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Business strategies are essential for every organization since that aids in conducting the working of entity in adequate manner. Through that organizational resource can also be utilized in optimum manner (Ketzes, 2003). Thus, in such respect, present research study has been made on Virgin Group which is a branded venture capital conglomerate with its core business areas as travel, entertainment and lifestyle. Researcher has been focusing on core competencies and strengths of business along with the factors that affect the business practices of Virgin Group. Furthermore, researcher has also discussed external and internal business environment of Virgin Group. They have formulated several strategies through which the business is entering into diversified market place and among those strategies; a few are discussed in the present research report. Lastly, researcher has stated resource requirements to implement suitable strategy for the business firm.
While formulating strategic plans, Virgin Group needs to analyze the resource capability for the purpose of executing strategy in adequate manner (Merrilees, Getz and O'Brien, 2005). Market research should be conducted at the initial stage so that competitive and other necessary factors can be analyzed. Market research could assist the business entity to formulate effectual and competitive strategy and through this, policies and business framework of other rivalries can be ascertained.
At the same time, Virgin Group is also required to consider strategic facets so that corporate objectives and long term mission can be acquired (Atkinson, 2006). This is also vital in terms of acquiring better outputs for overall success of the business. Employee engagement in organizational processes is also imperative because this allows the business entity to undertake crucial decisions. It has been seen that employee’s involvement in organizational enhances the competency of decision making process which also helps in facilitating innovation and creativity at greater extent (Matthews, 2005).
Strategic Planning is a comprehensive process which determines what a business should become and how it can best achieve all the defined goals (Jansson, 2008). Virgin Group emphasizes on strategic planning so that future uncertainties can be reduced. In respect to that, SWOT analysis, market research and feasibility analysis can be conducted so that internal and external business environment can be ascertained. At the same time, for the present case, internal analysis is required to be conducted so that core competencies of Virgin Group can be found out. With the help of internal analysis, appropriate strategies can be formulated for more success and prosperity (Karami, 2012).
Further, Porter's five forces model can also be applied in the present situation for the purpose of identifying the level of competition prevailing in the market place (Ireland and et.al, 2008). PESTLE analysis and Scenario Planning can also be adopted for the same purpose and all such techniques can assist Virgin Group to reduce business constraints and issues. Hence, all such techniques are recommended to Virgin Group for developing suitable strategic and business plan.
Apparently, stakeholders of Virgin Group are those people who play crucial role in company's growth and success and their activities affects performance of business. Stakeholder analysis is important for the business entity because that could assist Virgin Group to identify the needs and desires of the stakeholders (Ireland and et.al, 2008). While formulating and implementing any strategy, Virgin Group has to consider many things into account so that the strategy can bring appropriate results to the business entity. Customers are the major stakeholders of Virgin Group and their satisfaction level matters the most to the organization hence; prior executing the growth strategy, the company has to identify if the strategy will produce optimum results (Haley and Haley, 2006)
Employee interest is also required to be considered in the strategy implementation process because they are the only entity that is responsible to implement the strategy in practice. Therefore, Virgin Group should get opinion from all the employees so that changes can be made adequately in all the processes. Business owners and shareholders should be involved in all these processes and regular information should be delivered to them. Shareholder engagement is vital in strategy implementation process because through that, Virgin Group can identify the values given to all the shareholders:
As per the organizational audit, Virgin Group should emphasize on market penetration and market development strategy so that business reach can be enhanced. It is recommended to Virgin group to conduct market research at each stage so that internal and external factors can be identified properly (Hunger and Wheelen, 2001). Thus, the appropriate future strategy for Virgin group is market development as that will also assist the business to get idea about new customers. Services can also be promoted to different market places hence; this can enhance the opportunities of more growth and prosperity. However, prior formulating any new strategy, it is essential for Virgin Group to audit internal and external business environment so that each and everything can be properly planned. This is also useful in terms of reducing business complexities (Enders and et.al., 2009).
Growth strategies are typically used for the purpose of enhancing the opportunities of success and more revenue (Ireland and et.al, 2008). The categories of all the three strategies are discussed in the below mentioned section:
Market penetration: The subsequent strategy is useful for Virgin Group to achieve growth with all the existing products and services. As per the strategy, business has to remain in the same market place and according to the changed market conditions, modifications can be made to the work processes (Atkinson, 2006).
Retrenchment strategies are used at the time when any business entity wish to wind up the operations or when it decides to downsize the existing firm. This strategy will be useful for Virgin Group at the time when business is unable to reach towards the growth stage. Hence, at this time, Virgin Group has to dissolve all the business operations and in this situation, the business can also merge with another entity (John, 2005). Hence, this subsequent strategy is used at the time when the opportunities of expansion and diversification are fewer. With the help of retrenchment strategy, entire business processes of the company can be changed to survive at the market place.
It is essential for Virgin Group to select market development strategy and according to the strategy; business should select new market for expanding the services. The strategy has been recommended to the subsequent business entity because through that, numerous customers can be persuaded towards business services (Johnson and Scholes, 2002). Thus, Virgin Group will be able to promote the products on larger extent for more customer satisfaction. As per limited growth strategies, Virgin group is required to invest funds through current revenues and this can also assist the business entity to reduce the level of debts. Therefore, the strategy seems to be beneficial in terms of achieving growth aspects with minimum amount of investments.
While executing any strategy in the business entity, it is essential for Virgin Group to delegate roles and responsibilities appropriately to all the members so that the strategy can bring optimum results to the organization (Karami, 2012). All the major three levels in the organization (managerial, tactical and operational level) have to play their roles in different manner as per the aims and objectives defined. In the below mentioned section; specific roles are discussed:
It is an apparent fact that every organization should make arrangement of diverse resources while executing any business strategy. Here, in the below mentioned section, essential resources are stated that are responsible to play varied roles while implementing strategies for the business.
Virgin Group should have to emphasize on SMART objectives so that prominent results can be acquired. At the same time, while implementing the strategy, it is crucial for the business entity to align the strategy with organizational objectives. SMART objectives aid the business entity to achieve measurable and specific goals by defining each and every criterion in adequate manner. The market share of Virgin Group has been increasing by 2.5% every year therefore; it is essential for the business to allocate the resources in optimum manner for more productivity. Time limit defined for the strategy will be 8 months and during that period, the manager will be monitoring each and every practice so that changes and modifications can be made accordingly (Merrilees, Getz and O'Brien, 2005).
The overall success criteria of the strategy implementation process will be measured in terms of growth and contribution it will made to the business entity. Growth strategy of Virgin Group should aid the business entity to enhance the level of market share by focusing more on customer oriented approach. Subsequent strategy will be implemented in the business entity for the purpose of accelerating customer satisfaction rate and this is also implemented in the business process for the purpose of increasing the opportunities of more growth. Virgin Group aims to acquire long term sustainability in the competitive market place and for that the business will be emphasizing on better and quality services (Simerson, 2011).
Summing up the entire study, it can be articulated that all the business entities have to develop diverse strategies so that long term aims and objectives can be acquired within the expected time frame. From the discussion, it is evident that human resource, technical resource and financial resources are vital for the business entity because that helps in maximizing the potential of organization to survive in competitive market place. On the basis of organizational audit, it is clear that competition has been increasing in the same industry thus; Virgin Group should focus on substantive strategies for optimum and limited growth.
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