Parks, Recreation and Tourism LA

Parks, Recreation and Tourism LA fitness Organization is an American-based health club with a number of branches across the United States and Canada. It was established back in 1984 in California. Lewis Welch and Chin Yol founded the organization. In the mid-1990's the company was able to expand its operations by acquiring fitness clubs that were experiencing financial distress or that were not operating profitably in southern California. Additionally, the organization built multipurpose sports club.

The club had cardio and strength equipments, free weights, common exercise room, a swimming that served as a prototype. Swimming pool and a sports court for basketball and racquetball. The multipurpose fitness club hence offered its members a variety of workout options for the members. The success of the prototype encouraged the organization to expand its operations. Form the year 1998 the organization increased the rate of club development across the United States including mid Atlantic states, sunbelt, pacific north west, the upper Midwest and the north east.

Evaluating the rapid expansion rate, the company has opened over 180 clubs from the year 2006 to 2009. In the year 2000, the organization acquired the largest fitness and health club chain in Atlanta. The company replaced its constituent units with larger prototype clubs. In the year 2007, the organization acquired six fitness clubs in Canada. In the year 2010, the expansion plans continued with acquisition of the pure fitness clubs in phoenix. In 2012, the company acquired all the family fitness clubs based in Florida despite the many challenges surrounding the transition.

The main challenge was that most customers were angered by the acquisition by LA fitness product that replaced their popular Les Mills workouts. LA fitness organization remains a private company with the major shareholders being Madison Dearborn partners, CIVC partners and Seilder Equity partners. LA fitness organizational structure has contributed to its success over the years. At the top is the Chief Executive officer who is the administrator of the business. Under the CEO, are top organizations directors who oversee the operation of the company in their respective field.

They include the chief operation officer, the chief finance director, the marketing director and the operations director. The directors are directly answerable to the Chief executive officer on matters relating to the organization. The directors are then responsible for delegation of duties to other managers under them who in turn delegate the duties to the employees of the organization. LA fitness organization is socially responsible to the various stakeholders including shareholders, employees, the government, the suppliers and their clients.

This responsibility can be classified as economic, ethical, legal, voluntary and philanthropic (Tharrett & Peterson, 2008). Under economic responsibility, the organization should earn the owners of the business some return for the invested capital. In the legal art, the organization has a responsibility to comply with provisions of the law. LA fitness has complied with the law by paying taxes and complying with the employment act and other legislations.

Under ethical practice, the organization has been fair in competition for clients; it has ensured that their clients get the best value for their money. The company has credit by offering services at affordable costs without exploiting the clients. Additionally, the organization has been philanthropic by supporting human welfare with noble activities out of their own goodwill. Moreover, the organization has supported community development though various humanitarian projects and ensuring quality of life.

The success of the organization has been partly contributed by customer loyalty that has been established over time. Most of the clients are happy with the management of the organization in managing the affairs of other stakeholders. The company has successfully penetrated in to new markets by employing the low price entrant strategy. The firm provides its services at lower charges compared to other existing firms the location. The success in penetration can be attributed to proper research and identification of the right target market.

The management has always grabbed any business opportunity that has come their way. Apart from the low price penetration strategy, the company has also employed marketing strategies to make their products popular and ensure that the loyal clients remain loyal to the products (Tharrett & Peterson, 2008). It is evident that the organization has succeeded in its operations. This is because the organization has remained profitable from 1984 when was first established. Over the years, it has been able to reach its revenue targets.

The profits have enabled the company to expand and open other fitness clubs across the United States and Canada. It seems that the future for the company is bright since more people are now taking their health seriously hence enrolling to the various fitness centers for workouts (Bates, 2008). The organization has numerous opportunities that it is yet to exploit. For instance, the company has only expanded within the United States and Canada.

Since its products are tested and widely accepted, the organization has an opportunity to expand to other parts of the world like Europe, Asia and Africa. Additionally, the company can also expand or improve its existing facilities in order to accommodate more clients. The company has faced a number of challenges in its journey to the successful achievements. For instance, the organization faced opposition when trying to acquire other established companies like ion the case of acquiring Les mill workouts in Florida.

Complying with laws in other states has also been a challenge since the company had to adjust to comply with the existing provisions of the law. Additionally, competition has been a challenge since the company has to employ more resources in trying to lure more clients to use its facilities (Bates, 2008). Since the organization has many branch units, it means that they enjoy reduced tax since loses made by some of the branches are absorbed by the organization.

This means that profits available for taxation are reduced since tax is deductable from the consolidated accounts. However, the company pays more taxes whenever all the business units are making profits. The organization has spent most of its resources in purchasing of equipments, developing infrastructures and hiring employees to facilitate its operations (Tharrett & Peterson, 2008). The company has obtained its revenue majorly from member's subscriptions. Clients have an option to select the plan that suits them most. Major areas of expenditure.