Introduction Founded by Sir Richard Branson, the Virgin group began like a travel organization that hosts travel procedures from the Western european regions toward other areas worldwide. Aside make up the travel procedures; the company as well caters to package transfer obligations that are transported from UK towards the American and Aussie continents. The business has also proven a fine marriage towards their sister companies the Virgin Express and the Virgin Blue. Later on, the market with the Virgin Group of Companies began to expand.
The conventional service the fact that company presents its customers have significantly taken a leap forward as the managing of the company took the opportunity in venturing in other aspects of business industry, which they nevertheless would even more cater to different essential needs of their company’s clients. As an effect, the establishment of two major rail franchises that sells more the usual travelling tour plans offered by the Virgin Firm. Aside from the focus of the company upon travel operations, the business establishments also sell entertainment materials just like magazines and music videos and DVD gadgets.
There as well came the establishment from the Virgin Super stores that serve as the main mall-like companies of the business that mostly offer materials in connection with entertainment. Besides the many operations that the Virgin Group of Corporations caters to, you can also get other companies that they continue to offer the open public. The said services contain balloon flights, beverages, bridal stores, cosmetics, financial services, fitness centers, Internet services, mobile phone providers, publishing, and a record labeled. (2007) As tightly observed, the entire concern of the business is to present recreation, entertainment and amusement to their clients.
Therefore, it could be realized that most of its market originates from the upper amount of the global economy. This directly refers to the truth that most from the clients that are able to appreciate and consume their products and agree to their providers are all those who have the capability to fund the amount of all their business orders. Becoming in the industry that holds very much the competition since it is directly attached to entertainment and travel systems which is right now the most in demand services inside the society, exactly how are the Virgin group of Corporations able to cope up with the competition that is present in the business society?
How are that they able to refine their tricks of market way considering that they are really considered as a multinational business that has to manage multicultural world of personnel? Aside from this kind of, as the organization grows even larger and ventures in order to areas of organization, how are that they able to keep a strong wait in the competitive pace in the global business culture? These questions plus more shall be solved on the chapter discussions that follow. CHAPTER 2 The Competitive Strategies of the Virgin Group Running a business, there is always competition. According to Milton Snoeyenbos, Competition is a essence of putting up a business and producing things happen for a selected company (1992).
This is certainly true. As obviously found today, different types of competition that naturally decides their status in the global business area govern a global industry of business. Furthermore, Snoeyenbos adds that: the ability of your business organization to keep up with the competition that it is likely to have proposal with steps its capacity for keeping up with the busy development of global trade and industries (1992) Certainly, multinational businesses, such as the Virgin Group, immediately experience such competitive environment of within the global marketplace.
There are many firms that obviously would want to have similar fair share’ of industry especially when considering travel functions and entertainment. It is definitely true that to be able to survive in such a competitive world of business, a firm, or a organization organization needs to have a firm and solid strategy in operating its branches and allies in creating a great amiably enough market that will naturally acknowledge the services plus the products that they can would present. In a typical organization operation environment, competition is normally referred capital t as a obstacle on the capacity for the company being noticed by market.
This capability is normally measured by the profit that the company will be able to incur every year. Through recent surveys of the world operate organizations, it could be seen that the Virgin Number of companies has fared well in terms of the earnings share that they get from the global economy. Which means that they are able to attract an adequate 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 industry industry, the said strategies are subdivided into 4 major parts. Each talked about in their individual focus of concern for the companies’ achievement.
This the branch of the approach that provides an impressive fine working environment that the personnel of the Virgin mobile Group could possibly be able to find fulfillment in their work, hence, they are really highly capable of performing very well for their organization. The other branches of the organization, which this type of strategy influences, are the r and d department. As stated earlier, the Virgin Group continues in aiming to increase their aspects of concern in the commercial industry. Consequently , through recruiting control and motivation strategies, the company has the capacity to empower its employees to work hard and perform well regardless of what culture or nationality they could have come via.
In line with the Virgin Group themselves, they may have an aim whereas they can provide the identification of their customers in the most effective way every time they take good thing about the services as well as the products provided by the company. Hence, to be able to do this, they say that there are three major purposes in the marketing procedure of the business. As it could be quoted, i have heard it said: 2. We truly believe in making a difference for consumers. * All of us deliver quality service simply by empowering each of our people.
* We love receiving feedback it helps us to regularly improve every customer’s experience through innovation. (Source: http://www.virginmobile.ca/site/en/aboutUs/html/about_us_06.htm. 2007) Having these rules of goal, they also have questions that make them decide on how to create the perfect marketing strategy that can support the product that they are designed to launch for the public. The said concerns too happen to be quoted the following: * Is this a chance for restructuring a market and creating competitive edge? * What is the competition doing?
* Is the customer baffled or desperately served? * Is this an opportunity pertaining to building the Virgin company? 5. Can we add value? * Will it interact with each of our other businesses?
* Is there a proper trade-off among risk and reward? (Source: http://www.virginmobile.ca/site/en/aboutUs/html/about_us_06.htm. 2007) Furthermore, when the marketing strategy has already been strongly suggested and made the decision upon by marketing real estate agents of the company, the final decisions are after that based upon some outlined causes of following a products and the brands which have been decided upon and finally liberating them intended for public usage.
The stated considerations happen to be as follows: * The power of the Virgin name * Richard Branson’s personal reputation * Our unrivalled network of friends, contacts and partners * The Virgin managing style, and * The way skill is energized 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, actually in marketing purposes is to create for his or her clients a guarantee of being well serviced and well looked after. This element of concern for the Virgin mobile Groups’ administration team offers them an edge from their competition in the business market.
This requires the ability of the company to balance its focus on the operational activities of the organization organization from the personal identification as a service provider for both its employees and its clientele as the stakeholders from the organization. Through the systematic approach that is used by Virgin Teams towards their activities, the business is then in a position to come along with the changes and innovations of the business world while directly attending to the needs of their stakeholders.
The acceptance of the contemporary society towards the id that the business puts up for itself is definitely an essential aspect that contributes to the attempt of the firm to remain highly appreciated by the people that this aims to serve. This means that the capability of the company to continuously perform the social responsibilities avails that of the capability to remain highly competitive within the business industry. These kinds of four main strategies have a long history and are the peace of mind that the Virgin mobile Group of Businesses have found in their operations in their discipline of organization concern.
In this regard, it would be also helpful to know the dimensions of the strategic capabilities of the firm. Naturally, it could be noticed that the Virgin Group has been regularly utilizing the Forward the use system of creation. As a result, the resources of the organization are after that assured as well as the competence in addition to the dynamic functions of the business is focused through the alliance-system. What does the forward integration system suggest?
It could be noticed that through the analyze that has been presented in this newspaper so far, the Virgin Number of companies designed to expand through the creation of alliances to investors in other companies. The establishment of a fine romantic relationship with the owners and the shareholders as well as the table members with the companies that they have allied with, they are able to increase their operation. As clearly state previously, the company grew from a travel service agency towards a multinational company that offers a number of products that include both amusement and entertainment to the public.
Yes, the achievement system of the organization depended a great deal on the capability to generate alliances to companies that trusted it is reputation and its particular owner’s name in the business industry. Now, as a company, the Virgin Group directly plans to control the entire entertainment and leisure time industry inside the global business scene. Undoubtedly, if the competitive systems as well as the strategic capacity of the company carry on and improve and develop through time, it will not be impossible just for this group of corporations to completely master the world’s most competitive organization arena.
PART 3 The organization and Its Stakeholders Since discussed in earlier chapters, there are largely three stakeholders of the Virgin group of Businesses, which in various areas impact the major activities that the firm performs within their daily global operations. The stakeholders range from the company management and its staff, the clientele that are being offered by the organization, and the contemporary society that it serves its responsibility to. In accordance with the stakeholder mapping system, the said neighborhood of stakeholders could nevertheless be narrowed down to five key types based on whether they go against sb/sth? disobey or support the company mixed up in society.
While using existence with the stakeholders, the control of the company operations is known as a factor that remains to get an essential couple of concern intended for the company administration themselves. As obviously viewed, each stakeholder have her or his own require from the company activities. The management as well as the employees regarding example, needs profit and income organizations, while the buyers demand assistance and quality products through the company. The society consequently requires that the company give them what they are due; this could include the tax responsibilities of the company towards the local government with the communities, that they are a component to.
Hence, if they happen to be able to tackle the said social responsibility then they are able to help the community, which they are operating in, and in return, they will gain complete support in the society, that could in the future make amiable revenue for their business as they are altered to getting supporters of the business. The Virgin Group of Firms sees to it that they will be able to meet the needs of all the stakeholders involve within their business procedures as they are mentioned previously.
The constancy of the area of issue the Virgin mobile Group of firms towards their very own employees, their very own clients as well as the society, that they can serve, [which may also include the broadly diverse nature of their organization] is obviously the reason why they have been operating provided that they have been and it is currently continually growing through the developments of global business tendencies. Although the outlined evidences of the strength of the Virgin Group of Companies’ status available industry, it might not be denied that there could be several instances that some of their traditional strategies is probably not that competent of meeting the difficulties of the new area of effort of the firm.
As for case in point, the company’s management group is sure to get their own plans of starting establishments in numerous other parts from the globe in order to directly grow the market that may be influenced by said multinational group of firms. In Asia as for case, there are several points of consideration which the company organizers should attend to before they will could actually perform organization operations in Asian countries.
Hence, the following list of alternative approaches could be integrated in the business approach of the Virgin Group of Companies: This involves the ability of the firm to have a exploration on what products and services the company currently offers chilly suit the needs of the people in a specific country with no offending their very own traditional lifestyle. It could not be rejected that there are continue to countries [especially in Asia] that are directly influenced by their cultural historical past. As a result, the companies, which are about to establish limbs in these kinds of areas, should take total concern of the cultural background of the region to be able to fit into the culture. This would normally address the social responsibility of the firm.
Most of the suggested alternatives concern the social responsibilities of the company. This can be simply because of the very fact that the capacity of the company to broaden depends on the acknowledgement of the culture that it should serve. The legal aspects and enrollment to community governments entails the tax-responsibilities of the business.
Their knowledge of the business legal aspects and procedures that their very own target countries imply will need to help them build a fine office with their new society and would may as well create for them a credible popularity. The author of this paper using the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis has immediately analyzed those two major suggestions as alternatives. Through the explained analysis, it is noticed that the competitiveness in the Virgin Group amidst the wide development plans it might have later on would be well guarded.
As i have said earlier, the suggestions will be more focused on the social responsibility of the company. This is highly suggested by the author, because believed by the author because the key toward a multinational, multicultural company’s success in the business industry. PART 5 CONCLUSION It is often most certainly crystal clear that through this analyze, the strengths of the Virgin mobile Group of Businesses have been defined for better understanding. The well known reputation of the stated group of businesses in their capability to survive competition amidst the expansion procedures that they have received through firm alliances have been determined since the key factor of success for the Virgin group.
The systematic approach that the entire organization applies in its daily operations offers directly intended the good foundation of the companies’ lifestyle in the world. Their constant attendance around the responsibilities they own towards all their stakeholders offers naturally created for them a fine environment of work and functions. Certainly, the competence that the supervision team with the Virgin group has on global expansion features ensured them of ongoing success in providing the very best service plus the quality items to their clients.
In return, the said managerial strategies also create for these people an assurance of growing income in the years yet to come. Changing Minds Organization. (2007). Stakeholder mapping. http://changingminds.org/disciplines/change_management/stakeholder_change/stakeholder_mapping.htm. (January 30, 2007). Harvard Business School. (2007).
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