Crunchs Management Essay Example | Topics and Well Written Essays - 750 words

calf loves Management - Essay ExampleHowever, in spite of this the crushed leather management should ensure that their name is not affected by the expansion. Already people had gained so much confidence in the services that Crunch offered then changing the brand name may cost the social club some of its customers. Levine asserts that he knows exactly what take to be done to promote the brand besides every he needs is assistance. Crunch has insightful leaders who are very dedicated and all that they required was to draw a hygienic strategical plan of all the activities they will engage in before they acquire SportsLife. Crunchs Los Angeles position had really favored its operations and above all this positioning and expansion had been funded by a donor. At this position they were able to collect a substantial amount of tax revenue. Generally, the overall revenue for Crunch combine with other external collections, was enough for reinvestment. Crunchs top management had so fa r proven to be very innovative for instance, the coming up with the idea of fitness clubs as tenants of real estate was great (Harvard Business School 5). They always came up with new ideas which upon exploiting proved to be very productive for the company. The experience that the company already had on the expansion as it had started as a small business venture, would aid it to pursue the SportsLife acquisition. However, a lot needs to be govern in place before doing this considering that if they acquired SportsLife, they would attach their size by 60%. This implies that what they were going to acquire was more than what they had in place already. Crunch should strive to expand its operations at this critical moment when they enjoyed a good brand name. The move to acquire SportsLife was perfect as the company would increase its club mass on a very pleasing market Harvard Business School (6). An expansion strategic plan needed to be put in place on how the activities would be exe cuted. Firstly, flagship facilities were needed be put in place in every market in order for the company to acquire a greater coverage. Furthermore, intensive advertising activities should be pursued to inform their potential customers of the changes they had undertaken. Though expenditures would rise, they were going to be got from many clubs as well as a larger membership base. Although the acquisition was worthwhile, it would take Crunch quite some time to merge it completely into its brand. Fortunately, looking at the execution of the company it is confident that if they acquire the new facilities they will be able to generate more revenue than what the clubs currently generated. The clubs generated about $17 million revenue annually which meant they were not doing badly (Harvard Business School 8). At the time SportsLife clubs had approximately 70,000 members who had a relatively renewal rate as compared to Crunch. From such a scenario, it implies that by giving this clubs the Crunch reputation, the renewal rates are likely to go up boosting the revenue base. In addition, the clubs current condition was not comparable with(predicate) to the Crunch clubs, thus it meant upon upgrading the clubs, they will attract more membership. Crunch should view the differences that exist between SportsLifes clubs and its own as a stepping stone to distinction and diversification. Since Crunch had exploited all the opportunities at their disposal successfully, they needed to explore new ideas and personalize them. Harvard Business School (9) explains that two of the SportsLife clubs were strategically positioned to Crunchs advantage. What Crunch needed to do was to concentrate all their efforts into