Lussier, Management Fundamentals, 7e
© 2017, SAGE Publications
Answers to Case Questions
Chapter 6: Managing Change, Innovation,
and Entrepreneurship
Richard Branson
1. Is the pressure for Richard Branson to change Virgin’s business strategy coming from the internal or
external environment?
2. In order to better compete with its rivals, should Virgin focus on a change in strategy, structure,
technology, or people?
3. Is Virgin in the denial, resistance, exploration, or commitment stage when it enters new industries?
Exploration when they are scouting new industries.
Is Virgin an innovative company?
4. Is Virgin currently at the unfreezing, moving, or refreezing stage of the Lewin’s model?
It seems like Virgin is so aggressive that it is always moving to a new and larger corporate structure.
5. Which of the following organizational development interventions could Virgin most benefit from?
Training and development, sensitivity training, team building, process consultation, force field analysis,
Lussier, Management Fundamentals, 7e
© 2017, SAGE Publications
6. Use the five steps of the comprehensive change model to explain Virgin’s business strategy.
A. Recognize the need for change. Virgin lives by the credo that it always needs to
change and become successful in new industries.
7. Discuss Richard Branson’s management functions in implementing Virgin’s strategy.
Richard Branson does a great job with all four functionshe plans to enter new businesses, he
8. What external environmental factors were most influential in Virgin changing its business strategy?
Branson is very good at appealing to consumers with lower prices (such as Virgin Mobile with no long-
Lussier, Management Fundamentals, 7e
© 2017, SAGE Publications
9. What type of grand strategy is Virgin pursuing?