Virgin Atlantic Pestel Analysis

• Goals, strategies and actions – The business level strategy that Virgin mostly use is the differentiation strategy to try and better develop its brand image and also to capture profit maximization. However, Virgin decentralised its decisions which encourages manager’s environment in which they take personal interest with the outcome of the company as well as the accountability of decisions made.

Performance measurement, monitoring and review – Virgin Atlantic uses performance key indicators that highlights on how well the company is doing. However, the latest revenue for the year 2016 it was approximately £92million as it relates to operating profits of £23 million as well as 0.5% increase from previous year (Annual report 2016). Virgin

The model is easy and is inexpensive for Virgin Atlantic. However, because the model is easy, the framework of the model is popular and understandable. Moreover, this framework is very easy to use in meetings at Virgin Atlantic because it does not take very long to apply. In addition, individuals that do not have enough knowledge and background as it relates to business management can easily relate to this model and therefore give their input in discussion. Additionally, Porter’s framework is complete and is capable in providing an understanding as it relates to the business environment which allow for it to be practical and remarkable useful due to the fact that the model guide and direct managers at Virgin Atlantic. It is also beneficial to the process of management at Virgin because it encourages strategic thinking and development at Virgin. However, the mangers at Virgin are compelled to think about the factors in the macro environment which allow for the process to be more objective. The model also helps Virgin Atlantic in anticipating difficulties of the future in which the mangers have to take immediate actions in avoiding or decrease the adverse

Porter developed the framework to evaluate and assess the competitive strength as well as the position of a business such as Virgin Atlantic. However, the foundation of theory is the perception that there are five forces that decides the competitive attractiveness as well as the intensity of a market. In addition, Porter’s five forces help to recognise where power lies in Virgin Atlantic situation. This is, however, helpful both to understand the strength Virgin Atlantic current competitive position, as well as the strength of a position that Virgin Atlantic might look to move