Sample Essay

1.      The corporate rationale of the virgin group primarily focuses on establishing itself as a global name. For this purpose they value the name of their brand that is Virgin. The name Virgin also gives a very meaningful rationale for the group means that Virgin means doing something for the first time. This gives a very influential intent that the brand is ready to compete in this new venture. Apart from the brand name their approach towards expansion is based upon aggressive diversification.

This aggressive diversification approach is also in line with their ultimate objective that is to be a global name, and for that they enter into businesses which have global potential.

2.      No there is no strategic relationship between the businesses within the Virgin group. The companies working within dose not even share a common accounting cycle. Often it is also called the Keiretsu organization which means that several different businesses running under the affiliation of a group (Yamamoto 2001). All the businesses within the group are autonomous and work as separate teams

3.      The strategy that Virgin implies in this context is that before entering into a new business a thorough research is being conducted. The primary purpose of this research is because the group considers that the name of their brand is their most valued asset, and when the group enters a new venture it means that they are associating their name with that product. The research also shows whether the group can add some values in that market and offer something which is different.

4.      The main issue which the group is facing is that for instance if a customer has a bad experience with one of the product of Virgin then it would have a negative effect on all the other product line. The point is that they are dealing with so many different businesses that if one of the venture went wrong then its affect would be felt on the whole product line.

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