Thursday, October 3, 2019
The Virgin Group Essay Example for Free
The Virgin Group Essay Introduction The Virgin Company            Founded by Sir Richard Branson, the Virgin group began as a travel company that hosts travel operations from the European regions towards other areas of the world. Aside form the travel operations; the company also caters to package transfer duties that are shipped from UK towards the American and Australian continents. The company has also established a fine relationship towards its sister companies the Virgin Express and the Virgin Blue.            Later on, the market of the Virgin Group of Companies began to expand. The traditional service that the company offers its clients have greatly taken a leap forward as the management of the company took a chance in venturing in other areas of business industry, which they though would further cater to other essential needs of their company’s clients.             As a result, the establishment of two major rail franchises that sells more than just the usual travel tour packages offered by the Virgin Company. Aside from the focus of the company on travel operations, the franchise establishments also sell entertainment materials such as magazines and music videos and DVD gadgets. There also came the establishment of the Virgin Mega stores that serve as the major mall-like establishments of the company that mostly offer materials in connection with entertainment.            Aside from the many operations that the Virgin Group of Companies caters to, there are also other services that they still offer the public. The said services include balloon flights, beverages, bridal stores, cosmetics, financial services, health clubs, Internet services, mobile phone services, publishing, and a record label. (2007)            As closely observed, the entire concern of the company is to provide recreation, entertainment and leisure to its clients. Hence, it could be noticed that most of its market comes from the upper level of the global economy. This directly refers to the fact that most of the clients that are able to appreciate and consume their products and accept their services are those who have the capability to pay for the amount of their business transactions.            Being in the industry that holds much the competition as it is directly connected to entertainment and travel systems which is now the most in demand services in the society, how are the Virgin group of Companies able to cope up with the competition that is present in the business society? How are they able to refine their strategies of market approach considering that they are considered as a multinational company that has to deal with multicultural society of workers? Aside from this, as the company grows even larger and ventures to different areas of business, how are they able to keep a strong stand in the competitive pace of the global business culture? These questions and more shall be answered on the chapter discussions that follow. CHAPTER 2 The Competitive Strategies of the Virgin Group            In business, there is always competition. According to Milton Snoeyenbos, â€Å"Competition is the essence of putting up a business and making things happen for a certain company†(1992). This is indeed true. As obviously seen today, different types of competition that naturally determines their status in the global business arena govern the global industry of business. Furthermore, Snoeyenbos adds that:                       â€Å"the ability of a business entity to keep up with the competition that it is supposed to have engagement with measures its capability of keeping up  with the fast paced development of global trade and industries†(1992)            Certainly, multinational companies, such as the Virgin Group, directly experience such competitive environment of operating in the global market. There are many companies that naturally would want to have the same ‘fair share’ of market especially when it comes to travel operations and entertainment.  It is indeed true that to be able to survive in such a competitive world of business, a company, or a business organization should have a stiff and strong strategy in operating its branches and allies in creating an amiably ample market that would naturally accept the services and the products that they would offer.            In a typical business operation setting, competition is often referred t as a challenge on the capability of the company to be noticed by the market. This capability is often measured by the profit that the company is able to incur annually. Through recent reports of the world trade organizations, it could be seen that the Virgin Group of companies has fared well in terms of the profit share that they get from the global economy. This means that they are able to attract an ample population of people who appreciates and takes advantage of the services and the products that they offer in the market.            To be able to understand the entire strategy system that that Virgin Group of Companies uses to be able to survive in the business industry, the said strategies are subdivided into four major parts. Each discussed in their own focus of concern for the companies’ success.            The Strategies: Human Resources Control and Motivation      This the branch of the strategy that creates a fine working environment that the employees of the Virgin Group could be able to find satisfaction in their job, hence, they are highly capable of performing well for their company.      The other branches of the company, which this specific strategy affects, are the research and development department. As mentioned earlier, the Virgin Group continues in aiming to expand their areas of concern in the business industry. Therefore, through human resources control and motivation strategies, the company is able to empower its employees to work hard and perform well regardless of what culture or nationality they may have come from. Marketing Strategies      According to the Virgin Group themselves, they have an aim whereas they are able to provide the identity of their clients in the best possible way every time they take advantage of the services and the products offered by the company. Hence, to be able to do so, they say that there are three major purposes of the marketing approach of the company. As it could be quoted, they say:    * We genuinely believe in making a difference for consumers.    * We deliver quality service by empowering our people.    * We love getting feedback – it helps us to continually improve each        customers experience through innovation. (Source: http://www.virginmobile.ca/site/en/aboutUs/html/about_us_06.htm. 2007)      Having these guidelines of purpose, they also have questions that help them decide on how to create the best possible marketing strategy that could support the product that they are supposed to launch to the public. The said questions too are quoted as follows:    * Is this an opportunity for restructuring a market and creating            competitive advantage?    * What is the competition doing?    * Is the customer confused or badly served?    * Is this an opportunity for building the Virgin brand?    * Can we add value?    * Will it interact with our other businesses?    * Is there an appropriate trade-off between risk and reward? (Source: http://www.virginmobile.ca/site/en/aboutUs/html/about_us_06.htm. 2007) Furthermore, when the marketing strategy is already strongly proposed and decided upon by the marketing agents of the company, the final decisions are then based upon some outlined reasons of pursuing the products and the brands that have been decided upon and finally releasing them for public consumption. The said considerations are as follows:     * The power of the Virgin name    * Richard Bransons personal reputation    * Our unrivalled network of friends, contacts and partners    * The Virgin management style, and    * The way talent is empowered to flourish within the group (Source: http://www.virginmobile.ca/site/en/aboutUs/html/about_us_06.htm. 2007) As obviously seen, the main concern of the company, even in marketing purposes is to create for their clients an assurance of being well serviced and well cared for. This factor of concern on the part of the Virgin Groups’ management team gives them an edge from their competitors in the business industry. Management Strategies      This involves the ability of the company to balance its focus on the operational activities of the business organization from its personal identity as a provider for both its employees and its clients as the stakeholders of the organization.       Through the systematic approach that is used by the Virgin Groups towards its activities, the company is then able to come along with the changes and developments of the business world while directly attending to the needs of their stakeholders. Social Connection Strategies      The acceptance of the society towards the identity that the company puts up for itself is an essential factor that contributes to the attempt of the company to remain strongly appreciated by the people that it aims to serve. This means that the ability of the company to continuously perform its social duties avails it of the capability to remain strongly competitive within the business arena.            These four major strategies have long been the assurance that the Virgin Group of Companies have used in their operations in their field of business concern. In this regard, it would be also helpful to know the strategic capabilities of the company. Naturally, it could be noticed that the Virgin Group has been constantly utilizing the Forward integration system of development. As a result, the resources of the company are then assured and the competence as well as the dynamic capabilities of the company is strengthened through the alliance-system.            What does the forward integration system mean? It could be noticed that through the study that has been presented in this paper so far, the Virgin Group of companies intended to expand through the creation of alliances with other investors n other companies. The establishment of a fine relationship with the owners and the investors as well as the board members of the companies that they have allied with, they are able to expand their operation. As clearly state earlier, the company grew from a travel service provider towards a multinational company that offers a variety of products that include both leisure and entertainment to the public.            Yes, the success system of the company depended so much on its capability to create alliances with other companies that trusted its reputation and its owner’s name in the business industry. Now, as a company, the Virgin Group directly plans to dominate the entire entertainment and leisure industry in the global business scene. Certainly, if the competitive systems as well as the strategic capability of the company continue to improve and develop through time, it would not be impossible for this group of companies to completely dominate the world’s most competitive business arena. CHAPTER 3 The Company and Its Stakeholders            As discussed in earlier chapters, there are mainly three stakeholders of the Virgin group of Companies, which in many areas affect the major activities that the company performs in their daily global operations. The stakeholders include the company management and its employees, the clients that are being served by the company, and the society that it serves its responsibility to.            In accordance with the stakeholder mapping system, the said subdivision of stakeholders could still be narrowed down to five major types depending on whether they oppose or support the company involved in the society. With the existence of the stakeholders, the control of the company operations is a factor that remains to be an essential matter of concern for the company management themselves. As obviously seen, each stakeholder have his or her own demand from the company activities. The management and the employees as for example, demands profit and income entities, while the consumers demand service and quality products from the company. The society in turn requires that the company give them what they are due; this could include the tax responsibilities of the company towards the local government of the communities, which they are a part of. Hence, if they are able to attend to the said social responsibility then they are able to help the community, which they are operating in, and in return, they gain full support from the society, which could in the future generate amiable profits for their company as they are transformed to becoming supporters of the business.            The Virgin Group of Companies sees to it that they are able to meet the needs of all the stakeholders involve in their business operations as they are mentioned above. The constancy of the concern of the Virgin Group of companies towards their employees, their clients and the society, which they serve, [which may also include the culturally diverse nature of their organization] is certainly the reason why they have been operating as long as they have been and is currently continuously growing through the developments of global business trends. Alternative Strategies for Growth and Expansion (examined through SWOT analysis)            Although the outlined evidences of the sturdiness of the Virgin Group of Companies’ status in the business industry, it could not be denied that there could be some instances that some of their traditional strategies may not be that capable of meeting the challenges of the new area of endeavor of the company. As for example, the company’s management team is sure to have their own plans of opening establishments in several other parts of the globe to be able to directly expand the market that is influenced by the said multinational group of companies. In Asia as for example, there are several points of consideration that the company organizers should attend to before they could actually perform business operations in Asian countries. Hence, the following list of alternative strategies could be integrated in the existing business approach of the Virgin Group of Companies: Cultural Knowledge of the Country being targeted      This involves the capability of the company to have a research on what products and services that the company already offers cold suit the needs of the people in a certain country without offending their traditional culture. It could not be denied that there are still countries [especially in Asia] that are directly influenced by their cultural heritage. As a result, the companies, which are planning to establish branches in such areas, are advised to take full concern of the cultural background of the country to be able to fit in the society. This would naturally address the social responsibility of the company. Legalities and Registration in the Local Governments      Most of the suggested alternatives concern the social responsibilities of the company. This is simply because of the fact that the ability of the company to expand depends on the acceptance of the society that it aims to serve.      The legalities and registration to local governments involves the tax-responsibilities of the company. Their knowledge of the business legalities and policies that their target countries imply should help them create a fine working environment with their new society and would might as well create for them a credible reputation.            The author of this paper using the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis has directly analyzed these two major suggestions as alternatives. Through the said analysis, it has been noticed that the competitiveness of the Virgin Group amidst the wide expansion plans that it might have in the future would be well guarded. As mentioned earlier, the suggestions are more focused on the social responsibility of the company. This is highly suggested by the author, as this is believed by the author as the key towards a multinational, multicultural company’s success in the business industry. The SWOT Analysis Discussion Strengths- the suggested alternative, as clearly observed is a focus on the cultural knowledge of the company with regards the communities that they ought to influence, or in some other terms, target as a market source. Being culturally and legally knowledgeable of the social systems of the new community gives them an edge from other companies who have lesser care on the way they are able to meet their responsibilities to the society and put much priority on the profit goals of the company. Weaknesses- since the suggestions involve research and development strategies on the part of the company management, the issue on the funding systems may become a reason for the weakness of the suggested approach. However, through systematic arrangement, the said alternative could be proven efficient. Opportunities- The alternatives open the expansion opportunities for the Virgin Group. The said expansion operations being mainly targeted upon the Asian countries which are known to have high cultural attachment to their origins. Being able to apply the alternatives would naturally help the entire company to win the heart of Asians. Threats- the threats to the approach that has been suggested in here could be regarding the fact that other researches of the company regarding the cultural shift of the market that they intend to target may become available to others and may in some ways be used against their plans. Hence, there is a need for a certain measure of security that should be applied upon the researches of the company. CHAPTER 5 CONCLUSION            It has been most certainly clear that through this study, the strengths of the Virgin Group of Companies have been outlined for better understanding. The well known reputation of the said group of companies in their ability to survive competition amidst the expansion operations that they have incurred through company alliances have been determined as the key factor of success for the Virgin group.            The systematic strategy that the whole organization applies in its daily operations has directly implied the strong foundation of the companies’ existence in the society. Their constant attendance on the responsibilities that they have towards their stakeholders has naturally created for them a fine environment of work and operations.            Certainly, the expertise that the management team of the Virgin group has on global expansion has ensured them of continuous success in providing the best service and the quality products to their clients. In return, the said managerial strategies also create for them an assurance of growing profit in the years yet to come. BIBLIOGRAPHY  Internet Sources: Changing Minds Organization. (2007). Stakeholder mapping . http://changingminds.org/disciplines/change_management/stakeholder_change/stakeholder_mapping.htm. (January 29, 2007). Harvard Business School. (2007). Creating Corporate Advantage: Strategy in the Multibusiness Firm. http://www.exed.hbs.edu/programs/cca/. (January 29, 2007). Marketing Teacher. (2006). SWOT Analysis: Lesson: Strengths, Weaknesses, Opportunities and Threats (SWOT). http://marketingteacher.com/Lessons/lesson_swot.htm. (January 29, 2007). Environmental Leader. (2007). Virgin Group, NTR Form Virgin Bioverda. http://www.environmentalleader.com/2007/01/17/virgin-group-ntr-form-virgin-bioverda/. (January 29, 2007). Virgin Group. (2007). The Virgin Group. http://www.virginmobile.ca/site/en/aboutUs/html/about_us_06.htm. (January 29, 2007). Market Watch. (2007). Virgin America, Echostar sign entertainment deal. http://www.marketwatch.com/news/story/virgin-america-echostar-sign-entertainment/story.aspx?guid=%7BEB53ED7F-B9AA-4E82-8AE0-704BC8691582%7D. (January 29, 2007). Virgin America gets more time to appeal. (2007). http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=FTDate=20070111ID=6333605. (January 29, 2007). Clare Cheung and Linus Chua. (2007). Branson Bets His Virgin Brand, Entertainment Will Win in Macau. http://www.bloomberg.com/apps/news?pid=20601085sid=aWFnDVIC4lwcrefer=europe. (January 29, 2007). Book Sources: Snoeyenbos, Milton. (1992). Business Ethics. Prometheus Books. Revised Edition.                        (20-26) Riddle, John. (2001). Business Management: How to organize market and finance your way to business success. Adams Media Corporation Publications.                        (45-52)
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