Virgin Atlantic is a private limited company as they sell their shares. Virgin Group sold a 49% stake in the airline to Singapore Airlines in 1999 for £600 million. On 11 December 2012, Delta Air Lines confirmed the purchase of Singapore Airlines’ 49% stake in Virgin Atlantic for £224 million, with future plans to develop a transatlantic joint venture. Regulatory approval from the United States and European Union was granted on 20 June 2013,42 and the purchase was completed on 24 June. Virgin Atlantic liability is limited as it is a private limited company meaning the owners are legally responsible for its debts only to the extent of the amount of capital they invested. Virgin Atlantic is an airline. “We aspire to change business for good”. This quote comes from virgin Atlantic themselves which means that one of their aspirational targets is to change the current state of business worldwide. Virgin Atlantic Airways Limited gives business aircraft administrations. It offers flights to different goals in the United States, Africa, Asia, Mexico, the Middle East, and globally. The organization likewise offers lodging, auto, flight, and occasion booking administrations. Virgin Atlantic Airways Limited was some time ago known as Ritter Public Limited Company and changed its name to Virgin Atlantic Airways Limited in May 1984. The organization was fused in 1981 and is situated in Crawley, United Kingdom with extra workplaces in the United States, the West Indies, China, Hong Kong, India, Japan, Nigeria, South Africa, the United Arab Emirates, and internationally. Virgin is in the tertiary sector as they provide a service. The scope of Virgin Atlantic is International but is UK based. The reason for it being international is because their flights fly to and from other countries meaning virgin Atlantic has to work in other country’s for it to be international. businesses do business transactions that take place across national borders. Since the birth of the internet, international business has been provided with worldwide opportunities to sell products and services. Since the first email was sent in the early 1970s and the internet became widely available from 1990, the world appears to have become smaller and certainly more accessible. They are a large size business as large is classified at 250+ employees and they have 8,631.
Virgin Atlantic have many stakeholders. It is important to have a relationship between the organization and their stakeholders as they influence each other to an extent. Shareholders – shareholders buy shares of the business which increases the company’s profit because the shareholders buy a very small part of the business which they have to pay roughly £300 for and they have many shares available.
This includes their shareholders. As Richard Branson is giving up control of virgin Atlantic he left a huge 49% stake to delta airlines, this is their largest stakeholder. He also sold 31% to the airline he founded in 1984. With 80% of this business sold he retains the last 20% in the group.
Customers (buyers) of Virgin Atlantic are the source of the company’s profit. Their loyalty to the organization is value immensely as without them wouldn’t be an organization to run. VA is known for their quality service. They offer the cheapest airfare so that it is more affordable for passengers.
Employees have the task of influencing the customers and making sure they enjoyed their services and would come back again. Their employees represent the business so their efforts and presentation is very important as it sets the companies standard. Employees and airport staff however can be left in dissatisfaction after addressing their issues through strikes. This then means that the employees and management of virgin Atlantic may not have the strongest relationship.
Virgin atlantics main supplier for airlines is Boeing and airbus. They also have key suppliers for their fuel since fuel is the most basic need for an aircraft to operate. The airport itself will supply the fuel needed. IBM and NCR are IT companies and can be classified as suppliers and they provide the business with IT solutions.
Virgin Atlantic is a business with not many levels of control meaning they have a flat structure. They have very few levels of hierarchy. The lines of communication are short meaning messages do not have to travel very far so they are responsive to change. However, this can also mean that managers can feel overstretched as they have a wide span of control. They have three main people CEO, CFO and chairman. This also tells us they are the three most valued members of virgin atlantic. The chairman Richard Branson, also founder of virgin atlantic, does however not do a lot of decision making when it comes to the business. That’s why he employs people to do it for him. In comparison to the CEO of the business has a huge amount of responsibility over the company and does make some important decisions within the business. An example of this is that the CEO of virgin Atlantic is linked to every platform in their structurewhich shows this person has a lot of work to be complete and see to. (see appendix 2)
The aims and objectives of Virgin Atlantic is to provide quality service to their customers. To give passengers an option to travel to locations other airlines don’t offer and to exceed the amount of money they made previously.
Their long term goal / aim is to provide their passengers with a seamless travel experience from the time of booking all the way through to them disembarking at their destination. This means VirginAtlantic.com will be a one stop shop for all their passenger’s needs. Virgin Atlantic also have another aim which they wish to achieve this is to provide the highest quality innovative service at excellent value for money for all classes of air travelers.
Business 2 Cancer research
Cancer Research fund their research through a variety of ways. Their funding spans the research pipeline (See appendix 3) and their extremely detailed and diverse portfolio includes research into a larger variety of types of cancer. They have spent around £17 million on investigating possible causes that create cancer, £37 million on hopeful new drugs and £38 million on clinical trials. From various types of cancer they have spent millions on most. With their highest amount of money being spent on lung cancer £43.4m, colon & rectal £34.7m and breast from with £32.8m. £10-£25 million for cancers such as leukaemia, prostate, brain etc. And the lowest of under £10million such as liver, bladder, cervical, eye etc.
Cancer research UK is a very popular well known charitable organisation. Something a lot of people were apart of was the no selfie campaign to help raise money for cancer. However, cancer research did not set this up. They posted a photo on twitter and ther public straight away were so keen on spreading awareness and raise money. Within 24 hours they had recieved donations of £1million. Their tweet went viral and became the charities most retweeted tweet ever. Their number of text donations peaked over 700,000.
Cancer Research UK are a charity that means they are limited by guarentee as the owner and the company have isolated identities. They work as a national charity aiming to raise money to help those suffering with customers and research and develop drugs to help within the UK. They are an incredibly large company with 3,964 employees and 40,000 volunteers.
They operate in the tertiary and quaternary sectors, by providing services to their customers and researching and developing new treatments and drugs for cancer. Their purpose is to raise as much money as possible for those suffering from cancer and to invest the money raised into researching new drugs to help reduce the risk of dying from cancer.
The stakeholders involved in Cancer Research would be someone that has as interest in the business are the:
The government have an interest in the business because they want to see the grant they invested into the charity to be successful. They affect the business because if the government introduced a tax for charities they would lose money and would have less to spend on research.
Managers have a relevance in the charity doing well so they can keep their jobs and earn an income. They alter the company as without them the business would lose structure as an organisation and would have no levels of authority.
Suppliers have a concern in the business being successful so that their trade stays at a high level and continues. The suppliers affect the business because without them Cancer Research UK would not have any equipment to do any research with.
Employees have an significant interest in the business doing well so that they have some sort of job security. They affect the business as without them the business would not have enough people working for them.
Beneficiaries are what charities rely on as they are who they receive their benefits from which they need in a charity.
The community have an importance in the business doing well so that the people suffering with cancer in the community will get the help they need and deserve. They affect the business because if there more people suffering from cancer it means that Cancer Research UK are not doing the job that is required from them.
Cancer Research operate in a very tall hierarchical structure with many levels. However, it has also been split into separate groups similar to a matrix structure. At the top of the structure is Sir Harpal S. Kumar as the CEO. Working underneath him are his 6 Executive Directors; Nick Grant (International Partnerships), Frances Milner and Nick Gaynor (Philanthropy & Partnerships), Iain Foulkes (Research and Innovation), Ed Aspel (Fundraising and Marketing) and Mark Allen (Human R Directoresources). With this senior management team operating at the top of the structure, there are separate departments that report to an individual Executive. There is a large research group as well as all the other business functions.
At the beginning of 2007 cancer research created a list of goals that they hoped to achieve with the help of their partners by 2020. Some of which include;
Cancer will be diagnosed earlier – Two-thirds of all cancer cases will be diagnosed at a stage when the cancer can be successfully treated.
We will understand how cancer starts and develops – We will have a detailed understanding of the causes and changes in the body in two-thirds of all cases of cancer.
The number of smokers will fall dramatically – Four million fewer adults will be smokers, preventing thousands of new cases of cancer every year.
People will know how to reduce their risk of cancer -Three-quarters of the UK public will be aware of the main lifestyle choices they can make to reduce their risk of getting cancer.
People under 75 will be less likely to get cancer – The chances of a person developing cancer up to the age of 75 will fall from more than one in four to one in five.
There will be better treatments with fewer side effects – Treatments that accurately target the cancer and have few serious side effects will be available for at least half of all patients.
People with cancer will get the information they need – At least nine out of ten patients will be able to access the information they need at the time of diagnosis and during treatment.
We will especially tackle cancer in low income Communities – The differences in the risk of dying from cancer between the most affluent and the least affluent will be reduced by half.
We will continue to fight cancer beyond 2020 – Sufficient scientists, doctors, nurses and infrastructure will be in place to ensure continued rapid progress in the fight against cancer beyond 2020.
To keep increasing the survival rates which was successful by doubling the percent since 1970.
A.M1 – Assess the relationship and communication with stakeholders of two contrasting businesses using independent research.
Cancer Research UK
Cancer research UK have an equal successful relationship with their stakeholders. I know this because they are the most achieved cancer related charity. They communicate confidently with their customers as they are the ones who fund the charity.
Employees; This nonprofit business was formed in 2002 by the original 20 founding members of the charity. Later on they employed another 60 members, bringing the members of cancer research to a total of 80. These members were not just highered for no reason, they bring relevant skills and an experienced background to the table. They are there to help support the charities aims and objectives. As of now cancer research have over 4000 employees and 40,000 helpful volunteers. The charity holds general meetings which the employees are entitled to attend. They also hold AGM however those are not mandatory.
The government; Surprisingly, cancer research does not receive any funds from the government for their research. This shows they solely rely on their customers. In 2016-2017 they spend $432 million on just research alone. Additionally, working with Councilors, Directors of Public Health and other key individuals in general wellbeing and prosperity permits Cancer Research to watch out for the implications of devolved health powers and how they impact cancer prevention.
Suppliers; cancer research have more ‘cooperate partners’ than suppliers. They develop a mutual partnership with companies that our spread out worldwide with a range of industries giving them clear benefits and sufficient funds for their work against cancer.
TK Maxx over the years have raised over £30 million for cancer research. ‘give up clothes for the good’ is the UK’s running clothes collection. They collect unwanted quality clothing, accessories etc. donation points in their store. Since 2004, TK Maxx have possessed over 1.1 million bags of clothing, as said previously they raised an impressive £30.3 million and £26.3 million of that has been used for research into treatments.
Tesco is one of cancer research UK’s partners they are loyal supporters who have been dedicated to supported the race of life for over a decade. Since 2001 they have raised £9.8 million to help fund their research. Additionally, to this they have held many fundraising events to help raise awareness and money.
A smaller business Nivea sun has also participated in helping fund cancer research since 2012 yet have still raised more than £3 million for cancer research and together have spread the message of sun safety to millions.
Virgin Atlantic communicate easily with their stakeholders in a variety of ways. An example of this is that the managers of the business will have meetings with the owners and then the manager there will then have a formal meeting with their emplohyees to update them on what needs to be done and what the aim is now. They communicate with their customers by maybe sending out emails and letters to their consistent customers letting them know what they are working on for the business and how it benefits the customers, also telling them their latest deals and discounts etc.
Virgin Atlantic engage with their employees through direct staff communications (meetings, email etc..) internal training and development and annual staff engagement survey.
They interact with their guests in many ways such as websites, social media, market based research and focus groups and guest contact centre.
With the unions they get in contact with them directly and regularly with union leaders being a topic including negotiating awards, health and safety and enterprise bargaining agreements.
Their suppliers are contacted through contract execution, procurement and contract management.
0A.M2 – Analyse how the structure of two contrasting businesses allows each to achieve its aims and objectives.
Virgin Atlantics structure allows their business to reach their aims and objectives. This is because they have a flat structure with low levels of management roles. This helps an individual because having less hierarchy levels means communication is spread more easily as it doesn’t have to go through that many people to reach the person needed. This means there is less chance for the information to be misinterpreted stopping delays. This means it is a much quicker process around the business from employees so it will automatically make reaching their aims and objectives a much quicker task. However, their structure means because there are so little levels of management the staff will have an intense work load which can lead to a lot of stress and lack of motivation, making the aims and objectives of the company harder to reach.
As said previously one of their aims and objectives was to give customers a high quality customer service, considering the new addition of the live person chat aswell as the perks of flying with virgin atlantic allow them to achieve their aims and objectives. it is already considered to be drastically improved. Another one was to fly passengers with a seamless travel, this is done by creating a silver card which is very easy to get hold of and gives nice check in perks increasing their name. Premium economy was first introduced by virgin atlantic again making theitr name a lot more appealing. They have certaibly hit the spot with aspiring to hit seamless travel for theitr passengers as they include deluxe leather seats with extra few inches of space bound to make you feel more comfortable. They also include a glass of champagne and after dinner liquer, a workplace to set your laptop and a delicious mealserved on stainless steel cutlery. Extra perks of this include your bag will be one of the first to come off of the plane on arrival, more space to relax on plane because of leather seats, keep your gadgets going during flight and onboard wifi helps you stay connected.
Cancer research’s structure plays a significant part in making their ams and objectives a reality. CRUK provides in formation on cancer and then organises activities and projects to spread awareness to the general public in the fight against cancer. They have a passionate determination in reducing the number of cancer patients as well as saving lifes. They have fully committed to making their stratergy stronger over the next years and they aim to do this through focusing thoroughly on the research, and put the right people in charge of the tasks who will provide excellent research. As the organisational structure goes, you first have the Chief Executive and executive board.They manage the organisational tratergy for the short and long term which covers all scientific research and fundraising. They set proposals for setting an annual budget to be ab le to fund the projects they put out and then submit their proposals to the council of trustees for their approval. As research is their main priority the flow of work deals with the scientific ececutive board which develops the organisational strategy and policy. They however, are not considered to be a funding committee, they closely interact with the council resedarch strategy committee. They have the power in them to ultimatley hold budget and have a strong influence in deciding whether a initiative will be given the chance to be funded or not. Their decisions will be reviewed by their own funding committees. A good budget will be allocated to that initiative if they approve that it has a strategetic that benefits not only cancer victims but the public too. Overall CRUK have different aims and objectivies but it pretty much all comes together under the same thing… research. To be able to find the appropriate research necessary, according to their organisational structure they allocate the best people for the best job to achieve the best research. For ecample; The biological sciences committee are responsible for the research programmes and projects which concentrates mainly on the basic general understanding of cancer.The clinical trials awards and advisory committee reviews and funds cancer clinical trials which also includes studies for testing, also clinical trials in terms of therapy. The Discovery committee which focuses on developing the research of cancer which benefits the cancer patients. The translational and clinical research committee who are responsible for the research projects and programmes which concerns the translational researches. The population researhch committee which is responsible for yet again the research in projects and programmes grants in population science. The organisation itself is also governed by the council of trustees which consist of the board of directors, they give support and advise to the chief exectutive who happens to also be part and leader of the top management team in achieving the CRUK vision and purpose! Lastly, the organisation is also governed by its members which are first of all appointed by CRUK. These almost acts as shareholders for the company as they have the entitlement to attend all of the general meetings and fulfill their duty of electing the trustees. Each member that is involved in the fantastic organisation each play a role in which they are skilled in, but altogether works as supportive individuals which are set to achieve the same outcome. Without the strucutre that is set by the organisation they would fail to have a structured environment for them to work in which would lead to having no actual focus or purpose of being there and all the research is likely to fall apart. Having the structure allows them to be prepared to doing what they’re each individually best at and working together to produce the same goal.
Cancer research has the opposite structure to virgin media. They have a tall structure with many levels of management rolls with are also split into groups kind of like a matrix form. This benefits the work load on staff as it is more spread out and precise to the work having to be done. That way tasks are done quicker and to a better standard as they have something to focus on. Getting all tasks done to a high standard speeds up the process to reach their aims and objectives as it removes the chance of getting things wrong. However, their structure of having many levels and details assignments mean communication can easily be lost throughout and misinterpreted sending the wrong information throughout the business and then would also take a long time to correct that information and be received again. Lack of correct communication can withhold tasks and prevent the businesses aims and objectives from being done.
AB.D1 – Evaluate the reasons for the success of Virgin Atlantic and cancer research UK.
Being successful is something every airline is. There, however, is something inherent about virgin Atlantic that makes them so successful other than the usual marketing structure. Virgin is well known for its customer centric approach. By introducing LP chat, virgin Atlantic are able to provide an online service experience that is helpful easy and consistent to customers increasing their customer satisfaction which eventually leads to their success. One of their sayings ‘where people love to fly and people love to work. Is there mission statement which has continually broken ground in airline passenger services since they first launched in 1984. Back to LP chat, this was deployed to address two main goals. Live person chat allows the customers questions to be answered straight away without having to waste time and cost emailing or calling. They also aimed to improve online ticket sales and to catch potential customers who view the tickets before dropping off the website. They were ultimately very successful throughout this as they not only boosted booking conversion and improve their customer satisfaction they also reduced costs. From taking away time wasted on emails and phone calls by directing them to chat. Virgin significantly lowered resolution times aswell as cost per interaction. Live person chat has now become a core feature of their customer service particularly when customers are in a crisis as it allows them to reach a wide range of customers giving them personalized support. The results below show the success for themselves.
Reduced costs – LP chat cost is less than both phone and email, saving on labor costs.
Improved customer satisfaction – The customers’ needs are met in real life time raising this percent to over 80.
Increase in average order value – These customers have an average order value of 15% over those who self-serve.
Improved conversion rates: Customers who chat at nearly 3.5 times the rate of those who do not.
Better source planning – Live person chat has reduced the amount of emails being sent through allowing customers questions to be dealt with at first contact.
Employee satisfaction could also be a indication of success because how the company treat their staff in general is likely to have a massive impact on their success rate. Looking online they have an average of 4.2 stars. This is a high amount and most reviews consist of how they have ‘excellent benefits’ ‘fun and vibrant’ ‘an excitinf working environment’ most reviews consist of comments such as these. However, the remaining .8 do not. Some are reviewed low typically due to high work load or not being completely comfortable with the people they work with. Unfortunately every job in the world wont be as easy as getting on with everybody so this is an issue that is personal and not within the business itself. Employee satisfaction can considerably affect the success of the business because how they feel reflects on their work which reflects on customers and the customers are what keeps the business going.
They offer a silver card which is easy to get hold of which gives very useful check in perk. They are very competitive on price and they have a figurehead in the market themselves towards a younger audience. They offer a stress free travel at economic rates.
Virgin Atlantic have many reasons for being successful. For example, they operate in London and is one of the few world cities which support long-haul destinations. They are constantly in the news for good or bad reasons, however chairman Richard Branson says any publicity is good publicity because at the end of the day they are in the news people are viewing and becoming aware of this airline. Richard Branson is always on the leading edge as impressively he was the first to introduce premium economy and as well with a few others, one of the first to combine first class and business. He adds a certain edge to his flights such as PTV’s in coach and flights.
Every airline can have a good strategy, keep costs down etc but what truly makes virgin Atlantic so successful is that people genuinely enjoy working there which keeps the soul of the company alive.