Strategic Recommendations Discussion Question

The Virgin Group is a company that is doing well in the industry despite that many inconsistencies that occurred. The company’s strategies that have been made are aimed at making sure that company has achieved the objectives or the goals that have been set using these strategies. The set strategic plan is brilliant and has highlighted on some of the areas that need to be improved. The establishment of the strategy is also likely to bring about motivation to the individuals. The application of the strategies is also likely to impact the organization's performance in a positive manner since the individuals will be having set aspirations as well as motivations to inspire the members of the given organization.

The firm is in full control of the available resources and also has the required capabilities that will assist in ensuring that the strategies have been implemented. The functions of the company are usually structured in a way that they are easily applicable, and they can be of many benefits to the organization. The issue of the differentiation has also made it possible for the organization to gain a competitive advantage in the issues that they will be tackling especially the ones that are concerned with the increased productivity of the organization. The resources belonging to the firm are also properly allocated to make sure that the level of productivity has continued to increase.

There are various inconsistencies between the firm’s strategy and its goals. The company aims to attain a high profitability but then it uses low pricing which certainly indicates that there are inconsistencies since the goal can be hardly achieved with the strategy. Such a strategy would not inspire or motivate workers as they would want to see greater sales and achievement for the company.

The company leverages its resources as well as capability by making sure that they are combined in the best way to help to execute the business strategy. The firm ensures that it reduces the cost of production which is translated to low cost to the consumer. The firm’s capabilities are found on both the functions as well as the value chain. The company uses its resources as well as capabilities in ensuring that competitive advantage is established and is sustainable. Low pricing strategy ensures that the company is in front of competitors. The low pricing strategy helps in ensuring that there is logic in decisions that are made regarding allocation of resources since it ensures that they are optimally allocated.

The organization structure of the organization as well as the management system of design has been on the forefront in making sure that they have accomplished the desired goals of the organization as well as making sure that the business strategies have been applied without any delay. The organizational structure of the organizational structure of the organization has created an environment that is best suited for the increase performance and productivity. The resource allocation has made it possible for the firm to remain in a better environment that will enhance the performance of the firm (Garlichs, 2011).

Shareholders and stakeholders have the opportunity of benefiting from the implementation of the strategies. Shareholders will receive a higher value for the money that they have invested in the company. The shareholders including customers, suppliers and the society at large will benefit as the project will benefit them by giving suppliers a high income and offering goods to customers that suit them. The distribution of excess profit will be done in accordance to what one has invested in the company such that where the amount contributed is small then the amount of profit to be given will also be small. Differentiation strategy ensures that the interests of the shareholders, as well as those of the stakeholders, are consistently balanced by ensuring shareholders receive their fair share of profits, and the stakeholder receives the goods that they desire as well as the payments that they deserve.

There are opportunities about the strategic fit between the company’s capabilities, organizational structure, and the management systems. The company’s capabilities are high, and the strategy can work well due to this advantage. The organizational structure tends to support such programs, and it will be an opportunity for the company to practice it. The management systems are intact and capable of handling such a strategic issue.

A fit strategic report suggests that the firm is ready to implement the differentiation strategy that will help it in producing goods that are desired by customers. The strategy has the advantage boosting the sales as well as productivity which is desired by the company. The internal environment is well suited for the strategy and can handle it. The company has skilled employees, many resources and the time to execute the plan. The differentiation strategy is applied to product lines by altering them as desired by customers. The strategy will be applied to different market segments by enquiring what the different customers want and changing the goods to suit the customers’ needs (Lindow, 2013).

References Garlichs, M. (. (2011). The concept of strategic fit. Hamburg: Diplomica. Lindow, C. M. (2013). A strategic fit perspective on family firm performance. Wiesbadenr: Springer Gable.