PGP/FW 08-10/SEC B
Are there any relationships of a strategic nature between businesseswithin the virgin portfolio?Ans. No, there are not any relationships of a strategic nature betweenbusinesses within the virgin portfolio. The virgin portfolio includes virgintravel, virgin rail, virgin cinemas, virgin media, virgin music, virgin tradingetc. However, by 2002, the group included over 200 businesses spanningthree continents. As virgin group is mostly in the unrelated diversificationso that the resources of one business are not useful for other businessAnd also the structure of Virgin Group was so opaque that the truefinancial position of virgin group was unclear. Due to its status as aprivate company, the complex group structure, and unavailability of consolidated accounts, it was difficult to arrive at accurate turnover andprofit and companies within the group did not even share a commonaccounting year end.2.Does the Virgin Group, as a corporate parent, add value to itsbusinesses? If so how?Ans. Yes, the virgin group as a corporate parent has added value to itsbusinesses. The brand is the single most important asset for them. Theultimate objective virgin is to establish it as a major global name. Thatmeans they need to have a number of core businesses with globalpotential as well as they try to prove the promises which they are givingwhile entering into new market and they are adding value to it’s corebusiness virgin Atlantic.
The International Institute of Planning and Management, AhmedabadPage 2