The paper "Managing Strategy: Virgin Group of Companies" is a great example of an assignment on management. Basically, the Virgin Group of Companies comprises of a wide range or mix of businesses. Over the years, the company has managed to diversify its service and product portfolio by establishing its presence in industries such as travel, retailing, information and communication technology, healthcare, financial services, and fashion. Currently, Virgin has over 300 branded companies operating in about 30 different countries around the globe. Grant & Jordan (2012) observe that companies operating under the Virgin group brand are linked through a complex and intricate network of parent-subsidiary relations comprising of several companies referred to as “ holding companies. ” It is therefore worth examining, the resources and capabilities that link across the corporate portfolios that have made the company such a success.
This section will focus on identifying the resource and capabilities of the Virgin group of companies and subsequently evaluate them using the VRIO framework and the Resource-Based View model. Resources and capabilitiesBasically a company’ s resources and capabilities play a critical role in determining the strategy that the company employs (Grant & Jordan 2012: 111).
Virgin has a considerable number of resources and capabilities that have come into play in the formulation and implementation of its strategy. According to Grant & Jordan, (2012:114) resources are the valuable assets that a company owns whereas capabilities are what the company can do competently. Grant and Jordan further categorize organizational resources into; tangible, intangible, and human resources. Based on the information depicted in the provided case study, it is evident that one of the key tangible resources that the Virgin Group of Company has is financial security particularly in relation to cash flow, capital value, and borrowing capacity.
Some of the intangible resources that Virgin capitalizes on include; the company’ s brand name, reputation, a corporate culture linked to the personality of Sir Richard Branson. Moreover, human resources is also a significant resource for the Virgin Group of Company. In the case of the Virgin Company, Sir Branson’ s leadership is the key resource that links Virgin’ s expansive corporate portfolio.
ReferencesGrant, R & Jordan, J 2012, Foundations of Strategy, John Wiley & Sons, West Sussex, UK.