Case Study of Virgin Group

Introduction This report closely examines the Virgin Group’s corporate strategy / rationale and identifies the relationships namely of strategic nature within the Virgin Empire. Virgin’s value adding qualities shall be discussed and the main issues faced by Virgin shall be identified and categorically solutions recommended respectively. Corporate Rationale The Virgin Group comprises of an assorted mix of businesses. It has its “finger in every pie”, so to speak. The Virgin has group diversified into 200 businesses. Please see Figure 1 below: {draw:frame} Figure 1 The Virgin Group Sir Richard Branson, founder of Virgin in 1970 is in the author’s opinion the single most important ingredient to all the success that has been reaped up-to-date. As the saying goes ‘you reap what you sow’ thus, corporate rationale is merely a projection of Sir Richard Branson’s own personal philosophy, which he has sown into the fabric of corporate rational. A personal philosophy and a personal persona that is revered and respected by the British public and beyond. Sir Richard Branson’s high profile already won over the general public and almost anything he would pursue or was associated with would be given the benefit of the doubt. Thus the word Virgin and Sir Richard Branson are almost interchangeable. The Virgin brand name is by far the most important asset to the company. Being known as the “customers’ champion” inevitably has done wonders for public relations. This fact was capitalized on; in British advertisements for Apple Computers. Sir Richard Branson was associated with great names such as Einstein and Ghandi, and featured as a ‘shaper of the 20th century’. Sir Richard Branson, tired of the public listings obligations and corporate bureaucracy sought to take the business back into private ownership. His understandings lead him to believe that sacrificing short-term profits for long-term growth was the way the business should be geared. As for