Mini-study project (MBA)--University of Stellenbosch, 2002. / ENGLISH ABSTRACT: The rise of the health and fitness club, Health and Racquet Club, in the late eighties
was spectacular and it came as no surprise that the company was listed on the
Johannesburg Stock Exchange in 1994. The two founder members, Peter Gardener
and Robert Mitchell listed a company within a short period of time and were not
afraid to change their strategy and expand their operations into other sectors of the
leisure industry in 1995. In the late nineties, after restructuring the subsidiaries of the
group, management started to look at foreign markets for expansion of the core
business, namely the Health and Racquet Clubs. The group's foreign expansion
accumulated a vast amount of debt on its balance sheet and in retrospect was seen
as one of the main reasons for its collapse. The company was placed under
liquidation in the end of the 2000 financial year.
This study will evaluate the different strategies management followed, and will
identify some key strategic mistakes that was made and that led to the downfall of a
seemingly financially strong organization that offered above average returns to it's
stakeholders. It also aims to show that a business strategy has to rely on strong
corporate governance and that the last say always lies with the stakeholders within
that company. / AFRIKAANSE OPSOMMING: Die gesondheids- en fiksheidsklub, die Health and Racquet Club, het in die laat
tagtigerjare ongelooflike opgang gemaak, wat uiteindelik gelei het tot notering op die
Johannesburgse Effektebeurs in 1994. Die twee stigterslede, Peter Gardener en
Robert Mitchell, het die maatskappy binne 'n kort tyd genoteer, en het nie gehuiwer
om hulle strategie te verander en in 1995 hulle bedrywighede uit te brei na ander
sektore in die ontspanningsindustrie nie. In die laat negentigerjare, nadat die filiale
van die groep geherstruktureer is, het die bestuur oorsese markte begin ondersoek
met die oog op uitbreiding van die kernbesigheid, naamlik die Health and Racquet
Clubs. Die groep se uitbreidingsaksie het groot skuld tot gevolg gehad - een van die
hoofredes vir die ineenstorting. Die maatskappy is aan die einde van die 2000
finansiële jaar gelikwideer.
Hierdie studie evalueer die verskillende strategieë wat die bestuur gevolg het, en
identifiseer die belangrikste strategiese foute wat gemaak is en wat gelei het tot die
ineenstorting van 'n maatskappy wat oënskynlik finansieel sterk was en bogemiddelde
opbrengste aan die aandeelhouers besorg het. Die studie poog ook om
aan te toon dat 'n besigheidstrategie gebaseer moet wees op stewige korporatiewe
beheer en dat die laaste sê altyd by die aandeelhouers van die maatskappy lê.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52917 |
| Date | 12 1900 |
| Creators | Cilliers, Andre |
| Contributors | Burger, Johan., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 96 p. : ill. |
| Rights | Stellenbosch University |
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