Fitness. BBC. Retrieved from < https://www.bbc.com/news/business-32927069 >
Bolton, N. and Martin, S., 2013. The policy and politics of free swimming. International journal of sport policy and politics, 5(3), pp.445-463.
Duggan, O., 2014. The Gym Group keen to cut pounds in growth market. Telegraph. Retrieved from < https://www.telegraph.co.uk/finance/businessclub/11029227/The-Gym-Group-keen-to-cut-pounds-in-growth-market.html >
Ferrand, A., Robinson, L. and Valette-Florence, P., 2010. The intention-to-repurchase paradox: A case of the health and fitness industry. Journal of Sport Management, 24(1), pp.83-105.
Fisher, D.R., Campbell, L.K. and Svendsen, E.S., 2012. The organisational structure of urban environmental stewardship. Environmental Politics, 21(1), pp.26-48.
Kilgannon, L., 2017. Pure Gym To Open Site At Thorpe Park Leeds. Insider Media. Retrieved from < https://www.insidermedia.com/insider/yorkshire/pure-gym-to-open-site-at-thorpe-park-leeds >
Kingsley, P., 2012. Hard at it in the all-night gym. The Guardian. Retrieved from < https://www.theguardian.com/lifeandstyle/2012/jan/29/exercise-in-all-night-gym >
Moore, J., 2016. Pure Gym pulls London float. Have low cost gyms run out of puff?. Independent. Retrieved from < https://www.independent.co.uk/news/business/comment/pure-gym-pulls-london-float-have-low-cost-gyms-run-out-of-puff-a7355316.html >
PureGym., 2017. About Us. PureGym. Retrieved from < https://www.puregym.com/about-us/ >
PureGym., 2017. Leadership. PureGym. Retrieved from < https://www.puregym.com/puregym-group/leadership/ >
Sassatelli, R., 2010. Fitness culture. Gyms and the Commercialisation of Discipline and Fun.
Stern, M., 2008, January. The fitness movement and the fitness center industry, 1960-2000. In Business History Conference. Business and Economic History On-line: Papers Presented at the BHC Annual Meeting (Vol. 6, p. 1). Business History Conference.
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