Strategic Management: Strategic Directions Folloed by Virgin Atlantic
Contents
1) Executive Summary
2) Introduction of Company
3) External Environment
4) Company Financial Performance
5) Competitive Strategy
6) Strategic Direction of Development
7) Methods of Development
8) Conclusions and Recommendations
9) Resources
10) Appendices
1) Executive Summary
This report aims to evaluate the current strategic directions followed by Virgin Atlantic.
Initially we discuss the organisation’s mission statement and identify how the vision of the company is reflected though the strategic objectives. It is established at CSR plays an important role one Virgin Atlantic as it is seen to have principles and high standards on acceptable behaviour, BBC News (2009).
External factors are evaluated using a PESTLE analysis and it is made clear that the Airline Industy as a whole is suffering financially in the economic turndown. With the well publicised fear of global warming and the level of emissions airlines are giving off is resulting in the government putting pressure on Virgin Atlantic and others to find ways of reducing their C02 output by increasing fuel costs, Virgin Atlantic (2009). Social trends are examined to determine the appeal of air travel and why consumers continue to fly with luxury airlines like Virgin Atlantic over smaller no frills airlines.
The financial performance of Virgin Atlantic is analysed over a 5 year period looking at key ratios to determine the sales and profitability of the organisation. These results are compared to British Airways financial figures as well as Ryanair’s to get a better understanding of how financially secure Virgin Airline is financially in comparison to its competitors.
An analysis is then conducted of the organisations competitive strategy which identifies, using Porters 5 Forces, that Virgin Atlantic fall under ‘differentiation focus
1) Executive Summary
2) Introduction of Company
3) External Environment
4) Company Financial Performance
5) Competitive Strategy
6) Strategic Direction of Development
7) Methods of Development
8) Conclusions and Recommendations
9) Resources
10) Appendices
1) Executive Summary
This report aims to evaluate the current strategic directions followed by Virgin Atlantic.
Initially we discuss the organisation’s mission statement and identify how the vision of the company is reflected though the strategic objectives. It is established at CSR plays an important role one Virgin Atlantic as it is seen to have principles and high standards on acceptable behaviour, BBC News (2009).
External factors are evaluated using a PESTLE analysis and it is made clear that the Airline Industy as a whole is suffering financially in the economic turndown. With the well publicised fear of global warming and the level of emissions airlines are giving off is resulting in the government putting pressure on Virgin Atlantic and others to find ways of reducing their C02 output by increasing fuel costs, Virgin Atlantic (2009). Social trends are examined to determine the appeal of air travel and why consumers continue to fly with luxury airlines like Virgin Atlantic over smaller no frills airlines.
The financial performance of Virgin Atlantic is analysed over a 5 year period looking at key ratios to determine the sales and profitability of the organisation. These results are compared to British Airways financial figures as well as Ryanair’s to get a better understanding of how financially secure Virgin Airline is financially in comparison to its competitors.
An analysis is then conducted of the organisations competitive strategy which identifies, using Porters 5 Forces, that Virgin Atlantic fall under ‘differentiation focus
References: Mintel Report ‘No-frills/Low-cost Airlines - UK - July 2007’ The Times (2009) ‘Virgin Atlantic to Cut 600 Jobs to 'Remain Strong '’ online at http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article5717425.ece (Accessed 19th November 2009) Glasgow Caledonian, ‘Strategic Management MGTM311 Division on strategy, Innvoation and Enterprize’ Chapter 2 pp 67-70 (2009)