Analysis of Pure Gym's Management and Strategic Objectives

This report provides a comprehensive analysis of Pure Gym's management and organizational structure. It begins with an introduction to the company, followed by a critical examination of its organizational structure, including elements like work specialization, departmentalization, and chain of command. The report then explores a modern management approach, specifically the systems approach, and explains its relevance to Pure Gym. Furthermore, it critically analyzes two innovative strategic management objectives, focusing on Porter's generic competitive strategies (cost leadership and differentiation) and SWOT analysis. The conclusion summarizes the key findings and emphasizes the importance of effective decision-making and strategic planning for achieving organizational goals, maintaining a competitive edge, and creating a positive brand image.

Management and
organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Briefly introduce the organisation...............................................................................................3
Task 2...............................................................................................................................................4
Critically analyse and illustrate the organisational structure of the company.............................4
Task 3...............................................................................................................................................6
Explain one modern management approach that could be used in the.......................................6
company.....................................................................................................................................6
TASK4.............................................................................................................................................7
Critically analyse two innovative strategic management objectives of the................................7
company.....................................................................................................................................7
CONCLUSIONS:............................................................................................................................8
.........................................................................................................................................................1

INTRODUCTION
The management of an organisation should need to perform according to the needs and
demands of the customers in order to achieve their desired goals. It includes organising,
planning, leading and controlling resources in such a manner that bring positive results to the
organisation. Certain actions and activities need to be implemented in order to compete with
their rivals (Aubry and et. al., 2012). Therefore the main purpose of this project is to determine
what are the services Pure Gym provided and analysing of the organisational structure that are
implemented in this company. There are different management approach and strategic
management decisions which are applied on the organisation need to be evaluated so as to
achieve company's objective in effective and efficient manner.
TASK 1
Briefly introduce the organisation
Organisation named Pure Gym is Britain's largest gym chain in which 450,000members
are using their services and has planned to open 300gyms by 2020.The pure gym was founded
and established in 2008 and their first site opens in Leed, Manchester and Edinburgh in 2009.
After two years,they opened their first gym in London. Pure Gym is a US based private equity
firm with about 500 employees and Tony Ball becomes the board of directors of Pure Gym
(Charsombut, 2011). It acquires LA fitness and becomes the UK's largest gym operator by sites
and members and its first TV advertising campaigns launches in 2015. They announces about the
partnership they make with with AXA PPPP Health care,02 and Tom Tom. They said that they
acquired all gyms from rival UK fitness chain bringing the total number of gyms across the UK
to 141.They have objective to make everyone fit and enjoy healthy lifestyles by providing health
fitness programs and activities. In order to motivate their members to achieve healthy lifestyle
goals they offers 24 hours a day gym service including cardio equipment, fixed and free weights
and exercise classes but did not provide saunas or swimming pools. Pure Gym company has
objective to make everyone fit and enjoy healthy lifestyle therefore they helps people to provide
world class fitness equipments at an affordable price (Mežinska, Lapiņa and Mazais, 2015). So
as to make fit they will provide quick assessment which includes a gym program and gives
proper guidance through providing healthy eating plan. In order to make fit people and
providing healthy lifestyle they designed their gyms in such a way that attracts their members

through charging less prices as well as provides high quality services. They offers great fitness
facilities with enthusiastic and supportive staff and offers 99% of what 99%of the population
could possibility want for a truly great work out.
Task 2
Critically analyse and illustrate the organisational structure of the company
Organisational Structure: Every organisation has a group of people who work together
in order to achieve their organisational goals in effective and efficient manner. Organisational
Structured describes how the tasks are allocated among the members according to their skills and
knowledge therefore organisation need to communicate and clarify the roles and responsibilities
to their members so that they can able to understand about the work they need to perform (Ates,
2013). It also involves that how the their top authority guide and directs their members towards
achieving the organisation goals. The organisational structure includes six elements: Work specialisation: It involves the division of work and authority to their members
according to their knowledge and skills in order to bring efficiency level in their work. Departmentalisation: There are different departments such as job function, service line,
or territory so it is required to grouped and combined together in order to understand their
roles and responsibilities. Chain of command: It provides the chain of communication from top authority to lower
authority in the form of orders, instructions, queries, direction etc. The higher l3evel
management such as manager should need to communicate about their strategies,
programs to their members to their medium and lower level management and provide the
information that who should report to whom in order to bring satisfaction among the
members (Anker Jensen, 2011). Span of control: The top authority such as managing director are responsible for the
performance of their employees therefore it is required for the top authority to provide
guidance and direction to them in order to bring efficiency in their work. Centralisation and decentralisation: When top authority such as managing director of
Pure Gym takes all the decisions itself without involving lower authority such as
common or individual trainer it is considered as centralised and if lower authority's

involvement is more in organisational decisions than top authority then it is considered as
decentralisation.
 Formalisation: It involves provides freedom to the lower authority to takes decision on
their own and perform accordingly which provides high degree of flexibility.
Though diagram we can understand better about organisational structure :

Task 3
Explain one modern management approach that could be used in the
company
There are three types of modern management approach that could be followed by the
company:
System approach: An organisation is a system involving four subsystems namely task,
structure, people and environment which are interconnected and interdependent with each other.
The manager see the company as one big machine that has ton work together to take inputs and
make them outputs. The management of company should need to regulate and modifies the
systems in order to improve and enhance performance.
Quantitative approach: This approach helps an organisation to use mathematical data in
order to understand problem in form of analysing surveys to predict their customers demand.
Under this approach, company should use different methods such as online surveys,
questionnaires, statistics etc. (Hunt and et. al., 2011). which help in understanding the needs and
demand of the customers so that they can implement actions in order to fulfil the customer's
requirements.
Contingency approach: Using this approach, the management of company should
depend on the behaviour,situations and their own styles and therefore make efforts to ensure that
both interacts efficiently. The behaviour or situation in an organisation in contingent so that if
manager of company wants to change the behaviour of any part of organisation that influences
that the performance of an organisation he should need to try to change it in efficient manner in
order to achieve organisational objectives.
From the three modern management approach mentioned above, the system approach is
best to follow for the Pure Gym as this approach considers both the business as well as technical
based on their customers. With the help of this approach, Pure Gym should ensure the quality of
services that they offered to their customers in order to improve satisfaction level of them. This
approach enables Pure Gym integrates all functions into a team effort which helps in improving
and enhancing probability situation. In order to achieve company's goals the company enables to
assess and identifying the deviations and should need to take corrective actions accordingly.

TASK4
Critically analyse two innovative strategic management objectives of the
company
Strategic management refers to identification and description of the strategies that the
manager of company should carry in order to achieve better performance which indirectly helps
in profitability condition of company. Strategic management involves:
Porter's generic competitive strategies: Michael Porter has argued that the strength of
company fall into one of the two headings:cost advantage and differentiation. By applying these
strengths in either broad or narrow way, three generic strategies results;cost leadership,
differentiation and focus :
1. Cost leadership: Under this generic strategies the company named Pure Gym should sell their
services either at average company's prices so as to make profits than their rivals or should sell at
lower price to gain market share (Ang, 2011). The company should need to use efficient
equipments and technologies that helps them to compete to their rivals and sustain in completive
market. There are two ways from which company can achieve their desired objectives:
 charging industry average prices so as to increase profit. Charging less prices in order to increase market share.
2. Differentiation strategy: With the use of this strategy, Pure Gym should required to develop
and upgrade their equipments and techniques through which they are able to provide gym
services to their customers in effective and efficient manner. They need to acquire and use latest
techniques than their rivals in order to attract the customers and with this they can charge
premium price from their customers. Pure Gym should need to make research and innovate their
services such as gym equipments in order to reducing the chances of losing their existing
customers.
3. Focus strategy: Using this strategy the company should either focus on cost advantage or
differentiation. After understanding the dynamics of the market. Pure Gym should need to
develop low-cost or well specified products in order to build strong brand loyalty among the
customers. This help the company to compete with their rivals in effective and efficient manner.
The main motive of using focus strategy is to ensure that they are adding and providing extra
value to their services

SWOT Analysis: For determining the strengths, weaknesses, opportunities and threats of
company the analysis of these should be must in order to achieve company's objective. SWOT
analysis enables the company to make strategic plans and strategies through formulating and
implementing corrective decision in the benefit of the company's performance. A SWOT
analysis should be done to achieve company's objective in the following manner:
 Determine the strengths of Pure Gym so that the company should identify features that
brings their company ahead of their competitors such as newer faculties and exercise
equipments, a celebrity trainer or unique classes that are not offered at other fitness
centres (Neuvel, Scholtenand van den Brink, 2012).
 Asses the weakness that harm the company in form of losing existing customers. The
company should analyse their weaknesse4s such as under-staffing or poorly-trained
staff,lack of updated equipments that bring dissatisfaction among their customers.
 Identify and evaluate the opportunities that comes according to the needs of the
customers. Upgrading or changing their services helps in creating opportunities for the
company such as increase in health-conscious consumers, positive perception of brand
etc.
 List of threats such as high staff turnover, unmotivated instructors, low participation,
lack of funding damage the company internally as well as externally due to which they
can lose their existing customers and thus unable to achieve their objective in effective
and efficient manner.
CONCLUSIONS:
As per the above report it can be concluded that proper decision making process should
be implemented by top level management in order to achieve organisational goals in effective
and efficient manner. The market environment, needs and demand of the customers should be
properly analysed and therefore taking certain plans and procedures in order to bring optimum
efficiency and profitably condition of company that helps the company to compete with their
rivals and able to create positive brand image in front of their customers.

References
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