This is an analysis of Harvard Business School case study: Wates Estates, a company which diversified from the traditional estate management to health and fitness industry. This analysis summarised the challenges faced by Wates Estates in the health and fitness industry. The analysis takes a look at the Wates Estate external environment and its position in the industry. It also identifies the challenges and trends in the industry and the company’s preparation to achieve the overall objective and continuous success in the health and fitness industry.
The areas of focus are strategic management, international business, direct marketing, international franchising. The analysis was conducted using several conceptual tools and models were used and justified, models such as porter five forces, swot analysis, generic competitive strategy, product life cycle model, 7S model, 7P model, PEST analysis, value chain analysis, the IT infrastructure was analysed which has a way of determining how innovative the company will be. In carrying out this research relevant questions based on the context of these areas of focus were raised to determine the effectiveness of the functional units which are a representation of the areas of focus. Findings are based on the research questions and research objectives, areas where the company is experiencing challenges are focused on and analysed, areas such as marketing, information technology infrastructure, operational efficiency, human resources effectiveness. Findings are based on the analysis to conclude where the company is now, the industry position, the market position, the international readiness and ability respond to environmental change, change management implementation plan was devised to assist the company in managing change.
Table of Contents
1.0 THE CASE STUDY BRIEF
2.0 INTRODUCTION
2.1 WATES ESTATES
2.2 ANALYTICAL MODELS
3.0 STATEMENT OF THE PROBLEM
3.1 Organisational Challenges
3.2 CONCEPT AND FRAME WORKS FOR ANALYSIS
4.0 ANALYSIS USING ANALYSIS TOOLS
4.1 PORTER FIVE FORCES TO ANALYSIS OF WATES ESTATES: The collective strength of these forces determines the profit potential of the company.
4.2 SWOT ANALYSIS OF CRISPINS COMPANY
4.3 PESTLE ANALYSIS OF WATES ESTATES
4.4 Human Resources Analysis using 7S frame work (Wates Estates)
4.5 Value Chain Analysis (Crispins):
4.6 Wates Levels of Strategy
4.7 7P Model
4.8 Market Analysis:
4.9 FINDINGS
5.0 PROPOSED PLAN OF ACTION
5.1 Forecast
5.2 Broad Strategies for sustainability
5.3 CRITICAL SUCCESS FACTORS
5.4 OVERALL BUSINESS PLAN
5.5 CHANGE MANAGEMENT IMPLEMENTATION PLAN
Objectives and Scope
This report aims to evaluate Wates Estates' transition from traditional property management into the health and fitness industry, identifying operational challenges and proposing strategic improvements to ensure market competitiveness and sustainable growth.
- Strategic analysis of the company's external environment and industry position.
- Evaluation of operational efficiency and IT infrastructure readiness.
- Assessment of marketing strategies and human resource effectiveness.
- Development of a comprehensive change management and action plan for future expansion.
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3.1 Organisational Challenges
3.1.1 How to generate funds for Crispins to cover its fixed cost and run the business into profitability (Finance): This is one of the areas the organisation is facing some challenges because the concept of health and fitness is new diversification for the company. The first director that managed the fitness concept business didn’t have adequate financial training so he didn’t handle the company’s finance appropriately, the business was under capitalised, the working capital needs was insufficiently budgeted for, the plan for breakeven and profit volume was unrealistic, because of all these the business was passing through some financial difficulties. The mother company has to pump substantial amount of money into the business to avoid the business from closing up. Also the company’s policy of no outside booking of club facilities is also frustrating its financial performance as more funds can be realised from outside bookings. All fixed cost are covered by Wates Estates and it will be recovered through the sum of management fee payable to the mother company and this put pressure on the Crispins to perform financially.
Summary of Chapters
1.0 THE CASE STUDY BRIEF: Provides an overview of the company history and the origins of its diversification into the fitness industry.
2.0 INTRODUCTION: Defines the scope of the study and introduces the analytical models used to assess the company’s challenges.
3.0 STATEMENT OF THE PROBLEM: Outlines the organisational, financial, and marketing barriers currently hindering progress.
4.0 ANALYSIS USING ANALYSIS TOOLS: Presents a detailed evaluation using Porter’s Five Forces, SWOT, PESTLE, and Value Chain analysis.
5.0 PROPOSED PLAN OF ACTION: Outlines strategic recommendations, including IT upgrades, direct marketing initiatives, and a change management plan.
Keywords
Wates Estates, Crispins, Health and Fitness Industry, Strategic Management, Porter’s Five Forces, SWOT Analysis, PESTLE Analysis, Value Chain Analysis, 7S Model, 7P Model, Business Diversification, Operational Efficiency, Change Management, Corporate Strategy, Financial Planning
Frequently Asked Questions
What is the primary focus of this case study?
The study focuses on Wates Estates, a long-established property management company that has diversified into the health and fitness industry, and the challenges they face in maintaining profitability.
What are the central themes of the analysis?
Key themes include strategic management, international expansion, direct marketing, and the effectiveness of internal operational structures.
What is the main research objective?
The goal is to analyze the company's current business model and provide actionable recommendations to improve performance, meet membership targets, and prepare for international franchising.
Which scientific methods are applied in this work?
The author uses several conceptual tools, including Porter’s Five Forces, SWOT analysis, PESTLE analysis, the 7S framework, Value Chain analysis, the 7P marketing model, and Product Life Cycle analysis.
What topics are discussed in the main body?
The main body covers a critical assessment of the external environment, market position, HR effectiveness, IT infrastructure, and proposed strategies for sustainability.
Which keywords define this report?
Key terms include Wates Estates, Crispins, Strategic Management, operational efficiency, and business diversification.
How does the author propose to solve the financial difficulties?
The author suggests improving operational efficiency through automation, better IT infrastructure, and aggressive direct marketing to the corporate sector to increase membership revenue.
Why is the "contingency approach" chosen for this analysis?
The author argues that because the business environment is changing rapidly, using a rigid classical management theory is insufficient; the contingency approach allows for a flexible response to dynamic market demands.
- Citation du texte
- Josephine Lawal (Auteur), 2012, Business analysis for a company in the health and fitness industry. Challenges, trends, and recommendations, Munich, GRIN Verlag, https://www.grin.com/document/1294310
