2.Virgin’s Development Strategy Evaluation

3.Organisation Structure Changing and Design

There are two consequences of this evolving structure. First, each business is focused and autonomous. Second, the Virgin brand has earned a worldwide reputation.
However, autonomy may have bad consequences, and communication links may suffer from this. This can lead to flaws in the decision-making process and ultimately to companies acting on their own and without the common good of the Virgin shareholders in mind. As more responsibility is devolved to a range of individually significant business in their own right, links become stretched and frustrated and information stops flowing.

As the house of Virgin was built by Richard Branson and the special organisational structure of Virgin. The biggest danger Virgin faces is Branson’s going. Would Virgin lose the impetus for innovation and the ‘can-do’ culture that has for so long been its hallmark? So Virgin’s organisational structure must change in the future to avoid the danger.

The Organisational Structure’s Adjustment

Rules: The new structure should:
1) Keep Virgin’s culture
2) Keep Virgin’s innovation
3) Keep Virgin’s development desire
4.Virgin’s Core Competences Maintenance and Development
To keep the core competences, or at least, control the diminishing process of the core competences, Virgin should:
1) Change and reform its organisational structure
2) Keep building Virgin brand
3) Focus on a few core industries
4) Expand into China market
5) Keep absorbing high technology