Organizational Structure and Contingency Approach of Pure Gym

The report studies the organisational structure of Pure Gym, a leading gym in the UK, and explores the contingency approach of management. It examines the two innovative objectives related to strategic management and provides an analysis of the business model, highlighting its strengths and weaknesses. The report concludes by discussing the opportunities for growth and competition with other gyms.

Management and Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1) About Pure Gym.....................................................................................................................1
TASK 2............................................................................................................................................2
1) Organisational structure of Pure Gym....................................................................................2
TASK 3 ...........................................................................................................................................3
3) One modern management approach used in Pure Gym..........................................................3
TASK 4............................................................................................................................................4
1) Two innovative strategic management objectives of Pure Gym............................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Organisational management refers to a process of planning, organising, directing and also
controlling all resources with the help in accomplishing goals and objectives of business
effectually (Laudon and Laudon, 2011). Pure Gym is a chain of fitness club in the United
Kingdom. This gym offers free and fixed weights, cardio equipment and also some exercise
classes. In this report, organisation and its structure are going to be discussed along with
highlighting the approach of modern management that can be used by Pure Gym.
TASK 1
1) About Pure Gym
Pure Gym is a big chain of fitness clubs in the country of United Kingdom. Main work of
this gym is to provide the fitness facilities to people. It is the Britain's biggest chain of gym and
there are around 450000 members and till the year 2020, it has to plan for opening a gym around
300. But, in the United Kingdom, it has total 180 gyms. This gym was found in the year 2009.
Main facilities which Pure Gym is providing are some exercise classes, free and fixed weights
and also the cardio equipment. But this gym is not providing the saunas or swimming pools
facilities. The type of this company is private and this industry deals in Health clubs. The Gym
is privately owned and run by the CCMP capital and also, through other investors. It offers many
other fitness facilities as well with the supportive staff.
There are some effective components which make this gym great and these are minimum
cost, online classes, high quality gyms, open every day and every hour, etc. The main motive of
this gym is to make people healthy, fit and also deceased free. From the gym, people do not feel
low (Sarkis, Zhu and Lai, 2011). This gym takes on LA fitness and also becomes a biggest
United kingdom gym and it operates its business through online. It announces partnership with
the 02, AXA PPP health care and also, with the Tom Tom. To attract many people towards gym,
it gives attractive offers. The founder of this gym is Peter Roberts and he is also the Chief
Executive. Some of its members learn about the healthy tips from online internet services. Pure
Gym develops an application and with the help of this application, people can do exercise at
homes.

TASK 2
1) Organisational structure of Pure Gym
Organisation structure refers to a pattern related to the relationship between many
different components in an organisation. It is a kind of formal structure, control systems,
coordination and also the organisational culture. It works as a powerful tool which helps at the
time of executing a strategy at workplace (Zheng, Yang and McLean, 2010). The structure of
every firm vary from each other. The organisational structure consists implicit and also explicit
policies along with institutional rules which are designed to a framework in which different roles
and responsibilities are coordinated, controlled and also interconnected. The organisational
structure of Pure Gym is given as below:
Managing Director- Main role of this director is to manage and control the activities of
Pure Gym. It manages all the operational activities which happen in the gym and regularly
monitors the activities of this gym. It includes in the top management of gym (Langley and et.
al., 2013). The main duties of director are to manage all equipment, maintain high level
membership and deal with the business properly as well as to hire and develop a team.
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Illustration 1: Organisational structure of Pure Gym
(Source: Fitness Centre Gym Business Plan, 2017)

Centre head- This person is the head charge of overall gym and also report to its
managing director of Pure Gym organisation. Centre head works under the managing director.
Marketing head- Its main role is to serve the right to assure about the firm name by
keeping the market place protective (Guest, 2011). It conducts many marketing activities related
to the gym. The marketing department of this firm prepares attractive promotional strategies to
promote the business of Pure Gym.
Head Trainer- It plays the main role in gym related activities and gives instructions to
young people or trainers.
Accountant- This person manages all accounts and does all finance related activities of
this gym. It is chargeable of finance to this Pure Gym.
Common and Individual trainer- Both these persons give good training to people
personally and can say that there is a personal trainer of all people.
TASK 3
3) One modern management approach used in Pure Gym
The modern business related ideologies are recognised and identified through the social
responsibilities related to activities of business on same line. There is one modern approach
which Pure Gym can use and that is contingency theory. This approach is also known as the
situational approach and it is the concept of management. It refers to the latest and new approach
to present approaches. At the time of 1970s, this theory is formulated by P.R. Lawrence and J.W.
Lorsh. It is the best approach to manage work at workplace. On the basis of this approach,
problems of management vary in different conditions and need to be tackled according to the
demand of conditions (Suddaby, 2010). This approach contributes in the evaluation of thoughts
related to management. It discards a concept related to the universality of principles of
management and also, helpful in taking the managerial decisions.
This approach suggests proper and appropriate management style which is based on
particular situation and adopt the single style. It is an approach where the behaviour and attitude
of single sub unit is based on its relationship and also, on its environment. On the other hand, the
another that have a control on sequences which are desire through sub unit. This approach works
as an improvement conceptualisation. It is highly effective and also beneficial for company due
to the learning from the particular conditions and using that lessons which can impact on the
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same conditions. This kind of approach does not evaluate a universality of theory related to the
management. According to this theory, there is no better way of doing things properly and
effectively.
The contingency approach is helpful in rising the diagnostic approach to ready and also
anticipate for the changes related to environment (Battilana and Dorado, 2010).
TASK 4
1) Two innovative strategic management objectives of Pure Gym
Strategic management refers to the formulation and also execution of some main aims
and also objectives through the top management of an organisation on the behalf of its owners.
The strategic objectives are the part of strategic management. It is denoted to the highest object
of company or a person. The Porters’ Generic Strategy Matrix and also SWOT analysis of pure
gym are the two innovative strategic management objectives which are given below as above:
Porters’ Generic Strategy Matrix
There are some of the elements are involved in this:
Bargaining power of consumers- The customer bargaining power of pure gym is high
and it provides that services which are varied from the various services which are provided
through other clubs. The bargaining power of customers is high in the market of Pure gym
because of the minimum switching options.
Suppliers bargaining power- In this the bargaining power of suppliers is low for small
health clubs as comparison to the large size clubs.
Threats of new entrants- Because of the investment of health club market is high, then
from this the then the threat of new entrants is low (Vaccaro and et. al., 2012). The supply
consolidation of Pure Gym helps in neglecting the imperfection of market and also the threats
from different new entrants.
Pressure from Substitutive services- The substitute threat to Pure gym is not much high
due to the less other institutes of training and also the competition
level is small.
Competitors and competition between organisations- The competition level in health club is
high because its switching cost is minimum.
SWOT (Strengths, Weaknesses, Opportunities and also Threats)Analysis:
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Strengths
 The main strength of this gym is that it only focus on the fitness of consumers.
 It provides the effective schemes that are sustainable and also affordable. It is
helpful in encouraging the people (Cameron and Green, 2015).
 The Pure gym has nationally as well as internationally certified trainers.
Weaknesses
 Its main weakness is that there is a huge competition level in health clubs.
 There are many strong competitors of this gym and from this its services are
untapped.
Threats
 There is more possibility of large number of consumer turnover where the
different members are leave health clubs with the bad debts (Brewster and
Hegewisch, 2017).
Opportunities
 It has an opportunity to increase its business and also compete with its
competitors.
CONCLUSION
It has been concluded from the above business report that the Pure gym is a largest gym
in United Kingdom. Under this business report studied about the organisation and also the
organisational structure of Pure gym. There is also studied regarding some levels which are
included in this report. In the given business report studied regarding the contingency approach
of management. It is a beneficial approach in doing the business. The two innovative objectives
of Pure Gym related to the strategic management are studied under this report.
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REFERENCES
Books & Journals
Battilana, J. and Dorado, S., 2010. Building sustainable hybrid organizations: The case of
commercial microfinance organizations. Academy of management Journal. 53(6).
pp.1419-1440.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource
Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Langley, A. and et. al., 2013. Process studies of change in organization and management:
Unveiling temporality, activity, and flow. Academy of Management Journal. 56(1).
pp.1-13.
Laudon, K.C. and Laudon, J.P., 2011. Essentials of management information systems. Upper
Saddle River: Pearson.
Sarkis, J., Zhu, Q. and Lai, K.H., 2011. An organizational theoretic review of green supply chain
management literature. International Journal of Production Economics. 130(1). pp.1-
15.
Suddaby, R., 2010. Editor's comments: Construct clarity in theories of management and
organization. The Academy of Management Review, pp.346-357.
Vaccaro, I.G. and et. al., 2012. Management innovation and leadership: The moderating role of
organizational size. Journal of Management Studies. 49(1). pp.28-51.
Zheng, W., Yang, B. and McLean, G.N., 2010. Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge
management. Journal of Business research. 63(7). pp.763-771.
Online
Fitness Center Gym Business Plan, 2017. [Online]. Available through:
<https://bohatala.com/fitness-center-gym-business-plan/, >. [Accessed on 4th November, 2017].
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