Assessment of Corporate and Business Strategy: The Virgin Group

This report provides a detailed analysis of the Virgin Group's corporate and business strategies, examining the strategic relationships between its diverse businesses. It assesses how the corporate parent adds value to individual ventures, highlighting the importance of brand value and strategic partnerships in a competitive market. The report discusses various strategic alliances, including marketing, supply chain, and financial partnerships, and evaluates the challenges the group faces, such as maintaining control over diverse operations and ensuring product quality. It emphasizes the significance of strong brand value and effective risk management, concluding that strategic relationships are crucial for the success of the Virgin Group and its individual business ventures. The report also underscores the need for proper quality control and market research to address potential issues and enhance consumer experience.

CORPORATE & BUSINESS
STRATEGY

Table of Contents
INTRODUCTION..........................................................................................................................3
Task 2..............................................................................................................................................3
Critical assessment of the strategic relationship between businesses within the group.............3
Corporate parent add value to business .....................................................................................4
Main issues of the group.............................................................................................................6
CONCLUSION...............................................................................................................................7
REFERENCES...............................................................................................................................8

INTRODUCTION
Corporate and business strategy is about to formulate the policies and strategies for the
business house to meet up the overall objectives behind the operations undertaken by the
organisation. This report is based on the case study of the Virgin Group Company in regard to
its corporate and business strategies. The organisation is a privately owned business entity
associated with various sector and business directions. Headquarter of the company is located in
London, United Kingdom. This report will discuss different aspects about the strategic
formation Virgin Company implement in against to delivering the business objectives.
Henceforth, report will emphasis over the assessment in respect to the strategic relationship
between businesses operate within the Virgin Group portfolio. Also report will demonstrate how
Virgin as a corporate group add value to its business operations. Furthermore, report will discuss
how issues are facing by company and the approaches used to tackle down the said issues.
Task 2
Critical assessment of the strategic relationship between businesses within the group
Virgin group is a big brand tat hold numerous businesses like banking, books,
commercial aviation, commercial space flight, consumer electronics, films and different other
areas or sector. In context to any group that hold multiple businesses it becomes really important
for the management or board of director of the group to establish a strong bond between the
strategic relationship hold by the group as a whole (Ahmad, 2019). Strategic relationship
between businesses within the group is all about establishing or developing a chain that can
create a linkage between the business houses operate so that best amount of strategic growth
could have been achieved by the company. Every group has its own set vision and based on that
it take decisions related to business expansion. Whenever company try to expand its brand it
provide the scope to the business house to entertain the expansion based on the strategic vision
and mission hold by the business house.
In order to strategic formulation and partnership between brands in a single group there
are multiple strategic approaches Virgin Group use that can demonstrate as strategic marketing
partnership, strategic supply chain partnership, strategic integration partnership, strategic
technology partnership and strategic financial partnership. All these are the difference alliances
Virgin Group try to formulate so that in order to establish the smooth control in operations of
organisation. The above mentioned alliances are off different types and motivate the business

entity to gain a strong control irrespective of the scale of operations and also apart from having
multiple companies in one single group.
Strategic relationship between brands make the organisation more competitive in such
way that company get to address all its business objectives and goals under the respective
market. Strategic partnership is about to formulate clarity in operations of organisation so that
best level of control over business operations could have been established by the business entity.
The management at the Virgin Group follow the process where they try to set constant
communication in between all its business hpuses so that there is not such any compliance and
confusion stay in the business entities (Batista And et.al., 2017). Strategic relationship is the best
way to move forward in business operations. Coordination between brands is crucial ion case of
the group like Virgin that hold multiple business houses. Communication and clarity make the
brand more viable as a whole and it also matches the strategic compliances of the organisation.
This is also obvious that bad decision-making of one business house of the group will clearly
influence the overall; brand value of company. In such a situation this is challenging for the
company to sustain a healthy relationship in between all business houses associated with the
organisation.
Corporate parent add value to business
Virgin Group is a big brand operate multiple business houses in different sector. Any
decision or activity taken by one business house will clearly influence and impact over the
overall group. IN the business environment due to the healthy level of competition brand value
is a crucial element or factor impact over the overall success and failure of the entire business
house. Today due to the advanced and developed business environment every individual sector
hold hundreds of business ventures and houses offering similar products and services. In such a
situation if the company do not hold strong brand value that can allow the positive environment
and culture to get engaged with the potential customers under the respective market place.
Virgin group as a whole is a corporate parent of all different individual businesses companies
hold under the name of group (Bhattacharyya, 2019). Some businesses are individually operate
by the Virgin Group or also there are few businesses that are managed strategically with
support of alliances and partnership in market. IN such a situation this become crucial that each
individual business house channelises positive strategies and policies so that group as a whole
make strong presence under the respective market. As each individual business venture

represent group as a whole along with its own individual operations. All such group like Virgin
Group that operate more than one business practices this is even bigger challenge for such
business houses to achieve an effective control over achieving growth and success of the
business venture with support of the overall brand value and goodwill of the group as a whole.
Virgin Group is associated with multiple sector. Many times group has taken a risky
business decisions where it just entered the new market without holding any experience and
exposure of such sector. In such a situation it becomes essential ghat the group hold a positive
and strong brand value under the respective market so that overall growth and success of the
group as a whole could have been managed by the organisation (da Cunha Bezerra, Gohr and
Morioka, 2020). In case of new sector brand value is the sole entity that motivate customers to
procure the products and services offer by the business entity irrespective of the level of
competition present or face by the organisation.
Virgin Group is a global; brand that allow the business venture and the organisation to
cherish the brand value and the goodwill in the respective market. For the group that contain a
global presence with support of various business ventures this is more convenient to get a
success in the new market or the sector through which company could never address any
challenge. The brand value of the parent brand that is Virgin Group is very strong and powerful
in stock exchange and also in between the customer base with support of loyal consumer
identity of the company this will favour the individual business venture to gain the strong
presence under the respective market (Forcadell, Aracil and Ubeda, 2020). Parent brand of the
Virgin Group allow every single business venture associated with the group a huge support and
favour so that company can achieve all its individual business objectives and fulfil the aim and
objectives behind channelising the operations of organisation. Positive and strong brand value of
the group make it more convenient for other ventures part of the group to convince customers
under the respective market to buy products and services offer by the organisation,
Virgin Group itself hold a positive and strong customer base as the brand is old and well
established in nature. This empowers the companies to convince customers under the respective
market to gain competitive advantage and strategic presence to reach at the best level of success
under the market. This can clearly demonstrate that it is true that the corporate operation add
value to the individual brand in the respective market. There are many areas that could cover
under this like marketing, promotions, customer engagement, consumer loyalty and many such

factors that could already address by the business house (Helfaya and Moussa, 2017). Some
areas related to the business practices like productivity, product quality and many such factors
are only required to address by the business entity. It can be analysed based on the
above ,mentioned analysis and evaluation that if any company is associated with the well-
established brand or group this favouring such a brand to expand its business easily by
approaching new sectors under the respective market. This aspect could allow the businesses to
achieve a smooth height even at the initial stage of the new business house due to already
containing consumer base.
Main issues of the group
The main issues of the Virgin Group is that the brand could expand at such a massive
level where it could offer multiple organisations associated with the group. In such a situation
this become difficult for the companies or groups to establish a smooth control between all the
business entities. This is also a huge challenge for the brand that few of its products could not
deliver the best level of consumer experience. This is also influencing the overall performance
of Virgin Group as a whole (Iglesias, Ind and Schultz, 2020). This is a massive challenge face
by the group where it can not able to convince the customers top buy the products and services
offer by the business entity. This become really difficult for the companies to convince the
customers in market to buy the products and services offer by the Virgin Group as some of its
products could face the customer anger due to low quality or the performance less than the
expectation.
It can clearly reflect from the case study over the Virgin Group that it is also facing
issues related to proper control measures in the product quality offer by the business entity.
Many times big groups like Virgin Group remain in huge overconfidence or the over confidence
where they believe that what ever product they will offer customers would eventually ended up
purchasing such a product in the market. This is a wrong assumption that is followed by the
group where it believed that it will be able to convince customers even after having a bad quality
as compare to other competitors available in the market (Pan and et.al., 2020). This is a huge
mistake that company could offer to its business operations that could also create a negative
impacts over the overall business operations entertained by the Virgin Group. Leadership related
issues also faced by the Virgin Group. It can project that leadership in any group needed to be
progressive in nature and also along with it also entertain risk management related measures.

Virgin Group could not offer a proper risk management practices that ended up do not allowed
the company to reach at the best level of success in the market.
All the different issues mentioned above could have been tackle down with support of
strong actions related to quality management and many such strict decision-making. There is a
proper quality control, standards could have been set by the company so that proper and
optimum level of quality of products could have been ensured by the senior management in
regard to the products and services offer by the organisation (Viardot, 2017). Also company
should give huge emphasis over market research before entertain any of the new market. This
will support the company to cover up all needs and demands of the consumers associated with
the respected market sector.
CONCLUSION
Strategic relationship between individual business houses operate by the same brand
become crucial as it directly influence the success of the respective corporate entity. It can
reflect that business operation entertained by one particular business entire impact or influence
the operations entertained by the entire group. Corporate parent is denote as the group or the
board of director of the group that helped multiple business houses. Virgin Group is associated
with the multiple sector so the group as a whole can be project as a corporate parent of all its
small business houses. There are plenty of steps related to the leadership, quality control that can
be taken by the Virgin Group to overall all its different issues.

REFERENCES
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