Strategic Planning 1

Strategic Planning 1

Strategic Planning

Stacey Escobar

BUS 475

4/1/15

Tara Hall

Executive Summary

Power House Gym first opened its door in 1975, it originally started out as a gym facility where the neighborhood can do their exercises. Eventually professional athletes started to train at Power House Gym, athletes such as Tommy Hearns and Tommy Platz. In 1984 Power House Gym started their venture of growing the company by franchising. Fast forward to the present Power House Gym has now 300 franchises in United States and in 17 countries worldwide. Even with current success of Power House Gym the company does not want to stop there. Power House Gym is proposing a new division to further grow and expand the company both state side and globally, without the cost of brick and mortar. The new division will provide a leverage and competitive edge to which some our competitors don’t have. The new division will embody the mission of “more than a fitness, it’s a way of life”. In addition to having a leverage and competitive edge the new division will also provide an extra service and convenience to our current and future customers. The new vision for the division was created with our customers in mind. Power House Gym realized that at times the option of going to the facility to exercise is not an option due to busy schedules of our customers. We also put into consideration the global downfall of the economy. With the new division added to our program our current and future customers will have the opportunity to exercise anytime and anywhere. On top of having the ability to workout anytime and anywhere Power House Gym also made the new division affordable so everyone has the opportunity to take advantage of what we have to offer. To promote the new division the goal is to take advantage of the technology and current marketing trend. Power House Gym has also put into consideration the potential ethical, legal, and regulatory issue that may occur during the process of the new division. In this proposal Power House Gym has divided the strategies we plan to implement into three parts which are conceptualizing in business, SWOTT analysis, and balance scorecard. These three categories will further explain the new division’s vision in more detail and how it will guide Power House Gym for continues success for the future to come.

Strategies

In order for Power House Gym to grow and expand analyzing the competition will be part of the strategy. Researching their services have to offer in comparison to what Power House Gym should, should provide a competitive edge for the company. Also looking into their marketing campaign could provide some insights of what may or may not work. To expand and grow the company Power House Gym is planning on adding a new division that will provide various types of exercises that could access through the Power House Gym website. On top of the various exercises healthy recipes will also be included with the new service along with other optional service. Qualified and certified trainers, nutritionist, and consultants will provide excellent customer satisfaction and will be a vital part of the strategies to grow and expand the company.

A new marketing campaign will be launch to promote not only the new division but the company as a whole. With the growth of technology Power House Gym is planning to take full advantage of this to minimize the cost of marketing and receive a higher ROI. Power House Gym will be implementing both paid and free advertising through online marketing and social medias such as Facebook, Twitter, Youtube, Vimeo, and Podcasting are just some examples on how we are going to take advantage of technology for our marketing campaigns. For the paid advertising CPC (cost per click) through search engine such as Google and Bing will be utilize, using the this form of marketing will allow Power House Gym to monitor the traffic and demographic potential clients. The same concept will also be used with Facebook as far CPC, the advantage of paid marketing with Facebook is it allows the marketer to target the audience by country, state, city, gender, age, and interest providing accuracy for the marketer. Just like search engines like Google, Facebook also provides analytics of the marketing campaign and it is more detailed. As far as free marketing campaign a currently the company already has a website and business page on Facebook. The website will continue is operating with and additional focus on SEO (search engine optimization) and utilize Google Analytics to monitor its progress. Business page on Facebook will allow Power House Gym to stay connected with current and future customers allowing them to voice any suggestion or concerns about the company. This will also be a good way to monitor what our customers are thinking since they are the lifeline of the company. To increase the presence of Power House Gym Video Marketing will also be implemented as part of the marketing campaign, Youtube and Vimeo will be utilize for the video marketing. Video marketing will include announcements of new product and service along with tips on healthy living, tips on proper work out techniques without giving out all the information. While video marketing is an affective form of advertising one the biggest advantage it has compare to other type of marketing is it provides a more personal presence.

As mentioned earlier the lifeline of Power House Gym is its customers however, the backbone of the company is the people in the organization. To continue the success of Power House Gym and avoid and ethical or legal issues each employees credential will be verified. It is easy for anyone to falsify their credential considering that Power House Gym services is all about healthy living and physical fitness of our clients any wrong information could potentially hurt our clients which is why it’s vital to verify employees credential. Furthermore in addition to verifying employees credentials video surveillance will be added to each facility not only for ethical and legal or regulatory issues but the safety of its customers and employees as well. As far as the new division since Power House Gym cannot monitor the actions of what they do on their own homes or wherever they may be. To avoid any ethical, legal or any regulatory issues before having access to the new division the customers will have to sign an electronic signature acknowledging an agreement of any type of exercises performed outside the Power House Gym facilities will be at their own risk since Power House Gym cannot monitor their activities. The same agreement will apply for the recipes provided by new division if not followed properly.

Conceptualizing in Business

A well thought of strategic plan not only plays a big role in the success of any small or big organization, it is also imperative for its growth. In any effective strategic plan starts with a well-considered and mission statement, vision, and value. These three categories are beneficial to its shareholders, employees, and its customers. Besides being beneficial for the company and their shareholders, they are also the driving force that provides guidance to the direction that the company is going to. It is also what separates the company from its competitors and it also provides value and ethics within the company.

Business, Products, and Customers: Mission Statement

Power House Gym is a gym facility that provides that not only provides equipment for its clients to work out on, they also provide other services such as group exercise classes, childcare, personal training, staff nutritionist, power express line, small group training, sport specific training. The current mission statement is “More than fitness, it’s a way life of life. At Powerhouse Gym we are committed to helping others change their lives through exercise. Our friendly and professional staff will inspire and support you in commitment to enhance the quality of your own life”. The mission statement will be the driving force of the new division that will be at added to the arsenal of Power House Gym. There are many competitors out there for Power House Gym that may offer the similar services. With the consideration of its current customers and potential customers we realized that not everyone will has the ability or convenience to always utilize the benefits a gym facility can provide. To separate Power House Gym from other gym facilities a new method will have to be added for its current and potential clients. The new method will be adding videos that has several types of workout or exercise training that could focus building strength, stamina, cardio exercise, yoga, and much more. In our society some of us are always on the go and may not have the luxury of going to a gym facility. Having the ability to log in to a site will add convenience being able to work out anywhere anytime. Furthermore in addition to the videos of various types of exercises, healthy recipes for its customers will also be included. The recipes provided will help the customers eat healthier, which will allow them to have a more complete healthy living. For those who those who are not able to visit the gym locations they will the option of paying a small monthly subscription for access to the work out videos and recipes rather than paying the full amount of membership. The new method will complement the belief of Power House Gym of “more than a fitness, it’s a way of life”, now it’s a life style with convenience.

Organizations Vision

Simply put a vision statement is a declaration or goal where the organization wants to be either or midterm or long-term of an organization. A good vision statement can inspire the day to day operation of the organization and give a sense of direction strategically to achieve its goals (Business News Daily, 201). The new division vision is “is to provide healthy living assistance anytime anywhere”, Power House Gym will become not only a gym facility that completely embodies the healthy living but it will allow it to grow with minimal capital. The goal is to expand globally and provide guidance to healthy living without the hindrance of having the build a gym facility. To achieve this goal as part of marketing campaign, the plan is to utilize the power of social media. Currently the company is already using Facebook, Twitter, and LinkedIn on top of these social media that is being utilized already, will be adding some video marketing through Youtube and Vimeo. With some research and proper marketing campaign should keep the cost of marketing down and provide a higher ROI.

As far as values goes one can defined it as standards we strive to achieve and can be attained through practical habits as individuals. The same aspects applies when it comes to running and maintaining businesses or organizations. Power House Gym’s value will help attain their mission and vision of providing life style of healthy living through their services.

Guiding Principles

Power House Gym has several social responsibility and ethical principles that influences major decisions in the strategic planning process of the company. First concern of the company is to stay up to date of different types or styles exercise. Considering that Power House Gym provides group exercise classes, personal training, power exercise and new division work out videos. It would be important to know the current types of exercise to provide a more effective training. Second, with the staff nutritionist and recipe’s that will be added on the site it also vital that the company stay current with nutritional changes that may happen. Building customer loyalty will be by providing quality customer service and training will be the reason of the company’s success. Not being able to provide quality service and training could result in failure.To implement the new exercise and current trends along with healthy meals Power House Gym will have to conduct monthly research for current trend and certify the trainers and nutritionist if need be. To build customer loyalty communication will play a vital part, to stay in contact with our current and future customers newsletter will be utilize as well as social media sites.

To achieve the mission and vision while providing value Power House Gym will need a company structure that would reflect their principles. The trainers and nutritionist will have to be certified to build credibility and avoid any legal issues. Classes will be provided for employees increasing their knowledge and confidence in physical fitness and nutrition resulting in quality customer service and ethically providing the correct information to the customers. Furthermore a knowledgeable employees will allow the company to expand creating new opportunities for the employees.

Strategic Direction

The strategic direction is the plans made for what type of action to company needs to make in order for them to achieve their goals. The mission, vision, and value along with a company structure will be the foundation for Power House Gym for their strategic decision making for the company to grow. Although the goal is to expand with the idea of expanding globally without the brick and mortar, this goal can only be achieve by having the right strategic direction and quality customer service. The leaders or managers of Power House Gym will have to implement the strategies provided by the company. To ensure that the goals are being met assessment of the company and its employees will be conducted. If for any reason the goals are not being met an investigation will be launch to analyze the reason why it is not being met.

Customer Needs and Competitive Advantage

Health Fitness has always been a concern to many people however, with the hectic schedule of most people now a days some find it almost impossible to go to a gym facility. With that in mind the new division of various exercise videos and healthy recipes will allow people the opportunity to receive they fitness they need even with a busy schedule and still manage to eat healthy. While Power House Gym is providing a good value and staying true to its mission and vision, it is also separating itself from the competition. While other gym membership may provide similar service, and some may even have videos as well they are not various type exercises and they are only available for it full membership customers. On the other hand the new division will allow future customers to pay monthly subscription around $10-$15 to the exercise videos along with the access to the recipes without paying the full cost of membership. To increase the competitive edge Power House Gym will also add optional services such as one on one consultation through video marketing and 24/7 access progress report of our customer’s improvements to keep them motivated. Of course for those who are a full member of Power House Gym will have access as well.

Strategic Plan Part II: SWOTT

SWOTT analysis is a vital system or tool utilized for anyone either before starting a company or even through the life of the company. SWOTT analysis allows a company to determine where they currently stand in the market they are in and where they can take their company in the future. Knowing the strength, weakness, opportunities, threats, and trends could be the difference whether the company or organization will succeed or be outdone by its competitors. On this paper a SWOTT analysis has been conducted to show the strength, weaknesses, threats, and trends that could impact the future of Power House Gym.

Environmental Analysis

There are various outside elements that could influence Power House Gym’s ability to reach it goals and accomplish the mission. In order to succeed Power House Gym will have to determine the proper strategy that could maintain the business. Studying the external environment about the business industry, competition, economic elements, technological elements, demographics, and so on could give Power House Gym an edge to continue succeeding move forward towards its goals. On the other hand internal environment is equally important since it analysis the inside aspects company’s operation, internal guidance and mission (Wise geek, 2003-2014). Performing an internal environment will allow for better understanding of the business operations such as marketing, production, and leaders of the company. Knowing the internal environment will allow the company to design a strategy that could eliminate or minimize risk a company may have.