Virgin Atlantic Strategy

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UNIVERSITY OF SURREY

FACULTY OF MANAGEMENT AND LAW

School of Management

MSc Programmes

Module Leader:

Dr. Laura A. Costanzo

Academic Year: 2010-2011

|Industry |European Airline Industry |
|Company |Virgin Atlantic Airways |

STRATEGY MODULE

COURSEWORK

|Student URN |MSc Programme |Surname & First Name |
|6098320 |Management Information Systems |Hargley Ikechukwu |
|6142620 |International Hotel management |Lu Chenyao
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The external environment consists of:

1. The macro-environment: analysed with PESTEL (an acronym for Political, Economic, Socio-cultural, Technological, Environmental and Legal factors)

2. The industry and competitors : analysed by Porters 5 forces framework with critical success factors and strategic groupings

3. The identification of opportunities and Threats from SWOT Analysis.

An understanding gained from using these frameworks are useful in future strategic decision making for Virgin Atlantic.

2.1 The Macro-environment

This consists of all the factors that are beyond the control of the firm and can have a meaningful effect on the firm’s strategy (Dess et al., 2010). A PESTLE analysis shows the effect of these factors in the Airline industry.

We would examine this effect on Virgin Atlantic.

Political Factors

These are Government operating regulations within which the airlines have to work with. The Single European Sky (SES) initiative was created to serve as a regulator for Air traffic management in the European Union. The European airline deregulation has created a single market, removing restrictions from member countries and creating international competitiveness. This would mean reduced competitive advantage of national carriers like British Airways which is a good for Virgin Atlantic. However, this has also seen
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