Analysis Of Pure Gym Management Strategy

Using reliable information from own independent research study into “PureGym” company, carefully address the following tasks:

Briefly introduce the organisation. (You could include details such as; what the organisation does; what industry it operates in and; when and how the organisation was created)

Critically analyse and illustrate the organisational structure of the company. (You should include relevant definition of terms and, where possible, use diagrams to support your answer)

Explain one modern management approach that could be used in the company. (Modern Management approaches such as situational, contingent or systems should be considered)

Critically analyse two innovative strategic management objectives of the company. (You should consider using a strategic management framework of your choice such as Ansoff matrix, Porters’ Generic Strategy Matrix or SWOT analysis to explain the identified objectives)

The report presents an analysis of Pure Gym management strategy. The first part of the report explains the gym introduction as well as unique specification it possesses. The second part of the report explains the organizational structure of Pure Gym which makes it popular in the market place. The third part defines system approach, a modern management approach that explains the strategy of the organization. The last part of the report explains two innovative strategic analyzes such as Ansoff and SWOT.  

Pure Gym is a company dedicated towards business which focuses on bringing regular improvements for its members. The Pure Gym was rated in 2016 as the best company to work for. Pure Gym achieved success in the market due to its team of dedicated and inspirational members who work continuously to take Gym to new heights (Kailasam, et al., 2010).

Pure Gym provides reasonable and elastic access to the superior quality gym services. It provides online subscription through which customers can register for a sum of less than $20 per month. The gym services of the company are accessible at all places in the country and are open 24*7, allowing flexibility to the customer to use as per their convenience. Concentration on demand of customers and utilizing latest technology is core value that Pure Gym adopts to lead in the market. They are bringing the amendments in gym industry by opening the accessible gym to all ages of people. They provide various types of offers like best autumn offer in which concession to all members is given. Further, a membership offer for one-year membership is provided at discounted rates.

They have invested and explored new areas of the business to deliver the best experience to all customers (Mullins, 2016). They also offer 50-80 free sessions every week carried by approximately 2,000 personal trainers. They also have the superior quality equipment and widespread free areas in all of the gyms.

Pure Gym Company adopts divisional structure in its business. In this structure the organization activities are segregated into different divisions and departments (Vandeveer&Menefee, 2010).  The structure of Pure Gym is as follows:

The CEO of Pure Gym was appointed in 2015. He possesses a wide range of experience covering all areas of business. This wide range of experience he acquired through the roles played by him like chairman of Fish4, Director of Strategic Development and many more.

Chief Financial Officer: Adam Bellamy was appointed as CEO. He possesses experience in retail business, hospitality and many more. He is responsible for finance dealings, apart from that he also has been a team leader, planning developer helping Pure Gym in achieving desired objectives.

System approach

Chief Operating Officer: Jacques de Bruin has been COO of Pure Gym.  He is responsible for handling daily operations and access control over the day-to-day activities of a business (Jones & Jones, 2010). The management structure of Pure Gym follows reporting system of Chief operating officer to CEO for all the final approvals and permissions.

Non-Executive Director: The role of Non-executive director allows them to develop proposals for strategy, integrating financial information and many more roles. Their main role is assisting employees in achieving their target. They help CFO as well in coordinating the future goals.

Marketing and planning: This department handles the marketing related activities of the Pure Gym. This helps Pure Gym in increasing the popularity and customers in an efficient manner (Lunenburg, 2012). It also creates and develops a guide of management to work in correct direction according to customer needs.

Employees: They are the ones who contribute effectively towards the successful functioning of an organization. They strive hard to deliver their level best and achieve the assigned targets within the stipulated time frame. They get instructions from COO to proceed with the work.

1.    This approach considers the Pure Gym as a dynamic and inter-related arrangement of every part of the company. Every division has its sub-framework. Consistent and successful communication of sub-frameworks achieves objectives of the main framework (Johnson, et al., 2013).
2. It considers the effect of both upcoming and inaccessible future on the authoritative level. Pure Gym continually reacts to changes in the interior and outer ecological conditions. They likewise go about as market leaders in the dynamic, aggressive condition.

3 System approach will coordinate the objectives of various parts of the Pure Gym (sub-frameworks or offices) with the association in general (Smith & Rees, 2017). It coordinates objectives of the association with objectives of nature or society in which it works. A mix of objectives keeps up harmony or adjusts and empowers associations to develop in the dynamic condition.

4. It integrates learning of various fields of concentrate, for instance, science, humanism, data frameworks, financial aspects and many more. As business-like Pure Gym manages diverse parts of society, it influences the best utilization of various fields to concentrate and enhance cooperation with its partners.
5. System approach empowers associations to outline arrangements that market business goals and social destinations. As Pure Gym works in the social framework and social values, culture, convictions, and morals are imperative constituents of business operations.

Pure Gym management is focusing on what the client actually desires. They eliminate the elements from the food that cause fat and thus, the food is made healthy and perfect for consumption. Pure Gym is also able to come across its costumer’s major demand of reasonable membership, starting from a minimum of $20 per month and having no prescribed commitment. They also follow the simple procedure of joining and leaving. The Pure Gym is easy and convenient to join and attend. Pure Gym also creates the conventional procedure for all clients who want to leave the gym.

The major weakness in Pure Gym is that the clients have to stand in the queue to use the Gym tools, due to which the Gym tools are available only to regular users and the temporary users does not get to use such tools.

Another weakness is parking availability during the peak season and this makes it inconvenient for members to find the parking space for their vehicle. The people in the area do not consider the Pure Gym as a branded Gym, which makes it difficult for it to attract the customers.

SWOT analysis

The Gym has the opportunity to explore the business to the wide area in other parts of the world as well (Macintosh & Quattrone, 2010).  The population now a day’s is becoming more health conscious so joining fitness centres at the speedy rate. Pure Gym can grow its business by making youngsters join through the various promotional programmes.  

The main threats to Pure Gym are such as increased competition and concentration of businesses on sustainability (Rees & Smith, 2014). Other factors which act as threat are lack of reasonable equipment suppliers and deviations in the rules affecting the business of Pure Gym.

Market penetration:  The development of Gym business can be achieved by Pure Gym through capturing customers of competitors, motivating existing customers to continue with Pure Gym only, attracting youngsters and many more strategies through which market penetration can be done (Daley, 2012). The free-swimming initiation by the UK can be greatest new market penetration for all business of Pure Gym.

Market development: It needs marketing activities in new areas of business. The segmentation strategy is adopted to develop the new market. The strategy adopted by Pure Gym should be such that it attracts and enhances the business of the company. The segmentation can be geographical, which it did not target till now.

Product development: It requires identification of resource and advertisement of new products to present customers. The customer demand research is necessary to reduce the risk product failure (David, 2011). The Pure Gym should be excellent in product development in fitness products for their all types of customers, as failure will bring the image of Pure Gym to go down.

Diversification: It is the most risky strategy and the one necessitating greatest research because both the products and markets are new. The company should go for diversification in new areas to increase the business. Diversification helps Pure Gym in growing business as well as organizational development.

Conclusion:

The above analysis described the Pure Gym various features, it offers to its members as well as youngsters. The Pure Gym is the well-known gym in the UK. The report analysed the organizational structure of the company, Systems management approach explaining strategy which Pure Gym can adapt to lead in the market and in last innovative strategy SWOT and Ansoff matrix is explained. The innovative strategy explained how Pure Gym can explore to new business areas by using its strengths and capabilities it possesses.

References:

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David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.

Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013.ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206.

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Jones, G.R. and Jones, G.R., 2010. Organizational theory, design, and change.

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Vandeveer R. and Menefee M. 2010, Human Behavior in Organizations 4th edn., FT Prentice Hall.