GFT 123 Virgin-new MNC.pdf - Richmond School District No. 38

Virgin – the new breed of MNC?Geo FactsheetTable 2. A summary of the Virgin Group of companies in 1999.Virgin CompanyEmployees Trading location(s)Virgin Travel Group• Virgin Atlantic Airways• Virgin Holidays• Virgin Aviation ServicesVirgin Entertainment Group• Cinemas• US Megastores• Japan Megastores• European MegastoresVirgin Retail Group• Virgin Retail (Our Price,UK Megastores)• Caroline International• Sound & MediaVirgin Trading Group• Virgin Cola, Virgin Vodka• Virgin LadbrokesV Entertainment Group• Virgin Digital Studios(525, Rushes, W1TV)• Virgin Publishing• John Brown Enterprises• Rapido TVGinger Media Group• Virgin RadioVirgin Express Holdings PlcVirgin Hotels Group• Virgin Clubs, La Residencia,Woodhouse Securities, Cribyn• Le Manoir Aux Quatre SaisonsVirgin Direct Ltd• Virgin Direct PersonalServicesVirgin Direct Personal FinanceVictory Corporation Plc• Virgin Vie• Virgin ClothingVirgin Rail Group• West Coast Trains• Cross Country TrainsV2 MusicVirgin NetVanson Developments (property)Virgin BrideNeckar (island resort)HeavenVirgin VouchersThe Lightship GroupVirgin Airships & BalloonsStorm Model Management4,7508004001003004,500626845534042681264800587120450150150573,450200601425334322154722WorldwideUKUSAJapanContinental EuropeUKUKUKUKUKUK, USAWorldwideUKMexicoUKContinental EuropeUK, SpainUKUKUKUKUKUKUKUKUKUKVirgin Islands, WILondon, UKUKUK, USAUKWorldwideVirgin in the futureRichard Branson has led Virgin for over thirty years. If he does retire orwithdraw, it could have a great impact on the company, given that he isso closely associated with it. Typically, entrepreneurs do not pass on theirheritage successfully. Branson argues that he is not the sole source of thecompany’s success, that each major Virgin company could stand alone,led by an experienced management team. Time will see as clearly, sinceSeptember 11 th 2001, airlines are a high-risk business and the terminalfailures of Railtrack continue to thwart a dream for quality Virgin railservices (which currently tarnish the Virgin brand).4Further activities1. Study Table 2: A summary of employment in the Virgin group ofcompaniesa. Use an appropriate graphical/cartographic technique to showthe extent of Virgin’s operations.b. Do you consider it to be a genuine multi-national enterprise?2. Use the www.virgin.com website to update the information on Virgincompanies. Analyse where and why changes may have occurred.Further researchFor further background on MNCs consult:Global shift – transforming the global economy. P. Dicken. PaulChapman Publishing.The magazine Fortune, the Economist and the Financial Times providedetails of the turnover of the world’s largest MNCs.Sample questionWith the use of case studies, examine how MNCs deal with changingconditions.AnswerThis is a very general question but also one that requires specific casestudies (rather than nominal examples). The main points to discussinclude:• increased political intervention• spatial division of labour• rationalisation, regionalisation, specialisation• growth in services rather than traditional heavy industriesCandidates could answer with this reference to a wide range of firms.BMW, for example, is a good example of industrial change in the carmanufacturing industry. Equally the case study here of Virgin could beused to show a variety of points such as:• globalisation• diversification• service-orientation• mergers with other companiesComparison between different companies allows students to evaluate,thus the use of two case studies will help score marks.AcknowledgementsThis study was researched by Garrett Nagle. He wishes to acknowledge the help ofRichard Branson and Will Whitethorn in the preparation of this Geo-factsheet.Sources used:INSEAD, 1999, The house that Branson built: Virgin’s entry into the new MillenniumNagle, G. 2000. Advanced Geography, Oxford.Geo Press. Unit 305B, The Big Peg, 120 Vyse Street, Birmingham B18 6NFGeopress Factsheets may be copied free of charge by teaching staff or students,provided that their school is a registered subscriber.No part of these Factsheets may be reproduced, stored in a retrieval system, ortransmitted, in any other form or by any other means, without the prior permissionof the publisher. ISSN 1351-5136