In conclusion, Pure Gym with its nature and scope has an
immense competitive urge in the niche within which it finds itself. Owing to
this fact, it is imperative the management capitalizes on its advantages within
the given market space by employing sound and well thought through cooperate
strategies to enable it sustain its business position. With all that said,
sufficient attention should be given to every aspect of the health and wellness
market to ascertain available other avenues of possible exploitation and
eventual diversification of the operations of the company.
They could be said to be unfavourable situations arising
from external developments likely to endanger the operations and effectiveness
of the organisation. Typically, competitors are an example of threats. Pure Gym
thus needs to ensure better assessment of any threats and deal with them strategically
These are favourable conditions mostly emanating from the
nature of changes in the external environment. For the business to thrive, it
must be alert to the problems of business strategy and responsiveness. Pure Gym
has the opportunity to attract a larger market of individuals not engaged in
any sporting activity for one reason or the other.
These are negative aspects or deficiencies in the present
competencies or resources of the organisation, or its image or reputation,
which limit its effectiveness and which need to be corrected or need action
taken to minimise their effect. Pure Gym is expected to identify any inherent
weakness and prevent it from having any adverse effect on the organisation.
These are the positive aspects or distinctive attributes or
competencies which provide a significant market advantage or upon which the
organisation can build. By its market share, Pure Gym is capable of dictating
the health and wellness market through acquisitions and innovations.
Going further, another strategy worth employing is the SWOT
analysis. Business growth requires maintaining market share and breaking more
frontiers. Owing to this fact several assessments is required of the market
within which the business thrives or may wish to operate (Olum,2004). In order
to evaluate the nature of the business environment and its strategic
capability, an organisation may undertake a SWOT analysis which focuses on the
Strengths, Weaknesses, Opportunities and Threats facing the organisation. The
SWOT analysis provides convenient headings under which to study an organisation
in its environmental setting and may provide a basis for decision-making and
problem-solving (Mullins 2013)
Firstly, adopting the Ansoff’s product-market matrix with
its four strategies is one major strategic approach. The product-market matrix
is a tool by which businesses adopt their product and market growth strategy.
It holds that the growth of any business depends on whether it offers new or
existing products in new or existing markets. Market leaders dominate the
market and have the advantage of price determination, to be innovative in
products, services, distribution, communication, etc. (Kotler & Kettler
2012) Thus, Pure Gym in its quest to maintain market share and its position as
a market leader has the option to continue dominating by dictating prices,
introducing more innovations with its service delivery and enhanced
communication of its brand to its consumers. However, there is the need to
remain cautious at all times. This is due to competitors? actions that has the
propensity of threatening their market position especially in a business
environment where massive international investment is a common
According to Sinister (2004) several strategies are
available to fitness gyms and these may be divided, based on the spectrum of
the resources they refer to. These may be: generic (overall) and specific for
marketing mix elements. Corporate strategy therefore, is deemed a generic term
linking structure, management process including applications of organisational
4. Innovative strategies for Pure Gym
Arguably, this theory has had significant impact on
managerial science with a better appreciation of organizations. This therefore suggests
that the entity is changed when a part of it is removed from the whole. The
system may possess some inputs such as resources, processes, outputs and also
interactions and on the relationships between parts in
order to understand an entity’s coherence, and overall outcomes (Olum,2004).
Considering the operational scope of Pure Gym, which
includes on and off-site services to customers, the Systems theory, may be
quite useful. A system, in effect, can be defined as an entity, which is a
coherent whole which possesses a boundary around it that distinguishes between
internal and external elements and including identifying input and output in
relation to and emanating from the entity (Ng, Maull and Yip, 2009). This
theory, thus represents a theoretical assessment of a phenomenon seen as a
whole and not necessarily the totality of fundamental parts. Much focus in this
regard is on the
As part of modern management theories, are identified four
main theories. These are Systems Approach, Situational or Contingency theory,
Chaos theory, and Team Building theory.
Koontz and Weihrich (1990) also hold a broader view which
perceives, management as the process of designing and maintaining an
environment in which individuals are able to work together as a team thereby
ensuring efficient execution of selected tasks.
The term Management has been severally defined. It may
involve the art, or science, of achieving set goals through people. Considering
the fact that managers also undertake the act of supervising, the term
management may literally be interpreted as “looking over” – i.e., ensuring that
people do what is expected of them. Greater productivity is thus a major
concern for management (Olum,2004).
3. Modern Management Approach
Fig 1. Organisational structure of Pure Gym
Pure Gym with its modernized outlook of board of directors,
centre support staff etc. could be said to run on a bureaucratic structure. As
already stated, the bureaucratic structure bundles tasks into functional
departments with decision making resting on a centralized authority ensuring a
high chain of command.
A structure that creates dual lines of authority and
combines functional and product departmentalization
This is a system largely characterized by extensive routine
task stemming out of specialization with very formalized rules and regulations.
It also involves tasks that are grouped into functional departments,
centralized authority, narrow spans of control, and decision making that
follows the chain of command.
This is a structure which possesses a low degree of
departmentalization. There is wide span of control with authority centralized
in a single person coupled with less formalization.
(i) The Simple Structure
Several designs span out of the whole concept of
organisational structure. Below are a few;
Organisational structure may be defined as the extent to
which tasks and responsibilities in the organization are segmented into
separate jobs taken and completed by a specific individual (Robbins et
al.,2005) It also involves the means through which job tasks are divided,
grouped, and coordinated in a formal approach. In terms of chain of command, it
is the standardized line of authority that extends from the highest rank of the
organization to least ensuring clarity in reporting lines. The entire process
of building the structure rests on six key elements. These may include Work
specialization, Departmentalization, Chain of command, Span of control,
Centralization & decentralization.
2) Organisational structure
As a modern fitness outfit, the company runs a 24-hour
service. Available in its gyms are modern equipment’s and tailor-made services
such as cardio equipment, fixed and free weights, and exercise classes.
However, there are no swimming pools probably stemming from its aim to be a no
frills fitness outfit. As part of their security and technological advancement,
all operations of the organisation are monitored by real-time TV. This is
directly linked to the security set up and emergency services. After a while,
Peter Roberts stepped down as the CEO with Humphrey Cobbold taking over from
and him. Cobbold, thus became the Executive Chairman and Adam Bellamy
continuing as the substantive CFO.
In 2015, the company acquired all fitness gyms from UK
fitness chain LA Fitness to the tune of about £80 million. This brought its
total number of gyms to 141across the United Kingdom. Information gathered from
its website thus revealed that Pure Gym has a total of 172 gyms across the
United Kingdom as at September, 2017.
The company is privately owned by CCMP Capital and other
investors. Just like any strategic investor, The Gym Group which happens to be
a major competitor attempted to take over Pure Gym in 2014. However, the
company rescinded its decision on the takeover upon being referred to the
Competition and Markets Authority.
Pure GYM Limited was founded by Peter Roberts on 05 Sep
2008 and is headquartered in Town Centre House, Merrion Centre, Leeds, United
Kingdom. The company now has 2 directors however, the first director was
Margaret Anne Garnett. Presently, the company has between 500 to 900 employees
and has 2 subsidiaries. Touted as Britain’s largest gym, the company boasts of
a membership of about 450,000 currently signed up with further plans to open
300 gyms by 2020.
1.Profile of Pure Gym Limited
According to (Suleman,2013) the success of every
business hinges primarily on successful employees. In effect, strong managers
remain key components of business success. Thus, it’s imperative to give more
attention to managers of the organisation. The overall effectiveness of the
organisation transcends raking in profit. Instead, it encompasses the
effectiveness of every aspect of the organisation including the internal and
external environment. A company realizes outputs through a sound system of
management. When these systems are right it ensures that the organization is
working consistently to facilitate cohesion in accomplishing the organization’s
set goals(Mihalicz,2012). The organisation under study is Pure Gym Limited. It
is the market leader is the operation of wellness and fitness centre in the
United Kingdom with 682 employees and 172 gyms across the United Kingdom.
Founded in the year 2008, the company is present in Leeds, London and
Southampton. In this study, issues to be discussed may include organisational
structure, effective modern management approaches as well as smart strategic
management objectives as regards “Pure Gym”