Sir Richard Banson and Virgin Inc - Business Case Study - University of Northampton, UK , Masters of Business Administration (MBA) Presentation Papered by: Nabaraj Giri (girinabaraj12@gmail.com)

1. RICHARD
BRANSON
&
Nabaraj Giri
ID: 17448727
MBA - University of Northampton (UoN)
Competitive Strategy & Innovation
Presentation By
THE VIRGIN
GROUP

2. Topics
Covers
 Introduction of Sir Richard Branson
 Introduction of Virgin Inc
 Common resources & capabilities
 Considered business for divest
 Criteria to pursue new diversification strategy
 Recommendations to change Organizational
Structure & Management System of Virgin Inc.
 Question answer session
 Conclusion
 References

3. Richard Branson
He was developed a billion dollar business
founded on several business
activities since the childhood.
Born in England on July, 1950
-Drop out school by the age of 16 due to dyslexia
-Started the business student magazine in the
age of 16.
-By the age of 20 he had been matter of television
documentary focusing the his student magazine

4. Richard Branson

7. Richard's initial commercial project was named
student Magazine, that was started on 26, 1, 1968.
 The article of magazine absorbed on " rock, sexual
category, interview with guerillas & schemes for
education development.

8. Four years later
Branson has diversified
the mail order record
business controlling that
magazine
 It concentrated on the
musical delivery outlet &
expansion of magazine

10. Howdo theydefine
themselves?
“We are a family
owned growth capital
investor with a
globally recognized
and respected brand”

11. Virgin brand so far: Transportation & Travel

12. Entertainment & Leisure

13. Retail

14. Money and Communications.

15. Renewables, Health, Charity.

16. "It is the vary famous trademarks in the world"

17. Fun
Value For
Money
Good
Quality
Brilliant
Customer
Service
InnovationBrand Image

19. Brilliant
Customer
Service

20. COMMON RESOURCES & CAPABILITIES
Most of these industries own properties, employ
people, offer goods and services (Grant, 2010). Even
though all Virgin industries and tasks are separate
entities, each is authorized to run its own affairs.
They share shared resources and capabilities that link
them.
 Grant (2010) noted that the main unities between
this diverse range of enterprises are, the Virgin brand,
and the role of Richard Branson as their instigator
and major investor.

21. COMMON RESOURCES & CAPABILITIES

22. COMMON RESOURCES & CAPABILITIES
 Richard Branson is not only the creator, he is also the
main investor in the firm. His eagerness and devotion
for business led him to establish a series of other
Virgin companies such as Virgin Rail, Virgin Records,
Virgin Cola , Virgin Airline etc.
 Branson is famous internationally, his leadership of
the Virgin Group protracted beyond his role as a source
of entrepreneurial ideas.

23. COMMON RESOURCES & CAPABILITIES
 One link is the Virgin Brand itself.
 Brand names and other trademarks are a form of
reputational strength, their value is in the confidence
they instill in clients.
 Virgin's capability is in using employees' capability and promises
in accomplishing administrative goals which can only happen
where there is an open workplace structure and culture

24. COMMON RESOURCES & CAPABILITIES
Resources
Brand Innovation Finances Staff
Capabilities
Management
& Marketing
Increasing
global
presence
Industry Links
Identify Virgin
'fifts'

25. Considered
business for
divesting
Virgin has well establishment &
managed company over the years, but
some of its industries are no extended
what they used to be seeing the present
the world economic recession

26. The airline corporate is capital concentrated. As a
problematic of fact, in 1992 Branson sold his most
gainful & fruitful corporate, Virgin Music for pound
560 million for account Virgin Atlantic (Grant,
2012).
Even though the airline still makes profit but it is
not as profitable as it used to a period ago. People
no longer travel as much, and rivalry in the entire
travel business is rife.
Consideredbusinessfordivesting

27. At present, airlines are continuously striving to gain
clients over by offering low charges and unique
packages, compounded with alternates to air travel
etc.
Influences affecting the achievement of air travel such
as government rules and deregulations, taxes, high jet
fuel price etc.
Seeing all these, it will be best for the Virgin group to
divest Virgin Airline.
Consideredbusinessfordivesting

28.  Consumers will prefer products and services from
organizations with old history and decent track
record such as monetary organizations & banks.
 Virgin Inc is not a bank and it have not the
arrangements to guarantee full finance deeds, as a
consequence its exertion to bid for 318 RBS offices
in England and Wales failed, and was ran over by
Spanish banking huge Santander, a decent sign
for Virgin to Virgin money divest.
Consideredbusinessfordivesting

29.  Virgin inc. is a good trademark, but its
Virgin Cola is not a good trademark when
likened to Coca-Cola and Pepsi . By 1997,
Virgin Cola was down pound 5 million on
incomes of pound 30 million (Grant, 2010).
 Still striving to take on the 'big boys' will
come at a harmful budgets to Virgin. So, it
will be intelligent to also divest Virgin Cola.
Consideredbusinessfordivesting

30. Criteriato
pursuenew
diversification
strategy
As a result of
divergence, a company
can make new
marketplaces in
dissimilar parts of the
world thus growing
value and growth.

31. Criteriato
pursuenew
diversification
strategy
To decent counselled to
apply Porter's vital tests
-Cost of Entry Test
-Attractiveness Test
-Better Off Test

32. Recommendationsto
changeOrganizational
Structure&
ManagementSystem
ofVirginInc.
Virgin's working styles have been
considered by Branson.
Things have altered, Virgin would
regulate its economic structure.
Branson should reflect observing
within the group and divest or
combine businesses which are not
performing fine.

33. Recommendationsto
changeOrganizational
Structure&
ManagementSystem
ofVirginInc.
Branson claimed that Virgin
businesses work on a separate
base but alliance of some in
related companies.
 Such as Virgin Blue, Virgin
Atlantic, Virgin Express.
 Victory Corporation and Virgin
Retail will generate additional
economic constancy.

34. Recommendationsto
changeOrganizational
Structure&
ManagementSystem
ofVirginInc.
Virgin must permit its brand title
to be used by additional minor
decent businesses over franchise
and gather royalties.
Grant (2010), defined the Virgin
trademark as its greatest
appreciated asset.

35. Recommendationsto
changeOrganizational
Structure&
ManagementSystem
ofVirginInc.
The advantage of licensing the
trademark means Virgin can
decrease risk.
Franchisees are very significant
basis of new market aids and
product concepts.
Numerous businesses have done
well over franchise such as Trump
hotels, McDonald's etc.

36. Recommendationsto
changeOrganizational
Structure&
ManagementSystem
ofVirginInc.
The organization structure of
Virgin has been centralized on
one gentleman Richard.
Worked with little official
management systems or
structure , this will not be
longer.

37. Recommendationsto
changeOrganizational
Structure&
ManagementSystem
ofVirginInc.
Virgin is single industry, it is a multi-
national company and if Richard was to
become inactive as main
businessperson, public relations
director and planned designer shorn of
a defined management structure in
places
A central and methodical means of
handling the upcoming without Richard
is what Virgin's requirements like
Apple Company.

38. Conclusion
Focus on Technology
Organization restructure
Brand Franchise
Focus on related
divarication rather
unrelated

39. Your
Question
and my
answer

40. Thank

41. References
1. The Virgin Group in 2012 - Coursework. 2017. The Virgin Group in 2012 -
Coursework. [ONLINE] Available at: https://www.essays24.com/Business/The-
Virgin-Group-in-2012/66813.html. [Accessed 28 August 2017].
2. UKEssays. 2017. Richard Branson Management Analysis. [ONLINE] Available
at: https://www.ukessays.com/essays/business/a-case-analysis-of-richard-
branson-business-essay.php. [Accessed 28 August 2017].
3. Virgin. 2017. Our Story | Virgin. [ONLINE] Available
at: https://www.virgin.com/time-machine. [Accessed 28 August 2017].
4. Grant, R. M. (2008), Richard Branson & the virgin group in 2007, cases to
accompany modern policy analysis. Malden, MA: Blackwell publishing, PP:
279-297 [Accessed 25 August 2017].
5. Virgin. 2017. Virgin about us |. [ONLINE] Available at:
https://www.virgin.com/virgingroup/. [Accessed 28 August 2017].

42. References
6. Porter's Generic Competitive Strategies (ways of competing). 2017. Porter's
Generic Competitive Strategies (ways of competing). [ONLINE] Available at:
http://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/. [Accessed 20 August 2017].
7. Strategy Train: 7.1.1Types of Diversification. 2017. Strategy Train: 7.1.1
Types of Diversification. [ONLINE] Available at:
http://st.merig.eu/index.php?id=145. [Accessed 26 August 2017].
8. utorialspoint.com. 2017. Analyzing the External Environment. [ONLINE]
Available at:
https://www.tutorialspoint.com/strategic_management/analyzing_external_enviro
nment.htm. [Accessed 25 August 2017].
9. Study.com. 2017. What Is Diversification of Business? - Strategies, Definition &
Examples - Video & Lesson Transcript | Study.com. [ONLINE] Available at:
http://study.com/academy/lesson/what-is-diversification-of-business-strategies-
definition-examples.html. [Accessed 24 August 2017].