Virgin Group - Case Study

1. Common resources and capabilities link the separate Virgin companies

There are companies that fall under Virgin Group. It includes companies like Virgin Hotels, Virgin Health banks, Virgin Mobile, Virgin Radio, Virgin Rail Group Ltd., etc. All these firms make use of common capabilities and resources. Below given are the resources that are common in these companies:

Human Resources: All the employees hired by Virgin are highly experienced. This enables them to make sure that the work that is provided to them is performed effectively and efficiently. Employees are the face of an organization as they have direct interaction with customers (Uddin and Akhter, 2011 ). Management of the companies understands the requirements of workers and provides them with training so that they will be able to raise their performance level. They also enable the firm to achieve the desired goals and objectives.

Financial Support: All companies are performing their business operations around the world. This way they are able to attract customers and gain huge profits. With this respect, for all the business activities that are planned require financial support and for Virgin, all the companies are able to conduct their business operations in effective manner as the financial support for all the firm is high as they are able to get high return from the type of products and services that are delivered by Virgin companies.
Below are the common capabilities of Virgin Companies:

Close Customer's Relation: They understand the requirements of customers and take feedback. This is helpful enough to know the issues that are faced by them. Further, they also make use of social media which is helpful to have direct interaction with customers. It helps to have direct interaction with customers and they get to know the perception that they have for each of the products and services that are delivered by the companies (Jakada, 2014 ).

2. A business that Branson should consider divesting. Criteria used in deciding what new diversification strategy to pursue

As per the above, table, it can be stated that from the criteria that are determined, it can be stated that the lowest performance is made by Virgin Holdings Ltd. (Harrison and John, 2013). On the other hand, the firm that is gaining huge profits and with high performance is Virgin Rail Group Ltd. With this respect, Branson should consider Virgin Holdings Ltd. as divesting.

In order to make use of a new diversification strategy, Branson should make use of PESTLE analysis. This is a type of tool that enables to determine the performance of the market selected. Virgin Holdings is willing to expand its business in China, then it should make use of PESTLE analysis with the help of which business can be established in a new market. Below is the PESTLE analysis:

Political Factor: When changes take place in monetary or fiscal policies on a regular basis, then it affects the pricing for the products and services that a firm is willing to offer. Price can be determined as an important factor that changes the buying behaviour of customers (Angwin, 2014 ). Changes in monetary and fiscal policy are not frequent.

Economic Factor: In this context, it includes inflation and recession. When in a market, there are these types of conditions, then it affects the business in a negative manner. Customers fail to spend on the products and services that are delivered by the firm.

Social Factor: Changes in taste and preference of customers take place frequently. Market research should be conducted so that the preferences of customers can be determined. This way improvement can be made and a strong customer base can be developed. The type of services that are preferred by China is different so proper analysis should be made.

Technological Factor: With time changes in technology take place frequently and it is important for the firm to make use of new and updated technology so that better services can be delivered (Foust, 2010 ). There are companies that deliver their customers with similar products and services. To be competitive changes in technology should be made so that better services can be delivered.

Legal Factor: All the laws that are followed in China should be considered. If they are not followed, then customers will develop negative perceptions in their minds and they will not prefer to make purchases or use the services of Virgin Holdings Ltd.

Environmental Factors: All the products and services delivered should be of high quality. For this purpose, the environment should not be negatively affected.

Further, key factors that can be considered for diversification are innovation, brand extension, parenting advantages, and linkages between business and the internal labour market.

3. Changes in the organisational structure and management systems of the Virgin Group

There are a different type of organizational structures that can be followed. In order to make the business operation run in an effective manner. Cited firms should make use of functional structure. This is a type of structure, in which all the operations within the firm are divided into different groups. Further, all the department is controlled by a manager who has vast information and knowledge about the areas (Yiu, 2011 ). This enables to monitoring of the performance of each and every worker by the managers. As per the analysis made, they can be provided with proper training. This the rate of performance can be raised and better services can be delivered. Further, strategies can be implemented as per the performance that is made by each of the workers. Managers will be able to have proper interaction with their employees and all the issues or problems that are faced by them, can be determined. Accordingly, steps can be taken with the help of which improvement can be made.\

In order to make an improvement in the management system, workers should be provided with the opportunity to work freely. Further, employees have direct interaction with customers and they are one who present the products and services to customers. In case workers of Virgin Holdings Ltd. Are not able to perform effectively, then one of the main reasons can be due to lack of motivation (Li, Li and Li, 2014 ). There are certain motivational factors that workers have and when these are fulfilled, then the employee gets motivated. For this purpose, management can also make use of motivational theories like Maslow's need hierarchy. This is an effective theory as it covers all the essential areas with the help of which workers can be encouraged. Further, additional responsibilities should be provided so that workers develop a feeling that they are important to the firm. When these aspects are followed t, then Virgin Holdings will be able to make improvement in their performance and growth of the organization.

Conclusion

From this report, it can be articulated that workers should understand the part of work that has to be performed by them. There are a different type of reasons due to which the performance of work gets affected negatively. Further, it is important for the firm to make frequent innovations so that better high-quality services can be delivered and customers can be satisfied. Further, workers should be provided with the opportunity to make a decision. They work closely with customers and so they know better about the issues or problems that are faced by workers. In addition to this, tools like PESTLE and Porter's five forces are helpful for the firm to make use of so that a suitable market for business expansion can be selected.

References

• Angwin, D., 2014. In Search of Growth: Choosing Between Organic, M&A, and Strategic Alliance Strategies.
• Ashwini Nand, A., Singh, P. J. and Power, D., 2013. Testing an integrated model of operations capabilities: an empirical study of Australian airlines. International Journal of Operations & Production Management.
• Foust, J., 2010. Space launch capabilities and national strategy considerations. Astropolitics.
• Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
• Harrison, J. S. and John, C. H. S., 2013. Foundations in strategic management. Cengage Learning.
• Jakada, B. A., 2014. Building global strategic alliances and coalitions for foreign investment opportunities. International Journal of Global Business.
• Li, A. N., Li, S. and Li, H. B., 2014. Resources and biological activities of natural polyphenols. Nutrients.

Furthermore, You May Like

• Case Study on Welsh Utilities Regulator
• D/601/0578 Unit 6 Case Study of Surgical Industry in Sialkot
• HRM4002 - People in Organisations Case Study
• New Product Launch - Market Case Study on Vodafone Plc

UPTO55%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit