Organisational Strategy: A Case Study of Virgin Atlantic Airlines

Organisation
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Macro- environment factors........................................................................................................1
Industry Position ........................................................................................................................2
Segmentation, Targeting and Positioning- ............................................................................3
Porter's 5 forces model-..........................................................................................................3
Internal resources and capabilities..............................................................................................4
Stakeholder perspectives ............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Organisational strategy is sum up of strategies or plans which a company follows for this
long- term goals. An organisation sets its long term strategy by reviewing its mission, vision and
values. It tells about the direction where the company wants to head and sees itself into the
future. Organisational strategy are formed by top level of management where are the middle and
lower level of management has to follow and adopt it to achieve comprehensive organisational
goals (Aguilera-Caracuel, Hurtado-Torres and Aragón-Correa, 2012). For the reference, this
report has taken a company, Virgin Atlantic. Virgin Atlantic is a British airline company head
office at Crawley, England. It was founded in 1984 by Randolph fields and Alan Hellary. This
report will going to consider the strategic position of Virgin Atlantics in relation to both external
and internal factors.
PART 1
Macro- environment factors
There are some environmental factors which affects the working of business in a broad
way. Any organisation cannot control these factors (Al‐Hakim and Hassan, 2013). All such
factors independently affects an industry. Macro environment factors are- Political, economical,
social, technological, environmental and legal.
Political- Political factors are the factors which influences a business to a certain degree.
These factors include government policy, political stability or instability, corruption, foreign
trade policy, tax policy, labour law and trade restrictions (Carlsson-Wall, Kraus, and Lind,
2015). As in reference with Virgin Atlantics, the airline company faced issue at the time of
Brexit (2016), in which the Britain voted to leave EU. This huge change resulted in confusion in
company's operations. It also forced the company to alter some of its policies at matched with the
political changes. It is also said that in 2009 the company faced many challenges and restrictions
due to its spread into foreign countries such as US and Australia. Some issues include high tariffs
rate, partially or major control of business operations by government, instabilities in government
policies.
Economic Factors- Economic factors include economic growth, exchange rates, interest
rates, inflation rates, disposable income, unemployment rates and so forth. All these factors
affects business working directly and indirectly. In case with Virgin Atlantics, the economic state