Virgin Case

Strategy

Not necessary: internationalize, outsource more than production, liquidate,

Organizational level: long term goal, what industry we want to enter into as an organization. In what segment do we want to involve.

Mission statement, business objectives.

Eg: Virgin- airline industry, what segment we want to compete.

Business level: how do we actually compete? What market force, microenvironment. What’s the competitive advantage, cost leadership?

Key influence:

Regulation

PEST

Organizational culture and belief systems (part of org control system)

as well as national culture (part of org control system)

• Organisational structure

• External environment (Porters 5 forces)

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• Size (scale and complexity)

• Technology

EG: Virgin- High-end, premium

1. goal emphasis

An 'organizational control system' may be defined as a set of mechanisms - both processes and techniques - which are designed to increase the probability that

people will behave in ways that lead to the attainment of organizational objectives.

CORE SYSTEM: consisting of four subsystems (planning, operations, measurement, and evaluation-reward)

Informal: informal meeting

Leisure market- type customer- when people go to holiday, disposable income, seasonality, risky.

Business- to achieve the lower price airline ticket. More volume base. Hard to profit from margin.

2010: ship focus to more corporate and government focus that low seasonal, more Melbourne-Sydney line.  

Higher margin, charge more.

More focus on cost control, measurement- feedback survey on quality service.

But cost and quality might conflict

Virgin move away from the low cost market, but still want to retain the market.