Virgin Australia Case Study

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Virgin Australia (Theory in Action)

Group-6
Amit Boro PGP14005
Ganeswar Miniaka-PGP13087
Lokesh Kumar-PGP14028
Praveen Kumar-PGP13041
Rahul Kumar Pakhale-PGP14037

Virgin Australia

Virgin Australia Airlines is Australia’s second largest airlines as well as the largest by fleet size to use the Virgin brand. The airline was co-founded by British businessman Richard Branson, the founder of parent Virgin Group and Former Virgin Blue CEO Brett Godfrey.It was established in 2000 with two aircraft operating on a single route. The airline has grown to directly serve 29 cities in Australia from hubs in Brisbane, Melbourne and Sydney, using a fleet of narrow-body Boeing and Embrae, and Airbus and
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The structure is loose and people-oriented. The employees of the company hold a stake in the success of the business, with the requirement that the company be self-sufficient. While the company carries the Virgin identity, the employee is responsible for the success of the business entity they are employed by. The Virgin Group follows a very complex mixed structure of franchising and keiretsu. A keiretsu is a group of organizations, each of which owns shares in the other organizations in the group, and all of which work together to further the group’s interests. Furthermore, it is organic and dynamic to the changing environment. This brings flexibility in the organisation and its people, so people initiate change and can adapt quickly to changing…show more content…
Virgin Australia’s has a decentralised system. There is a free flow of communication. Therefore, problems arising within the organisation get their solution coming from within the organisation somewhere. In fact, the employees are provided with the authority to make unsupervised decisions based on their intuition rather than following a chain of command. This leads to the employees having more confidence in them and in the management. Interaction among all the levels of the hierarchy is spontaneous, so it increases effective communication. John Borghetti the CEO of Virgin Australia, himself personally interacts with employees on a regular basis discussing ideas and receiving feedback. Virgin Australia promotes self-sufficiency and effective communication within the organisation and believes that the employees are the backbone of the company. Hence they have been given enough involvement and authority in decision making. Since Virgin Australia comprise of many different departments, it is also necessary to have organizational bureaucracy in it. But, since Sir Richard Branson has always ensured minimum bureaucracy as much possible since the beginning of the business. So, Virgin group and so thus Virgin Australia has a formal structure but only limited to the top levels of the company and changes to informal as climbing down the
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