AMDP Assignment

Introduction

Yoga is an ancient practice that involves several postures, breathing, and meditation practices to bring out your inner self and improve your well-being. Yoga was designed to build a stronger connection between you and your body. Practicing yoga can be done in various ways and does not require being in a specific location or a daunting gym. However, if you gather in one accord, practicing yoga within a studio is a great way to escape and connect with various notable people. One of the best places to go and do that is at CorePower Yoga.

CorePower Yoga is not just a yoga studio; it's a lifestyle choice that fosters a strong sense of community. Its widespread presence across the United States offers the flexibility to practice yoga at a time and place that suits you. Whether on a work trip or visiting a friend, you can continue your yoga journey with CorePower. This unique feature empowers you to stay in control of your practice, no matter where life takes you. The benefits of practicing at CorePower Yoga include a sense of belonging and connection with others, in addition to personal growth.

At CorePower, the possibilities for your yoga practice are endless. With a diverse range of classes, from strength-building to meditation, mindfulness sessions, and high-intensity yoga, there's something for everyone. Whether you're a beginner or an advanced practitioner, CorePower is committed to helping you explore and expand your practice, find peace, achieve physical wellness, and gain mental clarity. Some classes include CorePower 1 & 2, Hot Power Fusion, and Yoga Sculpt.

Key Terms

CorePower vigorously enforces several critical sustainable and socially responsible practices, ensuring they stay current with modern ethical standards and corporate behaviors. This commitment to sustainability is a testament to CorePower's dedication to not only profit but also the well-being of people and the planet, providing potential investors with confidence in the company's ethical practices. 

Triple Bottom Line

The Triple Bottom Line (TBL) is a business framework that focuses on companies and how they measure their efforts for people, the planet, and profit. In simpler terms, it's about balancing financial success with social and environmental responsibility. CorePower's whole identity was founded on the concept of TBL, as their mission has always been to provide wellness benefits to their clients (people), work towards more environmentally conscious studios (planet), and constantly expand and grow their revenues (profits). TBL has been a driving force within their business model, influencing their business decisions and strategies.

Corporate Social Responsibility

Corporate social responsibility refers to a company's commitment to responsibly managing its operations' social, environmental, and economic effects and keeping them in line with public expectations (Business News Daily). CorePower Yoga demonstrates CSR by offering programs that foster mental and physical well-being while striving to reduce environmental impacts through energy-efficient practices in their studios and community engagement initiatives. For instance, their empowerment of Unity, Diversity, & Inclusion. This shows their dedication to positively impacting society while conducting business ethically.

Social Enterprise

A social enterprise is an organization that applies commercial strategies to maximize improvements in human and environmental well-being alongside profits (Forbes). CorePower Yoga could align with this model by promoting wellness through accessible yoga practices that benefit individuals' health and implementing sustainable business practices to reduce environmental impact. They balance financial success with a solid commitment to the communities they serve.

Carbon Footprint

A carbon footprint measures the total greenhouse gases, primarily carbon dioxide, emitted directly or indirectly by an individual, organization, event, or product. Reducing a carbon footprint is essential for mitigating climate change by lowering harmful atmospheric emissions. At CorePower Yoga, we acknowledge the importance of minimizing our carbon footprint. We incorporate energy-saving technologies in our studios, such as energy-efficient lighting and HVAC systems, and encourage eco-friendly practices among our members. By measuring and actively reducing our carbon footprint, we are committed to reducing our environmental impact and contributing to a healthier planet.

Overview

CorePower was founded in 2002 by Trevor Tice to bring an athletic and modern feel to yoga. Since then, CorePower has been one of the most dominating chains of yoga studios across the country. With over 200 studios nationwide, CorePower has become a juggernaut in the yoga community. 

Financial Track Record

CorePower's growing popularity attracted the attention of investors who were eager to support its expansion efforts. Corepower acquired a significant capital investment from the Catterton Partners, propelling CorePower even further within its space (PR Newswire). 

Soon after the investment, CorePower quickly emerged as the leading source for yoga and the most significant studio operator in the US. As of 2019, CorePower was purchased from a private equity firm, TSG Consumer Partners. The reason for the purchase was quite simple as one of TSG’s directors, Collin Welch, stated, “CorePower Yoga has established itself as a leading and differentiated brand in the health and wellness space with a proven concept centered around fitness and mindfulness…” (TSG). 

CorePower has maintained its profits through its brand loyalty and membership programs. It has capitalized on a business model allowing members to travel and go to any studio nationwide, allowing individuals more flexible schedules. In addition to its accommodating locations, CorePower offers several classes to tap into whatever practice you deem fit for your lifestyle. This financial success is a testament to CorePower's stability and growth potential, providing potential investors with confidence in the company's future.

Business Practices

CorePower has a strong message regarding its personal well-being and community-building practices. Some of its recent efforts include various classes focusing on diversity and inclusion, classes tailored to the underrepresented, and a DEI-belonging council. The council has a diverse staff that looks to improve their accountability and efforts to bring equity within the yoga space (CorePower). These initiatives not only demonstrate CorePower's commitment to diversity and inclusion but also its dedication to creating a supportive and welcoming community for all its members. 

For its sustainability efforts, CorePower was looking for a better solution to its plastic bottle crisis. So, it partnered with Boxed Water to provide one. This initiative will further reduce the studio's environmental impact on the yoga community and help them incorporate more sustainable practices regarding their flooring, energy-efficient lighting, and energy-efficient control systems (Boxed Water).  Despite their efforts to publicize their attempts to create better practices within their studios for a sustainable yoga community, CorePower needs more resources regarding its sustainability practices.

Critical Appraisals

The New York Times has been especially critical of CorePower's foundations. They even said that CorePower is a corporate machine that solely prays upon students to boost profits (Yoga Journal). This backlash comes from the individuals who have to get certified by CorePower to teach for them. They have been known to charge students thousands of dollars to generate more profits for the company. This business model has garnered immense backlash in that the students have been underpaid or represented due to the large amount of work they put in for little to no compensation. Critics have emphasized that this business model has worked to gain profits but has placed profit as their main priority over health and wellness. 

In 2020, the brand launched an initiative that would strive to bring more diverse groups of individuals into practicing yoga. After further research, the company's strategy was to create change over three years instead of implementing immediate changes (American Spa). They showed a lot of initiative by providing little to no information regarding the initiative and have only begun to show results throughout their studios nationwide relatively. The brand’s identity has shifted slowly towards increasing efforts within their staff, teachers, and community. Still, it lacks the initiative to help those in need or can not afford to fully afford the high cost of their memberships.

Recommendation

Based on the research, CorePower is a great investment opportunity. Due to the growth trajectory within the health and wellness community, CorePower is a great market to tap into. Their efforts promote mindfulness, personal strength, and well-being. However, their lack of efforts to comprise an appropriate comprehensive reporting on their environmental efforts and carbon footprint could pose a challenge in aligning with the values of AMDP. I recommend AMDP investing in CorePower Yoga, contingent on encouraging them to be more transparent about their sustainability efforts. Still, I will leave you with the beautiful words from the CEO of CorePower, Niki Leondakis, "CorePower Yoga was formed on the principle of transformation, which is not limited to the body and mind, but in understanding our symbiotic roles and responsibilities to the planet.

Work Cited

Catterton, L. “L Catterton Sells Corepower Yoga to TSG Consumer Partners.” PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing, 12 Mar. 2019, www.prnewswire.com.

Company, External. “CorePower Yoga Announces ‘power Forward’ Initiative with Three-Year Goals for Diversity, Equity, Inclusion and Belonging.” American Spa, 17 Mar. 2023, www.americanspa.com/press-releases/corepower-yoga-announces-power-forward-initiative-three-year-goals-diversity-equity.

Elsey, Wayne. “Council Post: Five Essential Qualities for Social Enterprise Success.” Forbes, Forbes Magazine, 24 Oct. 2017, www.forbes.com.

Kenton, Will. “Triple Bottom Line.” Investopedia, Investopedia, www.investopedia.com. Accessed 18 Oct. 2024.

“Our Studios.” Corepoweryoga.Com, www.corepoweryoga.com. Accessed 18 Oct. 2024.

“Powerful Partners: CorePower Yoga Takes a Stance against Single-Use PL.” Boxed Water Is Better, boxedwaterisbetter.com. Accessed 18 Oct. 2024.

Tucker, Lindsay. “Does CorePower Yoga Have a Corporate Problem?” Yoga Journal, 2 Sept. 2021, www.yogajournal.com.

User, Guest. “TSG Consumer Partners Acquires CorePower Yoga.” TSG Consumer, TSG Consumer, 6 Oct. 2020, www.tsgconsumer.com.

“What Is CorePower Yoga?” Corepoweryoga.Com, www.corepoweryoga.com. Accessed 18 Oct. 2024.

“What Is Corporate Social Responsibility (CSR)?” Business News Daily, www.businessnewsdaily.com. Accessed 18 Oct. 2024.