Strategic management implies with the planning, monitoring and also the analysing of all the requirements of the organisation in order to achieve certain goals. Virgin company is the British multinational company deals with multiple sectors. For the formal assessment you will have to submit the strategic management report. Kindly do refer the student handbook for all the required information about the programme assessment scheme and address all the learning outcomes mentioned below:
- Apply various theoretical models along with their potential for developing strategy with supporting their strategic decisions in context of Virgin company.
- Explain theoretical development of strategy.
- What is the process for the strategy making in multinational companies.
- What will be the impact in the strategy making for the changing volatile and turbulent environment.
- What are the significance and the difficulties in formulation and implementation of strategies in Virgin company.
This project discusses about strategic development techniques followed by Virgin. Managers motivate employees to actively participate in the business activities. They allocate resources according to individual capabilities. Further it discuss about corporate rationale for virgin group of companies, virgin group as corporate parent add value to business and future corporate strategy of virgin company. Virgin follows five pillar empire suggested by Richard. Managers make decisions and implement them to achieve the targets.
1. Directions of strategic development followed by Virgin over the period of case
Strategic deals with establishing a business. Managers make plans to achieve goals and objectives of business. They make crucial decision regarding allocation of resources to implement the plans and strategy. Virgin company set strategic direction as vision, strategy and tactics. Vision provides framework for destination. Managers prepare strategy that will guide employees to achieve the set targets. Virgin’s manager provide clear direction to employees. They must motivate employees to cooperate with each other. Every company has different vision and strategy. Virgin has a vision of providing quality services to their customers. In order to deliver quality services, manager adopts various strategies.
Goals of organization must be specific and definite. It is important to have knowledge about customer behaviour and attitude. Virgin produces products that have customer value. It is important to synchronise strategy with vision. Strategy provides guidelines that will help in achieving the goals of organization. Manager of Virgin chooses the best option from available alternate. Virgin company tactics have limited scope. They are the part of company’s strategy. Tactics help in optimum utilisation of company resources. This helps in achieving short term goals of organization. Vision, strategy and tactics are adopted by Virgin to develop the strategic planning.
2. Corporate rationale for Virgin as a group of companies
Virgin Group Company operates as a small business entity. This company has valuable ideas for growth and development. Employees of Virgin are committed towards their work. Virgin grabs the opportunities from market which is one of the important elements of corporate rational. This company has adopted strategy of “five pillar” which was proposed by Richard. This strategy consists of all essential components like travel, leisure, mobile phones, personal finance and retailing. Managers take decisions that help in the growth and development of organization. Corporate rational is based on own theory of Richard Branson. This company is divided into various feasible markets. It has small cooperate centre due to which they have low cost centre.
Manager tries to identify various opportunities that are related to their business. With the help of their skills and experience, they innovate and implement change in plan. Virgin company enter static market, which has few competitors. This company keeps the product’s price lower as compared to other competitors existing in market. Virgin captures a large market share because they have lower price. Company has potential to gain high profit because it is the monopolistic market. Effective management practice is an important component of rational corporate that helps in long term growth of Virgin.
3. The way Virgin Group as a corporate parent add value to business and extent to which these parenting skills are relevant to various businesses in the group
Corporate parenting of Virgin Group helps in adding value to the business process. Virgin uses their brand image to increase their productivity and performance. Parenting process is the responsibility of all local authorities. Elected member of council performs like leader and assures that all members understand their responsibility and work effectively to fulfil them. Team members of Virgin Group perform good job and satisfy the needs of customers. Managers match their experience with strategies in order to deliver quality products to customers. Virgin Group uses brand image to add value to business which helps to overcome the barriers. This company designs products according to customer’s desire.
Corporate parenting helps in eliminating the business risk. Virgin Group follows flexible management structure. They motivate employees actively to participate in different activities of business. Virgin forms groups of people that have same mind set and attitude. Innovation in technique helps in creating the product differentiation. These innovative ideas play a significant role in the success of business. Virgin has very few competitors, managers identify particular segment of market and target them. This company offers quality products at good price. Innovation plays the major role in making individual careers successful. Virgin has formed partnership with telecommunication organisation to offer better services to customers.
4. Future corporate strategy of Virgin Company
Corporate strategy helps in identifying long term and short term goals of company. Virgin coordinates the actions of employees to achieve set targets. This strategy motivates employees to actively participate in decision making process of organization. Managers influence the behaviour and attitude of people working in organization. It is a continuous process that is required at all levels of the management. Corporate strategy attract investors. They trust company and invest their money. Virgin delivers quality products to customers with the help of this strategy. Company can adopt the cost leadership technique. This helps in minimising the cost of production and maximising profit of company. Managers increase volume of sell by lowering price of products. Virgin offers unique services to customers which help in product differentiation. Cost leadership can help Virgin to gain competitive advantages. Virgin can adopt this technique to increase the profitability and productivity. Corporate strategy is adopted by various multinational companies. This helps in the growth and development of company. This helps company to retain their customers.
This project concludes about strategic planning adopted by Virgin. It emphasises on the key areas like innovation and product differentiation. Aim of Virgin is to increase profit and minimise cost of production. Virgin group is among largest company in UK. Richard Branson theory play an major role in success of company. Effective leadership help in motivating employees to coordinate there efforts towards growth of company. Virgin company adopt various strategies that help in rendering quality services to customers. Company focuses on the requirements of customers. Virgin can adopt cost leadership strategy to enhance make product valuable.