The Virgin Group.Doc

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THE VIRGIN GROUP
CASE STUDY

QUESTION 1: What examples does the case give of links between Branson’s strategy for Virgin and the environment in which it operates?

The Virgin Group Ltd is a group of separately run British companies with the Virgin brand under the leadership of English celebrity business tycoon Sir Richard Branson. The core business areas are travel, entertainment and lifestyle, among others.

Richard Branson’s strategy comes from his deepest inner beliefs;

“in principle there were no product or service boundries limiting a brand name, provided it was associated with quality products/services on offer”

The corporate strategy of the Virgin Group is to operate like ‘a venture capital firm based on
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To fully investigate what environmental influences have particularly affected the virgin group, it is important to take into consideration just what affects virgin’s business environment. And exactly what is the virgin group is it based as an open or closed business system? The answer is its baseline fact, that Virgin group is a multi international commercial/ profit seeking organisation, it is based as an open system as they, are influenced by environmental influences/changes,

eg to customers and technologies and must respond to these environmental influences.

All organisations operate in a wider environment, and how people understand, interpret and interact with that outside world affects their performance. Each business is unique, so the external forces that affect them (and which they try to influence) will differ between them. For Richard Branson’s Virgin group, the external environment has constantly been affected by threats and opportunities. Environmental forces do not affect the practice of their own accord.

These are the factors from the external environment that could affect the Virgin group business.
There are two methods to determine just in which way Virgin group is bring affected by particular environmental influences:

1. Porters five force analysis

“Five Forces Analysis helps the marketer to contrast a competitive environment. It has similarities with other tools for

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