...healthy and fit, the fitness industry is maintaining steady growth because of better dietary practices and a resurgence to play and become more active. It is no surprise the demand for gyms and health and fitness clubs will continue to rise. Therefore, my paper will cover the critical concepts as it relates to Bally Total Fitness Case Study. I will highlight Bally’s history, macro environment, SWOT analysis, corporate-level strategy, business-level strategy, and my recommendation for Bally Total Fitness. History, Development, and Growth Dave “Wild man” Wildman is said to be the founder of Bally Fitness, but it was Raymond T. (Ray) Moloney back in the early 1930’s who decided to create an affordable past time of pinball. Anyone could play pinball at the price of seven balls for one cent or 10 balls for a nickel. In January of 1932, Ray founded the popular past time while working under Lion Manufacturing in Chicago. The Ballyhoo pinball game was easy to make and very profitable. With the creation of the “Goofy,” the “Airway,” the “Rocket,” and the “Bumper” pinball machines, Bally Manufacturing, under Moloney’s leadership, took off. Bally Manufacturing headquarters remained in Chicago at the same address for almost 50 years. In 1936, Bally Manufacturing developed the automatic dice machine named “Reliance”. This development was an overnight success and prompted further delving into the three wheeled slots, and the newest addition the “Bally Baby.” The “Bally Baby” was a five...
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...A Case Analysis of Bally Total Fitness’s External Environment Group 2: Meghan Cree, Sarah Medve, Rachel Hamrick, Jacob Rath, James Wallerstedt, Samuel Kube Due: 01/27/15 Word Count: 2039 Case: Bally Total Fitness By 2004, Bally Total Fitness was a major leader in the $14.1 billion health club industry. With over 400 million facilities worldwide, Bally was the “largest publicly traded health club operator in the United States in 2003” (Wells, John R., 1-7). Bally’s success was fueled by many components including membership revenue, various products and programs, and their recognizable, worldwide image; however, in 2004, Bally faced a major shock to its reputation. Fraudulent accounting practices were discovered and examined, resulting in an uproar from shareholders, complaining of financial misrepresentation. As a result, Bally Total Fitness faced a drop in their stock price, lawsuits from current shareholders, and a damaged repute. The following analysis will evaluate how the general external environment affects Bally Total Fitness, examine Bally Total Fitness’s current standing in the health club industry, options on how to rebuild its status in this industry, and solutions to implement for eliminating any skepticism among shareholders and increasing membership numbers. Macro–Environment Analysis Gym and exercise equipment manufacturers are constantly upgrading current models of exercise machines as well as developing innovative designs...
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...An Analysis of the U.S. Health Club Industry in 2004 and the Role of Bally Total Fitness Executive Summary Introduction The rise of the U.S. health club industry can be traced back to the 1980s and 1990s when the majority of health clubs emerged. By 2004, this $14 billion industry claimed 41 million members. Although the health club industry operated in a perfectly competitive market, several prominent key players gained large market share, including Bally Total Fitness and 24 hour Fitness. This perfect competition encouraged entry of smaller emerging firms into the industry. In 2004, the health club industry consisted of 26,000 clubs in the U.S. Of this growing market, the fifty largest firms were responsible for 33% of industry revenue and 38% of the clubs was not-for-profit. The for-profit industry was divided into the following formats: owner-operated clubs, franchised clubs, design and management companies and health spas. Bally Total Fitness, the largest publicly traded health club operator in the United States in 2004, claimed over 3.6 million members worldwide. This multi-million dollar company had earned a reputation as being the “largest and only nationwide commercial operator of fitness centers” in the United States, a substantial leap from the single modest club that first opened in 1962. Several advantages contributed to Bally’s success over the other health clubs in the industry. CEO...
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...Group 1 BALLY TOTAL FITNESS 10/02/2014 1. What is this case about? This case is about Bally Total Fitness, an U.S. health club industry founded in 1962. But more generally this case is about the health club industry in the USA and throughout the world. In a first part, there is a general presentation of the U.S. health club industry characteristics. We have some information about people who go to these clubs, proposed activities, equipment and facilities. It presents the different ways of formats in this industry, how the industry is organized: owner-operated clubs, franchised clubs, Design and management companies and health spas. We have some explanations about pricing, ways of sales, general operations and an analysis about the different trends within this industry. We In a second part, we have a deep presentation of Bally Total Fitness. We have information about its foundation, generated revenues, growing, current CEO (Paul Toback). We have a description of the process to sign in with Bally Total Fitness, how a typical club is organized. This part is about the strategic decisions of Bally Total Fitness about its marketing, accounting policies to attract clients. In a third part, we have a quick presentation of Bally Total Fitness’ competitors (YMCA, Gold’s Gym, 24 Hour Fitness and Curves International). We have crucial information about their histories, main leaders, policies, revenues and differences from Bally Total Fitness. Finally, there are some...
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...Strategic Analysis Masters in Management, Spring 2016 Final Exam (due no later than Tuesday 8th March 2016 at 23:59 UK time) Case: Bally Total Fitness Questions: Question 1: Did Bally have a competitive advantage in the U.S. health club industry (around 2004)? Use the tools and frameworks covered during the course to address this question. [70 points] Question 2: How serious are the competitive threats faced by Bally Total Fitness in 2004? Feel free to consider broader elements in the firm’s environment (i.e. consumer trends) and actions of competitors. [10 points] Question 3: What would have been your recommendations to Paul Toback, Bally’s CEO, as he pondered about the future of the firm in 2004? Justify your answer using case facts but make sure you develop logically concrete arguments. [10 points] Additional 10 points will be granted for clarity, structure of argument, completeness of the analysis and logical consistency. Administration: If you think a question requires more details you may incorporate any assumptions you think are required to answer it. Clearly state your assumptions in your answers. If they are reasonable you will be given credit. Use a maximum of 4 pages (sensible margins, Times New Roman size 12 font or similar). Be sensible- if you think the font may be too small or the margins too narrow then they probably are. Where needed, external material from the web is allowed with referencing to the original source...
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...strong value held by many Asian cultures is the importance of one’s health, natural healing, meditation, and spirituality. These core health values within the Indian society alongside the emergence of Western influence on aesthetics, appealing body physique (slim and toned for females, muscular and built for males) serves as a perfect business opportunity for L.A. Fitness to expand into the Indian market. Opening L.A. Fitness in India to promote good health and well-being the “western” way seems fitting to the common “East meets West” motto. L.A. Fitness established in 1984 and has acquired Bally Total Fitness which currently has operations outside of North America in China and Korea. L.A. Fitness has based its strong expansion from its commitment to understanding and meeting the distinct needs of each community they serve. It offers a wide range of amenities beyond the core gym machines/free weights such as swimming pools, tennis courts, hot tubs, saunas, group classes, personal training and most importantly highly trained staff. This allows for a fun, pleasurable and effective workout for all ages and fitness level Our target market will be the young aged, middle class. The Indian middle class is projected to grow over the next two decades from 5% of the population to more than 40% and represent the fifth largest consumer market in the...
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...Question: Conduct a strategic analysis of Kraft Foods Company, with special emphasis on Value chain and National Diamond model Solution: Industry Overview Kraft Foods Inc operates in the food and beverages industry. The industry is constituted by those companies that involve in stages of activities from procuring the raw food material after harvest till the retail purchase. The activities involved are the processing of raw food materials, manufacturing, packaging the food products and distributing them. The products may be fresh, prepared foods, packaged foods, alcoholic and nonalcoholic beverages. All the products that are meant for human consumption except the pharmaceutical products belong to this industry. The dairy sector forms the largest part of the food industry. The baked and cereal items and chilled foods are the close second and third. In case of the beverages industry, it is divided into alcoholic and nonalcoholic segment. A vast of the alcoholic market is made up of beer, cider and other flavored alcoholic beverages. On the other hand, soft drinks, coffee, tea, juice and water constitute the nonalcoholic beverage market. The industry is highly competitive and fragmented. Though the competition is among few notable players, no player has a dominant position to dictate the price levels. The players rely largely on advertisements to promote their brand and secure the market position (Food and Beverages Industry Profile, 2009). Market size: With over 16.5...
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...Question: Conduct a strategic analysis of Kraft Foods Company, with special emphasis on Value chain and National Diamond model Solution: Industry Overview Kraft Foods Inc operates in the food and beverages industry. The industry is constituted by those companies that involve in stages of activities from procuring the raw food material after harvest till the retail purchase. The activities involved are the processing of raw food materials, manufacturing, packaging the food products and distributing them. The products may be fresh, prepared foods, packaged foods, alcoholic and nonalcoholic beverages. All the products that are meant for human consumption except the pharmaceutical products belong to this industry. The dairy sector forms the largest part of the food industry. The baked and cereal items and chilled foods are the close second and third. In case of the beverages industry, it is divided into alcoholic and nonalcoholic segment. A vast of the alcoholic market is made up of beer, cider and other flavored alcoholic beverages. On the other hand, soft drinks, coffee, tea, juice and water constitute the nonalcoholic beverage market. The industry is highly competitive and fragmented. Though the competition is among few notable players, no player has a dominant position to dictate the price levels. The players rely largely on advertisements to promote their brand and secure the market position (Food and Beverages Industry Profile, 2009). Market size: With over 16.5...
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...their movements, sleep, and food consumption (Jawbone). The wristband makes it easier for users to live a healthier lifestyle in an organized manner. The Jawbone UP would be considered in the industry of fitness and wellness. Its competition includes companies like Basis Band, Fitbit, DirectLife, Adidas miCoach Pacer, Nike+, Valencell, and many other devices. The industry size for this product can be seen as large for that there are many competitors with the Jawbone UP and living healthier lifestyles is trending. Many companies such as Nike+ and Fitbit have been in the industry for quite some time creating most of the industry’s market share, but with many new companies creating tracking devices of their own as well as smartphone apps have made the industry larger and more competitive. Current trends involved in the fitness and wellness industry are being developed from individuals as well as corporations. Today, individuals are looking for new ways to lose weight, reduce the amount of stress in their lives, and live healthier lifestyle trends. Individuals will start to become more proactive in trying to keep up with these healthier lifestyles that will lead companies to involve themselves in this new market to combat the higher healthcare costs. Another major trend in the fitness and wellness industry is the obesity crisis happening in the United States. Many Americans have developed inactive and poor eating habits leading to preventable diseases like diabetes and heart problems...
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...EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Brief Exercises B. Ex. 4.1 B. Ex. 4.2 B. Ex. 4.3 B. Ex. 4.4 B. Ex. 4.5 B. Ex. 4.6 B. Ex. 4.7 B. Ex. 4.8 B. Ex. 4.9 B. Ex. 4.10 Learning Objectives 3, 4 3, 4 3 3 6 4 5 5 5 8 Topic Deferred expenses and revenue Deferred expenses and revenue Accounting for supplies Accounting for depreciation Accrued revenue Unearned revenue Accrued salaries Accrued interest Accrued taxes Concept of materiality Skills Analysis Analysis Analysis Analysis Analysis Analysis Analysis Analysis Analysis Judgment, communication, analysis Exercises 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 Topic Accounting terminology Effects of adjusting entries Deferred expenses and revenue Deferred expenses and revenue Accrued revenue Real World: American Airlines Deferred revenue Accruals and deferrals Notes payable and interest Interpreting business transactions Adjustments and the balance sheet Real World: Various firms Deferred revenue Analyzing the adjusted trial balance Effects of adjusting entries Accounting principles Real World: Home Depot an annual report Using Learning Objectives 1–9 1–6, 9 1-7 1-7 1-7 1, 2, 4 1-6, 9 1, 2, 5 1–7, 9 1, 3–5, 7 1, 4, 7 1–7, 9 1–6 1–8 1, 2 Skills Analysis Analysis Analysis Analysis Analysis Analysis Analysis Analysis Analysis, judgment Communication, analysis Analysis, judgment Analysis Analysis Communication, analysis, judgment Communication, analysis © The McGraw-Hill Companies, Inc., 2012...
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...(Incorporated in the Cayman Islands with limited liability) (Stock Code: 2331) Mission Through sports, we inspire people the desire and power to make breakthroughs Corporate Profile Li Ning Company Limited is one of the leading sports brand enterprises in the PRC, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group’s products mainly include footwear, apparel, accessories and equipment for sport and leisure uses under its own LI-NING brand. The Group has established an extensive supply chain management system, and a distribution and retail network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Group also directly manages retail stores for the LI-NING brand. The Group adopts a multi-brand business development strategy. In addition to its core LI-NING brand, the Group distributes sports products under its Z-DO brand via hypermarket channel. The Group has established a joint venture with AIGLE under which the joint venture has been granted an exclusive right by AIGLE to manufacture, market, distribute and sell outdoor sports products under the French brand AIGLE for 50 years in the PRC. The Group has a controlling interest in Shanghai Double Happiness, which together with its subsidiaries are principally engaged in manufacture, research and development, marketing and sale of table tennis and other sports equipment under the Double Happiness...
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...Paying Not to Go to the Gym By STEFANO DELLAVIGNA AND ULRIKE MALMENDIER* How do consumers choose from a menu of contracts? We analyze a novel dataset from three U.S. health clubs with information on both the contractual choice and the day-to-day attendance decisions of 7,752 members over three years. The observed consumer behavior is difficult to reconcile with standard preferences and beliefs. First, members who choose a contract with a flat monthly fee of over $70 attend on average 4.3 times per month. They pay a price per expected visit of more than $17, even though they could pay $10 per visit using a 10-visit pass. On average, these users forgo savings of $600 during their membership. Second, consumers who choose a monthly contract are 17 percent more likely to stay enrolled beyond one year than users committing for a year. This is surprising because monthly members pay higher fees for the option to cancel each month. We also document cancellation delays and attendance expectations, among other findings. Leading explanations for our findings are overconfidence about future self-control or about future efficiency. Overconfident agents overestimate attendance as well as the cancellation probability of automatically renewed contracts. Our results suggest that making inferences from observed contract choice under the rational expectation hypothesis can lead to biases in the estimation of consumer preferences. (JEL D00, D12, D91) “Saturday 31 December. New Year’s Resolutions. I WILL...
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...This page intentionally left blank This page intentionally left blank Less managing. More teaching. Greater learning. INSTRUCTORS... Would you like your students to show up for class more prepared? class is much more fun if everyone is engaged and prepared…) (Let’s face it, Want ready-made application-level interactive assignments, student progress reporting, and auto-assignment grading? (Less time grading means more time teaching…) Want an instant view of student or class performance relative to learning objectives? (No more wondering if students understand…) Need to collect data and generate reports required for administration or accreditation? (Say goodbye to manually tracking student learning outcomes…) Want to record and post your lectures for students to view online? With McGraw-Hill's Connect Management, ™ INSTRUCTORS GET: • Interactive Applications – book-specific interactive assignments that require students to APPLY what they’ve learned. • Simple assignment management, allowing you to spend more time teaching. • Auto-graded assignments, quizzes, and tests. • Detailed Visual Reporting where student and section results can be viewed and analyzed. • Sophisticated online testing capability. • A filtering and reporting function that allows you to easily assign and report on materials that are correlated to accreditation standards, learning outcomes, and Bloom’s taxonomy. • An easy-to-use lecture capture tool. STUDENTS... Want an online, searchable...
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...This page intentionally left blank This page intentionally left blank Less managing. More teaching. Greater learning. INSTRUCTORS... Would you like your students to show up for class more prepared? class is much more fun if everyone is engaged and prepared…) (Let’s face it, Want ready-made application-level interactive assignments, student progress reporting, and auto-assignment grading? (Less time grading means more time teaching…) Want an instant view of student or class performance relative to learning objectives? (No more wondering if students understand…) Need to collect data and generate reports required for administration or accreditation? (Say goodbye to manually tracking student learning outcomes…) Want to record and post your lectures for students to view online? With McGraw-Hill's Connect Management, ™ INSTRUCTORS GET: • Interactive Applications – book-specific interactive assignments that require students to APPLY what they’ve learned. • Simple assignment management, allowing you to spend more time teaching. • Auto-graded assignments, quizzes, and tests. • Detailed Visual Reporting where student and section results can be viewed and analyzed. • Sophisticated online testing capability. • A filtering and reporting function that allows you to easily assign and report on materials that are correlated to accreditation standards, learning outcomes, and Bloom’s taxonomy. • An easy-to-use lecture capture tool. STUDENTS... Want an online, searchable...
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