1.0 Introduction
1.1 Aim and Objectives
1.2 Background of the Company
2.0 Management Styles
3.0 The Business Environment
4.0 The Nature of Business Organisations
5.0 The Models of Management
6.0 Outward-Facing Strategies
7.0 Conclusions and Action Plan
8.0 Reference List
9.0 Appendix
, (2146 words)
1.0 Introduction
1.1 Aim and Objectives
This report examines Virgin Atlantic’s internal and external environments using frameworks such as
PESTEL, Porter’s Five Forces, Ansoff’s Matrix, and SWOT. The analysis begins with an
assessment of the external environment, focusing on political, economic, social, technological,
environmental, and legal factors shaping Virgin Atlantic’s operations. Porter’s Five Forces highlights
competitive pressures, including supplier and buyer power, industry rivalry, and threats from
substitutes and new entrants. Internally, the SWOT framework identifies Virgin Atlantic’s strengths,
weaknesses, opportunities, and threats, while Ansoff’s Matrix explores strategic growth options.
Together, these frameworks provide a comprehensive evaluation of the company’s position within
the competitive aviation landscape.
The report also evaluates Virgin Atlantic’s management methods and organisational strategy using
McGregor’s Theory X and Y, Mintzberg’s organisational structures, and transformational leadership.
These models are applied to assess Virgin Atlantic’s alignment of its structure and management
styles with its goals of innovation and responsiveness in the competitive aviation industry.
Finally, the report explores Virgin Atlantic’s branding strategies and sustainability initiatives,
including investments in Sustainable Aviation Fuel (SAF) and premium customer service branding.
Drawing on industry comparisons and theoretical insights, the report concludes with practical
recommendations to support Virgin Atlantic’s sustainable growth and market expansion.
1.2 Background of the Company
Founded in 1984 by Sir Richard Branson, Virgin Atlantic is a premium airline in the UK,
noted for its innovative services and distinctive branding embodied in its slogan "Flying
in the Face of Ordinary." This innovator was one of the first in aviation to use
Sustainable Aviation Fuel (SAF) and premium economy seating. Heathrow: Virgin
Atlantic, which flies key routes like New York, Orlando, and Johannesburg, is based at
Heathrow and employs around 8,500 members of staff in 2024. Recently, the airline
completed the first-ever commercial flight with 100% SAF (Virgin Atlantic, 2023),
highlighting its sustainability commitment.
Virgin Atlantic covers key markets throughout North America, Europe, and Asia. This
has also driven the brand's core values: innovation, adventure, and environmental
responsibility, which distinguish it from competitors. Virgin Atlantic also improved its
worldwide network alongside Delta Airlines and Air France-KLM as a part of recovery
from the COVID-19 hit. With a stated objective to achieve net-zero emissions by 2050
and a significant investment in SAF as a means toward that goal, the company appears
committed to climate action. In 2023, the airline carried 5.3 million passengers and
achieved a 25% market share on key transatlantic routes, including New York and
Orlando (Virgin Atlantic, 2023; Mullins & Christy, 2016, p. 59).
2.0 Management Styles
As the founder of Virgin Atlantic mentioned, “Train people well enough, so they can leave, treat