Week 14: Case Study: Virgin Group

1.Difference between 'business unit level' strategy and 'corporate level' strategy.

Business unit level strategy:

Business level strategies are essentially positioning strategies whereby businesses tend to secure for themselves an identity and position in the market(gaebler.com,2013). It refers to the kind of strategy that basically focuses on an organisation's competitive advantage. Business unit level strategy is often practiced in the organisation which have several strategic business units (SBU). It concerns with one's position in the industry as compared to it's competitors. 

Corporate level strategy:

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals (businessdictionary.com, 2013). This kind of strategy involves in the determination of a firm's goals and objectives and also the range of businesses they want to pursue as a whole. Unlike business unit level strategy, it is basically the main strategy of a firm that defines it's main purpose and scope.   

corporate level strategy	Business unit level strategy
It refers to the strategy that is used to define a firms's ultimate purpose and goal as a whole.	It refers to the strategy that helps a firm define it's competitive advantage as compared to it's competitors.
Decisions are made by the Top level management.	Decisions are made by the Middle level management.
It is the strategy that relates to firms overall purpose and scope.	It is the strategy only for a single strategic business unit (SBU) of a firm.
Allocation of resources takes place.	Best Utilization of resources takes place so as to gain competitive advantage.
It only involves one strategy so as to function the organization as a whole.	It involves different sets of strategies for different product line.

2. Discuss the corporate parenting style of Virgin group.

>Virgin group is a British multinational branded project capital corporation company. the primary business zones of the company are travel, entertainment and lifestyle and it has more than 400 companies globally.

Virgin Group was founded by Sir Richard Branson on 1970.  This group operates several lines of product and services.  Ranging from mobile telephony, travel, financial service, lecture music, holding and health and wellness. Virgin group are a part of a one big family rather than a hierarchy, thus operates with a decentralized power. Parenting style support and practice some management style in every business sector they control and operates under same brand name. it also includes partnership with other industries. Overall, the brand name, joint ventures and investors has lead virgin group toward success. 

References:

EHOW ARTICLE (2013), Wendel Clark [Online] Available fromhttp://www.ehow.com/info_7904252_difference-corporate-strategy-business-strategy.html (Accessed on 9 Oct, 2013)

Virgin Group. (2012). “Virgin Corporate History.” London: Virgin Management Ltd. [Online] Available from http://www.virgin.com [Accessed on 9 Oct, 2013]

A Company Profile: Virgin, [Online] Available from http://www.examiner.com/article/a-company-profile-virgin, [Accessed on 9 Oct, 2013]

htwtp://ww.gaebler.com/Three-Levels-of-Strategy.htm (Accessed on 9 oct 2013)

http://www.businessdictionary.com/definition/corporate-strategy.html (Accessed on 9 oct 2013)