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A Critical Analysis and Evaluation of Virgin Companies - Essay Example

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The author evaluates the company’s statement regarding its culture presenting a series of relevant theories which are useful in order to understand the structure of the corporate strategy as well as the application of commercial principles throughout the corporate activities …
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A Critical Analysis and Evaluation of Virgin Companies
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Download file to see previous pages One of the most important elements of the Virgin’s corporate strategy is, in accordance with the company’s statement, innovation. For this specific issue, Kesler (2000, 26) stated that ‘innovation should be divided into four major categories, an example of which could be the following: 1. Finance, 2. The process, 3. Offering and 4. Delivery’. On the other hand, Parnell (2003, 16) found that ‘in many respects, the evidence for the existence of a strategy can permeate an organization; its customers appreciate knowing what a company is attempting to accomplish and prospective investors tend to hesitate when they do not have a clear grasp of the firms position and future priorities; sharing strategic information with lower-level managers and employees may enhance both job comprehension and organizational commitment; hence, the arguments for a "public" strategy are intuitively obvious’. In other words, even in case that a company applies innovative techniques in the design and application of its strategy, if it fails to communicate effectively with its customers, i.e. to satisfy them in accordance with its sector of activities and the quality of the products/ services offered, then its performance will be decreased and this outcome would not be easy to be reversed even if the firm has achieved a high level of performance in the past.
At this point, it should be noticed that the content of the managerial schemes and the type of measures taken in order to communicate both with the external and internal environment are not the exclusive requirements for a successful corporate strategy. It is very important that the above strategy is evaluated continuously in order to meet the demands of the modern commercial market – which is characterized by continuous and severe turbulence. In this context, we can refer to the work of Nattermann (2000) who studied specifically ‘benchmarking’ – an innovative tool of strategic analysis.   ...Download file to see next pagesRead More
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