Professional Documents
Culture Documents
uk
April, 2011
1
Table of Contents
Title page
Statement of Originality..........................................................................4
Acknowledgement..................................................................................5
Executive Summary...............................................................................6
TASK 1
1.1 Introduction……………………..…………………………………..………………………..………….7
TASK 2
TASK 3
TASK 4
2
4.4 Virgin Group Boston Matrix…………………………………………..………………………..26
TASK 5
TASK 6
Conclusion.............................................................................................35
References.............................................................................................36
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STATEMENT OF ORIGINALITY
I hereby certify that iam the sole author of this assignment and that no part of
this assignment has been published or submitted for publication.
I declare that this is a true copy of my assignment, including any final revisions
and this assignment has not been submitted for a higher degree to any other
University or Institution.
Thank You
4
ACKNOWLEDGMENT
I Muhammad Imran Khan, sincerely thankful to my GOD and all those people
who have been gave me any kind of assistance in the making of this
assignment.
5
Executive Summary
In this assignment I will give the brief introduction of that what is Human
Resource Management and Marketing Mix, then I will also put a light on what is
Human Resource Planning and how it helps an Organization to accomplish its
goals. My assignment is on Virgin Trains and I will try my best to explain the
HRM and Marketing strategies of Virgin trains. I will also critically evaluate some
of the things which are necessary for the growth of an Organization. Elements
like recruitment, motivation, selection and different tools which are used for
Marketing Mix by using different theories and references.
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Introduction
All Organizations have peoples they have Human Resources. In spite of the size
of an Organization or the amount of its capital, the Organization survives and
thrives because of the capabilities and performance of its people. The actions to
maximize those capabilities and that performance are necessary apart from
whether the Organization refers to them as Human Resource Management,
Human Resource development or Human Resources or has no formal name for
those activities at all. Those activities are the responsibility of all people in the
Organization. Thus, members of Organizations regardless of size or resources
will benefit from using the resources. (Monell V. New York City Dept. of social
Servs, 1978).
The Chief Executive of the company, Tony Collins, set out his vision for the
company ‘‘To become the most safe, consistent, reliable and profitable of the
train operating franchises in a climate that respects different views and people
need not be afraid to be open and honest’’.
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internal memo system and this approach is democratic approach. Managers
positively encourage employees to get involved in running the company by
asking questions, challenging ideas and being prepared to disagree and suggest
better way of working. This develops good relationship and increase employee
confidence that managers will follow up on ideas and feedback from front line
workers.
The key objectives of the Virgin Trains are profit- making Organization by
satisfying the customers who will use service over and over again. To achieve
this objective they must have to provide better service.
Source: www.thetimes100.co.uk
Recruitment.
Staff Retention.
Career development.
Salaries.
Incentives.
Employee performance.
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Human Resource Planning
A process which anticipates and maps out the consequences of business strategy
on an organization's human resources. This is reflected in planning of skill and
competence needs as well as total headcounts. For resourcing strategies to be
implemented they must be translated into practical action. The strategic process
can be organized logically - for example, Human Resource Management in a
Business Context. For these decisions to be taken, information must be
obtained, consequences gauged, political soundings taken and preferences
assessed. It is clear that many of these decisions are fundamental to an
organization. If the implications are major, strategic decisions are taken at the
centre of the business. The role of the human resource function is two-fold:
(Verner, 1963).
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Human Resource Planning in Virgin Trains
Source: http://www.google.co.uk/imgres?
imgurl=http://www.hrtechnologies.com.au/images/HR-Platinum-Cycle-
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Efficiency of Virgin Trains HR Strategy
The founder of Virgin Group Sir Richard Branson strategically targets ‘five
pillars’’ of the business empire: travel, leisure, mobile phones, entertainment
retailing and personal finance.
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Useful staffing not only attracts individuals to the organisation, but it also
increases the chances of retaining them once they are hired whereas smaller
organisations may do little more than rely on word of mouth. Current
management concept challenges recruitment and selection of people that
basically leave from the strange selected role of the human resource
department. (Waldinger, 1999)
• Advertising,
• Job description,
• Job application process,
• Interviews, assessment,
• Decision making,
• Legislation
• Selection
• Training
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Human resource management (HRM), or human resource development, entails
planning, implementing, and managing recruitment, as well as selection,
training, career, and organizational development initiatives within an
organization. The goal of HRM is to maximize the productivity of an organization
by optimizing the effectiveness of its employees while simultaneously improving
the work life of employees and treating employees as valuable resources.
Consequently, HRM encompasses efforts to promote personal development,
employee satisfaction, and compliance with employment-related laws.
(Price, 2007)
Virgin trains recurit the employees through online system, they just advertise
the jobs on the Virgin Trains web site. They are not using any other tools and
techniques for recuriting the employees. As in the UK all companies have staff
recuriting agreements with the recuritment consultants and they outsource the
experienced and well qualified professionals.
Some of the companies they use other tools for recuriting like media, job
hunting web sites and job centers, and peoples can easily acess the job
vacancies. So, Virgin Trains HR management must have to think about it.
According to my point of view Virgin Trains HR department have to arrange the
surrvey reagrding the recuritment for their better development.One more weak
point of Virgin Trains regarding the recuritment is that they didn,t offer graduate
scheme and University students placemet. So, Virgin Trains must have to review
these weaknesses which will be helpful for them to sustain in the market in long
term.
Source: www.virgintrainscareers.co.uk/Exp/FAQS.asPX
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Selection of Employees in Virgin Trains
Virgin Trains for selection doing the online system.Form is uploaded on Virgin
Trains web site in career section where candidate provides all his or her
personnel detail in the form. Virgin Trains also ensure the candidates that their
data will be safe and no missuse according to the Data Protection Act 1998.After
that all the data of candidates forward to data hub where the candidates are
short listed according to the job specifications and then they inform by E-mail to
the candidates which are sucessful. Interview time and date is also mentioned in
the mail and they provide flexibility if any candidate is not available at that day
and time they change it with mutual understanding and availability.
My point of view is that there should a written IQ test or general screen out test
before interview in this way they can esiliy access the professionals and created
mind peoples and it will be help full for them during the interview. So, Virgin
Trains HR department have to think about it to hire highly professional minded
peoples.
Source: www.virgintrainscareers.co.uk
Training
Virgin Trains also provides the training to the selected employees in the training
center. Training period depeneds upon the specification of jobs normally 3-4
weeks. Virgin Trains provide both internal and external courses and training
opportunities for employees. It includes coaching skills or encourging peoples
how to ask questions and take responsibility. It also provide Leadership program
for front line workers and managers.
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employees more professional and they update their knowledge according to the
new technology and business technique. Another good point is that Virgin
Training Center also provides several facilities to their own staff and as well as
to other peoples who are intrsted to get the trainings.
Source: www.thetimes100.co.uk
Source: www.virgintrains.co.uk
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Desirability (Effectiveness or Benefits)
Very Desirable —Will have a positive effect and little or no negative effect
— extremely beneficial
— justifiable on its own merit
Desirable —will have a positive effect and little or no negative effect
— beneficial
— justifiable as a by-product or in conjunction with other items
Undesirable — will have a negative effect
— harmful
— may be justified only as a by-product of a very desirable
item, not justified as a by-product of a desirable item
Very — will have a major negative effect
Undesirable — extremely harmful
— not justifiable
Feasibility (Practicality)
Definitely — no hindrance to implementation
Feasible — no R&D required
— no political roadblocks
— acceptable to the public
Possibly — some indication this is implementable
Feasible — some R&D still required
— further consideration or preparation to be given to political or
public reaction
Possibly — some indication this is unworkable
Unfeasible — significant unanswered questions
Definitely — all indications are negative
Unfeasible — unworkable
— cannot be implemented
Importance (Priority or Relevance)
Very Important — a most relevant point
— first-order priority
— has direct bearing on major issues
— must be resolved, dealt with, or treated
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Important — is relevant to the issue
— second-order priority
— significant impact but not until other items are treated
— does not have to be fully resolved
Slightly — insignificantly relevant
Important — third-order priority
— has little importance
— not a determining factor to major issue
Unimportant — no priority
— no relevance
— no measurable effect
— should be dropped as an item to consider
Confidence (In Validity of Argument or Premise)
Certain — low risk of being wrong
— decision based upon this will not be wrong because of this
"fact"
— most inferences drawn from this will be true
Reliable — some risk of being wrong
— willing to make a decision based on this but recognizing
some chance of error
— some incorrect inferences can be drawn
Risky — substantial risk of being wrong
— not willing to make a decision based on this alone
— many incorrect inferences can be drawn
Unreliable — great risk of being wrong
— of no use as a decision basis
Source: http://is.njit.edu/pubs/delphibook/ch3c1.html
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Motivation is to give reason, incentive, enthusiasm, or interest that causes a specific action or
certain behaviour. Motivation is present in every life function. Simple acts such as eating are
motivated by hunger. Education is motivated by desire for knowledge. Motivators can be
anything from reward to coercion. (Hirschman, 2002)
Internal and external factors that stimulate desire and energy in people to be continually
interested in and committed to a job, role or subject, and to exert persistent effort in attaining
a goal. Motivation is the energizer of behaviour and mother of all action. It results from the
interactions among conscious and unconscious factors such as the
(Bjurgert, 2010)
Types of Motivation
Intrinsic Motivation
Extrinsic Motivation
Virgin Trains use both intrinsic and extrinsic motivations in order to join and stay
talented workers and perform better and do extra for Organization i.e is one of
the most important part that’s Virgin trains is focusing in order to get success
and competitive advantage. So, continues monitoring and close observation of
factors that motivate the employee is necessary to maintain a competent work
force. Virgin Trains motivate the employees with rewards, bonuses and by
promotions. It also motivates the employees by arranging the workshops and
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seminars by giving the chances to employees to share the ideas and suggestions
with the higher managements.
After critical view and search I observed that Virgin Trains realized it very well
that only with competent force an Organization can achieve its objectives. And
it’s only possible if there is a proper motivation process i.e. motivates the right
people who devote their intensions for the growth of an organization.
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of Being In this article, Abraham Maslow attempted to formulate a needs-based framework
of human motivation and based upon his clinical experiences with humans, rather than prior
psychology theories of his day from leaders in the field of psychology such as Freud and B.F.
Skinner, which were largely theoretical or based upon animal behaviour. From Maslow's
theory of motivation, modern leaders and executive managers find means of employee
motivation for the purposes of employee and workforce management’’. (Maslow, 1946)
There are some basic needs and steps which are show below in the Maslow
Hierarchy of Needs Chart,
Virgin Trains actually follows Maslow’s Hierarchy Theory of Motivation; there are
staffs motivation opportunities in Virgin Trains by motivating each employee all
the way through their style of management, compensation plans and company
activities.
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Social Needs: Virgin Trains generate a sense of acceptance, belonging,
and community by reinforcing team dynamics.
Esteem Motivators: Virgin Trains identify achievements, assign vital
projects, and provide status to make employees feel valued and
appreciated.
Self-Actualization: Offer challenging and significant work assignments
which enable innovations, creativity, and progress according to long-term
goals.
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Criticism of Maslow’s Theory
Source:
http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html
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Marketing Mix
‘’Marketing is the social process by which individuals and groups obtain what
they need and want through creating and exchanging products and value with
others’’. (Easton, 1994)
The successful business scheme will grow through the aggressive and pre-
planned implementation of a complete "Marketing Mix" strategy in approaching
revenues.
The goal is to use both active and inactive mechanisms to reinforce the
"impression rate", (or number of times that your audience perceives that it
remembers), your corporate communications message to your target audience,
leading to increased revenues.
To be truly successful, all areas of the Marketing Mix need to be pre-planned and
then executed in a timely and disciplined fashion. (Owen, 1995).
As the man who started it all and behind the continuous success of the virgin
company in Virgin ib britian that caters to the different industry such as travell,
entertainment, ianpt only in Britmobile, life style and the finance
industry.Offering a new experience for every people not only in Britian but
globally. Behind the success of Virgin company it is intrsting to exmain the
marketing principles they emrased. Specifically the business travell segement of
Virgin trains and Virgin Atlantic.
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7P,s
‘’Marketing Mix is a general word used to explain different kinds of choices for an
organization to ensure the whole process of bringing the product and service to
market. While the 4 P’s are the way in which you can understand how to achieve
your desired goal. Here is a brief description of each component of the 4 P’s of
the marketing mix’’. (Kotler, 2010)
Product
The products catered by the business travel compliances Virgin trains and Virgin
Atlantic both provide product and services that meets the needs and demands of
its customers. The convenient and style being into their Trains and Planes is
something to look forward into and the excitement.
Pricing
Pricing strategy being employed in Virgin Trains and Atlantic offers flexibility to
its customers with pricing ranging to six varieties to choose from Virgin Atlantic
that would be more affordable.
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Promotion
The promotion of Virgin trains and Virgin Atlantic provides a great deal of
advantages to its customers. The advance booking scheme will give customers
discounts and in the case of group travels they also offers the best deals that
can save up to 70% from its normal rate.
Place
Virgin Trains operates from train services on the West coast line this links
England, Wales and Scotland. The principle rote is the 400 miles stretch from
London Euston to Glasgow Central. From this track branch of f to the West
midlands, Liverpool, Manchester and North Wales
People
Behind every company success are the peoples who made it possible. The
workforce of Virgin as a whole contributes to a large extent such as talents are
being empowered and constantly being challenged by the demands of the
changing trends of consumer behaviour.
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Virgin Group’s Boston Matrix
This BCG matrix is helpful for the analysis of Virgin Group’s successful range of
products and services looking at their sale quantity in market and the trend for
their products in the market.
Source: http://www.quickmba.com/strategy/matrix/bcg/
(Cash Generation)
High Stars
Dives
grow
Business t
Selectively
Virgin Media
Defend share
Dives
t
High
Source: http://www.quickmba.com/strategy/matrix/bcg/
BCG matrix four segments clearly explain which product and service, falls in
which group.
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Virgin Airline is a star because it has high growth and high market share
because of their services, facilities, customer satisfaction and target
orientation.
Virgin Trains has low growth and high market share because they are
enhancing stations, developing new routes.
Virgin Mobiles is lies in dogs because there are many competitors in the
market with advance technology and new models like 3G mobiles, I
phone and Nokia are the big giants of UK based market.
Virgin Broadband lies in problem child because it has high growth and
low market share. The UK market is captured by SKY Media, in case if
the market share downs Virgin media can switched to star.
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Product Life Cycle of Virgin Group
Product life cycle is a series of stages start from introduction of product and end
on decline stage. At each stage organization take different strategy according to
product nature, environment, profits, revenues and customers.
1-Introduction
2-Growth
3-Maturity
4-Decline
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Virgin Trains is in the stage of growth because sales start rapidly increasing and
product adopted by most of the customer. Organization maintains the quality to
build long term relationship with customers. Price for the product is maintained
and additional features and support services may be added to gain customer
trust.
Virgin Media is in introduction stage, Virgin group put a lot of efforts and money
there is a lot of competition in telecom sector, which require customer
awareness and acceptance. Marketing budget is high due to different
promotional strategies; distribution is restricted to limited markets.
Virgin Airlines is in mature stage product sales reach to the saturation level
where growth is slow down due to competitor’s products presence in the market.
Distribution and promotion is carried in the same way or even spread more to
gain market share. Number of unit produce increase reduces the cost and
benefit the customers in the form of price cut.
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Virgin Mobiles This is a critical stage for organization to take critical decision. In
this stage Competition increase to great extent in this phase result in rapid
downward slope graph of sales. Organization might take decision to drop out this
product or try to stick with the product and hope for some better results
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Place of Information Systems
Virgin Mobiles internal and external activities are totally based on Information
Systems either it’s LAN, WAN, developing or installation of software’s, within the
company or in order to capture the customers by e-marketing.
In Virgin Trains all the data is computerized and the record is maintained by
using the advance information systems. Virgin Trains also use these information
systems for selling their products and for purchasing raw material.
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• Cyber marketing---- The convergence of the internet, computers,
information systems, telecommunications and the customer with the
marketing process.
Lean Enterprise
Profit is the main difference between these two organizations. In for profit
organizations all services and products are maintained for getting more and
more profit but in not for profit organization companies earn profit for running
the organization expenses and in the main while the main focus is peoples. In
both organizations for profit and not for profit there focus is to help the peoples
and provide them the services. Virgin Trains also arrange the charity for poor
people’s as in past they provide the food stuffs for Libyan peoples.
We can say that Virgin Trains at once running both for profit and not for profit
system which attracts the peoples and will be helpful for the growth of Virgin
Trains.
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Conclusions
I conclude that for an organisational growth HRM department plays a vital role
for meeting its organisation goal, as well as for Human resource management
the human resource planning(HRP) plays an important role because it estimate
and evaluates those actions, processes and operations, through which you can
attain your aim. Motivation is a necessary thing for any organisation to achieve
its goals. In the staff is motivated by the organisation than it will increase the
outcome. But it is also necessary that what type of motivation is used and either
it is beneficial or not because if we are using a wrong approach and its outcome
is nothing than its better not use it. The results indicated a significant
relationship between job motivation and competitive advantage. Motivation is a
necessary thing for any organisation to achieve its goals. In the staff is
motivated by the organisation than it will increase the outcome. Marketing mix is
also an essential element for the business, profitable business is all about
strategy because if your strategy is good than you can survive and can have an
edge over your rivals, you have understand that what is going on in the market
you are in and what kind of community is your prime target.
Virgin Trains follows all the HR strategies, motivation and marketing mix which
will be useful for its growth in future and can be easily sustain its brand in the
market.
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References
http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.htm
http://www.google.co.uk/imgres?
imgurl=http://www.hrtechnologies.com.au/images/HR-Platinum-Cycle-
http://is.njit.edu/pubs/delphibook/ch3c1.html
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Kotler, P. a. (2010). Principles of marketing. Prentice Hall.
http://www.quickmba.com/strategy/matrix/bcg/
www.thetimes100.co.uk
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