Longevity Operation | Operation Managemnt | Longevity Operation Service

Longevity Operation

This paper serves two purposes. First, it analyses the internal and the external operating environment of Les Mills International in the context of the theory of uniqueness of small businesses. Secondly, it provides recommendations based on the analysis done in the first part using marketing and management theories applicable to operation of business in the international arena. Agency theory presents a unique proposition in relation to the operations of small businesses.

Management theory has focused on the problems that arise due to separation of ownership from management in conventional corporates; this has led to emergence of the agency theory. The agency problem is however not existent in small businesses because of the fusion of management with ownership. This presents special challenges for stakeholders and the firm. For example, the lack of transparency in operation and the scantiness of information is a concern for stakeholders in these small businesses. Therefore, businesses like LMI need to come up with measures to mitigate such problems.

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Longevity Operation | Operation Managemnt | Longevity Operation Service

Longevity OperationLongevity Operation has benefited the company since it has enabled it to understand the terrain well. To ensure increased growth, the company has collaborated with other big companies such as Nestle and Sony. The company rides on their brand recognition to elevate its own brand. The field of fitness training is gradually changing due to advances in technology. The company should re-align its business model to take advantage of these changes.

The company’s weaknesses include the threat of piracy, which decreases the company’s revenue. The company also has limited capital to expand. This is due to the ownership structure of the company. Cultural differences are another obstacle that the company faces. The report has cited the 7Ps marketing mix and one cultural theory that the company can use to strengthen its position and overcome the weaknesses.
1.0 Introduction

Les Mills International (LMI) is a sports and fitness company founded by Phillip Mills in 1997 in Auckland, New Zealand. The company’s vision is to create a fitter planet throughCrossley, 2012).This report analyses the operations of LMI by looking at its strengths and weaknesses and attempt health living (ing to find ways of optimizing those strengths and mitigating the weaknesses. It applies theories unique to operation of small businesses to help put the analysis in its right context. The report also fronts recommendation on the way forward for LMI. The final part outlines limitations of this report due to challenges encountered in its preparation. The structure of the report aims at establishing a good flow of the ideas; first performing a diagnosis, then a prognosis, while bearing in mind the limitations of the whole operation.

Longevity Operation | Operation Managemnt | Longevity Operation Service

2.0 Uniqueness of small businesses and the agency theory

Small and medium sized enterprises have features that set them apart from the conventional forms of business, for example; their management structure is often incomplete and informal. The businesses are by-products of the entrepreneurial acumen of first generation entrepreneurs who pass on the baton to subsequent heirs. This is true of LMI, which is now in the hands of the second generation of the family. Owners of these businesses tend to have undiversified interests in the business,which is likely to be unlisted in the stock exchange since owners feel the need to maintain control(Fama & Jensen, 1985). All these features are evident in LMI.

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