STRM043 - Analyzing Virgin Group's Strategy and Innovation

This case study provides an analysis of the Virgin Group, examining its resources, capabilities, and diversification strategies. It evaluates potential divestments, applying Porter's essential tests to determine optimal investment decisions. The analysis covers strategic alliances and recommends changes to Virgin's organizational and management structures to enhance financial performance. The study concludes that while Virgin is a strong brand, strategic adjustments, including divestments and structural modifications, are necessary for long-term success. The report references various academic sources and business publications to support its findings and recommendations, offering insights into improving Virgin Group's overall strategic direction and operational efficiency. Desklib provides access to this and similar solved assignments to aid students in their studies.

STRATEGY AND
INNOVATION
Virgin Group

INTRODUCTION
 This PowerPoint presentation will analyze the
case study of Virgin Group.
 Resources and capabilities of virgin
 Divestment of business unit and its criteria
 Recommendations for the changes in
Management system and organizational
structure

BACKGROUND OF VIRGIN
 Virgin was launched in 1970 by Richard
Branson. The company's name was
suggested by the associate of Mr. Branson.
The company has grown rapidly and now it is
being counted in one of the top branded
ventures.

VIRGIN GROUP
 The Company possesses 200 individual firms
that are directed by 20 holding businesses.
The brand is involved in the business of
financial services, travel, health and fairness,
music, telephone.

RECOURSES AND CAPABILITIES
 Resources and capabilities of an organization
are the bases to earn competitive advantage
and are considered as the profitability’s
primary source.

RESOURCES AND CAPABILITIES
 Capabilities of the organization states the
routines of the business, organizational
culture, and processes. Recognition of the
core capabilities can be valuable in
classifying what subsidized more to the
customer value and which segment of the
market to be targeted.

RESOURCES AND CAPABILITIES
 Resources do not get productive themselves;
they need to be altered into capabilities by
direction and management. For a company to
get a competitive advantage, it has to
concentrate towards it key strengths in
resources and capabilities and confirm that
both should operate together in place of
operating in isolation.

BCG MATRIX
 Boston Consulting Group (BCG) Matrix is also
known as a four-celled matrix (2*2 matrix)
launched by BCG, USA. It represents an
organization’s graphic depiction in order to
review various business range lie under
single group on the basis of their associated
growth rate and market share of the industry.
The BCG Matrix is consisting of four cells i.e.
star, cash cow, question mark, and dogs.

BCG MATRIX’S

FOUR CELLS OF BCG MATRIX
 Stars - Stars reflects those business units
that possess a huge market share in the
growing industry.
 Cash Cows - Cash cows talks about those
units of business that have a huge market
share in a slow-growing and mature industry.

FOUR CELLS OF BCG MATRIX
 Question Marks - Question mark identify
those units of business that have low relative
market share and operates in an industry
with high growth.
 Dogs - Dogs recognize those business units
that possess a feeble market share in the
markets with low-growth.

DIVESTMENT
 Divestment is the opposite of investment,
and it is also called as Divestiture. The
process of trading an asset for political,
social, or financial goals is known as
Divestment. Resources or properties that can
be divested by a business comprise real
estate, business department, and equipment.