According to (1980), firms are under great pressure to have modern plans to be competitive and should have adequate

capability to achieve their target market share. Virgin Atlantic Airways is among the most successful business ventures of the Virgin empire owned by tycoon Richard Branson. Its strategic development is rooted on the need to surpass competitors while balancing financial resources, increased revenue and maximum productivity. As stated, Virgin Atlantic Airways is a cut-price airline that based its success in serving the lucrative traveler segment of the North Atlantic market by providing outstanding and novel customer service experience. The airline introduced luxury i.e. business travel amenities that are not offered to firstclass passengers of other airlines such as state-of-the-art reclining seats, infight massages, hair stylists, aromatherapists and motorcycle and limo home pick-up service. Also, a luxury boat service was offered to subjugate London traffic jams. These features among others change the travel experience of customers, may it be from first or economy classes. Virgin Atlantic Airways aims to recreate the mystique of air travel through the amalgamation of oneof-a-kind in-flight luxuries with circus side-show. However, these features are imitated by various industry rivals. The airline is awarded by various institutions for its outstanding customer service. Customer service is undeniably perfected by most Virgin business ventures. By taking in consideration the requirement to please customers, the airline management is constantly developing innovative plans and features that will further impressed the customers. As innovations play a very crucial role in strategic development of the airline, it is also noted that competition is the prime mechanism that prompts the management to improve

and turn its services to excellent quality. Armed with massive publicity and established marketing communications, Virgin Atlantic Airlines continues to compete with major airlines, British Airways in particular. The airline industry is characterized with stiff and rapid competition yet a small airline industry like Virgin Atlantic Airways is tough and maintains its strategic position in the market. Financial challenges are affecting most international airline companies yet the airline persistently manages to survive financial disaster by maintaining a competitive edge in superior service. In 2000, Branson sold a 49 percent stake of the airline to Singapore Airlines for 600 million for the intention to increase financial capability to emerging divisions of Virgin group. While the airline was generating a strong positive cash flow, the transition from profit to loss during 2001-02 placed considerable added pressures on the group. This condition resulted to new management plans to be implemented including the doubling of size of airlines fleet, hiring of 1,400 new employees, and offering alternatives against major competitors. The enduring success in the strategic management process of Virgin Atlantic Airways is not possible if not for the ingenuity of the concept of their vision as a team. The aims of the whole Virgin business ventures in making a difference in their area of operations are deliberately directed to the top. Thus, they consider organizational planning and decision making as extensive processes. Generally, Virgin uses the forward planning technique, which according to (1992) provides an opportunity to ask the questions like: where are we? how have we got here? and what are we here to do? This kind of planning helps the management in establishing a set of organizational or

functional objectives to provide depth to the mission statement and reflect the diversity of the companys responsibilities. These describe the objective and the purpose of the whole company. All in all, the strategic development of Virgin Atlantic Airways is directed to the eventual positive and sustainable progression and overall competitive advantages. In contrast, the British Airways considered Virgin Atlantic Airways as its major competitor. Due to the deregulation of the European Airline, many airlines have been able to cope with the changes and make a strategic move of entering in this travel industry. One of the industries that open its market to the airline industry is the British Airways (BA). British Airways is regarded as one of the UKs largest international scheduled airline. It is known for being such because of the strategies imposed by the management of the airline industry. One of the strategies utilized by British Airways is its ability to efficiently promote its brand names all over the market place. This strategic promotion has made the airline industry to continuously be known locally and internationally when it comes to travel satisfaction and convenience. Another strategy that can be attributed to British Airways as a whole is its ability to value their customers. Herein, the company has been able to follow other airline industry to cut their service cost while providing excellent service to their target market. Lastly, the ability to strategically align modern technology and it business strategy is the most important strategy that can be attached to BA.

British Airways has competently position its place to be known in both cargo flights industries and passenger flight industries not only in the European community but also in the international level. In addition, with its strategic used of the concentric diversification which lead British Airways to acquire Go Fly, the company has reduced the cost of marketing entry but increase the profits of the organization as a whole. The acquisition to enter the airline industry to target individual passengers who wants a low cost but excellent service has made British Airlines the number one competitor in the aviation and airline industry. Virgin Atlantic Airways and British Airways will always be compared to water-and-oil in terms of competition. Yet, it is recognized in the analysis that they constitute similar commitment of providing maximum customer satisfaction, massive marketing communications activities and brand strategy, technological innovations, and strategic management. Most companies like Virgin Atlantic and BA, find it impossible to create any kind of sustainable competitive advantage based on product/service alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage. Hessan and Whitely (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product/service gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself. In the end, Virgin Atlantic Airways and British

Airways ability to accumulate increased financial resources and their reputation in the UK and even world airline industry is the ultimate measurement of strategic development and performance.

2. To what extent can the Virgin Group of Companies' strategic development be considered prescriptive?

The strategic development of Virgin Group of Companies is considered prescriptive on the level of leadership management and team dynamics. The Virgin Group has minimal management layers (2007). The management proliferate familial organization rather than hierarchy. They do not recognize bureaucracy as evident with the presence of a tiny board and absence of a global headquarters (HQ). All they have in mind is the idea of one team working towards a specified series of objectives. There is a free flow of affairs and cooperation among other companies that allows them to use team dynamics. Information are originating in diverse sources. In terms of planning and decision making, various elements are contributed by all sections of the management. Thus, it provides a wide array of resources. The principle of communalism, sharing of ideas, values, interest, and goals are considered as real and tangible formula of success. These attributes are credited to the clear proliferation and application of team dynamics and effective leadership as well as management strategy.

However, this decentralization of the organizational structure is among the weaknesses of Virgin. This is also part of the difficulties that Virgin is facing. Virgin considers this as strength but the researcher, on the other hand considers this as weakness. Because of the decentralized leadership of the company and many sub-divisions of the Virgin, there are some difficulties in the controlling mechanisms. This slows down the production processes because of the need of addressing or giving reference to the other board members and directors. Virgin will also have a potential difficulty in finding out what division is accountable for the possible pitfalls. In here, the concept of leadership and team dynamics can turn vague and stagnant. In organizational planning and decision making, there is definitely a need to reconcile both the inside-out and outside-in capabilities. While Virgin Groups operations management involves focusing on its core competencies with market position following its resource base, Branson and his company will be put into a disadvantageous position should they choose to neglect both the macro as well as the micro industry environment. Therefore, Virgin Group has to be aware of the latest operations management changes, as well as political, economic, legal and even demographic trends. This is for them to develop the outside-in capabilities such as market sensing, customer linking, channel bonding and technology monitoring.

3. Undertake a PEST analysis for either Virgin Blue in Australia or Virgin Rail in UK

The PEST stands for the following: Political, the current and potential influences from political pressures; Economic, the local, national and world economy impact; Sociological, the ways in which changes in society affect the organization; and Technological, the effect of new and emerging technology. On this case, Virgin Rail in UK is analyzed. Political

Virgin Rails compliance to legal and regulatory policies is deliberate. Since it was formed after the privatization of British Rail in the middle period of 1990s, the companys management adheres to the requirements specified by authorities.

Virgin Rail is operating within a single brand yet legally and operationally, it is shared by Virgin Group (51%) and Stagecoach Group (49%).

The profits are depended upon annual government operating subsidies.

The governments involvement on a step- by- step process for development is expected. The intermediary of progress would be the government itself, assisting the market by providing effective partnership and agreements with other countries.

There is a need to review the existing company policies in order to meet the demands of the competitive business environment and the changing customer preferences.

Economic

Virgin Rail is among the six investors in London and Continental railway (LCR) that is primarily responsible for running the Eurostar train service between London and Paris through the Channel Tunnel. It is marginally profitable in the recent years.

The possibility of the occurrence in global recessions brought about by companies closing down and the loss of jobs may have a direct impact on its business strategy.

Also, the unprecedented fluctuations in the local and international economy will affect the financial conditions. Thus, there is a need for increase financial management strategies.

Operation levels are diversified taking particular attention to the competitive services rendered to the train passengers.

Social

As industry leader, Virgin Rails management trend moves

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