Provide a 11 pages analysis while answering the following question: Strategic Management Perspectives: Decision Making at Virgin Group. Prepare this assignment according to the guidelines found in the
Provide a 11 pages analysis while answering the following question: Strategic Management Perspectives: Decision Making at Virgin Group. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. The history and milestones of Virgin Group (Virgin) is a portrait of how companies make strategic decisions in response to change. In a lot of situations, we can see the company’s management altering the course of the business operations. However, it is notable that all the changes in Virgin are in direct response to new opportunities and threats.
The origins of the Virgin Group can be directly traced to Richard Branson’s foremost business endeavor in 1968, the Student Magazine. In its pursuit of saving the magazine from the financial crisis, Branson ventured into selling music records which were then significantly overpriced. From this humble beginning, the company has risen to integrate 24 businesses (as of 2000) where the major lines are Virgin Travel, Virgin Atlanta, Virgin Entertainment, Virgin Holidays, Virgin Retail, Virgin Express Holdings, Virgin Direct, Virgin Direct Personal Finance, Virgin Rail, V2 Music, and Virgin Net.
How the company which started as a mail-order operation venture into these diverse business operations is a direct result of the strategic changes that Virgin has decided to embark on. The firm had really explored uncharted waters as it recognizes various business opportunities in other markets. The first decision which signaled the company’s willingness to go into other business lines was its move to establish Virgin Retail from its mail-order .operation.
In 1971, the company was pressured to seek a new way of distributing its products. This dilemma was triggered by the national postal strike which plagued the whole nation. It can be seen that this event significantly threatened the firm into bankruptcy. Recognizing that Virgin needs a distribution system apart from mail order, Branson opted to establish a physical distribution system. Virgin rented space where clients can visit and buy records.