The turnover indicates the level of business that each airline has achieved over a yearly period, changes in turnover can be impacted by changes in external factors which result in a decrease of sales.
Price fluctuations of commodity and raw material and rise in world fuel prices cause the rise of purchasing costs for Breadtalk and the extra cost has to pass over the consumers by increasing the price of their products.
The strategic direction of increasing market share could not come at a better time for Virgin with British Airways in massive dept and in a very vulnerable position.
With less disposable income the demand for travel has fallen The Timesand the airline may to look at competing with low budget airlines in This is one such scenario which Virgin Atlantic must address and research in order to determine the environmental stability of the organisation and the ability for it to achieve the 3 year strategy in place.
This Analysis would indicate that Virgin Atlantic would fall under differentiation focus strategy. The growth in demand is identified in the increased ticket sales over the past few years despite the current recession which is affecting other premium airlines Virgin Atlantic continue to out-grow its competitors.
The airline was also the first of its kind to trial an alternative fuel which was created from a combination of coconuts and Brazilian Babassu nuts, BBC News This growth has been the main strategic objective since when it was introduced in a 3 year plan.
By offering premium priced products for a high quality service Virgin Atlantic has an advantage over its competitors. Competitive Strategy A clear competitive strategy is key in the success of an organisation meeting its strategic objectives.
As established in the external environmental analysis airline have been at the forefront of technology since they launched in the eighties. The existing market which Virgin Atlantic operates in continues to have a growing demand for the current services which the airline offer.
Intensity of rivalry among competitors High The bakery business in general is driven by cut-throat competition from companies producing similar products.
Breadtalk penetrates into the markets of other Asian continent countries, societal factors come into consideration. Virgin Atlantics strong brand name and discounts for loyal air travellers will give them the power to gain a customer even if its prices are slightly higher than its competitors.
Both airline reported losses, the most significant being that of BA at? Throughout this report, the strategic direction of Virgin Atlantic has been discussed and the methods of development evaluated alongside airlines financial performance, taking into consideration the external environment.
People had forgotten what air travel was all about, and the ideal of jet setting across the world in luxury was seen available only to those who where famous.
Substitutes like munchies and junk food can be an imminent threat.
The rapid change in technology has allowed new entrants to enter the market at a low cost base. In addition, the franchise division requires high cost involvement, and a constant need for the renewal of the franchise license to be franchising other brands.
The currents assets are current assets and inventories raw-materials, semi-finished goods, consumables and base inventories dining utensils and cutlery. With technology in the aviation industry developing from year to year, from new air craft models which reduce emissions to efficient means of checking in customers nd the great entertainment facilities on board makes air travel is very appealing.
This very public stance on social responsibility, especially when it comes to environmental factors, enforces the public interest that Virgin Atlantic employ especially when it comes to decision making and setting their strategic objectives.
With the voluntary target set in the airline industry on cutting emissions byI would encourage Virgin Atlantic to take a more public stance and be actively involved in the research and development of bio fuels by pairing up with the lead organisation.
Methods of Development 7. According to Porters theory there are 5 forces used to analyse the industry; 5. Threat of substitutes High Products substitutes are usually a hazard in the bakery industry as their prices can be reasonably go down, and customers face low switch of expenditure for gaining utility of the same needs and wants.
Code-sharing agreements, which we have established plays a key role in the success and growth or Virgin Atlantic, may be put in to jeopardy if there is conflict between countries which could potential affect the air space in which Virgin Atlantic travels.
Environment factors At Breadtalk, they know that they need to blend into any type of environment in order to be successful. These competitors offer analogous products but at a highly competitive prices. The growth in demand is due to several of the external factors which were discussed earlier, namely the social trend of luxury air travel and the idea of jet setting around the world with a company associated with celebrities and seen to been sexy.Strategic Management: Strategic Directions Folloed by Virgin Atlantic Analysis Of Strategic Direction Of The Organisation Business Essay Strategy is a word of military origin and now refers to a plan of action designed to achieve a particular goal.
More about Identify the Strategic Direction of an Organisation You Are Familiar with and. Strategic Management: Strategic Directions Folloed by Virgin Atlantic Essay strategic directions followed by Virgin Atlantic. Initially we discuss the organisation’s mission statement and identify how the vision of the company is.
Contents 1)Executive Summary 2)Introduction of Company 3)External Environment 4)Company Financial Performance 5)Competitive Strategy 6)Strategic Direction of Development 7)Methods of Development 8)Conclusions and Recommendations 9)Resources 10)Appendices 1)Executive Summary This report aims to evaluate the.
This report aims to evaluate the current strategic directions followed by Virgin Atlantic.
Initially we discuss the organisation’s mission statement and identify how the vision of the company is reflected though the strategic objectives.
It is established at CSR plays an important role one Virgin. Strategic Management for Senior Leaders: A Handbook for Implementation ŁxiŁ How to use this Handbook ﬁThere is no great tradition or heritage for strategic thinking. STRATEGIC MANAGEMENT?
What is Strategy? Directions for development Strategic history Current strategy Stakeholder analysis Strategic vision Chosen strategy agement and employees here because, though in many cases senior management is the source of strategic decisions, it is the employees at the point of production.Download