Assesment of Virgin Group Corporate Strategy

3007 Words13 Pages
ASSESMENT OF VIRGIN GROUP CORPORATE STRATEGY

‘CREATING

VALUE

IN

THE

MULTIBUSINESS COMPANY’.

ASSESMENT OF VIRGIN GROUP CORPORATE STRATEGY
‘IN RELATION TO PARENTING STRATEGY, THEORY by GOOLD & FROM COMPETITIVE ADVANTAGE TO CORPORATE STRATEGY by M.PORTER’

ASSIGNMENT ; COURSE ; NAME ; STUDENT NUMBER ; DUE DATE ;

01 MBL 93D-U REFILOE MOKEBE 72542683 08 MAY 2012

MBL93D-U CORPORATE STRATEGIC MANAGEMENT

Page

ASSESMENT OF VIRGIN GROUP CORPORATE STRATEGY

Contents

1. INTRODUCTION........................................................................................................ 1

2. VIRGIN GROUP BUSINESS MODEL .................................................................. 2

3. VIRGIN GROUP CORPORATE (PARENTING) STRATEGY…show more content…
The Group in essence diversifies into as many markets as feasible, and extends the Virgin brand name further at a low cost, as the brand stature could be relied upon to reduce barriers to entry into static markets. They aim to provide better quality products than any competitor in a complacent market, and the key point to the groups model is that the market to be entered must still be in its growing phase.

MBL93D-U CORPORATE STRATEGIC MANAGEMENT

Page 2

ASSESMENT OF VIRGIN GROUP CORPORATE STRATEGY Every SBU in the Virgin Group are “ring-fenced”, separated and independent. Companies within the group do not share a common accounting year-end, and each of them operates their own business-level strategies to achieve their own competitive advantages in their own segmented markets. Since decision making are decentralized within the whole Virgin Group, each SBU is empowered to run their own affairs, yet other companies help one another, and solutions to problems come from all kinds of sources. However, it doesn’t mean that each SBU are allowed to influence other SBU’s decisions, but the success of Virgin Group is based on the corporate parenting strategy, i.e., every new business unit inherits company’s brand name, values, management style, support and access to resources.

3. VIRGIN GROUP CORPORATE (PARENTING) STRATEGY
In an effort to grow their business, Virgin group has diversified into multi-business companies, either
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