PureGym Business Analysis Report

This report analyzes PureGym, the largest fitness chain in Britain. It examines their organizational structure through the lens of contingency theory and assesses their market position using SWOT analysis and the Ansoff matrix. The report identifies PureGym's strengths, weaknesses, opportunities, and threats to inform future policy decisions.

0Running head: MANAGEMENT AND ORGANISATIONS
Management and Organisations

1MANAGEMENT AND ORGANISATIONS
Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................3
PureGym Company’s Introduction........................................................................................3
Task 2.........................................................................................................................................4
PureGym’s Organisational Structure.....................................................................................4
Task 3.........................................................................................................................................6
Contingency Approach...........................................................................................................6
Task 4.........................................................................................................................................7
Ansoff Matrix for PureGym...................................................................................................7
SWOT Analysis of PureGym.................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

2MANAGEMENT AND ORGANISATIONS
Introduction
This report will evaluate the management strategy adopt by PureGym Corporation. The first
sections of the report will briefly describe the company’s unique attributes and other features.
The second part will focus on analysing the organisational structure of PureGym Company.
The third part will suggest a managerial approach which can be adopted by PureGym’s
management. The fourth sections will evaluate two innovate strategic management
approaches, such as Ansoff and SWOT, for PureGym corporation.

3MANAGEMENT AND ORGANISATIONS
Task 1
PureGym Company’s Introduction
The company is situated in the United Kingdom as a fitness club chain; it has its operations
throughout the country. The corporation is Britain’s largest gym chain with more than
450,000 members. Presently, PureGym has more than 180 gyms, and they are planning to
open 300 gyms by 2020. The strength of PureGym is their dedicated staff members who
assist in growing operations of business by focusing on the improvement of its members. The
company also focus on requirements of its employees, in 2016; PureGym won the best place
to work awards. PureGym motto is to ensure that each of its members has a memorable day
when they visit their gym.
PureGym provides its members flexible and affordable membership plans which give them
access to high-quality gym equipment. The company offers an online membership facility to
its members in which the members pay 20 percent less for a month membership fees, and it
does not require any form filling. All the gyms provide 24*7 facilities to its members, and
they are located at easily accessible locations throughout Britain (Kingsley, 2012). The
company gained a competitive advantage in Britain’s gym industry by providing high-quality
services to its members and using the latest technology into their facilities. The company has
also initiated a program for old people which provide them an advantage as compared to
other fitness clubs. PureGym also provides many other offers such as one-year membership at
a discount, autumn deal concessional prices, and exceptional 20 percent off for student
members (PureGym, 2017). PureGym gives 50 to 80 fitness sessions every week to its
members by more than 2000 personal trainers. The fitness equipment is high quality, and the
gyms have a large area available for the member to do their fitness exercises. The company
also invest its capital in multiple fields relating to fitness with an objective of improving their
services.

4MANAGEMENT AND ORGANISATIONS
Task 2
PureGym’s Organisational Structure
The organisational structure defines multiple activities inside a corporation which includes
task allocation; coordination and supervision to ensure that company achieves its
organisational objectives (Foss, Woll and Moilanen, 2013). The functional departments of a
firm are divided into various parts to focus on common corporate goals. Following is the
organisational structure of PureGym Corporation:
Chief Executive Officer (CEO)
PureGym’s CEO is Humphrey Cobbold who was appointed to his post in 2015. Cobbold
possesses a high level of experience in fitness field by working in various positions including
Chairman of Fish4, Director of Strategic Development and many others (PureGym, 2017).
Chief Financial Officer (CFO)
The CFO focus on finance related matters and PureGym’s CFO is Adam Bellamy; he is
experienced in numerous fields other than fitness such as retail business, hospitality, and
others. Bellamy’s primary role is related to the financial decisions and transactions in the
corporations, planning the growth strategies, act as a team leader and other critical functions
which are gravitating towards the achievement of organisational goals.
Chief Operating Officer (COO)
PureGym’s COO is Jacques De Bruin which was appointed in 2011. Bruin performs various
tasks relating to controlling and supervision the daily transaction of the corporation. As per
the organisational structure, the final approvals for decisions taken in the company are
acquired by COO to CEO.
Non-Executive Director
PureGym has two non-executive directors, Richard Zannino and Thomas Walker. They both
are responsible for proposing policies, integrating financial status, strategies, and others.
They primarily concentrate on accomplishing the organisational goals by assisting COO in
framing future strategies and objectives.

5MANAGEMENT AND ORGANISATIONS
Employees
The employees of PureGym are the prime reason for their success because they perform daily
operational tasks with efficiency. PureGym’s workers are highly motivated to work hard and
accomplish the estimated targets set by executive officers. The CFO focus on financial
department’s functions and the COO maintains operational department. They focus on
completing their transaction in given time frame and company also ensure to fulfill their
requirements.
PureGym's Organisational Structure
Board of
Directors
Chief
Executive
Officer
Chief
Financial
Officer
Finance
Department
Chief
Operating
Officer
Operations
Department
Non-
Executive
Director

6MANAGEMENT AND ORGANISATIONS
Task 3
Contingency Approach
PureGym can implement contingency approach in their business structure which can assist
them in achieving their organisational objectives. The contingency approach is a management
concept which does not have a universally acceptable set of principles; it is also known as a
situational approach (Flynn, Huo and Zhao, 2010). It provides that the management
effectiveness depends upon different conditions; one management approach is not suitable for
various organisations because each organisation has unique attributes. In case of PureGym,
the management can implement this strategy to gain competitive advantage and achieve its
organisational goals. The fitness industry is constantly changing due to the introduction of
modern technologies such as body sensors, virtual workouts, and convenient mobile
applications (Chung, Lu Wang and Huang, 2012).
Modern gyms are expected to adopt such technologies quickly to provide better services to
their members. PureGym can use contingency approach to implement such technology which
benefits the corporation and members. The contingency approach allows management to
modify its policies and roles as per the requirement of its members which help in quickly
achieving organisational goals. The chances of success for highly tailored management
projects also increases with the option of contingency planning (Groeneveld and Van de
Walle, 2010). The contingency approach is considerably flexible as compared to other
approaches which giver freedom to the management to change strategies and functions as per
the market demand. PureGym can use this method to gain a competitive advantage since they
will be able to change their policies quickly and as per the market requirements.

7MANAGEMENT AND ORGANISATIONS
Task 4
Ansoff Matrix for PureGym
Market Penetration
The company has the opportunity to increase its operations by targeting members of
competitive corporations, focusing on demand of young members, and providing better
services to current members in order to retain their membership. The company can use the
swimming initiate started by the UK to penetrate swimmers market by providing such
services (Thomas, 2012).
Market Development
PureGym can adopt segment strategy to expand its operations into a new market of the fitness
industry. The strategy of the organisation should focus on attracting and increasing new
members and business respectively. PureGym can implement an outreach strategy to expand
its business in low operational areas to gain a competitive advantage.
Product Development
Efficient development of products requires identification of requirements, analysing
resources and advertisement of such products to present clients. There are numerous factors
which influence and the process of product development such as risk factors, customers’
demand, future strategies and many others. The company should ensure that their products
are excellent in quality and fulfills the requirement to attract a large number of customers.
Diversification
The process of diversification is considerably riskier, and corporations are requiring
conducting necessary research of both market and product. Many competitors of PureGym
are introducing new policies for attracting young members, and it has been difficult for the
company to adopt such strategies. PureGym should conduct required research and adopt an
effective strategy for diversification of its services (Sassatelli, 2010).
SWOT Analysis of PureGym
Strengths

8MANAGEMENT AND ORGANISATIONS
The requirements and demand of member are considered as a primary focus in PureGym, and
they also formulate policies for fulfilling such needs. PureGym is providing its minimum
subscription at 20 percent off and it does not require a longer commitment (PureGym. 2017).
PureGym has simplified their joining process to improve the experience of new members,
and the process of leaving the subscription is considerably easy as well. The lively, modest,
straightforward and flexible environment of PureGym improves the experience of its
members.
Weaknesses
The lack of availability of adequate space for member’s workout is primary weakness of
PureGym. The gym equipment is limited which makes it difficult for each member to use
them in their workout. Another problem is lack of availability of parking space near the
gyms. The peak season of the gym makes it significantly difficult for a member to park their
car near the gym and it wastes their workout time (Rovnick, 2017).
Opportunities
The company has the opportunity to expand its business in cities outside Britain and expand
its operations worldwide. In recent times, people are more aware regarding their fitness
which assists PureGym in rapidly increasing its membership. The company can also target
younger audience while expanding its operations globally.
Threats
The number of competitors is increasing rapidly which is the key threat for PureGym (Woolf,
2008). The changing regulations of government and lack of fitness supplies are also the risks
faced by the corporation.

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Conclusion
To conclude, PureGym is the largest fitness chain in Britain; they provide various fitness
facilities to its members which include both young and old members. The report analysed the
organisational structure of PureGym, and provide the utilisation of contingency theory in the
management. The Ansoff and SWOT analysis provide information regarding strengths,
weakness and market opportunities of PureGym which they can evaluate to formulate future
policies.

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References
Chung, H.F., Lu Wang, C. and Huang, P.H., 2012. A contingency approach to international
marketing strategy and decision-making structure among exporting firms. International
Marketing Review, 29(1), pp.54-87.
Flynn, B.B., Huo, B. and Zhao, X., 2010. The impact of supply chain integration on
performance: A contingency and configuration approach. Journal of operations
management, 28(1), pp.58-71.
Foss, L., Woll, K. and Moilanen, M., 2013. Creativity and implementations of new ideas: do
organisational structure, work environment and gender matter?. International Journal of
Gender and Entrepreneurship, 5(3), pp.298-322.
Groeneveld, S. and Van de Walle, S., 2010. A contingency approach to representative
bureaucracy: Power, equal opportunities and diversity. International Review of
Administrative Sciences, 76(2), pp.239-258.
Kingsley, P., 2012. Hard at it in the all-night gym. [Online] The Guardian. Available from:
https://www.theguardian.com/lifeandstyle/2012/jan/29/exercise-in-all-night-
PureGym., 2017. Leadership. [Online] PureGym. Available from:
https://www.puregym.com/puregym-group/leadership/
PureGym., 2017. Students! Get Up to 20% Off. [Online] PureGym. Available from:
https://www.puregym.com/landing-page/student-membership/
PureGym., 2017. Up to 20% Off. [Online] My Unidays. Available from:
https://www.myunidays.com/GB/en-GB/partners/puregym/view/online?p=AQI
Rovnick, N., 2017. Pure Gym sold to Leonard Green private equity house. [Online] Financial
Times. Available from: https://www.ft.com/content/1ab146c6-c09b-11e7-9836-b25f8adaa111
Sassatelli, R., 2010. Fitness culture. Gyms and the Commercialisation of Discipline and Fun.
Thomas, N., 2012. Pure Gym in £37m expansion push. [Online] Telegraph. Available from:
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9591624/Pure-Gym-in-
37m-expansion-push.html

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Woolf, J., 2008. Competitive advantage in the health and fitness industry: developing service
bundles. Sport Management Review, 11(1), pp.51-75.