Strategic Management and Virgin Australia

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Virgin Australia
Written Group Strategic Case Study

24th May 2012

MNGT2001

Alixandara Sutherland
Laura Tumbers
Katie Horne
Laura Field
Executive Summary

The purpose of this report was to provide a strategic evaluation of the company Virgin Australia. The report begins by conducting a strategic analysis of Virgin, including an analysis of the external environment and an internal analysis of competitive strengths and weaknesses. The report then identifies the strategic direction and objectives of Virgin Australia, including the vision, mission, strategic objectives and stakeholders of the company. The report moves on to explore strategic choices of Virgin Australia by identifying the key broad business level and international strategies of the company. From this analysis the report then provides a general perspective of the strategic implementation of Virgin by assessing evidence of mismatch between environmental turbulence and business strategy, transformational strategic change and second curve activity. In addressing strategic implementation issues the report addresses McKinsey;s 7 forces model before identifying the following strategic implementation issues: 1. Customer Composition and Timing

2. Management and strategic consensus

3. Inability to use strategic alliance tool successfully

In the final section the report conducts a strategic evaluation assessing overall performance and measuring performance through triple bottom line reporting and the balanced scorecard approach. The report concludes that Virgin Australia is in a stable strategic position and that their transformational strategic change from a low cost airline to a corporate travel service has been beneficial for the company. By maintaining their strategic goals and addressing the implementation issues identified in this report, Virgin Australia is in an excellent position to expand within the Australian domestic market.

Table of Contents

1. Introduction……………………………………………………………………………………………………5

2. Strategic analysis……………………………………………………………………………………………6

1. External analysis…………………………………………………………………………………,,,,,,,,,,6

1. General environment…………………………………………………………………,,,,,,,,,,.6

2. Specific environment………………………………………………………………….,,,,,,,,,,7

2. Internal analysis………………………………………………………………………………….,,,,,,,,,,9

1. Competitive strengths………………………………………………………………..,,,,,,,,,,,9

2. Weaknesses………………………………………………………………………………,,,,,,,,10

3. Conclusion on organisations competitive position………………………………………..10

3. Strategic directions and strategic objectives…………………………………………,,,,,,,,11

1. Vision……………………………………………………………………………………………………….11

2. Mission………………………………………………………………………………………………………11

3. Strategic objectives……………………………………………………………………………………..11

1. Stakeholder analysis………………………………………………………………………….12

4. Strategic choice: key broad business level strategies……………………………………13

1. Ansoff’s product/market strategies……………………………………………………………..13

2. Miles and Snow’s adaptive strategies……………………………………………………………14

3. Porter’s competitive strategies……………………………………………………………………15

4. International strategies……………………………………………………………………………….16

5. Conclusion on key business strategies being used by the organisation……………16

5. Strategic implementation: general perspective…………………………………………..17

1. Evidence of mismatch: environmental turbulence and business strategy………..17

2. Evidence of transformational strategic change……………………………………………….18

3. Evidence of second curve activity………………………………………………………………...18

4. Business level strategies on the BCG matrix…………………………………………………...19

5. Conclusion on overall implementation of business strategies………………………..19

6. Strategic implementation issues…………………………………………………………………..20

1. McKinsey’s 7 forces...
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