A Comprehensive Analysis of Pure Gym's Management and Strategy

This report provides a comprehensive analysis of Pure Gym, a leading UK gym chain. It begins with an introduction to Pure Gym, highlighting its establishment, growth, and key features. The core of the report critically analyzes Pure Gym's organizational structure, examining elements like work specialization, departmentalization, chain of command, span of control, centralization, and formalization. It then explores a modern management approach, specifically the system approach, advocating for its application within Pure Gym. The report also delves into strategic management objectives, critically analyzing two innovative strategies: Porter's generic competitive strategies (cost leadership, differentiation, and focus) and SWOT analysis. The report references various books and journals to support its analysis and conclusions, offering valuable insights into Pure Gym's management practices and strategic direction.

Management and
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Briefly introduce the given organisation.................................................................................1
TASK 2............................................................................................................................................2
2. Critically analyse and illustrate the organisational structure of Pure Gym.............................2
TASK 3............................................................................................................................................3
3. Explain one modern management approach that could be used in the Pure Gym..................3
TASK 4............................................................................................................................................4
4. Critically analyse two innovative strategic management objectives of the company.............4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Books and Journals.....................................................................................................................6

INTRODUCTION
The management of an organisation plays an important role in managing needs and
demands of the customers in order to achieve desired goals and objectives. The management
should need to perform various functions such as organising, planning, leading and controlling in
order to perform various activities effectively and efficiently. The main purpose of this project is
understand the activities that are performed by Pure Gym and also analyse the organisational
structure which are implemented in company (Goetsch and Davis, 2014). The project also
determines different management approach and strategic management decisions which are
required for company to evaluated in order to achieve desired objective of company.
TASK 1
1. Briefly introduce the given organisation
Pure Gym is become the Britain's largest gym chain who provides their gym services to
approx. 450,000 members and also planned to open 300 gyms till 2020. It was founded and
established in 2008 and their first site is open in Leed, Manchester and Edinburgh in 2009 and
later on they opened their first gym in London in 2011. Pure Gym is a US based private equity
firm in which there are over 500 employees who worked in this and Tony Ball has become the
board of Directors of Pure Gym (McPherson and Pincus, 2017). The company acquires LA
fitness and considered as UK's largest gym operator by sites and members and its first TV
advertising campaigns launches in 2015. they form a partnership with AXA PPPP Health care
and Tom Tom. They focused on acquiring all gyms from rival UK fitness chain which will bring
their total number of gyms across UK to 141.The main objective of given company is to make
everyone fit through providing health fitness programs and activities. Therefore in order to
attract large number of customers the company offers 24 hours a day gym services such as cardio
equipment, free weights and exercise classes except facilities of saunas or swimming pools. The
company charge affordable price for their gym services from the public so that every person
maintain their healthy lifestyle. Pure Gym also provides some gym programs and proper
guidance relating to maintain healthy eating plan. Therefore they can easily attracted large
number of customers through charging low fees and high quality services (Bolman and Deal,
2017). The design or structure of Pure Gym is in such attractive way that influence the people
towards them.
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TASK 2
2. Critically analyse and illustrate the organisational structure of Pure Gym
Organisational structure: In an organisation, there are group of people who perform
together to achieve their desired goals and objectives of an organisation in effective and efficient
manner. Organisation structure determines the roles and responsibilities related to the activities
delegated to their staff members according to their knowledge and skills and it is necessarily
required for management to communicate and direct their staff members to perform their allotted
activities in effective and efficient manner (Liebowitz and Frank, 2016). It also involves that
how the manager of Pure Gym motivate their members to achieve desired organisational goals
and objectives. There are six elements involves in organisational structure which are as follows:
Work specialisation: It includes dividing work and responsibility to their staff members
according to their knowledge and skills and specialisation with the help of which their members
can perform efficiently.
Departmentalisation: Departments such as job function, service line or territory are
required to grouped and combined together which helps in understanding roles and
responsibilities.
Chain of command: It provides hierarchy of communication from top authority to lower
authority in form of orders, instructions, queries, directions etc. Therefore the higher authority
member such as manager need to communicate with their staff members relating to their
strategies, programs which are implemented to achieve positive results. The manager also
provides the information that if any issue occur during performing their task then to whom the
staff members should communicate in order to get effective solution.
Span of control: As the top authority such as manager are liable for the performance of
their employees therefore is should required for manager to give proper guidance and direction to
them in order top enhance their efficiency level and productivity (Mowday, Porter and Steers,
2013).
Centralisation and decentralisation: When the manager itself take decision and control
all activities of their staff members then it is considered as Centralisation. Whereas if manager
involve their staff members while taking organisational decisions then it should considered as
Decentralisation.
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Formalisation: It promotes high degree of flexibility because it involves providing
freedom and authority by managers to their staff members in order to formulate decision on their
own and perform accordingly.
Organisational structure can be easily understand through below diagram:
Figure 1. Operational and Organizational Chart, 2017
TASK 3
3. Explain one modern management approach that could be used in the Pure Gym
There are three types of modern management approach which can be followed by the
Pure Gym:
System approach: An organisation is a system consisting of four subsystems such as
task, structure, people and environment which are interconnected and interdependent with each
other. In this approach, the manager of Pure Gym assume its company as one big machine which
has to worked together in order to take inputs and make them outputs (Tarique and Schuler,
2010). Therefore in order to improve and enhance performance of company the management
should need to regulate and modifies the systems.
Quantitative approach: Under this approach, Pure Gym should need to predict the
demands of the customers through conducting and analysing surveys which help them in
understanding the problems and identify opportunities to convert into positive outcomes in order
to fulfil the needs and demands of customers.
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Contingency approach: Using this approach the management of company should depend
on the behaviour, situations and their own styles and thereafter make efforts to ensure that both
interacts efficiently. As the situation in an organisation is contingent therefore if manager think
to do some changes in the behaviour of any section of organisation that influences the
performance of an organisation, then he should need to put efforts to change in effective and
efficient manner which helps in helps in achieving their desired goals and objectives.
From the three modern management approach explained above, the system approach is
considered as best approach to follow for Pure Gym as this approach considers business as well
as technical based on their customer s(Barratt, Choi and Li, 2011). Through this approach, Pure
Gym should ensure the quality of services they offered to their customers which helps in
maximising the level of their customers. This approach helps the Pure Gym to integrate all
functions into team efforts which helps in increasing profitability situation. The system approach
enable company to assess and identifying the deviations and therefore need to take corrective
actions accordingly.
TASK 4
4. Critically analyse two innovative strategic management objectives of the company
Strategic management refers to identification and description of strategies which need to
be implemented by manager to achieve profitability and growth in competitive market. It
involves:
1. Porter's generic competitive strategies: Michael Porter has argued that the company's
strengths are categorise into two heading such as cost advantage and differentiation. By applying
these strengths in either broad or narrow way, there are three generic strategies:
Cost leadership: In this generic strategies the Pure Gym should need to sell their gym
services either at average company's prices which helps them in gaining profits than their
competitors or should sell gym services at lower price in order to gain market share. Effective
equipments and advanced technology should need to use by Pure Gym to gain competitive
advantage and sustain in competitive environment for longer period (Meredith Belbin, 2011).
Therefore there are two ways through which Pure Gym can achieve their desired targets:
 Charging average prices with a motive of earning profits.
 Charging low prices with a motive of gaining market share.
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Differentiation strategy: This strategy implies that the pure gym should need to use
advanced techniques and equipment that makes them different and attractive from their rival's
company. The manager of pure gym should need to upgrade their equipment and techniques
which helps in attaining loyal and attracting new customers. Therefore in order to attain stability
and growth of pure gym the manager should need to do research and accordingly innovate and
improve their gym services which helps them in fulfilling needs and demands of the customers.
Focus strategy: In order to build string brand loyalty of Pure Gym among the customers
the manager should need to focus on adding extra value to their gym services (Kim, Kumar and
Kumar, 2012). The manager should need to develop low cost or well specified products to attract
large number of customers.
2. SWOT Analysis: SWOT Analysis enables the company to know their strengths, weaknesses,
opportunities and threats and with the help of this the company implement specific plans and
strategies in order to achieve company's desired targets.
 Determine strengths of Pure Gym through which company identify features that bring
their Gym ahead of their competitors such as newer faculties and efficient equipments, a
celebrity trainer or unique fitness programs which are not conducted at other fitness
centres.
 Assess the weaknesses that harm the Pure Gym in form of losing customers. Therefore
The manager should need to analyse in order to overcome these weaknesses.
 Identify and evaluate the opportunities so that the company can implement suitable
actions to convert these opportunities into favourable outcomes (Peng and Lai,2012).
 List of threats such as high staff turnover, unmotivated instructor, low participation, lack
of funding may damage the Pure Gym internally and externally due to which the chance
of losing customers are high.
CONCLUSION
As per the given report it can be concluded that management plays a crucial role in
managing organisational activities in effective and efficient manner. The manager should
required to analyse market environment, needs and demands of the customers and thereafter
required to implement corrective actions and strategies in order to gain competitive advantage
and profitability.
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REFERENCES
Books and Journals
Goetsch, D. L and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
McPherson, R. A and Pincus, M. R., 2017. Henry's Clinical Diagnosis and Management by
Laboratory Methods E-Book. Elsevier Health Sciences.
Bolman, L. G and Deal, T. E., 2017. Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
Liebowitz, J. and Frank, M. eds., 2016. Knowledge management and e-learning. CRC press.
Mowday, R. T., Porter, L. W and Steers, R. M., 2013. Employee—organization linkages: The
psychology of commitment, absenteeism, and turnover. Academic press.
Tarique, I and Schuler, R. S., 2010. Global talent management: Literature review, integrative
framework, and suggestions for further research. Journal of world business. 45(2).
pp.122-133.
Barratt, M., Choi, T. Y and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management. 29(4). pp.329-342.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest, 19(3).
Kim, D. Y., Kumar, V and Kumar, U., 2012. Relationship between quality management practices
and innovation. Journal of operations management. 30(4). pp.295-315.
Peng, D. X and Lai, F., 2012. Using partial least squares in operations management research: A
practical guideline and summary of past research. Journal of Operations
Management. 30(6). pp.467-480.
Online
Operational and Organizational Chart. 2017. [Online]. Available through: .
<https://bohatala.com/fitness-center-gym-business-plan/>.
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