Because of these primary beliefs and values, Virgin has been able to compete, thrive, and challenge new business opportunities. There will also be two new roles, the previously announced position of chief commercial officer and a newly created position of chief experience officer to be held by John MacLeod and Danielle Keighery, respectively. Now, his crazy plan to swap out Airbus for Boeing is still going ahead, even after MILLIONS of dollars has been wasted in that endevour. Real men with a competent board of airline professionals not tokens make hard decisions and what is released isnt that. (Kimchee88, 2010) Also it shows Virgin Australias flat organization. Weve re-opened lounges in major cities, weve matched Qantas Frequent Flyer status challenge and included Qantas' oneworld partner airlines, and weve increased flexibility for our customers with fee-free flight changes as our domestic borders remain uncertain. Learn more about our commitment to Reconciliation and our Reconciliation Action Plan. Its important to note that each of these companies operates independently with their own assets, employees, products, and services. Fields marked with an asterisk are required. Membership is free, and your security and privacy remain protected. Chief Legal and Risk Officer Dayna Field has announced her decision to leave the business after more than 13 years at Virgin Australia. The company offers attractive. Branson highly values all of his employees and takes personal responsibility to ensure that his beliefs are instilled among all of them. View our privacy policy before signing up. The new executives will join the business over the next several months. As such, the type of service varies in each of these countries. (Jones, Mills, Weatherbee, & Mills, 2006) Furthermore, such a large organization with a complex structure needs to be organic in order to be able to adapt to changes in its environment. Keith was a key part of Virgin Australias successful exit from administration. His first target was mail-order records. It has been seen that the company focuses on offering effective services to the consumers, and also the share of the company in the Australian market is more than 60%. Because of these primary beliefs and values, Virgin has been able to compete, thrive, and challenge new business opportunities. (2010). You will be redirected to update payment method page. 2023 | A2Z Pte.Ltd. Tesla, What Is The Organizational Structure of McDonald's?, What is Walmarts Organizational Structure? The magazine was a success and it encouraged Branson to leave school and try his hand at new business ventures. How Virgin Australia creates a Top Company culture that delights employees and customers Richard Branson posing with a Virgin Australia employee sleeping in the break room was one of the. It has been analyzed that functional structure focuses on developing . The foundations they have laid during administration are vital for the next chapter in Virgin Australias history, said Ms Hrdlicka. On behalf of everyone at Virgin I want to thank him for the important role he has played over the airlines history, Ms Hrdlicka said. case letter, and one special character. All the new appointees have a demonstrated commitment to staff, customers and the community and are a perfect fit with the Virgin Australia culture I have come to know intimately over the past few months. Much of the Virgin Groups culture is influenced by its founder Richard Bransons personal philosophies. Chat with our experts. // Headquarter of the company is located in Bowen Hills, Brisbane. (Essays, UK, 2013) Moreover, to deal with this structure, they come out with an unusual organizational structure an organic approach for this big group. Virgin Pulse a digital health and engagement company. Based on the analysis of the corporate culture and structure of the Virgin Group, it is evident that it is a highly successful organization most of whichs credit goes to the founder and his values and beliefs. Geographic departmentalization is the division of an organization based on the geographic location. I am grateful to Geoff for his ongoing support through the transition period and want to thank him for his contribution which has been invaluable for the Group. (Jones et al., 2006) Since the Virgin Group of companies exhibit so many types of departmentalisations, the organization as a whole is said to have a hybrid structure, which is a mixture of two or more kinds of departmentalisations. Employees in Virgin Australia have the authority to make decisions and are able to communicate without vertical structure. It seems that there are not many rules and procedures to control employees behavior and problems. In addition, type of service and products also varies depending on the customer base hence exhibiting customer departmentalization. In the third and final episode of our 3-part CMO50 video series exploring modern marketing and why its become a matter of trust, were delighted to be joined by Telstras former CMO and now digital services and sales executive, Jeremy Nicholas, and Adobe VP Marketing Asia-Pacific and Japan, Duncan Egan. Its global revenues in 2009 exceeded US$18 billion. Find out more about Virgin Australias legal policies. The Virgin Group has a very complex structure. This has numerous benefits for Virgin, including takeover resistance and better access to information or finance. This in turn, enables the Virgin Group to provide an environment in which talented, ambitious people are motivated to do their best and strive for a higher level of performance. (Grant, 2008) Such an environment promotes better relations among the employer and the employees. (Virgin Australia) Sustainability However, based on its structure, the Virgin Group can be safely termed as an organization with a keiretsu structure. You can use your existing password to login, or if you can't remember it, you can reset it using the link provided here. The Virgin Group has a very complex structure. Headquarter of the company is located in Bowen Hills, Brisbane. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Brand leader promoted as part of a new c-suite model for the airline group. She has significant experience in the global aviation industry having held positions at Etihad Airways, Jetstar Airways and Qantas Airways. Virgin Australia said it was also targeting $50 million in annual savings through reviewing its contracts with suppliers such as aircraft lessors, airports, maintenance and other strategic supply agreements. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Just hand it all over to Alliance. However, if we are to position the business for the future and continue to deliver for our customers, and if we are going to drive strong competition in the markets in which we operate, we need to make difficult but important decisions that are in the long-term interests of the group. Our financial performance is disappointing and certainly underscores the need for change at the VA group, Scurrah said. Regarding our Virgin problem and with respect to their board players they have in the past, it would appear, been overrun by a marketing whiz who had absolutely no idea as to financial expenditure needs and controls, a fact that I am sure was not overlooked in the appointment of Mr. Joyce to the position of QF CEO. Views or comments on the structure and strategies of Virgin Australia. If Virgin continues to strengthen its culture and structure, it has the potential to become one of the most successful companies ever. Under the new structure, Tigerair Australia and VARA would be run by an executive general manager accountable for the relevant air operators certificate and reporting to chief operations officer Stuart Aggs. Virgin Group structures its over 300 companies according to the products and services they offer. David Marr will join Virgin Australia as Chief Financial Officer in February 2021, bringing extensive experience in the retail and consumer industries. The reference to short-haul international suggests Virgin Australia intended to, for now, maintain a presence its two long-haul markets of Hong Kong (served with Airbus A330-200s) and Los Angeles (served by Boeing 777-300ERs). Keith started with Virgin Blue in 2003 and was a core part of the team who built a very successful airline. Perhaps some flights out of Avalon might reduce the costs. Things certainly dont look good for Virgin Australia right now. For more information at:http://www.virgin.com/about-us, - Cogmap. company was founded in 1999 and the activities are commenced from 31 August 2000. Login here. Hankinson (1999) argued on the role and merits of organizational cultures development and retention. I bet Air New Zealand is pleased they got out when they did despite taking a financial hit. It is time for a Virgin Lite and not try to be all things to all pax on a comprehensive network. Alistair Hartleywill join Virgin Australia as Chief Transformation Officer. Paul Jones will join Virgin Australia as Chief Customer and Digital Officer, as announced in December 2020. Another example for attendants, attendants job is not only to provide serve the drink or meal during the trip, but also needs to be salespeople to sell products, such as, duty-free products. We have seen employee costs and the associated overheads increase and we have made the decision to reduce the size of our workforce to better match the scale of our operations. Bureaucracy is a structure in which people are held accountable for their actions because they are required to act in accordance with rules and standard operating procedures. We have policies, procedures and controls in place to protect both you and our company. I have been reviewing the structure of the organisation since I joined the Group in March with a view to simplify the current structure which has grown overly complex over time, he said. Consider the chain of Virgin Active health clubs, for example, which has the following geographic divisions: Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy. However, even in an informal environment, a high level of commitment, acceptance of personal responsibility and long hours of work when needed is expected. Since interaction among all the levels of the hierarchy is promoted, it increases effective communication. This is important considering the vast size and complexity of the organization. Its head office is located in South Bank, Brisbane. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Possessing such a culture enables the Virgin Group to have effective coordination among its various departments. They are empowered to run their own affairs, yet the companies help one another, and solutions to problems often come from within the Group somewhere. Theyll turn a profit. Virgin Australia Group announced (28-Aug-2019) plans to adopt a new organisational structure, integrating corporate, operational and commercial functions of Virgin Australia Airlines, Virgin Australia Regional Airlines and Tigerair Australia into single functions and points of accountability. Paul comes from Qantas, where he acted in a range of roles across commercial, operational and customer teams before becoming Chief Operating Officer in September 2020. (Kimchee88, 2010) Besides, decentralization can increase employees knowledge of the workplace. Meet our Virgin Australia Leadership Team. This multi-divisional approach helps the Virgin Group to easily adapt to the cultural, technological and other forces in the region it expands to. Paul has worked in aviation, fast moving consumer goods and technology businesses in Australia, the UK and US. Our awards Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more. A spokesperson told iTnews Virgin Australia's current chief information officer Cameron Stone would remain, but would now report to the new CSTO instead of the chief financial officer. Considering each of the individual companies as a department providing a unique product or service, it is evident that they exhibit product departmentalization. Danielles primary goal is to excite interest in the Virgin Australia Group, and work closely alongside the chief commercial officer and chief operations officer to deliver the customer value chain," he said. No plagiarism, guaranteed! (Jones et al., 2006) The decentralized structure of the Virgin Group gives more power in the hands of its employees when it comes to decision making. The ability of the Virgin Group to operate effectively with almost a non-formal structure is because of its unique organizational culture. This follows a consolidation of its corporate offices in Sydney. Prior to joining The a2 Milk Company, Lisa was Executive Manager of Human Resources at Qantas and Executive Manager of People and Communications at Jetstar between 2013 and 2018. Retrieved from http://www.ukessays.com/essays/business/the-virgin-group-an-insight-into-organizational-structure-and-culture-business-essay.php?cref=1, - Kimchee88. The Virgin Australia Group leadership team: Jayne Hrdlicka, Chief Executive Officer and Managing Director Stuart Aggs, Chief Operations Officer Lisa Burquest, Chief People Officer Alistair Hartley, Chief Transformation Officer Paul Jones, Chief Customer and Digital Officer David Marr, Chief Financial Officer Nick Rohrlach, CEO Velocity