Corporate Strategy
Task 3 - Understanding approaches to strategy evaluation and selection
Organisations may be made up of several divisions or business units. Therefore, when devising their strategies may well decide to adopt differing strategies – substantive growth, limited growth or retrenchment for different business units.
a) Virgin is an example of a large and diverse organization. Describe conditions, which might lead them into adopting each of these three strategies.
Growth in a business is described as the essence of entrepreneurship. During the organizational life cycle entrepreneurs, choose between substantive growth, limited growth and retrenchment strategies to either enhance business profit / outreach or overcome deteriorating trends in performance. If a business is to survive, it has to grow. Change is inevitable and should be embraced if success is the goal. With a solid business growth strategy, you will discover how change can be positive, and it will help your organization thrive and develop beyond your wildest dreams.
The Virgin Group comprises of an assorted mix of businesses. Over a period, it has diversified into more than 200 businesses worldwide.
[pic]
Conditions leading to Growth Strategy for Virgin
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:
[pic] 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
Organisations may be made up of several divisions or business units. Therefore, when devising their strategies may well decide to adopt differing strategies – substantive growth, limited growth or retrenchment for different business units.
a) Virgin is an example of a large and diverse organization. Describe conditions, which might lead them into adopting each of these three strategies.
Growth in a business is described as the essence of entrepreneurship. During the organizational life cycle entrepreneurs, choose between substantive growth, limited growth and retrenchment strategies to either enhance business profit / outreach or overcome deteriorating trends in performance. If a business is to survive, it has to grow. Change is inevitable and should be embraced if success is the goal. With a solid business growth strategy, you will discover how change can be positive, and it will help your organization thrive and develop beyond your wildest dreams.
The Virgin Group comprises of an assorted mix of businesses. Over a period, it has diversified into more than 200 businesses worldwide.
[pic]
Conditions leading to Growth Strategy for Virgin
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:
[pic] 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
References: ANON., “Behind Branson” The Economist 21 February, 1998 pp.81-86 ANON., “The battered bride” The Economist 25 December, 1999 ANON., “Virgin to close its West End make-up store” Evening Standard 1 February, 2000 BFI UK Cinema admissions 1933-96 BRASIER, M. “Virgin in £200 million MGM spectacular.” Daily Telegraph 1 July 1995 RUCKINGHAM, L., “Branson raises the curtain on Virgin cinemas in £200 million deal with MGM” The Guardian 1 July, 1995