STRATEGIC MANAGEMENT ASSIGNMENT

Submitted by: Aditya Jain Diksha Sood

INTRODUCTION Virgin Group Ltd. is a British multinational branded venture capital conglomerate founded by entrepreneur Richard Branson. Its core business areas are travel, entertainment and lifestyle, and it also manages ventures in financial services, transport, health care, food and drink, and telecommunications; together, Virgin s businesses consist of more than !"" companies #orld#ide. Virgin Group s date of incorporation is listed as $%&% by 'ompanies (ouse, #ho class it as a holding company; ho#ever Virgin s business and trading activities date to the $%)"s. Virgin employs more than *",""" people around the #orld, operating in over *" countries. Global branded revenues of +$*bn ,-.!bn/ in ."$.. MISSION STATEMENT Virgin s mission statement e di!!e"ent by bein# bette"$ and to contribute to creating happy and fulfilling lives #hich are also sustainable 0 surely a vision #orth aspiring to1 2ith businesses spanning many sectors and touching many aspects of our customers lifestyles #e feel that Virgin is in a perfect position to contribute to this vision. 3fter all, the Virgin brand has al#ays been about having fun in a uni4ue Virgin #ay . %ISION STATEMENT 2e believe that #e have a part to play in making this a reality and so our vision for sustainability #ithin the Virgin Group is5 6to make a credible contribution to#ards sustainable lifestyles #hilst meeting or e7ceeding the e7pectations of our staff, customers and other stakeholders6. St"ate#y ana&ysis o! %i"#in #"ou' in "e&ation to its mission and (ision) %i"#in #"ou' is a *e&& di(e"si!ied +on#&ome"ate *hi+h is '"esent in most o! the ,eisu"e and ,u-u"ious se"(i+e #i(in# +om'anies in the *o"&d) A&*ays bein# uni.ue and di!!e"ent5 8ir Richard Branson, the chairman of the Virgin Group, brings to sustainability and corporate responsibility the same degree of e7citement and adventurism as he does #ith most of his activities #hether in business, crossing oceans in hot0air balloons, or pledging all future profits of his transportation interests 9 estimated at around -: billion in $" years 9 to rene#able energy initiatives. Its aim #as to find opportunities to gro# the business on the basis of #hat became the Virgin brand name and on the strong reputation of its founder and chief e7ecutive.

%i"#in G"ou'/s basi+ business st"ate#y Virgin takes the vie# that there are al#ays opportunities available for the hungry business e7ecutive. ;he underlying business logic has been summarised by Branson thus5 6Business opportunities are like buses . . . Theres always another coming along." In practice, #hat this means is that Virgin e7amines ne# opportunities to see if the group can offer something 0bette"1 !"eshe" and mo"e (a&uab&e/ than e7isting companies. It looks particularly at markets #here the e7isting customers are not al#ays receiving value for money and #here the e7isting companies have in some cases become complacent < trains, insurance and banking. %i"#in !o+uses on #eo#"a'hi+a& e-'ansion In the last fe# years, Virgin has focused its strategy on geographical e7pansion of its e7isting product portfolio rather than adding products. =or e7ample, it has taken its highly successful concept of Virgin >obile telephones to other countries beyond its ?@ base. (o#ever, it remains opportunistic in its main product areas < for e7ample, its bid to rescue the failed ?@ bank Aorthern Rock in .""). ;he strategy continues to emerge < both into ne# countries and into ne# product areas. usiness de'endent on inno(ati(e em'&oyees Its not surprising then, that management recruited carefully selected individuals to be innovative people, pioneers in their field, and to have the competitive streak in their personalities. It #as also of importance for candidates to be able to share values and to #ork effectively as team players. The Re*a"d2To2Risk$ Ratio A''"oa+h VirginBs Greenfield start0ups is the Cre#ard0to0riskD ratio, #hich could be acted upon by the e7perienced and capable Virgin management team. ;o establish the virginity of a venture, so to speak in an institutionalised market e7tensive research #as conducted into the static market to derive #hether some sort of niche can be achieved and thus satisfied. "and *as the sin#&e most im'o"tant asset o! the +om'any$ Virgin; is to send out a message to the consumer to say out loud this ne# business is a CvirginD in its market place, CfunD, CinnovativeD, CdaringD. %i"#in #"ou' has (entu"es *hi+h a"e di!!e"ent1 inno(ati(e as *e&& as &u-u"y se"(i+e '"o(ide" as !o&&o*in#:

%i"#in Ga&a+ti+ 9 a venture to market and operate commercial space flights, using spacecraft designed by 8caled 'omposites % 3esti(a& 9 t#o0day music festival held in t#o separate locations in the ?nited @ingdom

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V =estival ,3ustralia/ 9 an 3ustralian version of the V =estival Virgin =estival 9 a Aorth 3merican version of the V =estival a&&oon 3&i#hts 9 a hot air balloon operator.

%i"#in

%i"#in ,imited Edition 9 e7clusive hotel operator

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@asbah ;amadot 9 e7clusive >oroccan holiday destination Lady B 9 lu7urious 'atamaran available for 'aribbean charters ;he Lodge 9 ski lodge Aatirar 9 private spa located in 8omerset 'ounty, Ae# Eersey Aecker Island 9 e7clusive island in British Virgin Islands for private hire ;he Roof Gardens and Babylon 9 $.* acres ,F,$"" m./ open air gardens, venue, nightclub and restaurant in @ensington, London ?lusaba 9 e7clusive game reserve in 8outh 3frica

%i"#in ,imobike 9 passenger bike service in London

These a"e the othe" +om'anies and business (entu"es unde" the %i"#in G"ou':

Ai"Asia 4 9 long0haul budget airline operating from >alaysia ,$FG o#ned by Virgin Group/ %i"#in A+ti(e 9 a health club chain in the ?@, 3ustralia, 8outh 3frica, 8pain, 8ingapore, Hortugal, and Italy %i"#in Ame"i+a 9 a ?nited 8tates budget airline based at 8an =rancisco International 3irport ,.*G o#ned by Virgin Group/ %i"#in At&anti+ Ai"*ays 9 an international carrier based in 'ra#ley, 2est 8usse7, ?@ ,*$G o#ned by Virgin Group/ %i"#in Aust"a&ia 5o&din#s ,imited
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Virgin 3ustralia 9 an 3ustralian0based airline Virgin 8amoa 9 a 8amoan0based airline ,!%G/ Blue (olidays 9 ;he holiday programme of Virgin 3ustralia, no# a Ioint venture bet#een Virgin 3ustralia

%i"#in ooks 9 publisher, retailer and distributor of books ,$"G o#ned by Virgin Group/ %i"#in Ca"e 9 provides Aational (ealth 8ervices care, formerly 3ssure >edical

,i.uid Comi+s 9 comic book producer %i"#in Conne+t 9 broadband Internet access and telephony in Russia %i"#in Di#ita& 5e&' 9 technical support %i"#in D"inks 9 drink manufacturer
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Virgin 'ola 9 carbonated cola soft drink Virgin Vodka 9 alcoholic beverage v0>i7 0 spirit mi7ers

%i"#in Ea"th Cha&&en#e 9 competition to find solutions to global #arming %i"#in E-'e"ien+e Days 9 corporate and consumer e7perience events %i"#in G"een 3und 6originally kno#n as Virgin =uels/ 9 venture capital firm for investing in petroleum alternatives %i"#in 5ea&th ank9 a business enabling parents to store their baby s stem cells %i"#in 5ea&thMi&es %i"#in 5o&idays 9 ?@ travel agency and tour operator for #orld#ide destinations served by Virgin 3tlantic and its partner companies
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Virgin (olidays 'ruises 9 ?@ cruise holiday agent ;ravel 'ity Jirect 0 ?@ Knline ;ravel 3gent for holidays to =lorida. 3c4uired from the no# defunct LL Leisure Group after it #ent into administration.

;ravel 'ity Jirect 'ruises 9 ?@ cruise holiday operator for holidays to =lorida and the 'aribbean

Bales 2orld#ide Ltd 0 8mall ?@ ;our Kperator

%i"#in 5ote&s %i"#in ,i!e Ca"e 9 fitness group in 8outh 3frica %i"#in Mobi&e
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Virgin >obile 'anada 9 provider of mobile phone service in 'anada 0 Ioint venture #ith Bell 'anada ,"G 8take/ Virgin >obile 8outh 3frica 9 provider of mobile phone service in 8outh 3frica 0 Ioint venture #ith 'ell ' ,*"G/ Virgin >obile =rance 9 provider of mobile phone service in =rance 0 Virgin Group o#ned ,*:G/

Virgin >obile India 9 provider of mobile phone service in India 0 franchise agreement #ith ;ata ;eleservices ,*"G/

%i"#in Money 9 providers of financial services

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Virgin >oney ?@ 9 a ?@ bank Virgin >oney 3ustralia 9 ,sold to Bank of Mueensland/ Virgin >oney 8outh 3frica Virgin 'redit 'ard

%i"#in Money Gi(in# 2 Knline fundraising #ebsite %i"#in Radio 9 Radio station in =rance, 'anada, Italy, India, Eordan, Lebanon, ;hailand, ;urkey, ?nited 3rab Nmirates %i"#in T"ains 9 a rail#ay operator in the ?nited @ingdom ,*$G/
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Virgin ;rains N7press 'oach 9 Intercity bus O coach services

%i"#in Unite 9 charitable foundation %i"#in 7ines 0 Knline #ine market %i"#in %a+ations 9 ?.8. travel agency

Obse"(ations Looking at the risk taking and the innovative approach, it is seen Virgin group is #orking to#ards their >ission and Vision. ;hey tend to al#ays give the best service to their customers and al#ays make them feel important. Virgin group along #ith the e7cellent management team under 8ir Richard Branson comes up #ith the most innovative and attractive #ays of >arketing the products and services. >ost of the acts by 8ir Richard Branson are able to catch the eye of the >edia.