Strategic Options and Analysis Report

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1. Virgin Group’s background Formation and development Virgin, a leading branded venture capital organisation, is one of the world's most recognised and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephone, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. Virgin has created more than 200 branded companies worldwide, employing approximately 50,000 people, in 29 countries. Revenues around the world in 2006 exceeded £10 billion. Product range Travel and Tourism / Leisure and Pleasure / Shopping / Media and Telecommunication / Finance and Money / Health / Social and Environment. The company targets both business and leisure markets. Management structure Virgin’s 200-plus companies, the majority are operating companies that own assets, employ people, and offer goods and services. These operating companies are owned and controlled by some 20 holding companies. Overall ownership of most of the Virgin Group lies in the hands of Virgin Group Investments Limited. The Virgin Group is owned by Richard Branson and a series of trusts, the beneficiaries of which are Branson and his family members. Organisational structure Virgin organisational structure involves very little hierarchy, offering short lines of communication and flexible response capability. Employees are given a great deal of responsibility and freedom in order to stimulate idea generation, initiative, commitment, and fun. The lack of formal controls is conducive to teamwork and entrepreneurial spirit. 2. Environmental analysis According to Evans et al. (2003) that macro-environment is the broad environment outside of an organisation’s industry and markets, and referred as the far or remote environment because it tends to exert

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