Virgin
Content
The International Institute of Planning and Management
CIP on Virgin case
Submitted to Prof. Gaurav Vatsa
Submitted by Mitesh Bosmia
PGP/FW 08-10/SEC B
1. Are there any relationships of a strategic nature between businesses
within the virgin portfolio? Ans. No, there are not any relationships of a strategic nature between businesses within the virgin portfolio. The virgin portfolio includes virgin travel, virgin rail, virgin cinemas, virgin media, virgin music, virgin trading etc. However, by 2002, the group included over 200 businesses spanning three continents. As virgin group is mostly in the unrelated diversification so that the resources of one business are not useful for other business And also the structure of Virgin Group was so opaque that the true financial position of virgin group was unclear. Due to its status as a private company, the complex group structure, and unavailability of consolidated accounts, it was difficult to arrive at accurate turnover and profit and companies within the group did not even share a common accounting year end.
2. Does the Virgin Group, as a corporate parent, add value to its businesses? If so how? Ans. Yes, the virgin group as a corporate parent has added value to its businesses. The brand is the single most important asset for them. The ultimate objective virgin is to establish it as a major global name. That means they need to have a number of core businesses with global potential as well as they try to prove the promises which they are giving while entering into new market and they are adding value to it’s core business virgin Atlantic.
The International Institute of Planning and Management, Ahmedabad Page 2
The International Institute of Planning and Management, Ahmedabad
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CIP on Virgin case
Submitted to Prof. Gaurav Vatsa
Submitted by Mitesh Bosmia
PGP/FW 08-10/SEC B
1. Are there any relationships of a strategic nature between businesses
within the virgin portfolio? Ans. No, there are not any relationships of a strategic nature between businesses within the virgin portfolio. The virgin portfolio includes virgin travel, virgin rail, virgin cinemas, virgin media, virgin music, virgin trading etc. However, by 2002, the group included over 200 businesses spanning three continents. As virgin group is mostly in the unrelated diversification so that the resources of one business are not useful for other business And also the structure of Virgin Group was so opaque that the true financial position of virgin group was unclear. Due to its status as a private company, the complex group structure, and unavailability of consolidated accounts, it was difficult to arrive at accurate turnover and profit and companies within the group did not even share a common accounting year end.
2. Does the Virgin Group, as a corporate parent, add value to its businesses? If so how? Ans. Yes, the virgin group as a corporate parent has added value to its businesses. The brand is the single most important asset for them. The ultimate objective virgin is to establish it as a major global name. That means they need to have a number of core businesses with global potential as well as they try to prove the promises which they are giving while entering into new market and they are adding value to it’s core business virgin Atlantic.
The International Institute of Planning and Management, Ahmedabad Page 2
The International Institute of Planning and Management, Ahmedabad
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