Strategy and Change: Assessment of Virgin Group's External and Internal Environment, Current Strategic Position, and Change Management Plan

This report assesses Virgin Group's external and internal environment using PESTEL and SWOT models, as well as its current strategic position in the market. It also discusses the company's change management plan, including outcomes, communication, impact analysis, measurement of success, and business case for change.

Strategy and Change
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Contents
INTRODUCTION......................................................................................................................3
ASSESSMENT 1.......................................................................................................................3
External environment of virgin group....................................................................................3
Internal capabilities of virgin group.......................................................................................4
Current strategic position in the market.................................................................................6
ASSESSMENT-2.......................................................................................................................8
Change management plan......................................................................................................8
Change outcomes...................................................................................................................8
Communication of the change process................................................................................12
Impact analysis.....................................................................................................................13
Measurement of success.......................................................................................................13
Business case for the change................................................................................................14
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16
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INTRODUCTION
Strategy refers to a long term plan of an organization in order to ensure its long term
performance and keeping the operations favourable, profitable with higher growth. In the
report for Virgin group which is a UK based organization having more than 200 companies in
different 60 businesses and working in more than 40 nations. External and Internal
environment of the company will be discussed using PESTEL and SWOT model respectively
(Wisetsri, 2021) Current strategic position of virgin group would be articulated. Change
management plan of the group, its outcomes and communication of the change process shall
be discussed in the report. At the end of its aspects like impact analysis, measurement of
success and business case for the changes experienced will be elaborated.
ASSESSMENT 1
Virgin group is a British multinational organization which manages a range of
different companies under its monolithic umbrella organization. The entity is working in
different sectors such as entertainment, travel, sports, charity, hospitality, communication
retail etc.
External environment of virgin group
For analysing the external environment of the virgin group PESTEL model is being used
which a tool of strategic management.
Components
Political Various political aspects such as labour laws, taxation laws, trade related
norms, some political dimensions such as Brexit has shown its great
impact on the business. The company is operating the business in more
than 35 nations and due to this diversity various political approaches have
disclosed their great impact on the business. Specifically after Brexit the
path is no more in favour for it since EU may impose tougher rules. Like
in 2006 UK (Schuetz, 2018) government has imposed some restrictions
on the airlines where it had great interest.
Economic Economic disruption across the world is a severe issue for the company.
After CoVID-19 nations are struggling to get their position back.
Economic recession of 2007 to 2010 caused great losses to the company.
Other economic factors such as globalization, liberalization and intensive
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support to capitalism in the nations like USA, UK is helping the company.
Social In the markets of Virgin group with the time various social aspects are
also getting changed such as people's attitude, purchase power,
consumerism, job status etc. which are also brining sharp affects on their
approach for various products and services provided by the company.
Social approach for hospitality, electronics, retail is going in favour of the
organization.
Technological Company is working in different sectors but its mobile, technology and
aviation line has faced tough competition. In USA mobile companies like
Nokia, Motorola are giving tough market challenge. Other technological
aspects such as AI and Machine learning are also affecting the business
and surging need to go for further improvements in the operations of
Virgin Group.
Environmental People and governments across the world are getting more conscious
about environment. The company is working in different sectors so having
rigorous need to meet the environmental requirements. Global laws
pertain to environment are getting tougher which kicks off need of serious
attention. The Environment act, 2021 (Benzaghta, 2021) also came into
effect in UK which raises new concerns for the company.
Legal Legal aspects of various markets have always been tough nut for Virgin
group. As in 2006 UK (Nicolae and Romulus, 2020) government has
changed the laws of airlines which allowed other entities and raised
competition. After Covid-19 Laws and regulations are getting tougher
which may open new challenges to the company.
Internal capabilities of virgin group
To decipher the internal capabilities of the company SWOT model has been applied.
Strengths:
 The leadership of the company is very impressive, working in different nations,
market, with different products and services yet the performance has been great due to
charismatic leadership.
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 Intensively diversified company working in electronics, hospitality, retails, airlines,
tours and travels etc (O’Brien, 2020)
 Marketing strategies are also diversified as per requirements of the markets and
products, using a range of marketing tools.
Weaknesses:
 Negative publicity is affecting the brand name since the organization is engaged in
more than 60 different businesses. Some others are using its name and brand for their
benefit which is spoiling the brand of the company.
 There is no key product or service. Virgin Ltd is working in a set of different products
and services so lack of proper attention can be seen.
 Financial issues have been there for the company in last couple of year, which is also
affecting its ability to go for diversification and more expansion in the market.
 Due to so many sectors the company some times faces peril of improper attention in
specific sector.
Opportunities:
 By taking advantage of its great presence in the market can place more competition
and also grab big market share.
 By concentrating on the most profitable business can go for bigger profits. Since all
the businesses are not performing same and their profitability, future scope are also
different.
 Having a good brand name and goodwill so with the progress of time can make entry
in some new markets as well, further introduction of new products and services which
are in demand can also be introduced.
 Digitalization is still not being used on its potential so with this regard can ensure its
apex use for higher profitability.
Threats:
 Richard Branson had left the company in severe challenge of deciding most
appropriate face to give it strong leadership. It may bring horrendous threats since he
was the leader who had great idea of the business and also experienced different
circumstances of the organization.
 Financial problems of various economies may be a severe threat, specifically after the
hit of pandemics the economies where it is performing operations are facing issue of
poor economic cycle, and recession, inflations too.
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 Higher competition by various organizations due to their direct attention to single
business like in USA Nokia and Motorola are giving tough fight in the mobile market.
Current strategic position in the market
Virgin group is getting operated in different sectors in the UK market. The
organization is well diversified and having its presence in almost all the key sectors where
great amount of profitability and higher market share can be grabbed.
Current strategic position of the company is very much clear since the market is very
diversified and a range of goods and services are there so for the organization deciding
priority and appropriate strategies is very prominent.
It has mainly characterized five core areas to enhance performance which are also
known as five pillars of the company. These are Leisure, Travel, Mobile phones, Personal
finance, and entertainment retailing. These areas have been very profitable over the time and
in the present circumstances offer great window of further improvement and expansion to the
company that's why in current strategy are given most burning priority. For targeting the
segment these five pillars are given huge attention.
As it is known that the organization is engaged in various sectors and performing its
business in a very diversified manner, so the biggest peril earlier it had faced was lack of
proper attention to some market so can grab bigger share and can also ensure better
productivity, competitiveness.
Brand name is the arguable most prominent asset of the organization, getting
operated in diverse sectors and running more than 200 businesses (Neves and Poppi, 2020) is
not an easy thing so with this regard it keeps giving priority to build strong brand name.
Which is assisting the business to grab great performance and bigger market share. It
promotes its brand as “Consumer Champion” so can make soft place in the hearts of the
customers.
In different markets, different businesses are performing good, for instance in the
market of UK the business is taking advantage of its ethnocentric policy where considering
the convictions and notions of people, there likes dislikes, choices, preferences are considered
so better can be extended to them.
The main strategy of the company is to keep its customers in centre so can not only
serve them the best products and services but also can take advantage of their loyalty factor
for the growth of the company. For this sake, generally in advertisements promotion of value
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providing to customers is raised and their every issue is taken into consideration for further
improvement.
To give tough competition to the competitors in the market of UK where different
organizations such as Lurkin, Delta arilines, British Airways, Andreessen Horowitz etc.
Group believes in quality leadership, where it ensures providing better quality on cheaper
prices so can enhance the belief of customers in the company. These strategies also help to
make sure drastic positioning in the market (Pérez-Castaño, 2019)
As per suitability and needs of the market the organization decides various segments
to focus on. Like in the market of retails where women are given focus, at the same time in
the hospitality business different groups of people who are more likely to acquire such
services such as people from higher and middle class family are given attention. This ability
of the company make it strong and profitable in the market of UK.
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ASSESSMENT-2
Change management plan
Change management is based on the process that help to deal with the transformation
or transition of enterprise’s goals, objectives, processes and modern technologies. The main
purpose of change management is to consider different strategies that are affecting,
controlling or managing the change. In some cases, it is also helping individuals to adapt
innovation change in business growth and development.
Without any doubt, it has been developed more understanding that change management is
important part of Virgin group, when a great leader is always trying to improve their business
process. Typically, a change management can be categorised into different ways: - adapting
to the change, controlling and effecting change. The virgin group has used the proactive
approach to deal with change at different level. For purpose of business expansion, change
management is an essential because it is defined the business procedures, technologies to deal
with certain changes in context of business environment and gaining more profit from
changing opportunities (Ali and Anwar, 2021). The virgin group is majorly influenced by
Richard Branson’s as personal philosophies and focused on the change of business culture or
environment. The culture of enterprise reflects the nature, formal authority and dis-respect for
hierarchy. It has gradually consider a progress of business and emphasizing the informal but
it is developing strong belief system & values.
Change outcomes
Resistance for change- In the context of virgin group, it has been concerned about the
change initiatives and identify the resistance to change management. Typically, the enterprise
has introduced the costs, process and delays into business change process. Therefore, it is
difficult for virgin group to implement a new approach in the business enhancement. The
concept of resistance has become consider as an important source of data or information. It is
being useful in terms of learning how to develop a successful change process (Franklin,
2021). Undoubtedly, resistance change is important topic for Virgin group because it is
always doing some kind of modification in business management strategies. It is seriously
considered to help the enterprise in terms of achievement and success. Whenever the leader
of virgin group is always trying to manage the resistance change and following different
techniques or methods.
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Strong communication- it is one of the most effective approach in order to identify the
strong interaction or communication between employees in the workplace. In virgin group, it
would be improved the level of communication between manager and staff members so that it
can easily sharing information in business development. Undoubtedly, an effective
communication ensure that staff member buy into the change process and educate employees
towards tasks management. In some cases, it is also helping to perform and use new
technology in terms of product & services. This kind of change can be possible through
effective communication and change process.
Participation- this will help for virgin group in terms of smooth transition from pre-
change phase to post change. If staff members are encouraged to participate into change
process and identify solutions of uncertain problems when it has implemented the technology
change in business (Jönsson, 2021). So, it would support to eliminate unwanted issues and
solved in terms of initiation process or method.
Negotiation- This type of process is used when identifying the resistance change and
management required to sell their idea from employees.
Top authority or management- A major support of top authority is to participate into
change process that help to minimise or eliminate the change resistance in the virgin group.
Kurt Lewin’s change management model
Kurt Lewin has been developed the change model which involves different stages: -
unfreezing, changing and refreezing. For considering this model, the virgin group is focused
on the change process which entails creating a strong perception and then moving towards
new, desired level of employee behaviour. At last, it will be finalizing the new behaviour on
the basis of standards, norms.
The most commonly applied the change management model such as Lewin’s in the
virgin group. In order to utilise the different process. In the context of unfreezing, manager’s
of virgin group is focused on the attitude of employee and examine that how different staff
members are participating into business operational activities. Typically, it should be
considered the working practices, prepare foundation of change (Kiljunen, 2021). The
successful unfreezing process are applied on the effective communication methods. So, the
virgin group is always maintain a strong coordination and collaboration between staff
members, developing more ability to handle change. Without any doubt, it has analysed that
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motivation for change is the best thing for virgin group because it must empower staff
member to embrace new thinking. Afterwards, employees are gaining new values, attitudes
and behaviours. The motivation for change is important aspect because the enterprise must
empower their staff members so that were changed their attitude and behaviour. Furthermore,
they are implementing the better strategic idea in business to achieve desirable goals and
objectives.
In case of virgin group, the enterprise communication to its staff members and
stakeholders are becoming considered as major change in the technology implementation.
The virgin group is always trying to update their products & services. Sometimes, it is also
used new packaging approach as constantly using a right strategy of retaining. This kind of
change is compelled to handle different business process, especially production and sales
department. In this way, the virgin group is subjected to consider or assume effective
communication process. If in case, it ends the change process when company return a better
stability in business operations such as customer service, marketing, financial and accounting
(Kotter, Brown and Rigby, 2021). The change model is providing the better opportunity for
virgin group to gain more advantage or benefits. By using Lewin change model, it has found
that virgin group face a difficulties in the freeze planning and increases level of
transformational, reliance on the specific role of leader’s and power in the business.
Additionally, it should consider the effective nature of management driven approach.
Kotter’s eight step of change management
A leader of virgin group can be implementing the change management approach in
order to identify the demand of hierarchical structure.
Establish a sense of urgency- in the context of virgin group, a great leader should be
considered the urgent changes such as organising the sales force to meet the level of
expectation, building a strong organisation structure. So, it easily entered into new markets
and explore new opportunities. The specific role of leader is to convince the manager so that
they were putting efforts and eliminate uncertain issues or problems.
Guiding coalition- In this process, it is undertaken the change efforts by considering a
new management approach. It is developing the situation in regards of trust and compare to
other people with staff members who are already working for long time (Onyeneke and Abe,
2021). A new leaders are finding the best talent and integrate with change management. This
is the most powerful coalition that are not only understands the level of urgency in critical
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situation. If team members are able to find the depth level what is right or wrong for
enterprise. Therefore, it is definitely achieve desirable goals or objectives.
Create a vision- In this phase, the most critical aspect of leader is to identify the
specific vision of change and then putting extra efforts. In some cases, it will be creating
strong communication or interaction with multiple stakeholders. So, they can easily buying
among staff members throughout the enterprise. A great leader is not only talk about the
business objectives but they were focused on the implementation tasks and improve the
overall organisational performance.
Communicating the vision- in the virgin group, a leader need to be used a vehicle of
communication and identifying desired outcomes of change management. Each and every
staff members of virgin groups are impacted by the contribution to achieve best possible
results or outcomes. On the other hand, communication efforts are becoming consider an
important aspect to fail the business process because it would not have buying from multiple
stakeholders.
Empower other to act on the particular vision- Once, it has been determined the vision
of enterprise and established a communication with change management leader those are
empowered with people at multiple level. In order to take an important decisions regarding
change efforts in business structure (Pierson, 2022). It is important to identify the capabilities
of manager, who are working on the front staff members. Afterward, it is also closely
represented the execution tasks at different level. It take away from the desirable objectives,
vision or mission.
Plan and create short term objectives- Initially, it is implementing the change efforts
regarding structure modification but it arise a lot of disruption. To overcome the critical
situation in the change management, it requires to focus on the short-term objectives for
purpose of long term achievements. Therefore, it is an essential aspect to understand the
short-term objectives or goals, for achieving the best results or outcome.
Consolidate improvements & changes- A short term objectives are majorly inspiring
and motivating staff members to implement the best change efforts. The higher authority or
management of enterprise will use transformation strategy and implement more changes. This
will help to build a strong collaboration with employees so that they were improving the
business performance at every level.
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Considerations of new approaches- once, the improvements are properly consolidated,
a leadership style or needs to take certain steps in the process of change. In the virgin group,
it would be developed a lot of stress among staff members regarding success or failure in
change process. That’s why, it is an essential aspect to create business structure, uses a proper
leadership style and then monitoring the performance plan.
Communication of the change process
With respect to change in the business structure of virgin group, it involves the role of
communication in the change process in different ways:-
Communicating the vision of change- it is the initial phase as considering the
communication and identify the specific vision related business structure. As identified the
vision of virgin group regarding business structure change. It must be clearly explained in the
form and able to influence staff members where they can share their opinion or view point.
At last, it would be reached in the final decision (Rosewarne, Moore and Webster, 2021). In
earlier, the vision of communication change is adopting by employees and understand the
demand of hierarchical business structure,
Highlighting the advantage and impacts of change- By using effective communication
plan, it is helping the leader of virgin group to control or manage the fear of mis-management
among staff members regarding tasks division. With the help of communication, it is
providing the advantage for employees to identify the positive result or outcome.
Ensuring the leaders of virgin group and actively participated in communication
change process- A leader of virgin group must try to convey how business structure change is
important and reflect the personal as well as visible commitment towards entire change
process. In some cases, manager will send the relevant message to different stakeholders
about how seriously committed towards business structure change process.
Using communication channels- It is important to use right communication channels
such as email, social media. These are providing the better facility to share information from
one person to another. For purpose of visual learners, it is the best appeal and help them in
order to understand or generate the positive results from change process. The important
aspect is to select or choose right words for representing the categories of various
stakeholders.
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Impact analysis
Based on the evaluation, it has been analysed the change impacts through
intervention, it including large amount of resources, money as well as energy saved. The
change process evaluation has been performed by manager of virgin group, seek to identify
different ways in which handle the implementation process in proper manner. The change
process evaluation facilitate the best learning opportunity and establishment of working
practices. These are already applied in the organisation.
Evaluation of change and measurement are naturally increasing the level of
modification and then putting extra efforts, defined the goals. As per analysis, it has found
that innovative changes such as organisational structure. It is positively impacts on the entire
business performance and assigning each tasks for employees on the basis of skills,
knowledge. These kind of procedure has followed by hierarchical business structure. It would
be generated a positive results or outcomes (Wright, 2022). The manager of virgin group is
naturally increased the level of modification and implementing efforts to achieve desirable
goals or objectives. Undoubtedly, evaluation and measurement are becoming consider an
important aspects that are always supporting the virgin group in terms of continuous
improvement.
In the virgin group, manager is focused on the restructuring the functional areas such
as innovation, change of business mission and downsizing. As considerable different changes
and then implementing procedure to modify in the business processes.
Measurement of success
Based on the analysis, it has been summarised that virgin group focused on the
changes management process in the business structure. At some level, it is also identified the
uncertain issues or problems but it can be eliminated or removed through effective
communication, strategies (Rosewarne, Moore and Webster, 2021). Once, it has been
successfully implementing change process and afterward, it will be measured the success of
change in the organisation.
To measure and monitor the progress of change in virgin group. It should be
considered the different performance metric or parameters. It helps to find the actual benefit
of change process in the organisation.
Creating a baseline measurement- in this process, it is setting a baseline of
considering all essential resources. It is also gathering or collecting relevant information from
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employees regarding advantage or benefits of hierarchical business structure. Without base
line, it cannot be possible to identify whether a suitable action has applied or not.
Most importantly, it is necessary thing to categorise different operational tasks
accordingly. Afterward, it can be measured the performance and identify how organisation
will manage business tasks through hierarchical structure. On the basis of evaluation, it is
monitoring program activity that is consider a part of change management plan.
Tracking of change management activities- by using key performance indicator such
as benchmarks. This type of strategy is used by manager of virgin group to monitor or track
activities. It is also identifying the participation of every staff members and analyse how they
were delivered the best communication, finding the best solutions.
On the other hand, it will be conducting a session in order to interact with employees
and keep record their positive feedback. This is the most common method or technique to
measure the success of change in the virgin group.
Business case for the change
Implementing the change in the virgin group- based on the analysis, it can be
performed the internal change moves and became considered by public listing, legal
obligation. Most importantly, it is used the contingency approach by leader of virgin group
and identify the specific requirements of business structure (Jönsson, 2021). As per
requirement, it will take necessary action or shape of what is essential aspect to operate
within change culture or environment. In some cases, it is also considered the right direction
so that it automatically improve the performance of business. Typically, the structure of
business is majorly influenced environmental condition or situation. As a result, it is driving
the internal change and enhance the demand of external markets.
With respect to the change, the virgin group has performed the changes in the
structure and should be used hierarchical division. It is greatly reduced the level of business
complexity. The manager of Virgin group such as Richard Branson encouraging and
motivating the staff members so that they can easily gain skills, knowledge and experiences.
The change related to the business structure has increased the level of separation
among staff members, through now working in the particular groups, community. These are
considered the part of the enterprise. In different locations, virgin group operates their
business and provide variety of products and services. In some cases, the company offers best
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services which led to the divisions in the workforce. But it is not properly handled the
centralised team, and required some necessary divisions that could operate in different
regions.
The internal driver of change will be developing issue for virgin group and identified
by managers, which can slow down the entire management reporting system. This kind of
situation can be handled through effective strategic approach. With consideration of
contemporary environment, the negative change will slow down the internal process of
business management (Rosewarne, Moore and Webster, 2021). On the other hand, it has been
examined the internal issues at the time of structural change, may be due to the
communication or interaction. It was not properly noticed by lower and middle level
employees. Another way, different staff members are not received a relevant or enough
information on the proposed change. That’s why, it would be developed possibilities and
unable to handle change approach by employees in the virgin group.
To encourage the enterprise working as group or team and also reduced the behaviour
of staff members which was caused by structural change. Whenever it started to use single
web address for entire business clients has entrance to use them. Some kind of effective
strategies are always assisting the organisation in terms of business strategy and improve the
level of performance or efficiency.
The changes in the virgin group are becoming consider as epidemic status, decreasing
the control of business external environment. The enterprises are faced with some changes
and need to be managed or controlled in proper manner. The drivers from internal as well as
external change applicable in the departments. For example- HR department will be changing
the business policies and procedures according to the demand of business. In some situation,
HR manager is used contemporary theory in order to examine the current and future
environment of organisation. It must be focused on the motivation level of staff members and
identifying how they can easily establish a strong collaboration between them.
CONCLUSION
Based on the discussion, it has been summarised the concept of strategic analysis
tools for identifying the internal as well as external environment. In this report, it has been
described the change management model such as Lewin’s, kotter’s. These are majorly
influencing the business performance. On the basis of analysis, it has been examined the
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importance of change management process in the virgin group and identify its positive
impacts on the entire business performance and efficiency.
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