Richard Branson and the Virgin Group Case Study
1. What common resources and capabilities link the separate Virgin companies? (30%)
2. Which business if any should Branson consider divesting? What criteria should he use in deciding what new diversification strategy to pursue? (40%)
3. What changes in the organisational structure and management systems of the Virgin Group would you recommend? (30%) PowerPoint presentation
This case study is based on Case 20: The Virgin Group in 2015 in the book in Robert M. Grant’s book Contemporary Strategy Analysis. The case study touches on competitive strategy and innovation, strategic management.
The sample solution is presented in a PowerPoint Presentation with speaker notes (at the bottom of each slide).
Contents
- Introduction
- Resources and capabilities
- Virgin companies shared resources and capabilities
- Divesting criteria and businesses to divest
- New diversification strategy and decision criteria
- Organisational structure change recommendations
- Management systems change recommendations
Richard Branson and the Virgin Group Case Study
Introduction
The Virgin Group was established by renowned entrepreneur, Richard Branson. The history of the group can be traced back to 1968 when Branson formed the Student magazine after dropping out of school. Over the years, The Virgin Group has grown to become a highly diversified organisation with operations in several industry segments and countries. The group so far operates in the UK, the United States, Australia, Russia, South Africa, and Canada among several others. Some of the areas the group mainly focuses on are Telecoms and Media, Music and Entertainment, Financial Services, Travel and Leisure, and Health & Wellness (Virgin Group 2017).
The Group boasts of owning hundreds of companies directly or through its subsidiaries. It also boasts of having holding companies in seven main business categories. In addition, it has a stake in several companies, such stake acquired through the formation of joint ventures with other corporations.
Virgin Group has a strong asset base and its success has partly been attributed to the reputation and celebrity status of its founder, Richard Branson. Some of the Group’s notable assets include its fleets of airplanes, trains, and megastores. In addition to these, it has several resources including a strong brand name, a good reputation, talented human resources, and finances. In combination, these resources have helped the group develop capabilities and competencies in different areas.
One of the resources shared by the Virgin companies is the Virgin brand…