Blog 3: Change Management

 

 

Have you hear or read a word name “Brexit” before ? it came from combination between Britain and Exit which David Cameron made the promise that he would give Britain people to vote United kingdom should leave or remain Europe. Brexit become a important thing that many people mention before referendum on 23 June 2016 because Brexit can directly affect the United kingdom such as people, economic, and business. Especially, business that base on London. For example, Virgin company is one of company that is affected, particularly “Virgin Money and Virgin Atlantic”. Mark 2016 point out that the percentage of virgin money holding in the United Kingdom decreased after beginning of Brexit. There are advantage and disadvantage about Brexit effecting. In my opinion, If the United kingdom decide to leave from Europe, it will be negatively affect to virgin company such as trading, job working and immigration. However, if the United kingdom decide to remain with Europe it will be positive effecting to virgin company. This blog will explain the way that virgin company will face with Brexit situation.

Virgin company is a ‘British multinational corporation venture capital conglomerate founded by entrepreneurs Sir Richard Branson and Nik Powell.’ According to virgin group company.

The company has diversity types of business such as virgin media, virgin airline, virgin radio and virgin money as well. Moreover, the company has to hire 69,000 employees which they are all in around the world. The question is how virgin company drive its business through Brexit situation.

There is virgin company case, turn back to 23 June 2016 after the United Kingdom decide to leave Europe. Most banks base on the United Kingdom were decreasing percentages such as Barclays 17%, Lloyds 10% and Virgin Money 24%. (According to Mark 2016). The virgin company has to cancel the big deal that the company would brought 3,000 job to the United Kingdom. This means the virgin company are losing a opportunity to encourage its business. Moreover, the Virgin Atlantic will lose money in the first time after four years. Brexit is a massive barrier for the virgin company. There is a message that Sir Richard Branson said “What happened with Brexit is a terrible, terrible thing for Great Britain and Europe and will set back Great Britain and may take several year to recover” However, it still have some benefit for the virgin company, pound currency rate drop this means it is a chance for American people want to come to visit the United Kingdom and the company expect to get them all through using Virgin Atlantic. According to Kathryn 2017.

In my opinion, the way that can solve these issues of virgin company are second referendum and giving opportunities for teenagers under 16 years to authorize with referendum because they are national workforce who are going to work and live with this Brexit situation in the future. Moreover, the virgin money should make its brands image to customers for making them confident because the strong brands image is important for the virgin money to persuade its customer again. Hitesh (2016) points out that the advantage of strong brand image can make customers think positive and can make good decision with company. Moreover, it can give confidence to customers as well.

From my experience that I have learned in class I think it is a hard situation for the virgin company but it will be good if the company can adapt their strategy with Brixit situation and change an obstacle to an opportunity. Although Brixit will happened in the near future Europe still want exporting and importing from the United Kingdom because there are more than 320 billion dollar to the United Kingdom so I think deals are still continues and I think government should focus on agreement between Europe and The United Kingdom because the value of trade in both markets are high. This means virgin company might get Brixit effect and it might lose the deal that important for the company. However, Brixit is not begin so the company should find the way that suit to its goal, customer and employee.

 

 

 

Reference

Ben, M.(2016)’Virgin Money brushes aside Brexit vote concerns'[online]<http://www.telegraph.co.uk/business/2016/11/01/virgin-money-brushes-aside-brexit-vote-concerns/>%5B13 November 2017]

Hayley, K.(2017)’Virgin Money increases profits, as Brexit yet to wobble the business'[online]<http://www.cityam.com/259953/virgin-money-increases-profits-brexit-yet-wobble-business>%5B13 November 2017]

Matthew, T.(2017)’virgin founder Richard Branson: Brexit is a disaster and what’s happening in the US is dangerous'<https://www.cnbc.com/2017/07/05/virgin-founder-richard-branson-brexit-is-a-disaster-some-trump-policies-dangerous.html>%5B13 November 2017]

Virgin Group (2017)’Our Story'[online]<https://www.virgin.com/virgingroup/content/our-story-0>%5B13 November 2017]

Kathryn, L.(2017)’Exclusive: Virgin Atlantic sees a ‘Bright Side of Brexit’ in darkly funny campaign'[online]<https://www.campaignlive.co.uk/article/exclusive-virgin-atlantic-sees-bright-side-brexit-darkly-funny-campaign/1429763>%5B13 November 2017]

Sarah, O.(2016)’Remain supporter Richard Branson sees massive Brexit BOOST for his Virgin Money group'[online]<https://www.express.co.uk/news/uk/727592/Remain-supporter-Richard-Branson-sees-massive-Brexit-boost-Virgin-Money-group>%5B13 November 2017]

Ben, K.(2016)’Richard Branson’s Virgin to bankroll secret Blairite campaign to stop Brexit'[online]<http://www.independent.co.uk/news/uk/politics/brexit-latest-news-richard-branson-virgin-group-eu-referendum-a7430396.html>%5B13 November 2017]