Customer service and

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Feb 20, 2024

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Customer service and public relations What is taught in corporate parenting is that the parent company should take care of all the companies which are its children as a collective responsibility (Grant Robert, 2013). The skills of ownership and leadership are expected from a senior level. In this case, the Virgin group of companies appreciates all its businesses. The Virgin group can achieve value since it can understand the institutionalized markets. The Virgin Group has an entirely different team that manages the company and that management team has undertaken an excellent job by recognizing the satisfaction in the industry. Another method by which the Virgin Group was successful in adding value to the business was that the company had achieved great heights and as a result, the brand image got highlighted. The company then utilized this brand reputation to conquer the barriers to entry. The brand reputation of the Virgin Group of companies acts as a customers’ support and is quite popular among the British. And since the company is also a corporate parent, the other subsidiary companies find it less risky to join the joint venture. Since the company enjoys a good brand image and is a parent company, the companies associated with this company enjoy fewer risks in the marketplace. The next value that is added by the Virgin group is regarding the management teams. The management teams are not confined by this company. The management structure of this company is flat so that the employee can come up with creative and innovative ideas and also flexibility. The skills of innovation and creativity are always encouraged by

the company for its employees so that they become successful in their careers. Whenever the Virgin Group of companies acquires partners in the market, they make sure that the new partners have an equal mindset for the partnership so that there is enough space for innovation to take place. Then these creative ideas and innovative ideas are applied in the business to make it more successful. The Virgin Group was also successful in adding workable value since it by financing and aided in the progress of its employees. The Virgin group has many subsidiaries in its joint venture since it enjoys a reputable position in the marketplace. In this joint venture, the Virgin group did indeed limit risks but if there is one subsidiary company that performs badly then the consequences are felt by the entire group since the brand name is attached to it. The management team of the Virgin companies has been performing well since they have been successful in identifying the subsidiary companies which are still in their stage of growth and have not yet bloomed fully. It also chooses the markets which have less number of competitors so that the competition faced by the company is also less. Since the brand image of the Virgin group has reached a certain peak, it is not difficult for the company to enter into certain markets which otherwise would have posed a problem, to enter and expand its market. Richard Branson is a self-made billionaire. Though the Virgin group of companies enjoys a high position in British society, still it faces certain situations or problems which will be equally faced by the successors of

Richard Branson. The problems faced by the company are discussed in this answer in detail. Firstly, Virgin underwent severe financial issues. The cash flows of the Virgin companies faced negative returns for a considerable period. The main subsidiaries which had experienced such losses were the Virgin Express, Virgin Money, and Virgin Megastores where the unloading of the equity stakes of Branson would pose difficulties. One classic example is Virgin Atlantic which is predominantly an Airlines company. The Virgin group had invested in this airline by relying on the company and expected to earn future profits. Gradually, competition increased as a result of deregulation, and thereby the airlines’ industry started to incur losses. Even in the rail industry, a financial kink was observed. According to this industry, the main issue revolved around the fact that this form of transport had achieved votes as the disliked rail operator. This issue in the rail industry also hushed away the press and as a result, the brand name of the company slowly started to fade. Since the Virgin group has a larger empire, the subsidiaries should avoid unwanted consequences and if they are not successful in doing so, then the repercussions are faced by the entire empire. For example, when Virgin Atlantic and Virgin Rail were facing such issues, other areas could not be opened in the industry. These companies of the airlines and the rail brought the image of the brand to dwindle. As a result, the Virgin Group as a parent company had to interfere in this matter. The Virgin Company had analyzed the environment. The customers are delicate and the only way by which the Virgin Group can add value is by divesting in real expertise. Hence,

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as a successor of this brand, the policies were undertaken by the Virgin group should be changed so that it can rely both on independent and joint ventures. In 2001, the Virgin Group of industries relied entirely upon the Virgin Atlantic for the rate of the profit margin. And to worsen the situation bit more, there were the deregulations which expanded the competition even more and as a result, all the competitors were facing losses. The rail industry faced the issues around the same time in the year 2000. Most of the British citizens used this form of transport. 25 operators were operating in Britain and the Virgin Rail was given 23 rd and 24 th rank out of these 25 operators. This industry had led to the damage of the brand reputation of the company. Hence, as a successor of this brand, the person has to undertake a lot of responsibilities to eliminate these issues.

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