Bally Total Fitness

9-706-450
REV: JANUARY 22, 2008

JOHN R. WELLS

bloody(prenominal) Total Fitness
In 2004, bally(prenominal) Total Fitness was a leading firm in the U.S. wellness ordination fabrication. From a single, modest hunting lodge in 1962, the company had grown to become—in management’s words—the “largest and only nationwide commercial operator of physical fitness centers” in the United States.1 Bally had faced its share of challenges as it rose to become a major health club operator, but the last couple of years had proven curiously difficult. Competition in its markets had intensified; Bally’s fall price had collapsed; the company had restated earnings to the chagrin of shareholders; and the U.S. Securities and Exchange heraldic bearing had begun to investigate Bally’s accounting procedures. Under the military commission of Paul Toback, CEO since December 2002, Bally had revisited its unique flack to pricing and selling health club memberships; boosted the accountability of club managers for profitability; launched new efforts to help club members meet weight-loss goals; alter its marketing message; and begun to strengthen its internal control systems. Toback and his aggroup were committed to increasing the number of Bally members and maximizing gross per member.



2 Would Toback’s efforts restore Bally’s battered depot price, stave off companies that were rumored to want to buy the company, and enable Bally to remain a major player in the industry?

The U.S. Health Club Industry in 2004
Consumer Demand
Exercise gyms had prospicient been a feature of the U.S. social scene. Indeed, the Young Men’s Christian Association (YMCA) had offered basic gym facilities in umpteen of its locations for 150 years. Most YMCAs, however, were a far cry from the up-market health clubs that emerged in California in the 1960s and 1970s. First seen as a fad, these clubs quickly took root and grew strongly for much of the mid-eighties and 1990s. By 2004, the U.S. health club industry took in tax of...If you want to get a full essay, order it on our website: Orderessay



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