Strategic Management: Virgin Atlantic

   

Added on  2020-01-07

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STRATEGICMANAGEMENT
Strategic Management: Virgin Atlantic_1
TABLE OF CONTENTS1. INTRODUCTION ......................................................................................................................42. MISSION, VISION, VALUES AND OBJECTIVES.................................................................43. ENVIRONMENTAL ANALYSIS..............................................................................................53.1 Macro analysis of Virgin Atlantic through PESTEL analysis .........................................53.2 Industry analysis through porters five forces model .......................................................74. CAPABILITY ANALYSIS ......................................................................................................105. PROPOSED STRATEGY ........................................................................................................146. STRATEGY EVALUATION ...................................................................................................16CONCLUSION..............................................................................................................................17REFERENCES .............................................................................................................................18APPENDIX ...................................................................................................................................20Appendix 1: Strength rating ................................................................................................20
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INDEX OF TABLESTable 1: PESTEL analysis of Virgin Atlantic .................................................................................7Table 2: Virgin Atlantic porters five forces model........................................................................10Table 3: Virgin Atlantic competitive matrix .................................................................................11Table 4: How Virgin Atlantic airways address its CSF ................................................................13Table 5: TOWS matrix...................................................................................................................16Table 6: Strategic option suitability...............................................................................................17Table 7: Expectation of Virgin Atlantic stakeholders....................................................................17
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1. INTRODUCTION Strategic management depict about tactics which manager uses in order to carry outbetter performance in market. In order to gain success in market, manager of firm will have toformulate an effective tactic. Thus, with an aim to do the same enterprise will have to conductthrough market environmental analysis by using number of tools and techniques. For the presentreport, Virgin Atlantic is taken into consideration. It is the British Airline Company which has its operation situated in Crawley, UK. Here,in 2012 firm has carried around 5.4 million passengers and thus has gained seventh largestposition in UK airline industry in terms of volume of passengers (Virgin Atlantic, 2016). Thereport will give description regarding the challenges which is being faced by cited firm.Furthermore, the report will also state the ways which manager of Virgin Atlantic can use inorder to mitigate the challenges which firm is facing. 2. MISSION, VISION, VALUES AND OBJECTIVESVirgin Atlantic airways is the part of Virgin Group. Furthermore, it is being consider asthe trade name of Virgin Atlantic Airways limited. The airline along with Virgin Holiday is inthe control of holding company which is named as Virgin Atlantic Airways. Here, Virgin Grouphold 51% share, however 49% shares is hold by Delta Airline. Firm operates its operation inaround 31 destinations with 9231 employees. In this regard, vision, mission, value and objectiveof company is depicted in below:Vision: The firm has the vision to become leading airline on sustainability, and drivingwhole airline industry with innovative solutions. With an aim to attain respective vision,firm is making changes in its sustainability policy and for which it has set number oftargets. Firm has the target to reduce CO2 emission by 30% per revenue tonne KMbetween the year 2007 and 2020 (Virgin Atlantic Change is in the Air SustainabilityPolicy, 2016). It also has an aim to reduce noise output which occur due to aircraftmovement by 75% between the year 2007 and 2020. The particular vision of companystate that firm give consideration to the environment where it operates its operation.Thus, it depicts that corporation works for the benefit of society. Mission: Virgin Atlantic has the mission “to embrace the human spirit and let it fly”. Thisthing entails that main aim to company is to deliver high quality services to its buyers.
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Value: Firm gives value to customer focused approach and thus it makes all sort ofmeasures with regard to enhance as well as maintain satisfaction level of buyers in aneffective way (Bourmistrov and et. al., 2015).Objectives: To become such airline where people love to work as well as fly. In thisregard, firm makes all sort of efforts in terms of providing seamless travel experience tothe buyers. 3. ENVIRONMENTAL ANALYSISIt is very essential for the manager that it should analyse different factors which areprevailing in its external environment. This is because, such type of practice will lead to guidemanager of Virgin Atlantic towards right direction. Here, macro and industry analysis of citedfirm is carried out which are depicted in below:3.1 Macro analysis of Virgin Atlantic through PESTEL analysis PESTEL analysis of UK airline industry environment is carried out. The given thing willlead to cause significant impact upon the cited company. It is depicted in below:FactorDrivers of changeImpact Uncertainty PoliticalChange in the policy ofgovernment or firmupdation in the existingacts such as Civil Aviationact.Change in the rate ofinterest for UK airlinecompanies. Trade and taxation policyof UK government canalso affect expenses ofcompany (Chadwick andCashen, 2015). 41EconomicFluctuation in global oilprices.51
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Condition like recessionand inflation can alsoaffect company.UK GDP shows 0.4%growth in first quarter. SocialIncome shiftChange in the tastes andpreference of buyers.Increasing population ofmillennials travellers. 52TechnologicalPresence of online and eticket booking system.Mobile application ischanging the way airlinecompany deliver theirservices to customers (Carrand Hancock, 2006). 52EnvironmentalMany airline company inUK are adoptingsustainability approach bymaking reduction incarbon emission of flight. 41Legal Change in governmentpolicies and safetyregulations are alsoimpacting company. 43Table 1: PESTEL analysis of Virgin Atlantic On the basis of conducted analysis, there are three major drivers of change identifiedwhich will lead to cause significant impact upon the operation of Virgin Atlantic. These are alldepicted in below:Economic: It includes all the factors which lead to cause impact upon the operation of company.
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