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Case
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Reference no. 802-084-1
Subject category: Entrepreneurship
Published by: Cranfield School of Management
Published in: 2002

Abstract

Part one of the Fitness Express (FE) case, examines the start-up and early growth problems and opportunities of two youthful entrepreneurs, Dave Courteen and Steve Taylor. Via a carefully focussed market strategy (''over 40s'') and a true customer service orientation, a chain of 14 health clubs was successfully developed over 12 years. The partners were then able to contemplate further rapid growth in a joint venture with a 36 strong hotel group, Swallow. Detailed negotiations were all but complete, when Swallow itself was absorbed by a larger hotel chain, which already had its own health club organisation. Further growth for FE therefore, was to be either by continued organic development, or by acquisition of smaller groups by FE, or outright sale of the company. Part two of the case details the outcome of these options, with FE subsequently negotiating a satisfactory sale of the company to a large fitness leisure group (Crown) with a brief for the partners to grow the larger group by acquisitions and injection of the ''FE formula'' into existing Crown companies and new acquisitions. Will the entrepreneurs be able to respond to the challenge in a new corporate environment? A video ''802-084-3'' is available to accompany the case.
Location:
Size:
GBP2 million turnover
Other setting(s):
1987-2002

About

Abstract

Part one of the Fitness Express (FE) case, examines the start-up and early growth problems and opportunities of two youthful entrepreneurs, Dave Courteen and Steve Taylor. Via a carefully focussed market strategy (''over 40s'') and a true customer service orientation, a chain of 14 health clubs was successfully developed over 12 years. The partners were then able to contemplate further rapid growth in a joint venture with a 36 strong hotel group, Swallow. Detailed negotiations were all but complete, when Swallow itself was absorbed by a larger hotel chain, which already had its own health club organisation. Further growth for FE therefore, was to be either by continued organic development, or by acquisition of smaller groups by FE, or outright sale of the company. Part two of the case details the outcome of these options, with FE subsequently negotiating a satisfactory sale of the company to a large fitness leisure group (Crown) with a brief for the partners to grow the larger group by acquisitions and injection of the ''FE formula'' into existing Crown companies and new acquisitions. Will the entrepreneurs be able to respond to the challenge in a new corporate environment? A video ''802-084-3'' is available to accompany the case.

Settings

Location:
Size:
GBP2 million turnover
Other setting(s):
1987-2002

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