Virgin Airline - the House That Branson Build

Topics: Virgin Group, Richard Branson, Virgin Atlantic Airways Pages: 24 (6991 words) Published: August 22, 2010
Module Title:GM512 Business Policy and Strategic Management Assignment Topic:The House that Branson Built: Virgin’s entry into the new millennium (A CASE STUDY)

Table of Contents
1. Analysis Question ……………………………………………………..…………….....3

2. Introduction …………………………………………………………………………....3 2.1Company Overview ……..………………………………………………… 3 2.2Company Perspectives …………………….………………………………. 4 2.3Virgin’s Business Model …………………………………………………... 4 2.4Virgin’s Corporate Strategy …………………….………………………..... 5

3. Case Study Analysis: The House That Branson Built: Virgin’s Entry Into The New Millennium .………………………………………………………………………. 9 3.1To what extent does Branson’s strategic thinking fit the generative reasoning perspective? ……………………………………………………………………….. 9 3.2To what extent does Branson’s strategic thinking fit the rational reasoning perspective? …………………………………….…………………………………. 11

4. Strengths and weaknesses of both strategic reasoning perspectives. (Analyses and Recommendations) ……………………………………………………………….. 14 4.1Rational reasoning versus generative reasoning perspectives ……………. 14 4.2Strengths and weaknesses of Generative Reasoning Perspective ………... 15 4.3Strengths and weaknesses of Rational Reasoning Perspective …………... 17 4.4SWOT analysis based on Virgin Group ………………………………….. 18

5. Conclusion ………..……………………………………………………………………23

6. References ……………………………………………………………………………..24

1)INTRODUCTION

This article is a group assignment submitted in part fulfillment of the requirements for GM512 Business Policy and Strategic Management, which is a core module contained in the curriculum of the UCSI Master in Business Administration program.

The article attempts to evaluate Case 3: The House that Branson Built: Virgin’s entry into the new millennium, and identify which of the strategic decisions taken by Richard Branson, Chairman of VIRGIN Group, indicated that he adopts the rational or generative reasoning perspectives. It is divided into 3 main areas that will each attempt to answer the following research questions respectively:

1. To what extent does Branson’s strategic thinking fit the generative reasoning perspective? 2. To what extent does Branson’s strategic thinking fit the rational reasoning perspective? 3. What are the strengths and weaknesses of both strategic reasoning perspectives?

2)INTRODUCTION
2.1)Company Overview

Virgin, a leading branded venture capital organisation, is one of the world's most recognised and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group is a diversified grouping of more than 200 privately held companies, employing approximately 50,000 people, in 29 countries. Revenues around the world in 2006 exceeded £10 billion (http://www.virgin.com/AboutVirgin/WhatWeAreAbout/WhatWeAreAbout.aspx). Virgin Group has gone on to grow very successful businesses in sectors ranging from Travel and Tourism, Leisure and Pleasure, Shopping, Media and Telecommunications, Finance and Money, Health and/or Social and Environment. The largest of these are Virgin Atlantic Airways, the number two airline in the United Kingdom; Virgin Holidays, a vacation tour operator; Virgin Rail, the second largest U.K. train operator; the Virgin Retail Group, which operates numerous Virgin Megastores, a retail concept featuring videos, music CDs, and computer games; and Virgin Direct, which offers financial services. Other Virgin businesses include beverage maker Virgin Cola, a record label, book and music publishing operations, hotels, an Internet service provider, movie theatres, a radio station, cosmetics and bridal retailing concepts, and a line of clothing.

Table 1: Virgin’s Group Company History

|YEAR |EVENTS | |1968 |Richard Branson produces the first...
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