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Table of Contents
Executive Summary ........................................................................................................................ 4
Introduction ..................................................................................................................................... 4
Question 1 ....................................................................................................................................... 5
Question 1(a) ............................................................................................................................... 5
Using Tom Burner and G.M. Stalker’s mechanistic and organic systems, select and describe any
two (2) characteristics of each system to Virgin Group. Provide one relevant example and apply
to each system. ............................................................................................................................ 5
Organizational Systems ........................................................................................................... 5
Question1(b) ................................................................................................................................ 6
Define organizational goals. Describe the purposes of goals setting to an organization. ........... 6
Organizational Goals ............................................................................................................... 6
Purposes of Goals .................................................................................................................... 6
Purpose of goals to Virgin Group ............................................................................................ 7
Question 2 ....................................................................................................................................... 7
Question 2(a) ............................................................................................................................... 7
List and provide six points to explain what SWOT Analysis is. ................................................ 7
Question 2(b) ............................................................................................................................... 9
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Using SWOT Analysis identify any 4 (four) SWOT and explain these SWOT in relation to
Virgin Group. .............................................................................................................................. 9
SWOT Analysis in Relation to the Virgin Group.................................................................... 9
Question 3 ..................................................................................................................................... 10
Question 3(a) ............................................................................................................................. 10
Based on Henry Mintzeberg’s basic managerial roles, list any (5) roles and describe them with
examples for each role’s activity. .............................................................................................. 10
Henry Mintzeberg’s basic managerial roles .......................................................................... 10
Question 3(b) ............................................................................................................................. 11
With specific examples from Virgin Group, describe any two (2) roles Branson played. In
addition, relate how interpersonal skills Branson need to display. Provide an example. ......... 11
Branson’s Two Managerial Roles ......................................................................................... 11
Interpersonal Skills Branson Played ...................................................................................... 12
Question 4 ..................................................................................................................................... 12
Question 4(a) ............................................................................................................................. 12
Basing on your research on the industry of Infosys of today, identify any (2) external
environment that most influence the organization. Explain with discussion how it impacts Virgin
Records. ..................................................................................................................................... 12
External Environment ............................................................................................................ 12
Question 4(b) ............................................................................................................................. 14
List any three (3) influences on the internal environment of an organization and describe two (2)
valid descriptions for each influence. ........................................................................................ 14
Internal Environment Affecting on the Virgin Group ........................................................... 15
Question 5 ..................................................................................................................................... 16
Outline the four stages of creative thinking process and analyze its applications in decisionmaking by the managers of Virgin Group. ................................................................................ 16
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Four Stages of Creative Thinking Process ............................................................................ 16
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Executive Summary
This paper is an analysis of the multinational organization - the Virgin Group. This will cover the
general explanation of the profile of Richard Branson, the organizational objectives of the Virgin
Group, a SWOT analysis, firm roles and structures, external and internal environmental factors
affecting Virgin Group operations, and specific decision-making applications. The key
management ideas, the theories of leadership, the corporate environment, the roles and
contribution of Richard Branson as a leader of a Virgin Group will all be covered in more detail
in this paper.
Introduction
Virgin is one of the most well-known brands in the UK and its owner is Richard Branson. The
Virgin Group has gained the international recognition with the help of his managerial and
leadership abilities, organization’s durability. Branson has already contributed to this worldwide
success's rise to the top by developing every part of the organization.
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Question 1
Question 1(a)
Using Tom Burner and G.M. Stalker’s mechanistic and organic systems, select and describe any
two (2) characteristics of each system to Virgin Group. Provide one relevant example and apply
to each system.
Organizational Systems
Tom Burner and G.M. Stalker devised the mechanistic and organic organizational system.
Companies that use organic system tend to be adaptable and flexible to unstable environment.
They organize themselves in a decentralized way. In a mechanistic environment, company system
is formal and aid in the efficiency of organization. The organic system is best suited to a hectic
environment, whether a steady environment is better suited to the mechanistic system. They take
advantage of two characteristics of each system (TMC Academy, 2009).
The virgin group used these two characteristics from mechanistic system when applying to their
organization:

To get the job done, Virgin Group managers are strict with their employees. Virgin
Group has a variety of objectives to pursue, so in order to accomplish, Virgin Group
built a division within the company. There are different specializations and objectives
for each division. Managers are responsible for providing their staff with the necessary
training to efficiently administer each division. Additionally, managers in the Virgin
Group are responsible for overseeing daily operations to keep their divisions
functioning well.

Branson encourages people to give their best in their job. The positive thing is that
employees always have a lot of freedom in their work with Branson. He always gives
instructions before handing over responsibility to the team. One of virgin group's least
crucial functions is the controlling role. The Virgin Group's managers ensure that each
employee receives the precise task assigned to them based on their area of expertise.
The virgin group used these two characteristics from organic system when applying to their
organization:
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
Branson holds the view that communication promotes connection and permits learning,
development, and achievement. It is crucial to pay attention to what your supervisors
or employees are saying if you want to succeed. A strong communicator can explain
what they are saying to the company employees clearly, whether or not they are giving
an advice during the conversation. People inside the organization are encouraged by
communication. An effective leader must be able to communicate well in order to
establish a clear network between managers and employees. (Insights for Professionals,
2017)
Question1(b)
Define organizational goals. Describe the purposes of goals setting to an organization.
Organizational Goals
Targets or desired outcomes are examples of goals. They act as a baseline against which work
achievements are evaluated by management and serve as a guide for management decisions. They
are commonly referred to as the core elements of planning as a result (Robbins & Coulter, 2011,
p. 205).
Reaching an organizational goal is also known as the organization’s effectiveness. Organizations
can have numerous different kinds of goals and different level of goals in different level of
management and departments. Each goal has to serve its organizational goal (Anon., 2009).
Purposes of Goals
There are four purposes for setting goals.

Goals provide guidance and unified direction for people in the organization.

The planning is significantly impacted by the goals that are set. It promotes effective
planning that makes it possible to define new objectives, which in turn helps managers to
plan for expansion by looking for new market opportunities when they have a specific
growth objective.
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
Goals plays as a source of motivation to employees of the organization. People might exert
more effort if their goals are specific and moderately difficult, particularly if completing
the goal tends to bring rewards. They are the effective tool for evaluation and control.
Accomplishing today’s goals successfully can provide which performance should be
assessed in the future (Anon., 2009).
Purpose of goals to Virgin Group
Together with Richard Branson and his company executives, they set several common goals for
the company. The goals are 1) expansion into international markets, 2) utilization of new
technology, 3) loyalty among customers, and 4) joint ventures with other companies as stated in
the case study.
By setting these goals, firstly, the company managers gain a guidance whenever they make
different level of planning. Secondly, they make a benefit for the company that employees are
recognized that they are involving in vital and meaningful task. This is a kind of motivation which
can make employees to put more effort which can lead to the organization more effective. Thirdly,
higher level managers also informed that the company’s benefit is equivalent to individual’s
benefit which means employees can attain more rewards if they contribute more.
Question 2
Question 2(a)
List and provide six points to explain what SWOT Analysis is.
The process of strategic management planning includes analyzing the external and internal factors
that may impact a business. One popular method for this analysis is the SWOT framework, which
looks at a company's Strengths, Weaknesses, Opportunities, and Threats. While this method is
widely used and considered simple and effective, it is important to be aware of its limitations and
potential for error if not used correctly. Additionally, SWOT should not be viewed as a one-time
analysis tool, but rather as a dynamic aspect of business management and growth (David & Sheila,
1998).
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Strengths
Strengths are internal and beneficial with relative to the goal of the task. Strengths are factors that
assist a Threat or Opportunity succeed.
Strengths could consist of:

Financial advantages include a strong credit rating, cash flow, and balance sheet.

technological advantages: equipment, know-how, and facilities.

Services to customers include marketing, sales, service, and reputation.

Talented, devoted, skilled, and well-trained individuals.
Weaknesses
Internal weaknesses that are detrimental to the SWOT objective exist. Weaknesses are
characteristics that make it difficult to take an opportunity or open to attack to a threat. Possible
weaknesses include:
financial weaknesses include a high debt to liquid assets ratio.

techniques or technology that is outdated or rigid.

Customer service flaws include slow delivery times or unreliable customer
communications.

a lack of available skills or low employee morale.
Opportunities
Opportunities are helpful external variables that you have no control over but that may be useful.
Opportunities come from a variety of places, including:

competitors leaving the market or entering it.

emerging societal tendencies.

technological advancements.

restrictive legislation that may present a chance if it poses a danger to your rivals.

Opportunities come in both real and intangible forms, such as new products or improved
reputation.
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Threats
Threats refer to negative external factors that can harm an organization or individual, over which
they have no control. These threats can be both tangible, such as a hostile takeover attempt or
competition, or intangible, such as harm to reputation or branding (Sarsby, 2016).
Question 2(b)
Using SWOT Analysis identify any 4 (four) SWOT and explain these SWOT in relation to Virgin
Group.
SWOT Analysis in Relation to the Virgin Group
Strength

Virgin Group is a well-known company.
The company commands respect massive
promotion influence and recognition (Muthee, 2019).

Virgin Group Ltd. has since developed successful enterprises in a variety of industries,
including mobile phone, financial services, entertainment, music, vacations, and health
travel & wellness (II, 2016).

Virgin's goods and services are successful, enjoyable, and valuable to the customers. Virgin
strives to innovate services and products that it can offer to its customers while also
empowering its staff (Sadq, 2016).

Richard Branson delivers excellent branding (Team, 2020).
Weaknesses

The rate of employees leaving Virgin Media is higher than that of other similar companies
in the same industry. As a result, Virgin Media incurs greater costs for training and
developing new employees than its competitors (Fern Fort University extensive research,
2023).

Technology Implementation in Operations - While Virgin has integrated technology in
backend processes, it has yet to harness the power of technology in front end processes (
Batiz-Lazo & Kase, 2023).
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Opportunities

Virgin Media has the opportunity to use a differentiated pricing strategy in the new market
thanks to the new technology and it will allow the business to attract new clients with
various value-oriented propositions while retaining its existing ones with excellent service.

New markets entrant Virgin Group may be able to enter new markets thanks to its great
brand recognition.
Threads

In the medium to long term, emerging technologies created by competitors or market
disruptors could create a significant challenge to the sector.

Competitors offering similar products creates competition.

Strong name and identity, not the products or services they provide, are the root of a strong
brand.
Question 3
Question 3(a)
Based on Henry Mintzeberg’s basic managerial roles, list any (5) roles and describe them with
examples for each role’s activity.
Henry Mintzeberg’s basic managerial roles
The easiest approach to comprehend what managers do is to look at the managing responsibilities
they have at work, Mintzberg found in his first comprehensive study. Management roles are
particular tasks or conduct that managers are expected to perform and exhibit (Robbins & Coulter,
2011).
Monitor
Managers should collect information both internally and externally. This will allow them to
evaluate their department from different angles, recognize any problems that may exist, and take
swift action to address them (Charles, 2021).
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Disseminator
Managers should obtain data from both within and outside of their workplace. This will empower
them to evaluate their department from various viewpoints, detect pertinent problems, and
promptly address them. (Charles, 2021).
Spokesperson
As a manager, it is important to act as a representative of the brand and share information beyond
the office. (Charles, 2021).
Entrepreneur
To encourage innovation and change, managers should adopt an entrepreneurial mindset and take
the initiative in putting novel concepts into practice (Charles, 2021).
Distance handler
Managers should avoid any disruptions that may hinder achieving the desired outcomes (Charles,
2021).
Question 3(b)
With specific examples from Virgin Group, describe any two (2) roles Branson played. In addition,
relate how interpersonal skills Branson need to display. Provide an example.
Branson’s Two Managerial Roles
By analyzing the case study, two managerial roles that Richard Branson played the most are
entrepreneur and leader.
The entrepreneur
Creating original, innovative ideas to improve the company's products, services, and processes is
the responsibility of the entrepreneur. Additionally, one must react quickly to altering
circumstances and market conditions. (G, 2022).
According to the case study, Richard Branson launched Student Magazine at the age of 16 as an
entrepreneur. Three years later, he again started to run a business – the Virgin mail order record
company. Above two activities are some of the examples that Branson played as an entrepreneur.
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The Leader
As a leader, one has to be responsible and accountable for the subordinate’s work and must inspire
the team to produce excellent work. This position requires the ability to manage and lead the team
(G, 2022).
The case study clearly describes the leadership roles that Branson played such as setting the
organizational goals with the company’s executives and being the actual nuts and bolts being
Branson’s philosophy of leadership.
Interpersonal Skills Branson Played
The roles that interpersonal skills involve figurehead, leader and liaison. The best example is
properly leader as he is an inspired leader and his three leadership is mentioned in the case study
– listening, learn and laugher. Listening is the most crucial skills that every can have. Moreover,
attentive listening is one of the leadership skills a leader or a manager should have. Branson said
that he achieved success by learning from inspiring people. He also mentioned that laughter is his
number one rule not only in business but also in life which means without passion, one’s business
is likely to fail.
Question 4
Question 4(a)
Basing on your research on the industry of Infosys of today, identify any (2) external environment
that most influence the organization. Explain with discussion how it impacts Virgin Records.
External Environment
PESTLE is a method for evaluating the potential impacts of external factors such as politics,
economy, society, technology, laws and environment on a project or organization. This technique
is used before starting a project to consider the external environment and identify any potential
risks or issues. PESTLE analysis is a framework for analyzing the effects of these external factors
on a company's strategic planning. The acronym PESTLE stands for Political, Economic, Social,
Technological, Legal and Environmental factors (TRIVEDI, 2016).
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External environment that most influence the organization are social and technology. This chart
describes how social and technology impact virgin record.
Facts
Social

Impacts
The population of the

As
the
population
United Kingdom was
grows, so does the
estimated to have been
demand
over 67 million in
water,
2021 (D.Clark, 2022).
energy,
for
food,
housing,
healthcare,
and transportation.

The UK has a 99%
literacy
rate

and
Can find individuals
who
can
belongs to the group of
professionally
top nations in the
manufacture quilts in
world with the highest
the
workplace
percentage of well-
required
for
educated
business.
citizens
the
(Shaw, 2023)

In 2022, the minimum
wage
in
the

UK
The
increase
of
minimum wage rate of
increased for the great
consumption
of
majority of workers in
products is increasing.
all relevant age groups
(Personio, 2023).
Technology

Early in 2022, there
were
61.67 million
active social media
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Easy
market
to
and
penetrate
allows
firms to find new
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users
in
the
UK
clients through digital
(Dixon, 2022).
marketing and social
media networks.

In comparison to 17%

Provides chances for
for 3G and 1% for 2G,
persons
who
use
the
online
services
for
vast
(82%)
majority
of
network
mobile
personal, social, and
connections
business purposes.
on average were to a
4G network (Hiley,
2022).

92% of UK adults own

It As there are millions
a smartphone in 2022
of internet user, there
(Moskovska, 2022).
will be easy to access
information

The UK government is

A lot of money and
increasing its annual
talent are pouring into
expenditure in science
the industry.
and
technology
approximately
to
$30
billion (Trade, 2022).
Question 4(b)
List any three (3) influences on the internal environment of an organization and describe two (2)
valid descriptions for each influence.
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Internal Environment Affecting on the Virgin Group
Internal environment is analyzing the organization itself. It expresses where the organization has
its weakness or strength. The influences that the internal environment of an organization are
organizational mission, organizational culture and organizational resources (TMC Academy,
2009).
Organizational Mission
A mission, a general statement of an organization’s purpose, offers an overall guidance to members
and managers of an organization when they make planning or set goals (Robbins & Coulter, 2011).
The Virgin Group’s mission is to change business for good (Our Story, 2023). Then, it is used as
a guide to set goals - expansion into international markets, utilization of new technology, loyalty
among customers, and joint ventures with other companies as mentioned in case study.
Organizational Resources
Barney’s VIRO framework is used to analyze organizational resources whether they can be
weakness or strength. In the framework, V, R, I, O represents value, rareness, imitability and
organization respectively (TMC Academy, 2009).
Value
According to Virgin Holdings Limited’s 2020 financial statement, the company had already
processed pound sterling 640 million (Annual Report and Financial Statements, 2020). Now the
Virgin Group comprises more than 40 countries across five business sectors and five continents
(Our Story, 2023).
Rareness
One of the company’s rareness is Richard Branson himself being different from the stereotypic
CEO and having attentive listening for example, encouraging his staffs to write ‘chitty-chatty’
letters to him, as stated in case study.
Organizational Culture
Organizational culture is described as the culture of the organization (TMC Academy, 2009). It is
also referred as the common values, principles, traditions, and methods that influence the way
organizational members act (Robbins & Coulter, 2011). Two examples of organizational culture
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are open and closed culture. Generally, democratic leadership is used in open culture and autocratic
leadership in closed culture.
According to the case study, the organizational culture of the Virgin Group is more like the
behavior and character of Richard Branson. The company uses open culture. Employees at lower
levels of the hierarchy are given decision-making power and delegation of authority because
Branson has irreverence of authority and he also believes that trust in managers and employees is
particularly important as stated in case study.
Question 5
Outline the four stages of creative thinking process and analyze its applications in decisionmaking by the managers of Virgin Group.
Four Stages of Creative Thinking Process
The four stages of the creative process:
Stage 1: Preparation
The creative process starts with preparing yourself by gathering information, finding inspiration,
and gaining knowledge about the task or problem at hand. This can involve both internal reflection
and external research to gather necessary data, resources, materials, and expertise (Gregoire,
2019).
Stage 2: Incubation
Creative individuals tend to think deeply about an object or idea they have observed, analyzing
and interpreting it in various ways. This process happens largely unconsciously, and is referred to
as incubation. It involves a significant amount of trial-and-error learning and can cause a person
to be restless. Edison’s quote about genius being 99% perspiration and 1% inspiration may have
been referring to this stage of the creative process (D, 2023).
Stage 3: Illumination
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After the incubation stage, creative ideas come to mind suddenly, and what was previously
confusing becomes clear. This sudden insight is called illumination and is similar to the ‘aha’
moment. As an example, Archimedes discovered the solution to the crown problem through this
process (Sharma, 2023).
Stage 4: Verification
According to Kaufman, the common perception of creativity as ending with the moment of
inspiration is incorrect. In order for creativity to have an impact and achieve something, it is
necessary to apply critical thinking skills to consider the audience and present the idea in an
effective manner. Kaufman emphasizes that even the most brilliant ideas can be unsuccessful if
they are not effectively communicated(STILLMAN, 2014).
The Virgin Group uses the four stages of the creative thinking process during the ideation and
problem-solving phases of new business ventures, product development, and other projects. This
process can be used by employees at all levels of the organization, from entry-level employees to
senior management, to generate and evaluate new ideas.
The preparation stage of the Virgin Group would be done before starting any new business venture,
product development or project. In this stage, top managers and executives voice the organizational
goals to all employees so that they can have a guidance while implementing the goals and study
the competition.
With regard to the incubation stage, Branson built trust with his senior managers by setting a way
and standing aside to allow them take the lead which means the ideas are allowed to develop and
mature in the mind. Employees would be encouraged to brainstorm and come up with as many
ideas as possible. They would be given time to let the ideas simmer and develop before moving
on to the next stage.
The Virgin Group uses the illumination stage by creating a management style which boosts
employees to be competitive so that employees are encouraged to share their thoughts and ideas
with their co-workers. They would present their ideas to the team and discuss the possibilities.
The verification stage related to the organization is that employees at all levels who contribute in
their groups achieve rewards which can lead them more proactive and productive.
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Conclusion
The Virgin which had started with a small mail order record company in the 1970s now becomes
a veritable entrepreneurial empire thanks to Branson’s leadership style, goals, management
functions and organization system.
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