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I. Executive summary

This report was commissioned to examine Virgin as a corporation, analyze its success factors and strategies, and evaluate its possible issues and recommendations.

The analysis draws attention to Virgin’s diversification strategy, Richard Branson and his team, and also Virgin’s brand strategy. These three factors are concluded as why Virgin is successful as a global company. Further analysis reveals that Virgin does not always generate success in their history; moreover the report also exposes possible issues such as:

• Over-expansion

• No more appealing markets

• Financial Issue

• Globalization

• Over Diversification

• Outsourcing issues

• Decrease on consumer spending

The report evaluates Virgin’s factors and situation and provides recommendation that might be useful in future for Virgin as a company. Recommendation will focus on topics:

• Becoming less diverse

• Management structure

• Strategic adaptation

• Accounting year end policies

II. Introduction

Company Overview

Virgin is a leading branded venture capital organization and is one of the most recognized and respected brands in the world. It was founded in 1970 by Sir Richard Branson as a mail order record business and developed as a private company in music publishing and retailing, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony to transportation, travel, financial services, media, music and fitness.

Nowadays, Virgin Group has created more than 300 private held companies, employing approximately 50,000 people, in 30 countries, with global branded revenues in 2009 exceeded £11.5 billion (approx. US$18 billion). In 1986, the company was floated on the stock exchange with a turnover of 250m pounds sterling. However because of the pressure of short-term profit from stockholders, in 1988 Virgin Group was taken private again through a management buyout.

Richard Branson

Sir Richard Charles Nicholas Branson or...