Contemporary Developments in Business and Management - Virgin Holidays

This report provides a comprehensive analysis of Virgin Holidays, a tour operator, examining its operations within the context of contemporary business and management. It begins with an introduction to the business, emphasizing the importance of both internal and external environments. Task 1 delves into the external environment using PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors and their impact on Virgin Holidays. It then explores the internal environment through a SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. Task 2 focuses on the relevance of corporate social responsibility (CSR) and business ethics to Virgin Holidays, assessing their influence on policies and competitive strategies. The report also critically evaluates the effectiveness of Virgin Holidays' responses to these factors and suggests areas for improvement. The conclusion summarizes the key findings and the references provide the sources used in the report.

Contemporary Developments
In Business And Management
Title- Travel agency activities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
External business environment...............................................................................................1
Internal business environment................................................................................................4
TASK 2............................................................................................................................................5
1) Critically assess its relevance of CSR and business ethics to Virgin Holidays and how it
influences policies and competitive strategy within organisation..........................................5
2) Evaluate critically effectiveness of the Virgin Holidays response.....................................7
3) Consider some areas for improvement in response of the Virgin Holidays......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business can be defined as a collection of different actions and activities with keeping an
aim of earning profit. It is vital for a business company to make plans and strategies so that all
the commercial activities can get done in effective manner (Rosemann and vom Brocke, 2015).
Both external and internal environment also plays a crucial role and impacts upon an
organisation's operations. It is required for managers and leaders of firms in every sector to look
into changes in these environments that are coming, because they are the one that majorly affect
plans like business expansion of an enterprise. It is much needed to adopt changes so that
company can rapidly increase its profitability along with productivity and it may also aid in
gaining many competitive advantages. Organisation that has been chosen in this report is Virgin
Holidays. A tour operating company which is located in South England and was found in the
year of 1985. Report will carry a discussion related to external and internal environment. On the
other hand, it will also include proper role of business ethics and corporate social responsibility
(CSR) in influencing policies of a company.
TASK 1
External business environment
In modern business world, every single organisation needs to understand that external
business environment is carrying a rapid changing nature. Little alterations can put impact on
plans and strategies of a company that has been made to attain specific goals and objectives.
Virgin Holidays which is a tour operator and whose parental company is Virgin Group was
founded by Sir Richard Branson. At the moment this organisation is one of most successful tour
operator in UK. Company's policies may get affected if any change is made by government like
modifications in taxation rates (Jeston and Nelis, 2014).
Apart from this, it has also been analysed that a little change by government can impact
hugely on travel and tourism sector and on companies as well that are doing business in this
sector. In order to understand external environment PESTLE Analysis has been done beneath:
PESTLE ANALYSIS:
Political – This is being considered as one of the major external factor that can affect
business objectives and goals of organisation. In travel and tourism sector, there are many
business firms like Virgin Holidays, Virgin Holidays and others which are doing business at
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international level. Therefore, it has become vital for them to analyse that if country in which
they are going to invest their revenue should be strong enough politically so that they do not go
through any sort of problem. For an example: China's parliament brings in many changes in their
policies which creates imbalance. If, Virgin holidays starts its business in china then there might
be possibility that company may face number of issues.
Importance- This factor carrying high importance for Virgin Holidays because company
is doing business at international level. Any changes in tax policy in a country in which they are
doing its operations can impact upon profit margins (Hammer, 2015). Therefore, it can be said
that Virgin Holidays may not control over this factor and have to make changes in their pricing
policies as per the determinations that has been made by government. For an example: Recently,
Virgin Holidays just launched holidays in dreamy destinations like Anguilla and St Kitts &
Nevis because Sir Richard Branson have brought good business for United Kingdom in past 10
years. It is not easy for other travel and tourism companies to do business in these areas because
of strict rules and regulations that has been made by United Kingdom's parliament. Therefore, it
can be taken as a competitive advantage for Virgin Holidays.
Economical- This is also being considered as a significant aspect of external environment
that plays a crucial role in business concerns of Virgin Holidays. Thus, it is necessary for travel
and tourism agencies to look into changes that are going to come in this sector in near future. A
little fluctuation among monitory rate of a country can impact upon profit ratios of a company.
Importance- Virgin Holidays, is doing business in Australia, India, China, Caribbean,
Africa, USA and Canada. Means of exchange in terms of money are carrying different rates.
Thus, recession if a country faces then it will directly impact upon its profitability or it may take
Virgin Holidays to make changes as per the requirements. For an example: Virgin Group which
is the parent company of Virgin Holidays, sold around 49% shares of this company to Singapore
Holidays where Sir Richard Branson retained around 51% shares of this organisation. This
improved overall value of Virgin Holidays at international level. This can be rarely seen in rivals
of this organisation in UK and given a competitive advantage to Virgin Holidays.
Social- Another factor of external environment that may affect business of company
(Alvarez, 2016). It has been analysed that travel and tourism sector of different countries majorly
relies upon this section. Customer's needs and requirements gets changes on a regular basis thus,
it is vital for companies to bring in changes in their tour packages as per the requirements of their
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clients. With the help of this, Virgin Holidays can grab a good position at marketplace in short
period of time.
Importance- People in this world visits new places on a regular basis with carrying
different concerns. Virgin Holidays have already understood this and targets customers in
different segments. If client is visiting a different country with carrying a business purpose, then
this Virgin Holidays modifies their own package so that to deliver best experience to that
individual in order to keep up the relations with them. For an instance, Virgin Holidays have
nurtured highly trained pets which has helped disabled people to get into flights and assist alone
children to travel. Most of the time it has not been seen in other companies if anyone have taken
this CSR activity in use. Therefore, this action can be taken as a competitive advantage for
company.
Technological- This is being considered as another component of external environment
that may impact upon company. Technology is having a rapid changing nature and it gets
updated on a regular basis (Myers, 2013). Therefore, if company do not bring in changes as per
the requirements then they may lose their position at marketplace of United Kingdom or at
international level. On the other hand, it is also mandatory for them to bring in changes for the
company so that to grab a good position at marketplace.
Importance- Virgin Holidays has already got influenced with technological factor and
have impacted positively on their business concerns. This is being considered as one of the
effective approach through which Virgin Holidays can gain many competitive advancement. For
e.g. Giving Apple I-pad to their clients throughout in the flights and in tour as well can be
considered as an effective step that is being taken by Virgin Holidays. This has not been done by
any other rival company till the moment and has helped Virgin Holidays in gaining many
competitive advantages.
Legal – This is being considered as another factor which is related to external
environment. Using and adopting rules and regulations rightfully can help companies in doing
business in an appropriate manner (Zadek, Evans and Pruzan, 2013). Discrimination, copy right,
safety and security, etc. are some of legislations that has been made by governments of different
countries depending upon their situations which needs to be followed by Virgin Holidays and
other travel and tourism companies so that to work in a legalised manner.
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Importance- Running business in a smooth manner is pretty much required for Virgin
Holidays. Thus, it is essential for them to follow all the laws so that company may deliver
appropriate services to customers and to employees as well. For an instance, The Package Travel
and Linked Travel Arrangements Regulations 2018, is being followed by Virgin Holidays
because they keeps their focus on delivering high quality based experience to customers. This act
stated that consumer at the time of enjoying good times at tour should be kept safe. This act has
not been followed by many companies till the moment which ultimately helped Virgin Holidays
in gaining good number of competitive advantages (Gustafson, 2012).
Environmental- Managers of different companies of travel and tourism sector keeps an
eye on this aspect as well. Change in weather helps Virgin Holidays in delivering appropriate
services to customers like offering them right package as per the climate of the place where
consumer is visiting can help organisation in delivering high level of experience.
Importance- If Virgin Holidays do not make right package for correct customer
depending on the climate then company can easily grab a good position at marketplace. In winter
season, because of hail storm company may face ample number of problems as customer's will
be less interested in going at those places. For an example: Virgin Holidays have taken various
initiatives like recycling programmes and have taken Biofuel in use. This was the first step which
was not taken by any other organisation in travel and tourism sector and helped organisation in
improving profit margins (Van Der Aalst, 2013).
Internal business environment
Internal environment is being considered as state of affairs that stays linked with different
inner sections of an organisation. Managers and leaders of Virgin Holidays are the one who
majorly develops policies in order to make improvements. In order to understand the internal
environment, SWOT analysis has been done beneath:
SWOT ANALYSIS OF VIRGIN HOLIDAYS :-
Strength
 Virgin Holidays have made high
number of policies so that to offer
services to their clients with high
experiences.
Weakness
 Virgin Holidays have limited number of
packages to offer and works in a few
countries only.
 Company is still following traditional
ways to promote their packages and
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 Company have kept their focus on
improving customer base offering them
with heavy discounts on holiday
packages.
have not made their own online
application for customers.
Opportunities
 Business expansion in areas where
Virgin Holidays is not doing its
business. Building up own online application will
help company in being considered as an
opportunity and help them in improving
performance level.
Threat
 Rapid changes in taxation and other
travel related to policy can affect profit
margins of this organisation.
 Rise in competition at marketplace is
being considered as something that may
impact upon Virgin Holidays.
TASK 2
1) Critically assess its relevance of CSR and business ethics to Virgin Holidays and how it
influences policies and competitive strategy within organisation
Business ethics- It is being found that, business ethics plays a crucial role for every
single organisation and if they wants to grab a good position at marketplace, then it is required
for them to follow all the rules and regulations. Doing business in legalised manner can help
business firms in gaining good reputation at marketplace (Chang, 2016). There are ample
number of policies that has been made by government which ultimately differentiate among
good and bad.
Corporate Social Responsibility- This type of responsibility is being found as a duty that
can help business companies in gaining good reputation in front of society. Sir Richard Branson
who is the owner of Virgin Holidays and carrying a good reputation at international level
continuously kept his focus on delivering right services to customers and to gain good customer
base. Being as an owner of 400 companies is not an easy thing to do. Good reputation has helped
Sir Richard Branson to take different initiatives and has helped them out in grabbing a customer's
attention high in numbers (Hodgkinson and Healey, 2011). Doing CSR activities can help
company in enhancing their values and reputation in front of the society.
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As given by Amin, S., (2014), both business ethics along with CSR activities are
necessary for organisation to improve all the marketing trends. At the moment, Virgin Holidays
have kept their focus on gaining good reputation at marketplace. But, it is being critically
analysed that sometimes, few of initiatives of business organisations related to CSR activities do
not work and have impacted upon badly on company's brand name and value. Therefore, it is
required for Virgin Holidays to make their decisions after analysing the whole scenario of the
market.
In present context, some of ethics are given below:
Transparency- According to Naheem, (2015), transparency is helpful for company to
become an open book in front of the society. With the help of this, organisations can gain belief
of customers in high numbers. Therefore, it is being critically analysed that Virgin Holidays
needs to kept their focus on building up packages in front of their clients and do not make any
sort of fraudulent activity. On the other hand, it has also been located that offering right policies
to staff members will help Virgin Holidays in improving their own profit margins because if
employees will stay motivated they will automatically start grabbing good position at
marketplace.
Fair trade practices- If Virgin Holidays is looking forward to gain competitive
advantages then it is required for them to develop effective fare trade policies. On the other hand,
Fair commercial practices help to provide satisfaction and work according to market trends.
When business activities are performed with the help of fair business practices. There is
satisfaction among workers so it is essential to make satisfaction to customer.
Diversity issue- As Virgin Holidays is doing business at international level, Apart from
this, it can be said that Virgin Holidays needs to keep their focus on different sections and
segments and this has helped companies in hitting their targets. For an e.g. Difference in demand
of old age people and young people, so they can provide satisfaction to customer.
According to Orlitzky, Siegel and Waldman, (2011), Virgin Holidays is the company
which works in ethical manner which helps to perform business operations in appropriate way.
Managers of Virgin Holidays make strategies which helps to perform business activities to
achieve targets. When there is change in business operations, it can be delivered to stakeholders
because there is transparency in business operations. Virgin Holidays has good name in market,
because they perform commercial activities in ethical manner.
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Virgin Holidays is the association which works as per change in market trends. There are
many laws which has to be followed by association to get positive results. There are possibilities
of some unethical behaviour such as money laundering, false advertisement, fake services, etc.
This affects image of Virgin Holidays in adverse manner.
CSR performed by Virgin Holidays
Charity Donations- Virgin Holidays has kept their focus on organising events related to
charity so that to bring up effective reputation at marketplace in short period of time. It is
required for Virgin Holidays, to fulfil all the requirements related to funds to improve
infrastructure of country. Generated charity with the help of donation camps and campaign can
help this company in developing good reputation in front of the society. There are some
percentage which contribute towards for development.
Animal welfare- Developing different welfare related to animals so that to protect species
that have came in endangering stage. This can easily help Virgin Holidays in gaining good
position in short period of time. It is being analysed that Virgin Holidays have kept their focus on
this type of welfare and is being considered as the best actions that has been made by this
organisation which improved their brand image and reputation among social people.
Promoting education- According to Sharma, Sharma and Devi, (2011), Education plays
a crucial role for every single person's life. It is being considered as an essential component
which is considered by Virgin Holidays. In UK there is people who remain illiterate because of
lack of funds, Virgin Holidays provides schools for such people. There are various educational
institutions funded by Virgin Holidays, this helps to promote social welfare in UK.
After looking at above mentioned CSR related activities, Virgin Holidays can easily hit
their targets and can gain good reputation in front of society. This will help company in hitting
companies targets. Virgin Holidays is already carrying a good brand image at United Kingdom,
but in order to keep on improving their customer base it is required for the company to develop
effective approaches.
2) Evaluate critically effectiveness of the Virgin Holidays response
It has been analysed that Virgin Holidays have kept their focus on different essential
concepts through which they can improve working styles at workstation. Managers of Virgin
Holidays has to make policies as per market changers. It has been critically analysed that there
should be regular check up of all the business concerns so that Virgin Holidays may gain good
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reputation at marketplace in short period of time. Some of issues that are regularly being faced
by Virgin Holidays are given below:
Poor performance- As here is difference in organisational and personal targets, so
sometimes workers of Virgin Holidays do not perform business operations yup to the mark. As
there is difference in demand of consumer, so there must be regular emphasise on working style
which helps to make strategies according to the market needs and trends.
Money laundering- This is being considered as one of a kind approach that majorly
impacts upon business concerns through which they can hit their targets (Weil, Nau and Webb,
Hsbc Technology & Services (Usa) Inc., 2011). In money laundering managers of Virgin
Holidays, majorly tries to change black money to white. This can majorly impacts upon
companies reputation and government of United Kingdom can cancel the license as well of the
company if they get caught doing money laundering.
On the other hand, positive points are also there that improved has helped companies in
developing proper reputation among customers and these are given below:
Increase in goodwill- Virgin Holidays if keeps on doing business with considering all the
ethics that has been made by government then it will directly impact positively upon them.
Through this, both productivity and profitability can be enhanced. On the other hand, it has also
been analysed that company may improve image products and services as well through which
they can hit targets.
Customer satisfaction and loyalty factor- Virgin Holidays needs to understand all the
concepts that are related to their customers. Satisfying them with quality products and services
can take company to immense heights. Therefore, it is required for them to develop much more
effective approaches through which they can gain many competitive advancements at United
Kingdom and at international level as well.
Less legal hurdles- According to Amin, S., (2014), tour and travel sector based
companies have build up many legal boundations. If they will start working with government's
rules, regulations and ethics then it can be said that organisation may help them in grabbing good
position in short period of time.
Due to CSR activity and working as per business ethics, there is requirement of change in
business policies which are effective and significant for growth of association. In travel business
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changes are taking place very frequently, so there is requirement of analysing situation and then
take action so that Virgin Holidays may not has to go through different phases.
3) Consider some areas for improvement in response of the Virgin Holidays
After the investigation, it is being recommended for Virgin Holidays to deal with
different situations and try to make changes and adopt good & new policies as well. With the
help of this, Virgin Holidays can easily grab a good position in short period of time a
workstation. CSR and business ethics are the two major elements that can help Virgin Holidays
in grabbing good position at international marketplace (Corporate Social Responsibility Policy,
2017). Making changes at workstation can help business firms in improving involvement of both
employer and of employees as well.
Improving role of women in growing economy- It is required for Virgin Holidays to
develop favourable policies for women so that they can grow. Bring in this change can help
Virgin Holidays in gaining many competitive advancements and it can also impact positively on
economy of United Kingdom. As per government norms there must be equal rights to women in
working environment. This has to be improved in working style of Virgin Holidays.
Use of eco- friendly measures- This is being considered as another improvement place
which needs to be made by Virgin Holidays. Offering customers with eco friendly products at
the time when their clients are going from one place to another.
From the above description it has been identified that factor organisation have its own
positive as well as negative impression. It is important for every enterprise to formulate its
business strategies as well as operations on the basis of market scenario. It is the responsibility of
the business manager to change its working pattern that are essential for business growth. In
relation with the travel business, it is necessary to adapt latest technology and provide comfort
travelling to customers in order to enhance their satisfaction level. Adaption of advance
technology may create several obstacle in the business, but at the end it will attract the customers
towards the effective services.
It is required by the manager of Virgin Holidays to motivates its manpower to perform in
effective manner and satisfy the needs of the customers at higher level. According to the travel
business, it required by the employees to make themselves prepared for the changes in working
patterns and opt alternatives for the effective result. In context to Virgin Holidays, this
organisation is offering its services in several countries which requires to formulation of the
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