Frugal Health and Racquet Club in 1962, Bally Total Fitness have grown to become one of the largest companies in the $ 14 billion U.S. health club industry in 2004. Throughout its history, Bally has faced its own problems, as it has grown to become the leading provider of health club. The last couple of years has been particularly difficult, however: Bally's stock price collapsed, he restated earnings in 2003, to the chagrin of shareholders and the U.S. Securities and Exchange Commission opened an investigation into accounting procedures. In addition, Bally faces significant competition from the likes of private 24 Hour Fitness, which had $ 1 billion in sales in 2003. In 2004, under the leadership of CEO Paul Toback, the company streamlined advertising efforts - targeting undertapped population - cost reduction and change in the internal control of the company. Attention of management was to increase membership and maximize revenue per member. Toback will force us to get the price back up, inspire shareholder confidence in Bally, and resist absorption rumors that allows Bally to remain one of the major players in the industry?
rewritten version of the previous cases. "Hide
by John R. Wells, Elizabeth A. Raabe Source: Harvard Business School 19 pages. Publication Date: November 14, 2005. Prod. #: 706450-PDF-ENG
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