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Virgin Atlantic - Business Audit, Management Structure, and Ways to Enhance Position - Case Study Example

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The paper “Virgin Atlantic - Business Audit, Management Structure, and Ways to Enhance Position” evaluates the development of the airline business which was looked upon as the airline of choice for most England and European flyers and now has become the second largest long-haul airline in the UK. …
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Virgin Atlantic - Business Audit, Management Structure, and Ways to Enhance Position
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Download file to see previous pages Virgin Atlantic customers mainly vary dependent on the operational routes. However, statistics have shown that the bulk of their customers come from the UK. The distribution of the UK customers is approximated to be 60% and the rest is constituted by worldwide customers. The business has categorized its customers dependent on the class they fly. It has the smallest group of customers under Upper-Class passengers who are mainly business persons aged 35-45. The second group of customers flies under Premium Economy; customers flying here are fairly split between business and leisure flyers. The last grouping is the Economy passengers who constitute the largest grouping of the Virgin customers and encompasses flyers from most socio-economic groups. The leisure and business travelers remain the target customers for the airline business.
Virgin Atlantic has, since inception, aimed to run a profitable airline that people love to fly as well as being a competitive employer. It has cultured its objective to include the three main stakeholders who are the business shareholders/owners, its customers, and its employees. Therefore, given this primary objective, it is safe to argue that the company’s desired position is ensuring profitability, creating the right environment and impression so that customers look at it as an airline of choice in providing the right employment environment.
The value chain was first utilized and detailed by Michael Porter in his book Competitive Advantage. It is a summary of business activities and their link to the competitiveness of the business. In brief, the value chain looks at every single of the major activities a business undertakes. It then looks at the value each of these activities adds to the competitiveness of the business/organization. In using the value chain to audit a business, it is vital that one distinguishes between primary activities and support activities. Porter termed primary activities as those which are directly linked to the creation or delivery of a service. These are categorized as inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are those that provide the drive to ensure the effectiveness of the primary activities which include human resource management, procurement, technology development, and infrastructure. ...Download file to see next pagesRead More
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