Strategy and Entrepreneurship

STRATEGY AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Environmental macro-analysis................................................................................................1
2. Industry analysis......................................................................................................................5
3. Internal Analysis.....................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic entrepreneurship refers to using strategic perspective for taking entrepreneurial
actions. It's a process of making changes in established business, for firm’s growth, innovation
and wealth creation, through integrating strategic advantages seeking actions and entrepreneurial
opportunity (Johnson and Van de Ven, 2017).
Virgin Atlantic is a British airline established in 1984, headquartered at Crawley, UK by Mr
Richard Branson. It was first known as British Atlantic Airways. Airline comprises of Virgin
Atlantic Cargo and Virgin Atlantic flights, along with Virgin Holidays is been controlled by
Virgin Atlantic Ltd. Company's 49% shares are owned by Delta Air Lines and 51% by Virgin
Group. Airline headquartered at Crawley, UK ministers strategic vision of ensuring sustainable
growth in delivering overwhelming customer's experiences. Virgin Atlantic was voted as no. 1
for UK-TATL customer satisfaction. In 2017 they have flown around 5.3 million passengers and
have about 9,800 employees. They have a revenue of 2,663.7 million Euros. Their mission
statement is to embrace human spirit and let it fly. Being a premium British airline is the Unique
selling proposition of Virgin Atlantic, to offer luxury flying at an affordable price and becoming
first European carrier to offer in its entire fleet of flight with Wi-Fi.
In this report an analysis of internal and external environment is been done. For
determining external environment, environmental macro analysis is being done using PESTEL
analysis. For identifying factors affecting organisation within industry, Five Force Analysis is
being done and discusses the attractiveness of industry. Using appropriate strategy tools
organisation's strategic capabilities is been determined, which can give competitive advantages to
company. Internal analysis refers to identifying internal and external organisation's competency,
its cost position and competitive place in marketplace. It helps organisation to integrate measures
which gives useful information about enterprise's strengths, weakness, opportunity and threats.
Value chain analysis is being used for identifying key activities, which have potential of
sustainable competitive advantage for organisation.
MAIN BODY
1. Environmental macro-analysis
Every business is being affected by macro environment, which contains many factors that
could even destroy organisation's business. Macro environment can influence overall economy of
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business and also affects their customers (Dhliwayo, 2014). For determining these factors
affecting Virgin Atlantic's operations or business PESTLE analysis is being done. This analyses
influences of political, economic, social, technological, legal and environmental factors of
business. These factors can't be harnessed directly by organisation, yet each of the elements
affecting business enterprise.
PESTLE Analysis for Virgin Atlantic:
Political:
 Ambiguity in future trade policy: Aviation industry have to heavily rely on European
Union policies, as Britain has not clarified policies of newly liberalized Britain. Country
have not formed new trade policies for industries to perform business with Europe or rest
of the world. This could affect business of Virgin Atlantic as they are required to plan for
their sustainability for at-least 2 to 3 years in advance. They have to spend a great amount
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Illustration 1: Pestle for Virgin Atlantic
(Source: PESTLE analysis, 2016)