CONTENTS
1. INTRODUCTION………………………………………………………………………...……1
2. CENTRAL ISSUE……………………………………………………………………………..1
3. ALTERNATIVES……………………………………….…………….…………………….….3
3.1Alternative I- Implement an Effective Corporate Governance Policy………...........3
3.2 Alternative II- Replace CEO....……………………………………………….….……4
3.3 Alternative III-Sale of Company……………………….…………………………….5
4. RECOMMENDATION…….………………………………….……………………………...5
5. IMPLEMENTATION PLAN…………………………………………………………………..7
6. CONCLUSION………………………………………………………………………………...8
7. APPENDICES………………………………………………………………………………...9
1. INTRODUCTION
In this report, our team, Solutions Services Inc, the (“Team”) will provide our understanding of the issues faced by Bally’s, identify what we believe to be the critical issue, and look to provide strategic recommendations to Bally’s Total Fitness (“Management”). The analysis is based on our evaluation of Bally’s current business model, company structure, finances and operations, and existing management team. We will provide a set of possible alternatives that can improve Bally’s business, increase their stock-price, restore confidence, and improve the company’s image with stakeholders. Finally, we will provide detailed rationale to support our recommendation and provide suggestions to assist with implementation.
2. CENTRAL ISSUE
“There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engage in open and free competition without deception and fraud” – Milton Friedman.
After careful analysis we believe the critical issue is the lack of effective corporate governance policy. Corporate governance is the relationship between the various stakeholders and is defined by a set of processes, formal policy, and bylaws used to manage a company. Many of Ballys issues are due to poor internal controls and decision...