Business

Virgin Group Ltd is an entrepreneurial business system that deals with several activities across the world. It consists of 360 companies that operate across the world. Sir Charles Nicholas Branson is the founder of the company. Branson is an entrepreneur who has engaged in several business ventures. He started by publishing a magazine called The Student at the age of sixteen and this marked his journey in the business career (Allen, n.d). He continued by setting up a company in audio mail order in 1970. Two years later, he managed to establish Virgin Records. This business dealt with chain of record stores which was later called Virgin Mega stores in 2007. Bransons competitive nature has made him rich and by the year 2009, he was recorded the 261st richest man in the world. The current businesses that have been established by Branson are Virgin Atlantic Airways in 1984 and Virgin Mobile in 1999 (Entrepreneur Media, Inc., n. d).

Business model development
Branson has maintained his business enterprises through innovation (Dearlove, 2007). He has made great risks which involve innovating new products into the market. The business ideas innovated by Branson have enabled him to make a lot of profits since competitors have been unable to out compete him. Branson has come up with many ideas that fit the needs of his customers. Since his childhood age, he invented many businesses which became successful. Customers are willing to pay extra coin to products that are better than the ones existing in the market. As a great entrepreneur, Branson has been able to see opportunities in the market and put them into action. These strategies have made this company to be successful for many years (Abdul, n. d).

The growth model has been based on creating new products that are demanded by the customers. Led by Branson, a great innovator, the company deals with doing things in a manner that targets the end users. Branson has the character of doing things in his own way (Drucker, 2007). This has made him to achieve many successful business ideas since he does not rely on any source to develop any idea. The market demand and the needs of his customers are the major motivating factor in his career. The growth of the company has been achieved by the innovative ideas of the management team led by Branson (Goldenberg, 2007).

The management of virgin is not based on bureaucracy (Mitchell  Coles, n. d). There is a small difference in the management levels. This has been placed to ensure that all stakeholders contribute equally to the success of the company without delegating the entire burden of running the business to the management team. This has also attracted innovation since ideas can be generated without fear. The employees are free to contribute ideas which will make the business prosper. There is no international headquarters of Virgin. This has been established to avoid bureaucracy and over reliance on one source of information. The main idea is to create one team working to achieve specific objectives. Team dynamics has been encouraged through free flow of ideas. Members from the different businesses cooperate in sharing ideas so as to maintain the prosperity of the company and to enable them to be creative (Quainton, 2009).

Planning and decision making is made by all sectors of the business enterprises (CheapOair, n. d). All sections of the various business segments contribute to ideas concerning the plans of the company. Ideas, values, interests and goals from different departments enable the business to make integrative decisions.
These ideas comprise the interests of all stakeholders.

Virgin Group Ltd has employed flexibility as one of the key business model of development. Virgin has been involved in many business activities. This has made it possible to change according to the market demands. The integration of several business activities has enabled the company to employ a diversified approach to solving problems that the business encounters in its operations.

Virgin Group Ltd has made some strategic decisions to remain competitive in the market. These decisions are aimed at maintaining adequate market share so as to achieve maximum profits and overdo the competitors. Other key decisions that have made the business successful are maintaining financial resources, increasing revenue and producing to the maximum capacity.  The business has focused on reducing prices while maintaining quality in service delivery (CheapOair, n. d).

The strategic management team has made many visionary decisions which have made the company achieve its competitive edge in business. The vision of the management team is making a difference in all areas of operation so as to remain at the top. Excellent organizational planning is done to ensure that all activities are conducted properly. The process of decision making is well managed to ensure that the decisions will contribute positively to the achievement of the organizational goals. The mission of the management team is based on focusing the market position of the business at all times of operation so as to avoid delays. They also focus on how they have met the achieved goals so as to improve the current situation. The main aim of the company is to maintain a profitable level while dealing with competitors in the field. The mission statement focuses on reflecting the diversity of responsibilities bestowed upon the stakeholders of the company. The entire strategic management is based on maintaining a positive progress that the company can sustain. The company also aims at maintaining a healthy competitive advantage in its operations (Carsrud,  Brnnback, 2007).

Risk management involves the financial capacity of the business to deal with risks when they occur. Branson has been involved in many risky ventures, some of which have required a lot of finances. Virgin sold part of its businesses when large cash outlays were required to settle down some losses incurred from risky ventures.

The marketing strategies are focused on the specific needs of the customers. The company aims at marketing and launching its products to new markets which have not been accessed. The company carries market research on the customer needs so as to introduce tailor-made products which suit the customers.

Consumers are involved in the product development so as to incorporate the required taste, quality and the total aspects of a product.

Pricing strategies are done using different criteria depending on the market of the particular product.  The prices are made suitable to fit the competition in the international market. Quality drives most customers to pay higher prices for a particular product. Pricing strategy of Virgin has been based on quality which has attracted many customers. The company aims at providing quality products at competitive prices so as to maintain customer base while keeping a competitive edge. Discounts have been included in most pricing strategies so as to attract more sales or prompt payment. Branson suggested that customers should be allowed to try new products at low risk and price. This philosophy has been used to penetrate markets that are competitive (Bridgewater  Doyle, 1998).

Market segmentation has been a key element in satisfying the various groups of customers. Market segments have been set up to represent the interests of the different groups of customers. Each segment has different needs and requires different package of the products of the company. Virgin has separated all classes of markets within its market so as to deal with particular needs of the customers. Market niche represents a small group of customers whose needs are not properly catered for. Virgin has established a strong market research team to study the particular needs of each class of customers. This market approach has enabled the company to maintain a high customer profile due to the high satisfaction levels that consumers obtain from these products.

E-commerce has been embraced by Virgin so as to establish up-to-date delivery of its products to its customers. Old products are delivered in a modern manner so as to keep track of new technology. The company has maintained a lead in the business world through adoption of new technology which makes it ahead of others. Fast and efficient delivery of products has been achieved through the use of modern technology (Bridgewater  Doyle, 1998).

Management through Research and Development has been greatly emphasized. Management plans and decisions are made through an integrated model. This model consists of risk taking research and development. Risk taking is the major component used by the management team to develop new products and to venture into new markets. The route to success has taken Branson a lot of risks. In the beginning, he had no money to start his businesses but he took great risks which have made him successful. Research and development are the key tools used to measure the amount of risk being undertaken. These tools are used to develop new products, access the potential markets and develop methods of marketing these products (Cranson, Kretchman,  Jennings, 1990).

For a company to survive in a competitive market, research has to be done on the operations of the competitors. Every action taken by the competitor has a great impact on the company. Virgin has employed a very strong team in RD to monitor their competitors. Restructuring the market is essential in maintaining a competitive advantage. This is only possible through research on the best actions to take. The quality of customer service must be properly monitored and satisfaction levels monitored to ensure they are satisfied with the products of the company. Value addition to the already existing brands is required to ensure that services provided are satisfactory. A proper trade-off between risk and reward must be balanced to maintain the profitability of the company. Research helps to evaluate the cost of the risk and the benefits to be accrued from the risks (Landrum, 2003).

PEST analysis of Virgin group Ltd.
This is an analysis of the political, economic, sociological and technological factors that affect the company. Virgin adheres to the social, political, economic and technological aspects required. The political factors that affect virgin group of business are the legal systems, government forces and other groups in the society. The company has complied with all legal requirements from the relevant authorities. Governments in various countries have different regulations concerning business operations. These policies and regulations have been followed to the latter by the management team of Virgin (Nigam, 2008).

The governments use economic tools to regulate the activities of all businesses in the economy. Taxes, subsidies, and other tools of economic regulation are adhered to by Virgin Group of businesses. The business forms partnerships with governments so as to ensure legal and political protection. The company has made several agreements with governments from several countries to provide some products and to negotiate on other business matters. The policies of the company are reviewed severally so as to ensure they do not conflict with the demand of the customers and to create a competitive edge (Virgin Atlantic Airways Ltd, n. d).

Economic factors are the factors which affect the Gross Domestic Product (GDP) of the countries the company operates. Virgin Rail has been operating across London and Paris. This has brought a lot of profits to the company due to the good economic environment within those cities. The global economic meltdown experienced in the recent past had a great impact on the operations of the company. Though the company was able to survive, the impacts of the economic crisis were felt to a great extent due to the poor performance of the economies in the countries where the company has set up its businesses. Diversification in products range has been a major focus by the company. The company has diversified in a wide range of products so as to capture the demands of the various needs in the different economies (Virgin Atlantic Airways Ltd, n. d).

Satisfaction of social needs of the customers is a basic focus by the company. Corporate social responsibility has been done continuously to ensure that the company gives back to the society that has made achieve its success. The company donates to the aid of poor countries and also provides social services at lesser or no fee to the society to ensure that the society is comfortable with the services offered by the company. The company has produced products that are environmental friendly so as to ensure no major destruction of the environment. The first bio-diesel train in Europe was introduced to ensure that no pollution to the environment was done by the activities of running the train business. Protection of employees from dangers ensures that they perform excellent job without fear of the risks involved. The company uses insurance cover to its employees and customers to ensure they are covered against any risk that might occur in the production and consumption of the products produced by the company. Punctuality in service delivery is a priority of the company. The society expects the delivery of products in the best manner possible. The company does extensive research to find out the social needs that the customers require (Virgin Atlantic Airways Ltd, n. d).
Technology changes within a short period of time. The Research and Development team has the duty to research on the modern and up-to-date technological advancements. Cost efficiency and time efficiency are a great priority in the delivery of products by the company. The need to maintain products that are friendly to the environment has made the company to research on technologies that create products that attain the required specifications. Innovation of new ideas is required to create products that meet the current demand of the market (Abdul, n. d). Conclusion

Entrepreneurship requires risk taking and proper management of risks. This is a step which is taken by courageous individuals so that they can encounter the unknown destination. Innovation is the key factor involved in entrepreneurship. People ought to come up with new ideas so as to challenge the existing systems. Management of business should be focused on free sharing of ideas from all departments within the organization. Bureaucracy prevents the flow of ideas and curtails the use of innovative ideas. For business to grow, it must adhere to the political, economic, sociological and technological conditions within its environment. Virgin Group Ltd has focused on developing new products and locating new markets so as to expand the boundaries of its operations. Expanding the brand variety of its products has been a major priority. The risks of engaging in business have been assumed and the company has carried out extensive risk management analysis to ensure the risks are profitable. Maintaining financial stability while expanding business ventures is a great challenge to many entrepreneurs in the world of business. However, Virgin has managed to blend the two aspects without failure.