CRUNCH

1 Team 3 presentation
17 Nov. 2010
BSM MBA RO-CA, 2010-2012 - Prof. Adrian PURCĂREA, MBA
TEAM 3 ASSIGNMENTS:

1. Overview of the financial situation of

CRUNCH

2. Analyzing Doug Levine’s management

capabilities. Is he a good manager?

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PRESENTATION STRUCTURE

1. Doug Levine

2. CRUNCH. Let’s take a glance inside Crunch

3. Financial analysis of Crunch

4. Management capabilities analysis. What makes a
manager a good one?

5. Doug Levine CEO. A good manager or not?

6. Conclusions

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1. DOUG LEVINE

 Founder & CEO of Crunch fitness from1989

 BA in economics

 Professional background in sales as securities trader

 Around 40 years old

 10 years experience in the fitness facilities business, as

Crunch founder & CEO

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2. CRUNCH
Let’s take a glance inside Crunch:
 New fitness concept with innovative programming;

 Mid-priced, high quality fitness facility;

 13 fitness & gym facilities in 8 cities (in 1999);

 Strong National Brand exposure;

 Unique advertising campaigns;

 Auxiliary services through licensing the brand;

 Welcoming environment;

 “No judgments philosophy” differentiation!

 Experienced personnel;

 Bootstrap financial strategy; 5

 +Ceva financiar de la Razvan?
3. FINANCIAL ANALYSIS OF CRUNCH

 Razvan + Felix (+echipa)

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4. MANAGEMENT CAPABILITIES ANALYSIS.
WHAT MAKES A MANAGER A GOOD
ONE?
Managerial roles - Mintzberg Theory
Managerial Activities and roles
 Interpersonal roles – arising from formal authority and status and supporting the information and decision
activities
 Figurehead
 Liaison
 Leader

 Information processing roles

 Monitor
 Disseminator
 Spokesman

 Decision roles – making significant decisions

 Improver / changer
 Disturbance handler
 Resource allocator
 Negotiator

Evaluation criteria for assessing the manager’s performance

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5.1. DOUG LEVINE CEO. A GOOD MANAGER OR NOT?
DOUG LEVINE’S MANAGEMENT STYLE - “MINTZBERG”
ANALYSIS

Doug Levine is very inspirational to his people through the brand image he is
creating. He is very theatrical in constructing the brand image, being able to
transmit the message to his employees;
“Big play” – wants to be in front of the wave;
Interpersonal “Our differentiating programming is the key”;
roles Brand: “the key to our success and growth”;
Small company – big image;
How to create a buzz and take advantage of it;
On hand for clubs and his people at all times;
Fully dedicated, involved and committed to business through people.

“Mintzberg” analysis

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5.2. DOUG LEVINE CEO. A GOOD MANAGER OR NOT?
DOUG LEVINE’S MANAGEMENT STYLE - “MINTZBERG” ANALYSIS

Monitors and understands the market. Creates and adjusts the strategy having
clear goals for differentiating
Transformed Crunch’s underlying business concept to keep the pace
with the market;
Growth effort was financed only internally, but understands the need to
move towards external investors;
Information Differentiated Crunch on the market by employing the “No judgment”
processing roles philosophy;
Unique advertising campaigns;
“I think premiere leisure destinations are the anchor of the future”;
“We will be among the top tier of the new anchors because of our strong
brand and the centrality of fitness in people’s lives”.
- Pretty much every employee in this company feels that he or she is a direct
report to Doug – not a good delegator;
- He still has his hands in almost everything and is the center of information
flow;
- He knows what has to be done to promote the brand but no experience to
develop the company – he knows his strengths and weaknesses.
“Mintzberg” analysis

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5.3. DOUG LEVINE CEO. A GOOD MANAGER OR NOT?
DOUG LEVINE’S MANAGEMENT STYLE - “MINTZBERG” ANALYSIS

He understands that his management style is more appropriate for a mid size
company, and decides to hire an experienced manager for developing further his
company;
He knows what has to be done to promote the brand but no experience to
develop the company – he knows his strengths and weaknesses;
Decision roles Establishes organization’s long term objectives;
Defines the strategy to achieve the objectives;
Decides how to approach the objective to expand his business, makes the
design of the organization and together with his managers hires the appropriate
candidates.
“Mintzberg” analysis

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6. CONCLUSIONS
Starting entrepreneurship, Doug Levine, demonstrated alongside qualities of a good leader being a visionary
and promoter in his field for innovative programming and services, and as well good management
capabilities.
Doug Levine is a good manager! He learns from experience and transfer this
experience and expertise to his managing staff.
 He has a clear vision of the business future (expanding, thinking globally);
 He is building on the companies’ strengths (on the Crunch National Brand);
 He has strong business awareness, exploring continually business opportunities (franchising,
acquisitions);
 He is getting things done – adaptive strategy (licensing, membership-based system for cashflow, changing
the business concept), maintaining momentum and making things happen;
 He is at all times aware of the market and react to new situations and problems, he catch up with the staff
and increases his information area by listening and practice;
 Anticipate and respond to the new demands and requests (personalized programs, new services);
 The financial statements speaks also from himself as an effective manager;
 He is adapting to the new circumstances (having an organization culture, having high qualified managers
and staff – top aerobic instructors, starting delegating and consulting for decisions - he takes the decisions
by consulting with his managing staff);
 “The executive’s role is to sharpen corporate vision, generate improved performance and become
increasingly effective through learning and practice” – Peter Drucker 11
TEAM 3 – CRUNCH PRESENTATION

Thank you!

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