Virgin Atlantic - Strategic Memo
1998 was a rather trying year for Virgin group of companies.
With the hopes for an economic upturn still remaining, it is recommended that the Virgin group approach and review, with great urgency, the matters outlined in this memo. Questions have been raised by many noted publications including the Economist and Marketing News regarding the current financial state, brand strength and future of the Virgin group. Many has quipped Mr. Branson and the Virgin group as over-exerting and extending company resources, capabilities and competencies beyond a controllable and unprofitable threshold. Many critics have pointed to Virgin’s brand losing goodwill and compromising core values due to the brand stretching. With over 20 holding companies and 200 operating companies under the Virgin group umbrella, it is due time that we reevaluate each business organization and fully utilize the upcoming year restructure the Virgin brand and gain a new outlook for the millennium.
This memo is will focus on 4 sections - Internal audit, External Audit, Findings and Recommendations for the Virgin group. The thirteen (13) Virgin businesses included in this memo are Virgin Travel Group, Virgin Express, Virgin Retail, Virgin Our Price, Virgin Cinema, Virgin Hotels, Virgin Rail, Virgin Entertainment, V2 Music, Virgin Direct, Virgin Cola, Virgin Spirits and Victory Corporation.
I. Internal Audit The Virgin brand name is highly respected, nonetheless, and the core constituent that drives the success of all the operating companies. Motivated by the group’s underlying focus on quality, innovation and differentiation efforts, the Virgin group has been very successfully in diversifying its businesses. However, at this moment, we are asked to pinpoint when diversification is too much. A brief core competency analysis shows that the Virgin group boasts core competencies that span across all the operating companies. Most remarkable, of course, is the influence of Mr. Branson’s
With the hopes for an economic upturn still remaining, it is recommended that the Virgin group approach and review, with great urgency, the matters outlined in this memo. Questions have been raised by many noted publications including the Economist and Marketing News regarding the current financial state, brand strength and future of the Virgin group. Many has quipped Mr. Branson and the Virgin group as over-exerting and extending company resources, capabilities and competencies beyond a controllable and unprofitable threshold. Many critics have pointed to Virgin’s brand losing goodwill and compromising core values due to the brand stretching. With over 20 holding companies and 200 operating companies under the Virgin group umbrella, it is due time that we reevaluate each business organization and fully utilize the upcoming year restructure the Virgin brand and gain a new outlook for the millennium.
This memo is will focus on 4 sections - Internal audit, External Audit, Findings and Recommendations for the Virgin group. The thirteen (13) Virgin businesses included in this memo are Virgin Travel Group, Virgin Express, Virgin Retail, Virgin Our Price, Virgin Cinema, Virgin Hotels, Virgin Rail, Virgin Entertainment, V2 Music, Virgin Direct, Virgin Cola, Virgin Spirits and Victory Corporation.
I. Internal Audit The Virgin brand name is highly respected, nonetheless, and the core constituent that drives the success of all the operating companies. Motivated by the group’s underlying focus on quality, innovation and differentiation efforts, the Virgin group has been very successfully in diversifying its businesses. However, at this moment, we are asked to pinpoint when diversification is too much. A brief core competency analysis shows that the Virgin group boasts core competencies that span across all the operating companies. Most remarkable, of course, is the influence of Mr. Branson’s