Virgin Cas Study
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, Instructor's Manual
strategic reasons for this success. Theoretically, this success should lie in strategic relationships (synergies and similar), which the student should explain. Where bidders' share-prices fall particularly far, they should look for reasons for scepticism about the strategic rationale; typically, the press coverage will provide ample guidance here.
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The Virgin Group
Students will probably have different views on the corporate rationale of the Virgin Group as this is a private limited company and Branson uses the media very carefully to enhance his business. He appears to have two images: the carefree adventurer and the astute entrepreneur. Students may form an opinion through the lens of either of these two images or a mixed view brought together with the views of some of Branson's critics. Provided the logic of argument is sound, answers may display a range of opinion. The Virgin brand has benefited from its image in constantly attracting people who have new business ideas. The organisation has developed into a very effective parental developer together with the ability to enhance business ideas or reject them quickly if they do not meet Virgin's criteria. Virgin, probably because of its private limited status, may stick with a business far longer if it feels it has a long-term strategic role such as the rail business in the United Kingdom. As a counter to this, Virgin will sell off businesses it no longer sees as part of its strategic aims or there is something more advantageous to invest in. They will also admit defeat altogether: Virgin Cola and Virgin Computers are prime examples of this. Here we see elements of a portfolio manager. All opinions about this group, because of its size and complexity, will have elements of conjecture. How clear, for instance, was it when Branson bought the group back from public ownership that he
strategic reasons for this success. Theoretically, this success should lie in strategic relationships (synergies and similar), which the student should explain. Where bidders' share-prices fall particularly far, they should look for reasons for scepticism about the strategic rationale; typically, the press coverage will provide ample guidance here.
.. _... E· .- lC ase xamp e
··_·.c
The Virgin Group
Students will probably have different views on the corporate rationale of the Virgin Group as this is a private limited company and Branson uses the media very carefully to enhance his business. He appears to have two images: the carefree adventurer and the astute entrepreneur. Students may form an opinion through the lens of either of these two images or a mixed view brought together with the views of some of Branson's critics. Provided the logic of argument is sound, answers may display a range of opinion. The Virgin brand has benefited from its image in constantly attracting people who have new business ideas. The organisation has developed into a very effective parental developer together with the ability to enhance business ideas or reject them quickly if they do not meet Virgin's criteria. Virgin, probably because of its private limited status, may stick with a business far longer if it feels it has a long-term strategic role such as the rail business in the United Kingdom. As a counter to this, Virgin will sell off businesses it no longer sees as part of its strategic aims or there is something more advantageous to invest in. They will also admit defeat altogether: Virgin Cola and Virgin Computers are prime examples of this. Here we see elements of a portfolio manager. All opinions about this group, because of its size and complexity, will have elements of conjecture. How clear, for instance, was it when Branson bought the group back from public ownership that he