This document summarizes Virgin Group's diversification strategy and approach to corporate parenting. It discusses how Virgin has diversified into over 200 companies across more than 25 industries, employing over 25,000 people worldwide. The brand and Richard Branson's vision have been key assets enabling this diversification. The document also analyzes frameworks like the BCG matrix, McKinsey matrix, and parenting matrix that Virgin has used to classify its business portfolio and add value through corporate parenting activities.

1. Berchot – Demarque – Doncieux – Durand - Piva

4. Group origins

5. Main activities

6. Ansoff’smatrix

7. Strategy of diversification « a strategythattakes the organisation awayfromboth itsexistingmarkets and itsexistingproducts » Reasons for diversification: - efficiency gain - increasecorporateparentingskills - increasingmarket power For Virgin: Branson’sideas, interests and engagement Results of diversification: - becarefulwithriskyunrelated diversification - one shortcomingcanbehidden by successes of other services, but canalso damage the whole image of Virgin Diversification

8. Value adding activities: - Envisioning - Coaching and facilitating - Intervening Value destroying activities: - Adding management costs - Adding bureaucratic complexity - Obscuring financial performance Value creation: key concept

9. 3 differentapproaches:

10. What ? « a corporate parent seeking to employ its own competences as a parent to add value to is business » What is Virgin’s main asset? THE BRAND Managers have one major job: find & exploit parenting opportunities The parental developer

11. BCG matrix ENTERTAINMENT FINANCE SHOPPING SOCIAL & ENVIRONMENT MEDIA & TELECOMUNICATIONS RAILWAY FLIGHTS

12. McKinsey matrix FINANCE ENTERTAINMENT SHOPPING SOCIAL & ENVIRONMENT MEDIA & TELECOMUNICATIONS FLIGHTS RAILWAY

13. The Parentingmatrix

14. The Parentingmatrix Two key dimensions - Feel: understanding of the parented companies and of their market Greenfield start-ups- Benefit: fit between the opportunities and the capabilities Cosmetics Joint ventures: Virgin provides the brand, and partners are the main investors Virgin further values: public relations, experience with start-ups, understanding of the market

16. Whatmaybe the future of the company? After Branson: link between Branson and Virgin brandistoo strong “Riskofcontamination”: the greatestthreatisthat Virgin brandmaybecomeassociatedwithfailure”