Business Management Argumentative Essay
Mission is to provide members with the tools needed to achieve their total fitness oils 1. Members included a. Overweight population b. Uninitiated believers 2.
Motivating factors were a desire to lost weight 3. Get into shape 4. Meet people 5. Reduce stress 6. C.
Lines of business d. Nature of subsidiaries and acquisitions e. Analyze the relationship among the company’s business g. Are there gains to be achieved from synergy? H. Is the company Just running a portfolio of investments? I. Do they operate in Just one core business? J.
Use the SOOT to merit its strategy k.
Is it an appropriate given the environment the company is in? L. Could change in reporter strategy provide the company with new opportunities or transform a weakness into a strength I. Should the company diversify from its core business into new business? M. How and why has the company’s strategy changed overtime? N. What is the claimed rationale for any changes? 2.
Business-Level Strategy: a. Identify the business-level strategy b. Is it identical to the corporate-level strategy c. Are there other businesses, each with their own business-level strategy d. Identify the company’s generic competitive strategy I.
Differentiation a. Low cost b. Focus it. Investment strategy 1 . Given its relative competitive position and stage of cycle a.
Give full account by showing how it competes e. Identify the functional strategy I. Who do they purse competitive advantages through 1 . Superior efficiency 2. Quality 3.
Innovation 4. Customer responsiveness f. Use SOOT for analysis on company’s functional competencies g. Investigate on the follow to gain a better picture of where the company is going I. Productions it.
Marketing iii. Research and development h. Use SOOT to compare to Potter’s Model I.
Can the company deal with these threats? I. Consider strategy implementation SOOT Analysts SOOT analysis provides a “series of strategic alternatives or choices of future strategies to pursue, given the company’s internal strengths and weaknesses and its external opportunities and threats” (Hill ; Jones, 2010, p.
19). A SOOT analysis should identify ways to build on strengths, eliminate weaknesses, take advantage of opportunities, and counter threats. Strengths generated revenue of $954 million. They had 360 clubs in the United States and 50 international locations.
Since Bally is advertised as one of the strongest and most agonized fitness brands, they continue to focus on offering the highest value and convenience to their members, employees, and partners. Through their nationally recognized brand/image, Bally provides all of the benefits of a full-service gym at various affordable pricing ranges.
For example, pay-as-you-go membership. Consequently, in 2004, Ballsy expanded outlets to 29 states which gave them the broadest graphic distribution of any owner-operated health club chain in the United states (Hill ; Jones, 2010, p.
C). Along with fitness centers and its industry-leading training programs, positive work environment, and competitive compensation package, Ballsy also have their own products.
They have an extensive line of exercise equipment ranging from medicine balls to free weights. Furthermore, Ballsy has comprehensive nutritional and exercise programs, a full line of supplements including weight management products, performance supplements, and energy enhancers. They also sale exercise equipment online and supplements can be purchased at health stores and super markets.
As the fitness industry is growing, Ballsy sets the standards for fitness and continues to build on its leadership position. Weaknesses Although Bally is very well endowed with strengths, they are not excluded from areas of improvements. Bally clubs are typically 30,000 square foot facilities located near regional, urban or suburban shopping areas.
Due to the size, Bally experienced high overhead because they only operated large gyms, employing 21 ,700 people at the fitness clubs, and 1 ,500 people at central locations.
Approximately “50 employees-? including managers, instructors, personal trainers, sales personnel, and maintenance personnel-?were involved in operating each club” (Hill ; Jones, 2010, p. CO). With such a large staff, Bally is challenged with keeping friendly, skilled, and motivated employees due to long inconvenient work hours, cleaning up after customers, and dealing with the moods of customers.
In addition, other expenses that contributed to Ballsy high amounts of debt are advertising, sales commissions, utilities, insurance, and training.
Another source of contention was Ballsy 36-month required commitment and their unethical and inconsistent sales practices. For example, failure to honor cancellation requests and deceptive collection practices. These deceptive practices lead to accounting and control problems which ultimately resulted in an SEC investigation and cumulative adjustments to financial statements.
Opportunities While Ballsy suffered from some severe weaknesses, the opportunities to rebound catering only to the traditional age group of 18 to 34 year olds, Ballsy “popularity grew strongly among older consumers” (Hill ; Jones, 2010, p.
CO). They also broaden their Hispanic population. Other opportunities for Bally is to increase the number of small clubs in more convenient locations, offer more pay-as-you-go memberships. Threats Since the fitness business is constantly growing, Bally faces with intense competition and capital-market pressures.
It leading competitors are the Young Men’s Christian Association (YMCA), Gold’s Gym, 24 Hour Fitness and Curves, International. Although the YMCA is the largest not-for-profit health club in the U. S. Tit 2,500 locations and 18 million members, it is classified as a community service organization.
The YMCA adjusts fees based on income and their clubs have pools, racquetball courts. Gold’s Gym was originally known for “no frills” bodybuilding center, changed it marketing to appeal to families and young people. The 24 Hour Fitness has propriety software to personalize training and nutritional program. This fitness club also has pay-as-you-go membership, month-to-month membership, or longer-term, prepaid ones.
Finally, Curves International with 8,000 location world-wide is exclusively for women have 2 million members. This club offers 30-minute circuit training using hydraulic resistance machines. The review of Bally Total Fitness SOOT Analysis has revealed that Ballsy is a solid competitor in the fitness industry. Ballsy strengths and opportunities far exceed the nakedness and threats; therefore, its weaknesses can be converted into opportunities as the company continues to move forward in their acquisitions and as they continue to gain new grounds in untapped geographical locations.
The threats that Bally faces are no different than that of its competitors. The potential for these threats to be alleviated, are in favor of Bally through its innovative approach to new technology and the company’s ability to continue to offer incentives to its customers (Hill ; Jones, 2010).
Corporate-Level Strategy Bally Total Fitness mission is to provide great service and facilities that give everyone n affordable and fun opportunity to improve the quality of their lives through fitness (Balefulness, n. D).
Ballsy corporate-level strategy designs and builds world-class fitness clubs, so every health club is designed to give every member an opportunity to achieve his or her personal goals (Balefulness, n. D. ). That said, corporations are responsible for creating value through their businesses, which is achieved by managing their portfolios of businesses to ensure the businesses are successful over the long-term, develop business units, and sometimes ensure each business is imputable with others in the portfolio (Quickens, n.
Business-Level Strategy which is based on product differentiation. The text states, “Product differentiation is the process of designing a product or service to satisfy customer’s needs” (Hill ; Jones, 2010, p. 145). Ballsy products or services provide all members all benefits of a full-service gym at an affordable price, with industry-leading training and exercise programs, comprehensive nutritional programs, and a full line of supplements including weight management products, performance supplements, and energy enhancers.