Business Studies

Competition refers to the rivalry between business in the same industry or market. Competitors are other businesses that offer the same or similar products. Competitors fight for a share of the revenues and profits available in a market.

Virgin faces intense competition in all of its main markets. In some cases Virgin entered a market as a very small business compared with competitors (airlines). In other cases, Virgin has become the market-leader.

Surveys of customers about their existing use of competitor products and services.

Observation of competitor methods.

Analysis of competitor marketing strategies

Analysis of competitor financial information.

Analysis of competitor rofiles in published market research reports.

Research from industry sources such as trade associations and industry magazines and directories.

Customer feedback refers to the process of obtaining information from customers about the products and ervices that they use. there are many different methods of obtaining customer feedback ranging from the formal to the informal.

Given the sectors in which Virgin operates, customer's feedback is a vital part of the process for ensuring that Virgin delivers value for money and quality.

Delegation involves the assignment to others of the authority for particular functions, tasks, and decisions. Delegation is commonly associated wih better motivation - particularly amongst junior management.

Virgin employs people who "enjoy have delegated responsibility" and who can cope with demanding jobs. Extensive use of delegation allows Virgin to operate simple and flat organisational structures.

Advantages

• reduces management stress and workload
• allows senior management to focus on key tasks
• better decisions or use of resources

Disadvantages

• cannot delegate responsibility
• may increase workload and stress or subordinates
• depends on quality and experience of subordinates

Discrimination refers to the unfair treatmen of the person or group on the basis of prejudice. In the work place, it is illegal to discriminate against employes on the basis of:

• age or gender
• sexual orientation
• disability
• race, colour or ethnic background
• nationality
• religion or belief

Virgin states that it will not tolerate discrimination or bullying in the workplace.

Diversification is a business strategy is offering a variety of products and services in different markets. Diversification can be "related" or "unrelated". A strategy of diversification is often associated with higher business risk.

Virgin has diversified its activities into a wide range of industries and markets. However, its core activities are centred around entertainment, travel and lifestyle.

The right under which a franchisee may market a product or service, as granted by the franchisor.

Virgin acts a franchisor to businesses that licence the Virgin brand to apply