module 5 attachments

Project Planning

Student’s Name

Institutional Affiliation

Question 1.1. What is the full legal name of the US public company that you will use in your course project? (Points: 5)

On this project, I will use the company Bally Total Fitness Holding Corporation.

Question 2.2. What is the stock symbol for the public company you have chosen? (Points: 2)

The symbol for the company’s stock is BFT.

Question 3.3. Why did you specifically choose this company for your project? Why are you interested in the company? (Points: 10)

Bally Total Fitness Holding Corp is a company that operates fitness centers around North America. The company operated over 400 centers that were located in 28 states as at 2001. The company also has several centers that it operates in Canada. The company offers exercise equipment, pools, aerobic programs, running tracks and racquet courts. The company also provide personal trainers and other sport medicine services.

The company has been going through some tough times over the years. The company has sold most of its fitness centers. In 2011, the company sold 171 of its centers that were located in 16 states. The company continued to sell its other centers and in the year 2016 October 26, the company closed down its last center. The company was then deleted. The company had filed for bankruptcy twice in the year 2008 and 2007. The company was not able to obtain financing to carry out their operations after they filed bankruptcy as the financial institutions were not willing to loan the company any amount of money. They were considered high risk, and they had a bad credit rating.

The company is located in the fitness industry. The demand for fitness has increased over the years. This is because of increased cases of obesity and other conditions and diseases that are associated with unhealthy lifestyles. The public has also become more interested in their health, weight, and fitness. The health and fitness industry also has a huge space for improvement. The industry has also become very innovative in ways that improve the health and fitness levels in the general population. There are also various options in which one can invest in the industry such as franchising as well as a direct investment. The options of investment also include gym facilities, supplements, weight loss solutions, diet plans and other options. While investing, the company has options of choosing one target audience from the broad selection that exists (Di, 2016).

Question 4.4. What is the nature of the investment for this company that you are planning? Please explain your investment idea. (Points: 13)

Since Bally Total Fitness was deleted in 2016. An investment in the company would, therefore, involve the costs that would be involved in the reinstatement of the company. The other decision to be made is on the capital project the company will be involved in. This involves determining the line of the industry it will be involved in (Di, 2016).

Some of the investment options such as the establishment of gym and fitness facilities is capital intensive. The company must, therefore, consider an option that is within their budgets. The company can start with the establishment of one branch of the gym and fitness center. This would then later provide an opportunity for growth by establishing centers according to the company's performance in the first center.

References

Di, L., (2016). Why Invest in the Health and Fitness Industry? Retrieved from

http://www.nuwireinvestor.com/why-invest-in-the-health-and-fitness-industry/ on February 23, 2017.