The International Institute of Planning and

Management

CIP on Virgin case

Submitted to

Prof. Gaurav Vatsa

Submitted by

Mitesh Bosmia
PGP/FW 08-10/SEC B

1. Are there any relationships of a strategic nature between businesses

within the virgin portfolio?

Ans. No, there are not any relationships of a strategic nature between
businesses within the virgin portfolio. The virgin portfolio includes virgin
travel, virgin rail, virgin cinemas, virgin media, virgin music, virgin trading
etc. However, by 2002, the group included over 200 businesses spanning
three continents. As virgin group is mostly in the unrelated diversification
so that the resources of one business are not useful for other business

And also the structure of Virgin Group was so opaque that the true
financial position of virgin group was unclear. Due to its status as a
private company, the complex group structure, and unavailability of
consolidated accounts, it was difficult to arrive at accurate turnover and
profit and companies within the group did not even share a common
accounting year end.

2. Does the Virgin Group, as a corporate parent, add value to its

businesses? If so how?

Ans. Yes, the virgin group as a corporate parent has added value to its
businesses. The brand is the single most important asset for them. The
ultimate objective virgin is to establish it as a major global name. That
means they need to have a number of core businesses with global
potential as well as they try to prove the promises which they are giving
while entering into new market and they are adding value to it’s core
business virgin Atlantic.

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