Analyzing Virgin Money's Strategic Decisions and UK Market Position

This case study provides an in-depth analysis of Virgin Money Group's strategic decisions and its position within the United Kingdom's market. The report highlights the opportunities and challenges faced by the company in a developed market characterized by technological advancements, political stability, and a strong customer base. It emphasizes Virgin Money's ambition to become the leading digital bank and examines the impact of globalization, supported by a PESTLE analysis covering political, environmental, social, technological, legal, and economic factors influencing the company's operations. The analysis further delves into the UK's economic conditions, including the recession and recovery period, and how these factors influence consumer spending and market dynamics. The report concludes by underscoring the importance of agility and technological innovation in the banking sector to meet evolving customer demands and maintain a competitive edge.

Individual Case Study

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
Market situation within the United Kingdom.........................................................................3
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
The report aims to analyse the key growth and development of virgin money group in
order to analyse their strategic decision. The UK market is largely developed with many internal
and external market which focus on understanding the need of making strategies. Business
environment is highly taking growth and bring complexities in terms of customer trends,
opportunities, technological integration, international trade and policies and many more. All
these factors are necessary for undertaking growth of the company for the long term existence.
This report is going to focus on the key market of Virgin Money which is one of the leading
bank of UK (Worthington, and Welch, 2011). It has huge customer base and provide all the
digital services in banking facilities. The company wants to achieve their strategic position of
becoming first Digital Bank. This report is going to present all the external market opportunities
and its impact on the Virgin Money.
MAIN BODY
TASK
Market situation within the United Kingdom
The United Kingdom is a most developed country which provides enormous number of
opportunities for the businesses. Especially for the banking sector, the UK market provide
valuable resources, technological advancement, political stability and great customer base. This
shows that there is requirement of working. As there are a lot of market and status quo which can
take as the advantage by the virgin money. The global business environment is quite complex
that undertake many key factors like cultural differences, society trends, language barriers and
create marketing practices as per the availability of resources in the country (Batiz-Lazo,. and
Kase, 2010). The UK brings great factor and environmental conditions which carries out
potential in leading sustainable growth. The global business strategies include identification of
target market, learn about individual needs and eliminate any negative impact from the business.
The globalisation is all about carrying out business practices across the global level. It
refers to sell and bring products from overseas market and deliver potential services as well. The
global market has their unique features and specialisation such in technology, customer taste and
preferences and work with national and international agencies and people for collaboration.
Therefore, in case of Virgin Money, it is termed as the leading bank which provides number of

network stores, contact centres and relationship managers. Their aim is to collaborate with more
small banking markets to set their position globally. It will have impact on the county as
globalisation has both adverse and negative impact on the GDP and development of the country.
in UK, when there will be rise in number of imports rather than exports, it will reduce the
currency value of the country. the main focus should have on maintaining a balance among
import and export of the goods and services across global level. The market of UK kingdom will
be analysing through below mentioned factor:
Pestle analysis:
This analysis brings an ease in making strategies and take decisions for coping up with huge
market challenges. This shows that, there is requirement of the key practices in developing the
strategies which will have positive impact on the business and economy. In respect to the virgin
money, the pestle analysis is described below:
Political: This factor includes all political interference factor such as taxes, duties,
corruption and terrorism. In UK, there is utmost stability which ensures that business is free to
carry out trade practices in the country regulation. The Virgin money has its great impact on
delivering banking services across 6.5 millions of customers (Burdon, and Sorour, 2020). This
shows that the organisation is mainly impacted with the Brexit policy of the UK. Therefore, in
order to carry out the global business operations, political stability is necessary for Virgin Money
to achieve strategic position.
Environmental: As per this factor, the country UK is heavily depended on the
environmental condition for the welfare of planet and society. The businesses have to be
concerned about the environmental conditions and bring suitable operations such as eliminating
wastage, pollution and malpractices. Therefore, the Virgin money need to assure about this factor
before making any strategies. It has current positive impact on the environment due to giving
digital service so it avoids using physical resources, save fuel and enable less pollution. They
must also concentrate about recycling and reusing plastics and packaging materials.
Social: This factor drives all the human related factors which has impact on the business. In
UK, the country has huge demand and trends due to rise in the population. This factor includes
all the culture, demand and values of people which needs to be fulfil by the organisation. The
Virgin Money has high positive concerns regarding this factor as the company serve great
services and platforms for the convenience of the people (Lywood, Stone, and Ekinci, 2009).

They provide online banking services which ensure that, customer gets best experience of world
class services to fulfil all the demands and trends in the market.
Technological: As per this factor, technology brings new and volatile experience in the
market to bring innovation in business. UK is a developing country in which, there are various
technological integration and opportunities for the business. This shows that, the company has to
bring great use of digital internet, platforms and tools. The Virgin Money has integrated
software’s, networks and cannels to serve online banking services. This brings positive impact
into market.
Legal: There are factors and decisions which needs to be taken by considering legal
practices. It consists all the rules and regulation, acts and provisions which a business must
ensure while carry out business practices (Syahla, Putranti. and Puspapertiwi, 2018). In UK, the
country is much bounded by the laws and acts for which, Virgin money maintain health and
safety act, equality and diversity, employment and data protection act to keep good image into
market.
Economical: This factor also brings necessary concern about the economic factors like
country GDP, demand and supply, inflation and interest rate for the sake of economic growth.
The banking industry has wide contribution in economy currency flow by exchanging of money.
Therefore, the virgin money brings new strategies and functions to attain long term profitability
for giving great contribution in country’s economy.
All these macro environment factors have shown great concerns regarding the bringing
internalization in the business. A business requires key strategies for carrying out business in an
appropriate manner. The Virgin money will be able to take this opportunity to settle their
business in international market. They could easily grow more by taking account of business in
an appropriate manner. Therefore, it is an important concern for the Virgin Money group of
company to reach large number of customers. They will expand their reach to the maximum
extent achieve strategic objectives of being largest first Digital Bank. The UK market is much
favourable for the business in giving market opportunities and investment. In the recent time, the
country was facing recession period as slowly recovering from it the current time. This shows
that, there is chance to take a place in the UK economy by bring new and innovative ideas for the
growth and development of the company (Ashta, and Assadi, 2009). The GDP of the economy
has also been improvised which has favourable market conditions to the consumer spending. The

UK economy turned into key practices for the necessary growth potential in the market. it is
most impactful situation in which business have sustained positive image in the upcoming
economic criteria. It shows an acknowledging key factors for both knowledge and ability to
promote market trends and demands at the global level. By analysing macro environment factors,
it has identified that, the virgin money has great functions regarding the technology, society
trends and giving them experience. Also, they are influenced through legal obligation by
following all the acts related to employee welfare, making collaboration and create good working
relations. The economy of the country has major contribution through Virgin Money which is
associated with many collaborations in the recent years.
The bank has maintained money flow by charging nominal interest rate, enable all the
transaction, money deposit and opening bank accounts are a part of their digital platforms
(Steinmüller, and Tan, 2015). Low interest rate is quite effective for the people as it increases
their purchasing power to grant loans and sped it into market. therefore, the bank has great
opportunity to attract the customer after Covid-19 by charging less interest rate to increase their
purchasing potential. It has analysed that, there is requirement of key benefits which people must
get after the recession period. the economy has severe impact on of the pandemic in rise of
inflation. It does not only have impact on bringing new digital changes but also to cut down cost
and wastage from services. The Virgin Money has to stop unnecessary operations by taking
updates on the banking industry powered by the government and committee (Durbin, and
Tomlinson, 2014). These decisions play major role in finding decision which best matches with
the company’s profitability and productivity. Therefore, the economic market needs to be settled
and developed by the banks to secure investment, money flow and demand and supply through
the customers. There are various roles and responsibilities which needs to be followed by the
business operations and practices.
Therefore, in order to meant with the necessary areas, there is requirement of performing
economic growth and development. The retail banking sector of UK has forced with many
changes and forces of the environment. In response to the market factors, the industry has much
political stability, concern towards saving planet and wildlife by recycling and reusing. The
industry will be going to change significantly for meeting with customer demands and
expectations (Reevesand Deimler, 2009). After the pandemic, this has seen much that consumers
are getting more demanded and depended towards technology. Hence, UK market forcing

banking sector to not be the same and come up with same strategies, they have to follow trends
and be agile and free to deliver number of services across wide range of customers. These are the
strategies which can keep with the competitive position in risk regulation, operating market and
implement great technological forces in the banking areas. Therefore, the Virgin Money has its
proportion for taking economic output. The current UK market is demanding great
personalisation services with the banks. It involves no cost EMI options, credit packages and
opening accounts. It brings uncertainty, regulatory requirements and involving customers’
demands at the same time. Technology is the main challenge for the retail banking as it involves
much cost and upgradation in the overall workplace of company (Branson, 2008). This shows
that, the Virgin Money needs to be active and adhere to every consumer business trends. For that
instances, they started working hard for being digital changes into the bank which will lead to
analyse the roles and responsibilities of the managers towards making changes. Uncertainties and
business changes can impact on bringing risk management strategies which can occur in the
banking environment. Therefore, it is required for the successful banking operations that needs to
be reviewed and bring changes in the workplace environment.

CONCLUSION
The report has concluded that, UK market has great potential and developing resources for
the business. It provides boost to companies’ growth and leads to forward looking approach. The
banking sector has to be agile in bringing technological change in the market. this shows that,
there is requirement of key growth and expansion in the market which will be able to bring
changes in using AI, cloud computing and other software. The organisational design is able to
bring all the operational changes in the current working environment.

REFERENCES:
Books and Journals
Ashta, A. and Assadi, D., 2009. An analysis of European online micro-lending websites. Cahiers
du CEREN, 29, pp.147-160.
Batiz-Lazo, B. and Kase, K., 2010. Virgin Finance: Sir Richard Branson’s Pursuit of a Significant
Presence in Retail Financial Services. Available at SSRN 1734011.
Branson, R., 2008. the Virgin Group of Companies in 2007.
Burdon, W.M. and Sorour, M.K., 2020. Institutional theory and evolution of ‘a
legitimate’compliance culture: The case of the UK financial service sector. Journal of
Business Ethics, 162(1), pp.47-80.
Durbin, S. and Tomlinson, J., 2014. Female part‐time managers: Careers, mentors and role
models. Gender, Work & Organization, 21(4), pp.308-320.
Lopez-Gonzalez, H. and Griffiths, M.D., 2018. Betting, forex trading, and fantasy gaming
sponsorships—a responsible marketing inquiry into the ‘gamblification’of English
football. International Journal of Mental Health and Addiction, 16(2), pp.404-419.
Lywood, J., Stone, M. and Ekinci, Y., 2009. Customer experience and profitability: An
application of the empathy rating index (ERIC) in UK call centres. Journal of
Database Marketing & Customer Strategy Management, 16(3), pp.207-214.
Reeves, M. and Deimler, M.S., 2009. Strategies for winning in the current and post‐recession
environment. Strategy & Leadership.
Steinmüller, H. and Tan, T., 2015. Like a virgin? Hymen restoration operations in contemporary
China (Respond to this article at https://www. therai. org.
uk/publications/anthropology-today/debate). Anthropology today, 31(2), pp.15-18.
Syahla, R.N., Putranti, I.R. and Puspapertiwi, S., 2018. The United Kingdom Ambivalence on
Preservation of British Virgin Islands Status Quo as Tax Havens 2016. Journal of
International Relations, 1(1), pp.41-47.
Worthington, S. and Welch, P., 2011. Banking without the banks. International Journal of Bank
Marketing.