Richard Branson and the Virgin Group Case Study

This presentation is a case study on Richard Branson and the Virgin Group, focusing on their competitive strategy and innovation in the conglomerate industry. It discusses the resources and capabilities of the company, business diversification strategy, analysis using the VRIN model and BCG matrix, Porter's Five Forces Model, and recommendations for changes in the organizational structure and management system. The presentation concludes with the importance of adapting to the dynamic business environment for establishing a competitive edge.

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THE UNIVERSITY OF NORTHAMPTON
FACULTY OF BUSINESS AND LAW
MASTER OF BUSINESS ADMINISTRATION
STRM043 COMPETITIVE STRATEGY & INOVATION
Richard Branson and the Virgin Group Case Study Assignment 1
Model Name: COMPETITIVE STRATEGY & INOVATION
Number: STRM043 Assignment Title: Richard Branson and the Virgin Group Case Study

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COMPETITIVE STRATEGY & INNOVATION

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Introduction
 Strategic management refers to the framing of goals and
objectives by higher management level so that it can be
accomplished in effective manner. Proper plans and actions
are developed that mentions steps that have to be followed
by individual of organisation.
 The report highlights the case of virgin group which is
included in conglomerate industry supplying different types of
services like health care, banking, electronics, commercial
aviation and many other.

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Resources of Virgin Company
 Brand Name
 Risk Taking
 Richard Branson

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Capabilities of the Company
Each business organisation have certain distinctive capabilities that help
them to stand apart from their competitors in market place. Virgin group
of company possess capabilities of:
Effective management style
Prospective Employees

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Cont..
VRIN model is formulated in order to understand this process more
deeply which consisted of four components that are:
 Value
 Rare
 Inimitable
 Non- Substituted

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Business Diversification strategy of Virgin
company

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Virgin company operates in different types of sectors
 Financial sector:
 Apparels segment
 Auto-mobile segment
 Transportation sector:

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Cont.....
BCG matrix is adopted to analyse the different aspects so that
effective decisions can be made in that regard. This matrix
helps the virgin group of companies to examine number of
business segments so that optimum utilisation of resources
can take place and there is no wastage for the same. It is
analysed in four segments that are described below:
 Cash Cows
 Dogs
 Question Marks
 Stars

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Porter's Five Forces Model
 Threats of new entrants
 Threat of Substitutes
 Bargaining Power of customer
 Bargaining Power of Suppliers
 Industry Rivalry

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Recommendations on changes in organisational structure
and management system
 Company should formulate divisional structure
 Second recommendation involve classifying the activities in accordance
to
the nature of departments
 Third recommendation involve that virgin group can reduce their overall
operations and transactions
 Another recommendation include that every personnel should be
motivated
 The hierarchy system must be properly implemented

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Cont......
Branson carry out authoritative management style as he control all
business operations by himself, therefore, it is necessary to carry out
management style with participative in which each and every individual
have the same say in the organisation and results in contributing effective
actions in decision making process.

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After Branson
 As virgin group deals in number of departments like entertainment,
retail, travel hence number of steps need to be taken in order to manage
all the operations in effective manner.
 Proper management have to be established for each department by
new owner who will take the place of Richard Branson. As there are
number of issues that has been faced under his ownership in regards of
business model.
 Halo effect that has been carried out by Branson will be reduced that
will result in increasing the overall value of the group.
 There are number of problems with present management style and
structure which will be minimized so that no more issues could occur in
this regard.

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CONCLUSION
It has been concluded that business environment is dynamic in nature
which keeps on changing with time. Hence, it is necessary for the
companies to keep in pace with these modification in order to establish
their competitive edge in market place. The report highlights the case of
Virgin group which operates in various types of factors and focuses in
earning high outcomes and profits.

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THANK YOU