Management and Organisation Analysis: Pure Gym Case Study Report

This report provides a comprehensive analysis of Pure Gym's management and organisational structure, focusing on its growth stage and competitive landscape within the UK fitness industry. It examines the company's organisational hierarchy, decision-making processes, and the application of the contingency theory to address challenges and adapt to changing environments. The report also includes a SWOT analysis to identify Pure Gym's strengths, weaknesses, opportunities, and threats, as well as a Porter's Generic strategy analysis, highlighting its cost leadership approach. The analysis covers the strategic innovation of Pure Gym, including the application of contingency theory, the organizational structure, and how these elements contribute to its success. The report concludes by summarizing the key findings and implications for Pure Gym's future development.

Running head: MANAGEMENT AND ORGANISATION
Management and Organisation
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Executive summary
The purpose of this report is to analyse the organisational structure of the company and thus it
can be stated that the company is going through its growth stage in the current situation. The
three different level of this organisation are discussed and how they contribute to the decision
making process are discussed. The suggestion about the innovative strategy while applying
contingency theory is analysed. This theory also enhances the flexibility and adaptability of the
company. After analysing the situation of Pure Gym in the industry and elements of cost
leadership and differentiation strategy helped in understanding their strategic innovation.

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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................5
Organisational structure of Pure Gym.........................................................................................5
Task 3...............................................................................................................................................6
Task 4...............................................................................................................................................8
SWOT analysis of Pure Gym......................................................................................................8
Porter’s Generic strategical analysis of PureGym.......................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
The following is the analysis of a well-known UK based company Pure Gym. From the
organisational structure and background of the company, it can be stated that the company is in
its growth stage. Pure Gym also has 180 gyms across United Kingdom. The organisational
structure of the business must be efficient, competitive, flexible and innovative. Organising of
specialisation staff of the company in their realm of expertise are also part of organising people
in their respective functional area. The divisional structure is not appropriate to apply this theory
and competency method. The Swot analysis of the company gives insights to the competitive
advantage that they can focus into further in the future (Mullins 2016).
Task 1
The organisation is one of the most well known fitness club in United Kingdom. Pure
Gym is the no frills fitness club of Leeds. It also provides membership for different age of
people, starting from students to older ones. It also has 450,000 members currently registered
under them. They are planning to open 300 gyms by 2020. The most important rival of this
organisation is LA Fitness. Pure Gym also has 180 gyms across United Kingdom. Founder Peter
Roberts opened this private company in 2009, since then have managed to operate in the domain,
and achieved success. They have different divisions in the organisation that looks after the
nutrition, weight loss, and health of their full and temporary members. This industry was in
growth phases for the last two decades. With the change and influence of this of food habits of
the consumers and awareness and consumption pattern of people, the industry recorded 21.4
billion dollar revenue from memberships (Vandevee and Menefee 2010). The health
consciousness has increased in the consumers. According to the International Health, racquet &

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sports association (IHRSA), the membership increased by 2.4%. There are many determinants in
the industry that affects its outcomes. Growth of the membership, member specific programs
availability and other factors like population specific programming. With growing obesity level
in children and adults interactive work out systems have gained popularity in the region (Johnson
et al. 2014). The ownership of the company is by CCMP Capital and other partnership investors.
The CEO was changed in order to improve the capability of the company and increase the
competitiveness. The new CEO who replaced Peter Roberts was Humphrey Cobbold. The Gyms
of this organisation is also well equipped with Cardio, fixed and free weights lifting, exercise
classes.
Task 2
Organisational structure of Pure Gym

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Decisions related to Organisation, are decided by the people in middle and upper level managers
of the company. Three levels of the organisational hierarchy are used in the fitness clubs. The
lower levels are known as operational decision makers. Most of their tasks involve Transaction
processing system oriented work. The next level consists of the tactical decision maker
contributing to the Management Information System. Then comes the strategic decision makers,
who are top level executives of the company (Vandevee and Menefee 2010). The project plan for
further improvement of the company needs the functional and operational staff of the gym. The
CFO of the company is Adam Bellamy who is with the company for the last decade. The office
chief instructor and administration is the one that looks after the most important part of the gym
sessions and clients administration. There structure given above must communicate with the
service support of the company. The command staffs in the training wing are supposed to look
after the members of administration staff. PureGym is one of the most famous gyms in UK as
they also have good staff in the company. The organisational structure of the business must be
efficient, competitive, flexible and innovative in there years. Organising of specialisation staff of
the company in their realm of expertise are also part of organising people in their respective
functional area. A gym may have more than 180 branches but the headquarter is the central of all
operational decisions. To perform higher level of efficiency the safety and training wing is the
key staff of the company. The company goes by a functional structure that consists of activities,
for example coordination, supervision and task allocation. The service that this mentioned
organisation gives to its clients includes the simplest of the organisational structure.

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Task 3
The most important modern management approach to manage a Gym can be Contingency
approach. The contingency theory identifies the critical task or challenges that the company or its
employees faces and resolving the matter proactively with the vigilance. The situation changes
over time and must be accommodated with right approach. The right approach to resolve any
matter at hand is to go through the details of the difficulties in the mechanics of management
(Robbins and Judge 2014). The planning, narrowed span of control may stimulate the process.
According to this contingency theory head on faces the challenges of the company and focuses
on the behaviours of the leader. Environmental change and other uncertainty are handled best
with contingency planning. The social and environmental factor affecting the contingency
perspectives can be solved with structural decision-making. There is no assurance of stability in
approach to management that can resolve matters in companies. The contingency approach
specialises on effectiveness and efficiency of the management decision-making approach. This
approach also nullifies the predictability of policies, standardisation, rules and procedure of
management. This theory also enhances the flexibility and adaptability of the company. The
solving methods of the company are generally for the unpredictable task (Robbins and Judge
2014). To confront different situation in a company, one must adapt to technologies that helps in
resolving competing different types of challenges. Organisational sizes also must be considered
in approaching effectiveness of the organisation (Johnson 2014). The divisional structure is not
appropriate to apply this theory and competency method. The financial structure of the company
and economic conditions and practises also facilitates the communication in decisions making
standards. The interaction between leaders and employees also verifies the managerial approach
that is taken. There are two kinds of managers. One is people oriented and another is task

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oriented. In both of the situation, the contingency theory can be applied (Drafke and Murtaugh
2009).

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Task 4
SWOT analysis of Pure Gym
Strength
 The location of the PureGym branches
is strategic in nature. for example town
centre, Leeds.
 The company also have 180 branches
all over UK.
 The company also planning to increase
the number of branches and
international market
 They also were prepared to take over
their largest competitor in UK LA
fitness Club
 The equipments are highly upgraded
 Diversifying in the cardio and light
exercise classes have also equipped
them with competitive advantage
 They also have a strong management
system to back up the necessary output
of PureGym.
Weakness
 The competition is really increasing in
the industry
 The challenger in the industry LA
Fitness Club have the differentiated
advantage
 The business models of Fitness club is
really complex facility of the company
 At the beginning, the financial
resources of the company are very
critical to consider.
 The turnover rates of customers are
very crucial (Drafke and Murtaugh
2009)
 The customer service of the company is
average
 Poor music and maintenance of the
company may affect the turnover of the
company

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Opportunities
 The fastest growing industry in the
economy 5.8%
 The more usage of digitalisation of the
process may enhance the attraction of
the fitness club
 The feature of No frills may attract a
different segment of customer like
Students and lower class people
Threats
 Expansion of different clubs in the
region threatens to capture most of the
customers.
 Economic slowdown of the company is
one of the most important factor to
consider for further expansion plan of
the company
Porter’s Generic strategical analysis of PureGym
Porter’s generic strategy consists of competitive scope and competitive advantage of the
company. PureGym follows cost leadership. PureGym’s feature of No Frills gives them a
competitive advantage in the company. Highly valued among fitness industry also works as a
competitive advantage. This strategy gives them competitive advantage and can help in
positioning too.
Conclusion
Therefore, from the above analysis of the company PureGym it can be said that they are
very competitive in the Fitness Club Industry. With having 180 branches all across the UK they
acquired there competitive advantage in capturing the whole market. The structural design of the
organisation and then applying the managerial rules to implement the contingency theory and
application of that in Pure Gym is outlined in the manner. Highlighting the organisational

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structure of the company and defining the key persons of the organisation are necessary. The
contingency management approach to resolve critical situation and there benefits in decision-
making are discussed. After analysing the situation of Pure Gym in the industry and elements of
cost leadership and differentiation strategy helped in understanding their strategic innovation
status of the company.