Virgin Case
StrategyNot necessary: internationalize, outsource more than production, liquidate, Organizational level: long term goal, what industry we want to enter into as an organization. In what segment do we want to involve. Mission statement, business objectives.Eg: Virgin- airline industry, what segment we want to compete. Business level: how do we actually compete? What market force, microenvironment. What’s the competitive advantage, cost leadership?Key influence:Regulation PESTOrganizational culture and belief systems (part of org control system)as well as national culture (part of org control system)• Organisational structure • External environment (Porters 5 forces)[pic 1]• Size (scale and complexity)• Technology EG: Virgin- High-end, premiumgoal emphasis An organizational control system may be defined as a set of mechanisms – both processes and techniques – which are designed to increase the probability thatpeople will behave in ways that lead to the attainment of organizational objectives.CORE SYSTEM: consisting of four subsystems (planning, operations, measurement, and evaluation-reward)Informal: informal meetingLeisure market- type customer- when people go to holiday, disposable income, seasonality, risky.Business- to achieve the lower price airline ticket. More volume base. Hard to profit from margin.2010: ship focus to more corporate and government focus that low seasonal, more Melbourne-Sydney line.  Higher margin, charge more. More focus on cost control, measurement- feedback survey on quality service.But cost and quality might conflictVirgin move away from the low cost market, but still want to retain the market.

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