The Virgin Group

1522 words 7 pages
Show More
The Virgin Group

1) What is the corporate rationale of the Virgin Group? Corporate rational is the way in which a corporate parent envisages the way that it can add value to its strategic business units. The Virgin Group sees itself as a restructurer; this means that it has low central costs due to relatively small corporate center, with fairly minimal involvement at business level. However they vary from the portfolio managers because they also set about trying to identify restructuring opportunities within their businesses and have the skills and expertise in order to intervene and introduce these changes where necessary. The Virgin Group have a huge range of about two hundred strategic business units ranging from airways to cola, …show more content…

This means they may gain some economies of scale. They may also gain expertise and services from the corporate centres which is an 'easy' supply of knowledge available to them. The corporate parent may also provide investment when necessary to companies by sharing out the available finds to companies which need them the most. By covering your costs and money over many different companies you are also spreading your risk over different industries so that if one is struggling then you would hope that another is doing well to 'cover their backs'. Virgin may also use one company to set realistic standards for other companies. This means that because the Virgin Group consider themselves to be a 'restructurer' they will intervene if they feel their standards are not being met. This element of control over the companies means that no company is able to go off on its own objectives and steer to far away from the overall corporate goals. 4) What are the main issues facing the Virgin Group and how should they be tackled? The main issues facing Virgin are competition and the search for new markets in which to enter. They purposely look for static markets in which they can make an impact, they look at about 50 companies a week and asses their possibilities of success in each market. However they may soon find that they can't find any more markets that are appealing to them. This would mean expansion of the company portfolio

Related

  • Virgin
    2134 words | 9 pages

    289 CASE EXAMPLE The Virgin Group Aidan McQuade Introduction The Virgin Group is one of the UK’s largest private companies. The group included, in 2006, 63 businesses as diverse as airlines, health clubs, music stores and trains. The group included Virgin Galactic, which promised to take paying passengers into sub-orbital space. The personal image and personality of the founder, Richard Branson, were highly bound up with those of the company. Branson’s taste for publicity has led him to stunts….

    Show More
  • Strategies to Empower Employees in Service Industries to Improve Profits
    1461 words | 6 pages

    a new venture, they base it on hard research and analysis. Typically, they review the industry and put ourselves in the customer's shoes to see what could make it better. They have a motto that all members of the organization believe strongly in. Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge. They believe in making difference. Like many companies, they set benchmarks regularly to understand and help achieve performance levels they have not reached….

    Show More
  • Virgin Mobile
    946 words | 4 pages

    will prevent Virgin from competing to an untapped market. • Threat of Substitutes – Weak o There are very few substitutes available that offer mobile and immediate communication. Alternative like pagers are outdated & this target market cannot afford sophisticated PDA service. • Degree of Rivalry – Strong o Competitors have brand recognition in the US and have the majority of the market share.….

    Show More
  • Two Leaders S. Jobs and R. Branson
    3061 words | 13 pages

    Executive Summary This project report is based on comparison made between two leaders knows as CEO of Apple Company Late Steve Jobs and CEO of Virgin Group Sir Richard Branson. In this project report both Leaders have been compared and contrasted according to their leadership qualities, skills, attitudes, personalities and value system owned by each of them. According to this given project report comparison made between both the leaders shows that Richard Branson is considered as an effective….

    Show More
  • Significance of Virtualization, and Cloud Computing in Virgin Atlantic
    2535 words | 11 pages

    implemented in a real world. Virgin Atlantic is one of the successful business organizations are operating multi function services. Virgin Atlantic Airways is one of the leading airlines in Europe introduced by Virgin Group collection of branded companies in 1984. Virgin Atlantic is centralized with UK operating 30 destinations all over the world with the 40 Aircrafts in operation. It is also extending its operation via code….

    Show More
  • Marketing Plan for Virgin Media
    3826 words | 16 pages

    Marketing Plan of Virgin Media 1. Terms of reference This report describes the marketing plan for Virgin Media a major player in the Digital television market in UK. Virgin Media (formerly NTL Incorporated) is an UK-based entertainment and communications company. In February 2007, the company’s name was changed from NTL Incorporated to Virgin Media. It provides television, broadband, fixed line telephone and mobile telephone services….

    Show More
  • Airlines in Australia - Strategic Analysis
    2207 words | 9 pages

    A STRATEGIC ANALYSIS REPORT [pic] Content 1. Executive Summary 3 2. PESTEL Analysis 4 Political 4 Economic 4 Social 4 Technology 4 Legal 4 Environmental 5 3. SWOT Analysis 6 Strengths 6 Weaknesses 6 Opportunities 6 Threats 6 4. Competitive Analysis 7 a. History and competition/joint ventures 7 b. Industry size, routes, hubs and passenger numbers 9 5. Financial data 2008 14 6. Jetstar 15 New Mission Statement 15 New Value Statement….

    Show More
  • Qantas Case Study
    6000 words | 24 pages

    QANTAS CASE ANALYSIS REPORT MARK ANTHONY ANDRIJCICH STUDENT NUMBER – 10513924 MGMT3347 – STRATEGIC MANAGEMENT SEMESTER 2, 2011 TUTORIAL 4 – MONDAYS, 15:00 ROOM BUSN:161 – THE CULLITY TUTORIAL ROOM TUTOR – DOUG MOFFAT INDIVIADUAL CASE ANALYSIS REPORT TABLE OF CONTENTS EXECUTIVE SUMMARY……………………............................3 EXTERNAL ANALYSIS OF QANTAS………………………...4 --Industry --General Environment Analysis --Six General Elements --Demographic --Economic….

    Show More
  • Jetstar
    1079 words | 5 pages

    Executive Summary Jetstar Airways is an Australia low-cost carrier airline based in Melbourne, Australia. It is a wholly owned subsidiary of the Qantas Group. Qantas established Jetstar in 2003 as a response to main competitor airline Virgin Australia (formerly known as Virgin Blue). Despite its low cost, Jetstar operates an extensive domestic network and is the world’s largest long-haul low cost carrier. Jetstar operates to destinations in Asia the Pacific Ocean, with future plans of expanding….

    Show More
  • Political Culture of Mexico
    1172 words | 5 pages

    traditionally centralized within the ruling political party. Political power in Mexican politics revolves commonly around camarillas, which is a network of people with common political interests, who have specific ties to a particular leader. Each group of camarillas has a single leader and through this, you find that everyone relies on one another for political advancement. In a system like this, unfortunately personalities become more important than ideologies and policies in political matters and….

    Show More

Popular Essays