Strategic Management Objectives & Structure: A PureGym Report

This report provides an analysis of PureGym's management and organizational structure, focusing on the application of a contingent management approach. It examines the strategic management objectives of the company, including maintaining fitness levels for the general public and expanding the business through innovative ideas. The report includes a SWOT analysis, highlighting PureGym's strengths as a market leader with a convenient location and affordable membership costs, while also acknowledging weaknesses such as parking costs and space limitations during peak hours. The analysis emphasizes the importance of adapting a contingency managerial approach to cope with the changing business environment and recommends investing in the latest equipment to maintain a competitive edge in the health club industry. Desklib provides access to this report and other solved assignments for students.

Running head: MANAGEMENT AND ORGANISATION
Management and Organisation
Name of Student
Name of University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................2
Introduction to the organisation..............................................................................................2
Task 2.........................................................................................................................................3
Analysing the organisational structure...................................................................................3
Task 3.........................................................................................................................................4
Explanation of a management approach.................................................................................4
Task 4.........................................................................................................................................6
Analysing strategic management objectives..........................................................................6
Conclusion..................................................................................................................................7
Bibliography...............................................................................................................................9

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Introduction
One of the most important challenges that an organisation faces is managing a
business in the changing environment. According to Drafke and Murtaugh (2009), the speed
at which business environment evolves and changes pose serious threat to an organisation.
The purpose of this report is to analyse the management approaches that are conducted in
PureGym. It is a health club in the UK that allows people to remain fit and healthy. The
report analyses the organisational structure and uses one management approach that is used
by the organisation. Apart from this strategic management objective adopted by PureGym is
also analysed.
Task 1
Introduction to the organisation
PureGym is a fitness club that is situated in the United Kingdom. The club is one of
the no-frills fitness clubs that is situated in Leeds. The club has its reputation spread all across
the country and ensures that the people living in the United Kingdom remain fit and healthy.
The chain in which the club belongs is considered as the largest gym chain in the country.
Currently, the club chain has over 450,000 members and plans to open 300 gyms in the
country within 2020. In 2015, the club acquired all the gyms from the rival chain LA Fitness
and increased the number of gyms to 141 (Puregym.com 2017).
The gym operates in the health clubs industry. The purpose of this type of industry is
to help people to maintain a healthy life. The fitness of the people is checked and adequate
support is provided in order to help the people to avoid any physical diseases. Exercises
concerning the cardio, limbs and reduction of weights are provided by the centres involved in

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this type of industry. PureGym offers such facilities along with exercise classes that help
people to remain fit and relive them from being stressed.
PureGym was founded in 2009 by Peter Roberts. The gym is located in Merrion
centre in Leeds. The gym is privately owned by CCMP Capital and in 2014 was approached
as a part of a takeover attempt by The Gym Group. Recently, Humphrey Cobbold took over
from the founder, Peter Roberts. Roberts is currently the Executive Chairman of the club.
PureGym has seen a steady growth in the health club industry since its inception. Currently,
the number of gyms that are owned by the cub is more than 180. It also has a personal
website from which people can get information about the club (Puregym.com 2017).
Task 2
Analysing the organisational structure
According to Mullins and Christy (2013), the organisational structure of a company is
an important factor to determine the success of that company. A proper organisational
structure can help in maintaining communication between the employees and employers. The
manner in which the hierarchy exists needs to be communicated properly with the employees.
In the case of PureGym, the organisational structure of the club is simple and consists of the
CEO as the head of the club.
The CEO is reported by the chief financial officer and the chief operating officer.
They, in turn, receive reports about the activities of the company from the Non-executive
directors. The club also consists of a marketing head that analyses the ICT activities of
PureGym and helps in gaining members from the country. The club also has trainers that help
in guiding the people towards attaining fitness. The trainers consist of an individual trainer as
well as common trainer depending upon the exercises that are undertaken by the people. This

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hierarchical system helps people and employees to communicate with the management and
ensure that proper discipline is maintained at the club. Robbins and Judge (2014) stated that
the composed organisational structure is one of the reasons behind the current success of the
club.
Figure: Organisational structure of PureGym
(Source: Puregym.com 2017)
From the diagram, it is seen that the hierarchical flow of information and
communication helps in establishing a stable workforce of the club. It is the duty of the
financial officer to analyse reports from the marketing head and the trainers in matters that
relate to any damage to property or advertising. This simple nature of the structure is one of
the most effective factors that help PureGym to acquire the business of rival clubs. This is
because any strategic decision taken by the CEO reaches the lower level without delay.
CEOChiefFinancialOfficerMarketingheadTrainersChiefOperatingOfficerNon-ExecutiveDirector

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Task 3
Explanation of a management approach
Every organisation needs to maintain a perfect approach towards managing the
departments and activities of the organisation. According to Armstrong and Taylor (2014),
three types of management approach can be taken into consideration in order to ensure proper
stability in an organisation. This includes situational approach, contingent approach and
systems approach. The three approaches are unique from one another and offer unique
experiences to the management system.
Situational approach: According to Goetsch and Davis (2014), this approach refers
to managing an organisation based on the situations it encounters. The solution and the
approach undertaken by the manager depend upon the resources, capabilities and factors that
determine the working of the particular organisation. This proves to be a huge challenge for
the managers as adjustment needs to be made with the rapidly changing environment.
Contingent approach: This states that there are no fixed policies or objectives that an
organisation can maintain due to the changing nature of the business environment. Every
organisation faces different types of challenges from different sources and as a result, it is the
duty of the managers to identify the alternate course of strategies required for adapting to the
business (Vandeveer and Menefee 2010).
System approach: This states the interdependence of the consideration of both
internal as well as external factors of an organisation. As stated by Hill, Jones and Schilling
(2014) this approach is used to evaluate the marketing elements that are necessary for the
profitability of the business.

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In the case of PureGym, the club can use contingent approach. This is because this
approach can help in formulating alternate strategies in case of a change in the functioning of
the industry. However, it is to be kept in mind that developing several contingent approaches
may have a negative impact as PureGym will have to decide about the right strategy to be
used in the given situation. Strategies such as providing proper conditions for spa can help
PureGym to gain a competitive advantage in the club industry.
Task 4
Analysing strategic management objectives
Strategic management refers to forming and implementing goals and initiatives
decisions of which are taken at the top level of an organisation. According to Weiss (2014),
strategies include a plan of action that is designed in order to achieve the long-term goals of
an organisation. The role of managers in this regard is to identify the manner in which the
goals can be formulated keeping in mind the resources and capabilities of an organisation.
This also includes analysing the external environment that is important to the success of a
business.
The target market of PureGym includes the people willing to maintain a healthy and
fit life. However, the age restriction for attaining the membership of the club is not below 15
years of age. Hence, the target market of the club is to help people above the age of 15 years
to maintain a fit body and ensure that health issues related to the internal organs of the human
body do not occur. The company also targets sports people that are interested in maintaining
regular fitness apart from taking activities in sports (Tan, Yuan and Yoong 2015).
The two strategic objectives of PureGym include:
 To help the common people to maintain the level of fitness

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 To expand the business by introducing innovative fitness ideas at the club
In this regard, a SWOT analysis of the club can be considered in order to analyse the
internal capabilities.
Strength
 Leader in the market of UK
 Proper location
 Cheap
Weakness
 Busy during peak times
 Cost for parking
 Lack of equipment
Opportunity
 Increase health conscious among
people
 Huge area
 Quick acquisition of clubs
Threat
 Presence of other clubs
 Lack of induction
 Less changing rooms
Table: SWOT analysis of PureGym
(Source: Created by author)
After the analysis of the SWOT, it can be seen that PureGym is the leading health
club in the UK. With a convenient location and cheap membership cost, the club attracts a
large number of people with the aim to stay fit. However high parking cost and lack of space
and equipment during the peak season proves to be a major weakness for the club. Despite
this, the club expands to a huge area that helps in the quick acquisition of other clubs.
However, there still remains a threat from other health clubs that aim at a takeover of the
PureGym (Puregym.com 2017).

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Conclusion
Hence, it can be concluded that in order to cope up with the changing nature of a
business, the manager of PureGym needs to make adopt the contingency managerial
approach. This can help to formulate plans and imply it based on the situations that the club
faces. The simple organisational structure can be an advantage for the club as the
communication can flow in an easy manner. The SWOT analysis also focuses on the internal
capabilities of the organisation. In this regard, a recommendation can be suggested that states
that the club needs to purchase the latest equipment in order to remain competitive and help
customers to have a better time at the club.

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Bibliography
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Drafke., M. and Murtaugh.,J. 2009. The Human Side of Organizations 10th ed., Prentice Hall
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Goetsch, D. L., and Davis, S. B. 2014. Quality management for organizational excellence.
Upper Saddle River, NJ: Pearson.
Puregym.com (2017). Low-Cost 24 Hour Gym Memberships | No Contract. [online]
PureGym. Available at: http://www.puregym.com/ [Accessed 1 Dec. 2017].
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Mullins L., J. and Christy., G. 2013. Management & Organisational Behaviour 10th ed.,
Prentice Hall
Robbins., S., P. and Judge., T., A. 2014. Essentials of Organizational Behaviour 12th ed.,
Prentice Hall

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Tan, K.G., Yuan, R. and Yoong, S.W.C., 2015. Organisation, Structure and Methodology.
In 2014 Annual Provincial and Regional Competitiveness Analysis for Greater China
Economies: Development Strategies under the New Normal(pp. 1-7).
Vandeveer, R. and Menefee, M. 2010. Human Behavior in Organizations 4th ed., Prentice
Hall
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.