Introduction
In order for any new business to be successful in its growth, An Efficient Management in Business is a basic foundation through which the business can effectively handle the tough competition present in almost all markets. For this to be achieved, clear statement of business vision and mission must be ensured to promote maximum utilization of available resources which would lead to better returns to the business. Businesses are, therefore, required to analyze both internal and external factors associated with the business to ensure that proper decisions are made that will lead to strategic planning of the market aimed at beating the market competition. In the case of MINI GYM, the analysis of the strategic management models looks at the key factors that will bring out the business as an innovative business venture that is very competitive in the Australian Fitness market.
Strategic management
Strategic management basically entails the use of specific maneuvers in the running of a business in order to achieve common goals which are all aimed at creating a competitive business in the market. Strategic management is, therefore, important in helping businesses make use of all available opportunities as well as managing risks associated with the running of the business thus making businesses flexible in case of changes in the business and market trends.
In this case, therefore, employment of strategic management in the Mini Gym is meant to incorporate all possible opportunities as well as possible risks in order to create flexibility of the business which is an essential factor in attaining goals maximally.
For instance, the BMW car brand, Mini, is looking forward to venturing in the Fitness industry as a form of investment beginning in Australia but with strategic plans of expansion in the near future. The creation of strategic management for Mini would be much easier since it has been an international and successful brand in the automotive industry. However, Mini will have to state new vision and mission for the new business different from those of the automotive industry. To begin with, Mini required a vision which looks forward at getting at the top of the Fitness industry in the whole of Australia while keeping in mind that customer satisfaction is their top priority. Additionally, provision of high quality services at the Mini Gym is as equally important in making the business a success. Another important measure that Mini could take is to inform the public of the availability of a variety of services such as youth recreational facilities, style features and space for relaxation and fun. Basically, it mission would be to provide more services than just fitness facilities to the satisfaction of its members.
Firms’ environments
Business environment may be referred to as any factors, either within the business or outside, that have impacts on the business operation. Such impacts can be positive or negative, direct or indirect and they all affect the performance of the business by either providing opportunities or posing certain risks to the business. However, an industry’s environment constitutes all elements involved in the decision making processes of the industry especially those managing market competition. Generally, environment in regards to business is divided into two; internal and external environment. Internal environment in this context involves those factors that exist within the organization that affect the business such as personnel, financial resources and other assets including machinery. On the other hand, external environment includes those factors that are outside but surrounding the organization that provide opportunities for the business or pose risks.
Socio-cultural factors are also essential in making a business a success. Since the Mini Fitness business is more concerned of social life, the Melbourne city in Australia provides the perfect social, cultural and economical foundation for the growth of the business. This is because the city is a very attractive place especially for international students who form the highest percentage of membership in the Fitness industry. These factors have attracted many tourists over the past few years as the number of visitors, both international and domestic keeps on increasing. Consequently, the number of people seeking membership of the club is increasing (2010).
The internal environment in the Mini Gym has been split into two; tangible and intangible resources.
Just like the name suggests, the tangible resources includes the physical assets as well as financial and organizational elements.
The financial resource entails the statement of financial support of the business by the Mini Company to help finance the construction projects of fitness centers. This will enable the business to be able to generate its own income from the operations of the centers being built. Furthermore, the Gym has planned to obtain further financial aid from bank loans which will be easy because of the firm’s good reputation.
The organizational structure of Mini Gym will be established on a flat hierarchy manner which involves transparency between various departments and this will be enabled by internet connectivity between the various sections of the Gym. This will promote the primary goal of the business which is to bring together the management and the employees through effective communication in order to allow for transparency
The physical components of the tangible resources in the Mini Gym involve assets such as buildings and equipments used for sports and other maintenance tools as well as computers for data storage. On the same matter, the Gym management will ensure that all staff members are fully trained on the usage of such machinery and equipments.
The intangible resources consist of human resource, creativity and reputation resources.
Human resource is meant to fulfill one of the Mini’s objectives which are to ensure quality provision of services which can only be made possible through the employment of qualified and skilled workers. Human resource management is, therefore, meant to organize al l training services for employees as well as ensuring that they are well equipped at all times in order to ensure satisfaction of the members.
The innovation resources are provided through the internet where members are given the chance to air their views on various aspects of the services offered in the gym such as scheduling and changes in diets, just to mention a few. Additionally, Mini will be motivating their members by throwing parties and congratulating them on achievements.
The reputation resource will be used based on the success of the Mini brand in its earlier business ventures. The business will operate on the basis of “pay less, get more” and would definitely attract many customers.
Business level strategies
Business level strategy involves the utilization of opportunities through various tactics in order to get ahead of the other competitive businesses.
Out of the many types of business level strategies, differentiation is the most suitable for the Mini Gym since it involves the utilization of facilities, provision of services and taking advantage of membership in the club. The club will offer performance services as well as monitoring services during which consultations can be made. Additionally, Mini is looking forward to establishing bigger centers which will provide a wide variety of services all at one center. The club will also offer discounts to its frequent members which is a way of attracting more members.
Conclusion
According to this report, it is clear that strategic management is an essential element in the success of any business particularly in analyzing its performance in the market to create room for improvements in order to gain competition benefits. It also allows for making of proper decisions relative to the market situations at hand. In the case of the Mini Gym, it has emulated the key strategic management elements of BMW which is an international and successful company better known by its ability to provide efficient services to customers as well as providing quality and stylish products to its customers. The use of these key elements by Mini Gym will help the firm build a very strong strategy based on the available facilities and personnel. This factor has made Mini Gym spectacular in that it is quite different from other similar firms in the region and in the market as a whole. The firm is also aiming at dominating the medium and high level markets as it will provide different choices of lifestyle services. This can be related to the brand extension of the BMW group.