Analysis of PureGym's Organizational Structure and Strategic Management

The provided document is an analysis of PureGym's organizational structure and strategic management. It utilizes a situational or contingency approach to understand the company's management. The assignment further applies Porter's Generic Strategy Matrix and SWOT analysis to assess the company's strategic management objectives. This study aims to provide insights into how PureGym manages its operations and sets goals for future development.

Report on Pure gym

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of organisation........................................................................................................1
TASK 2............................................................................................................................................2
Organisational structure of PureGym..........................................................................................2
TASK 3............................................................................................................................................3
Modern Management Approach.................................................................................................3
TASK 4 ...........................................................................................................................................4
Strategic Objectives....................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business management is an art of getting things done through people. Management of business
organisation is complex and difficult process and managers needs to put huge efforts so that
growth and development of organisation can be made. In this context, this report will cover the
business management process of “PureGym” of United Kingdom. The organisational structure of
the company will be discussed in this report. Further, modern management approach will be
identified and analysed in this assignment which relates to the organisation. The two strategic
management objectives will be analysed and implements in this assignment.
TASK 1
Introduction of organisation
PureGym Limited is United Kingdom fitness based organisation and is part of no frills
fitness clubs. The chain is based in Leeds and has gyms across the UK (Griffin, Cordery and
Unsworth, 2014). It is one of the largest gym chain in the whole United Kingdom with more than
800000 members associated with the gym. Further, by 2020 it aims to open more than 300 gyms
in the country. By acquiring the largest fitness chain LA fitness, PureGym became the biggest
gym operator in whole Britain, bringing the total number of gyms across the UK to 141. In
September 2017, there were around 180 gyms operating in whole United Kingdom. The gym
was founded in 2008 by Peter Roberts with an aim to become the leading gym industry in the
whole United Kingdom. In 2015, the founder was able to accomplish the goal after acquiring all
gyms from its rival. This implies that PureGym is the largest private gym operator in United
Kingdom (García-Fernández, Pitts and Bernal-García, 2017). The motive is to provide affordable
and agile access to high quality gyms to their members. In this way the gym and operators able
to increase their membership effectively and efficiently.
From this context, it can be stated that the organisation and business mangers are working
diligently and sincerely so that the growth and development of the organisation can be made.
The mangers have highly invested in providing excellent experience to their members by
offering up to 80 free classes (Harvey, Vachhani and Williams, 2014). There are several rules
and guidelines which are developed by the management of gym so that the leadership across the
country can be maintained effectively and efficiently. Members can sign up online on the
organisation website and the gym remain opens every day so that members can visit gym any
time. Further, due to their agile polices and rules members can join and leave the gym any time.
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TASK 2
Organisational structure of PureGym
Organisational structure refers to the activities and tasks, their monitoring and
supervision, allocation and coordination (Hussain, Khan and Al-Aomar, 2016). It is the
framework on which the organisation works so that the desired goals and objectives can be
accomplish effectively and efficiently. From the analysis of the PureGym it was identified that
the company follows line and staff organisational structure. In line and staff organisational
structure, the company divided its structure in hierarchy where on top the managing director or
chief executive officer resides (Knights and Clarke, 2017). For each and every department of the
company employees are supported with specialised staff so that effectiveness in line of the
organisation can be maintained effectively and efficiently. It is one of the most difficult and
complex structure, as for each department allocation of specialised staff is difficult for the
management. At PureGym line and staff organisation structure has been followed which helps in
growth and development of the organisation effectively and efficiently.
In line employees of different departments such as personal trainers, spa, fitness,
marketing, finance, etc. are supported by the specialised staff that aid in providing effective
guidance that helps the employees to understand and comprehend the task effectively and
efficiently (Hsien, Yung and Sheng, 2014). Line and staff structure is classified into two
authorities which are line authority and staff authority. Both the authorities of the gym has been
designated with the task which they have to accomplished efficiently. This structure not only aid
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Illustration 1: Line and staff structure
(Source: Understanding Organizational Structures, 2015)

in promulgating the efficiency and effectiveness of employees but also aid in the growth and
development of the organisation. In this context, it can be understood that the management of
PureGym implements the line and staff organisational structure in their company which not only
aid in improving the productivity and profitability of the business but also promotes growth and
development of organisation.
TASK 3
Modern Management Approach
Management is the art of administrating, operating and regulating the functions, process
and productivity of business organisations (Yu, Min and Huang, 2014). Modern management
refers to managing the business organisation according to the recent times and with the help of
recent and updated technologies so that the effectiveness in the organisation can be promulgate
effectively and efficiently. From the analysis it was identified the management of PureGym
utilises the situational or contingency approach of modern management in their organisation. The
approach was developed by J.W. Lorsch and P.R. Lawrence in 1970. It is also known as
situational approach or theory in which organisation is said to be contingent on the force of
environment. From this, it implies the behaviour of management of PureGym is purely based on
the behaviour in the current environments. Hence, they transform their functions, process and
productivity after the transformation in the environment (Schmiedel, Vom Brocke and Recker,
2014). This approach calls for an identification of the internal and external variables that
critically influence managerial revolution and organisational performance. According to this,
internal and external environment of the organisation is made up of the organisational sub-
systems. This approach helps the management to innovate practical solutions for the possible
problems.
Further, contingency approach of modern management aids the organisation to improve
their productivity and profitability effectively and efficiently (Burton and Peachey, 2014). The
contingency approach seeks to comprehend the inter-relationship within and among sub-systems
as well as between organisation and its environment to illustrate parameters of relationship of
variables. The feature of contingency approach is that it does not accept traditional management
theories. Hence, there is no perfect strategy and management needs to transform their managerial
strategies time to time and according to change in environment. Here environment refers to
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customers taste and preferences. Thus, in order to satisfy their needs and expectancies,
management needs to frequently transform their strategies.
TASK 4
Strategic Objectives
The strategic management objectives of PureGym can be analysed by SWOT analysis
and Porter's Generic Strategy Matrix which are as follows:
SWOT analysis of PureGym: Strengths: The strengths of PureGym is the largest market share and huge amount of
members. The brand reputation and goodwill is also strength of the organisation
(Chelladurai and Kerwin, 2017). Further, the technologies and management policies also
provides benefits to the organisation effectively and efficiently. Weaknesses: Inefficient and unskilled workforce, weak marketing strategies, ineffective
human resource management of the organisation are some of the weaknesses discovered.
These drawbacks act as barricade in the growth and development of the organisation. Opportunities: Increasing the market growth, expanding the business, establishing global
chains are the opportunities that can assist the business of PureGym in increasing their
productivity and profitability. Threats: Entrants of new markets, rapidly changing governmental policies and
legislations, transformations in taste and preferences of customers are the possible threats
which are faced by the organisation (Griffin, Cordery and Unsworth, 2014). This can
impact on growth and development of the company.
Porter Generic Strategy Matrix
The Porter Generic Strategy Matrix of PureGym is provided below: Cost Leadership: The motive of PurGym management is to provide high quality gym
facilities at affordable prices. The management of the organisation formulated specific
policies and focus more on cost so that membership in gym can be increased effectively
and efficiently. Product Differentiation: The management of PureGym focuses on providing high tech
facilities to the customers which are not present in other gym across the country. This aid
in gaining the competitive advantage and also generates more members effectively and
efficiently.
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 Cost Focus: The management of the organisation focuses on cost so that customers can
be increased effectively and efficiently (García-Fernández, Pitts and Bernal-García,
2017). In this context, they offers multiple courses at affordable price that leads to growth
and development of the organisation.
 Differentiation Focus: It is the narrower approach which the organisation follows on
certain products and services. From the analysis, it was identified that some of the
courses are expensive but unique that aid in generating more and more customers
effectively.
CONCLUSION
Business management is the process of planning, organising, controlling and directing the
factors that impacts on the growth and development of the organisation. In this context, the
organisational information of PureGym has been assessed in this report. Further, the
organisational structure was determined and identified. Line and staff organisational structure
has been followed by the organisation. Analysis of management approaches has been made in
order to asses the type of approach PureGym utilises. Situational or contingency approach has
been used by the management of PureGym. Further, the strategic management objectives of the
company has been assessed in this assignment with the help of Porter Generic Strategy Matrix
and SWOT analysis.
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REFERENCES
Books and Journals
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transformational leadership and work outcomes. Journal of Intercollegiate Sport. 7(2).
pp.153-174.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
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García-Fernández, J., Pitts, B. and Bernal-García, A., 2017. The effects of service convenience
and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness
centers. Sport Management Review.
Griffin, M.A., Cordery, J.L. and Unsworth, K.L., 2014. A conceptual framework and practical
guide for assessing fitness-to-operate in the offshore oil and gas industry. Accident
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Harvey, G., Vachhani, S.J. and Williams, K., 2014. Working out: aesthetic labour, affect and the
fitness industry personal trainer. Leisure studies. 33(5). pp.454-470.
Hsien, L.C., Yung, P.C. and Sheng, C.T., 2014. A study on the correlations between knowledge
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viewpoint of Theory of Planned Behavior. The Anthropologist. 17(3). pp.873-881.
Hussain, M., Khan, M. and Al-Aomar, R., 2016. A framework for supply chain sustainability in
service industry with Confirmatory Factor Analysis. Renewable and Sustainable Energy
Reviews. 55. pp.1301-1312.
Knights, D. and Clarke, C., 2017. Pushing the boundaries of amnesia and myopia: a critical
review of the literature on identity in management and organization studies. International
Journal of Management Reviews. 19(3). pp.337-356.
Schmiedel, T., Vom Brocke, J. and Recker, J., 2014. Development and validation of an
instrument to measure organizational cultures’ support of Business Process
Management. Information & Management. 51(1). pp.43-56.
Yu, H.S., Min, S.D. and Huang, H., 2014. Service quality, perceived value, customer
satisfaction, and behavioral intention among fitness center members aged 60 years and
over. Social Behavior and Personality: an international journal, 42(5), pp.757-767.
Online
Understanding Organizational Structures. 2015. [Online]. Available
through:<https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/
understandingorganizationalstructures.aspx> [Accessed on 10th November 2017].
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