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Influencing Organisational Strategy : Assignment

   

Added on  2021-02-20

17 Pages4599 Words96 Views
INFLUENCINGORGANISATIONSTRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31 Various resources and capabilities links the separate virgin companies..................................32 Diversification of Virgin group...............................................................................................43. Criteria to pursue new diversification.....................................................................................54. Recommend changes in financial structure, organizational structure, and managementsystems of the Virgin Group.......................................................................................................75. Virgin's value as a corporate parent and addition to it............................................................86. Challenges faced by a successor to Richard Branson, and practices that he/ she may adopt.9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONThe Virgin Group set up by Sir Richard Branson practices a great deal of diversification in itsvarious business and its operations. Through its subsidiaries, Virgin Company engages in a lot ofdifferent activities. This report highlights the Unique Selling Points of the company and howthey are linked to the available resources and their utilisation. Further, this report explores thedivestment opportunities for the company and what should be the criteria for evaluating the prosand cons before divesting. These pros and cons guide the management team about which newdiversification to pursue. This report also highlights the present financial and organisationalstructure and the management system and what changes can be implemented to improve it. Then,the value added by the Virgin Company and how it can be further increased is also described.Lastly, challenges which a successor of Richard Branson might face and the possible strategiesthat he might adopt have been discussed.MAIN BODY1 Various resources and capabilities links the separate virgin companies.Resources refers to those productive assets which is owned by the organisation. Andcapabilities refers to what firm can do. Resources are divided into intangible, intangible andhuman resources. In this case of virgin group ,there are various resources identified.Tangible resources: Virgin group have more focus on the long term capital growth instead ofshort term taxable income which tells that virgin group has a strong finance resource.Intangible resources: Branding is the most important resource of virgin group. virgin runsbusinesses with six values which includes money value,good quality,innovative and providingbrilliant customer services. These are the following values which has helped virgin group to facecompetition and satisfied the customers. Example the virgin Atlantic which provide customersmessages during the flight ,motorcycle transportation to and from the airport and much more.This shoes that whatever is done within Virgin brand is based on the Richard Bransonphilosophy as they are trying to improve customer services. Secondly the virgin group culture is very casual and has allowed the workers andemployee to share their ideas , values and goals to achieve the following objective of thecompany. Human resources:Its is also a common resource of virgin group. The manager ofvirgin group company has power to manage and look over the whole company. And they also3

have been trained according to virgin group management new-style. If The virgin group set upnew company the expertise of company are free to switch to work for the new company.The another intangible resource is corporate culture which describe about the structure offirm. There is one red line for all the Virgin company which is based on Richard BransonPhilosophy which helps the company to be in structure the same and allow firms to follow thesame rules (Serra and Kunc, 2015).The capabilities of Virgin group company are management,risk diversification,networking andalso includes innovative business ideas and products. The manager of virgin group has the powerto control finance and management .And also providing advises and managerial support to thevirgin group. This capabilities has supported the virgin group to become more specialized in thefield. Virgin group forms a strong network so that they gain benefits and develop winningsituations. when the virgin group decide to introduce new business first they considered aboutwhat new benefits this business is providing to exiting business which means that virgin grouphas a strong network capabilities to expand the business and always ready to bear risk.Virgin group always developing innovative ideas for both existing and new marketwhich states that this concept is made to improve the services and products which are alreadyoffered by other firm in the market. This was the philosophy of Richard Branson name called“sticking it to the big boys”which allows the company to gain market share and profit from boththe markets.4Illustration 1: Virgin CompanySource : (Virgin Group Company, 2015)

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