Strategic Management and Virgin Atlantic Essay

Decent Essays

Question 1

Virgin group limited is world largest british multinational company founded by Richard has various core business like travel,entertainment and life style and it includes 400 companies world wide.

Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding company; however Virgin's business and trading activities date to the 1970s. The net worth of Virgin Group as of September 2008 was £5.01 billion.

Virgin Group operates from its headquarters at The School House, 50 Brook Green in the London Borough of Hammersmith and Fulham.Richard branson retains complete owner ship and control of virgin brand.

Each of the companies operating under the Virgin brand is a separate …show more content…

Portfolio models are used

to classify Strategic Business Units (SBU’s) to determine the future cash contributions

that can be expected for each SBU as well as the future resource requirement that each

will require. Portfolio models generally examine the competitive position of the SBU

and the chances for improving the SBU’s contribution to profitability and cash flow.

The model we will be using for Virgin is the Boston Consulting Group (BCG) model.

This model is based on the relationship between relative market share and growth of the

Market The BCG model classifies products under four areas. These are stars, cash cows,

question marks and dogs. Stars are SBU’s with high share or high growth market

Virgin Atlantic is clearly the cash cow of the Virgin Empire but we have undertaken a

Portfolio analysis from the viewpoint of Virgin Atlantic. With regards to Virgin Atlantic Airways we believe that there is no star. The cash cow is the Upper Class section. Cash cows have high share of a low growth market and generate higher cash revenues. This high end product targets wealthy customers and business

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