The Virgin Group of Companies in 2007, Case Study Example

1. List three ‘key’ issues in the case and explain what makes them strategically important issues.

• Institutionalizing the Culture of Joint Ventures

Having a sole and recognizable brand in the market is an important aspect of business success. Notably, for many years, the Virgin Group of Companies was known for its outstanding brand. However, at the turn of year 2007, the desire of imposing a new process to developing business relations have been adapted by Richard Branson. The culture of insisting joint ventures with other companies in an international setting could be both beneficial and risky. Not being able to properly manage such an approach could cause a business’ reputation to fail completely after being built for many years.

• Risks of entering new heights of industrial challenges

As markets and industries change every now and then, it is expected that the process of creating and maintaining business also transforms. In this case, embracing the new forms of business operations specifically create new heights of developments and possibilities as well as industrial challenges for the organization. At this point, it is essentially necessary that these challenges be faced effectively and strategically as they present themselves to the business as it operate in the international trade industry.

• Possible Growth of debts and expenditures due to economic influx

Every organization faces the impact of worldwide economic influx. The resulting courses that this particular problem presents include higher rate of debts and expenditures. Facing this issue on the part of the Virgin Group of Companies is essential especially with regards the aim of remaining at the top heap of the competition.

2. How can the firm use its core competence to address each of these issues to increase its competitive advantage? Explain clearly.

Relatively, the innovative way of management that Richard Branson adapts is something that is needed in facing the challenges and issues that have been mentioned herein. It could be noted that somehow, the capacity of the organization to remain committed to it desire for expansion and operational development is also a great source of a beneficial point of contribution towards the success of the entire business as a whole. Specific matters regarding economic influx cannot be avoided but can be fully managed through becoming more strategic in taking risks as the company is already adapting into at present.