Virgin Mobile Company


Virgin Mobile Australia Pty Ltd

Phase 1

1.1 Who is the organization

Virgin Mobile Australia is a provider of mobile phone in Australia, which is one of various products of Virgin Group. Virgin Mobile is a subsidiary of Optus Company.

1.2 What is the structure

Virgin Mobile Company (VMA) is a public limited company which has headquarters in Sydney. Richard Branson is a founder which has many products and services under the Virgin Group. Although, Virgin Mobile operates business in various countries such as UK, USA, Canada, France, South Africa and India, all businesses have same Virgin values which are a sense of fun, making a difference, giving a customer value and a smile. In 2000, VMA were a 50/50 partnership with Optus. However, VMA is a subsidiary of Optus because Optus acquired all shares and VMA become completely owned by Optus in 2006. As a result of long-term license agreement of Virgin brand, VMA remains the same brand and maintain global relationship of Virgin Family (Virgin Mobile, 2009).

1.3 What do they do

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Virgin Mobile Australia (VMA) is one of the companies in telecommunication industry. VMA is a telephone service provider which use Optus network to for operating system. VMA provides prepaid and postpaid mobile phone services. There are various brands of mobile phone and monthly plans for customers. Moreover, VMA also has broadband services which are mobile broadband and home broadband. Furthermore, there are many stores around Australia.

1.4 Theory - Stakeholder

First, the theory of stakeholder which is applied to VMA is the three values of stakeholder model (Carroll & Buchholtz, 2003) which are Descriptive, Instrumental and Normative

1) The Descriptive model is effective concept and clear language must be used in the organisation and also the function should be described in order to have clear understanding.
2) The Instrumental model is the goal of the company will be met if the company establishes the effective connection with stakeholders.
3) The Normative model is the organisation are able to identify stakeholder's interest because their interest is value.
Secondly, the stakeholder theory by the study of Freeman1984 (as cited in Fassin, 2009)

As the stakeholder theory of Freeman 1984(as cited in Fassin, 2009), the Virgin mobile has good relationship with all stakeholders especially the community because the founder Richard Branson focused on environment and global issue. He also became a founder of The Elders which is a group of leading citizens with a mission of developing new approaches to global issues (Virgin Mobile, 2009). These can create reputation and good image of the company.

Besides, the model of stakeholders Freeman (as cited in Stieb, 2009) mentioned the definition of stakeholder which is “redistribute to stakeholder and redistribute important decision-making power to stakeholder” (p. 495).

1.5 Identify stakeholders

Virgin Mobile Australia has various stakeholders which are internal and external. First, the internal stakeholders are employees and SingTel Optus Pty Limited which is owner of this company. Furthermore, the sponsors are also VMA's stakeholder. There are six sponsors, which are M8 telecom, Allphone, Simplus, Tele Choice, Living Digital and Network communication, are mentioned on Virgin Mobile website. Moreover, the competitors such as Three Mobile, Vodafone and Telstra are very important in order to do the marketing strategy. In addition, VMA has One Green Bean Company is important stakeholder which is PR agency. The company does VMA's marketing (Camille, 2007). In order to do marketing well in business, VMA selected the Unica's software package from the stakeholder which is the Unica Corporation (AsiaPluse News, 2005) MIA is a VMA's stakeholder which is global provider of mobile technology. MIA manages new games technology for VMA. What is more, the VMA has Nokia, LG, Sumsung and iphone as the products which are other stakeholder for the supplier point of view. Secondly, the external stakeholder is the Department of Communications, IT and the Arts which VMA which is contacted for telecommunication competition regulation. Commonly, the media are VMA's stakeholders which include TV, radio and newspaper.

1.6 Conclusion

Reference List

Anonymous (2006). Optus keeps silence over Branson's stake. Telecommunications Mergers & Acquisitions, 15. Retrieved September 1, 2009 from the proquest database

Anonymous (2008). Loop Mobile Limited: Loop Mobile renews mobile community contract with foundation client, 3 Australia; 3 confirms long term commitment to MOKO mobile community, collaboration to identify and develop white label community opportunities to continue. M2 Presswire. Retrieved September 2, 2009 from the proquest database

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Camille, A. (2007). Host chief backs PR start-up. B & T Weekly, 4. Retrieved September 3, 2009 from the proquest database

Carroll, A. B., & Buchholtz, A. K. (2003). Business & Society: Ethic and stakeholder Management (5th ed.). USA: Thomson South-Western.

Clarkson, M. B. E. (1995). A stakeholder framework for analyzing and evaluating corpora. Academy of Management. The Academy of Management Review, 20(1), 92. Retrieved September 1, 2009 from the proquest database

Cochran, A. (2003). E-Business in Australia's Mobile Phone Market Retrieved September 1, 2009 from the proquest database

Elijido-Ten, E. Applying Stakeholder Theory to Analyze Corporate Environmental Performance: Evidence from Australia's Top 100 Listed Companies.

Fassin, Y. (Writer) (2009). The Stakeholder Model Refined.

Media Release Tripoint delivers $1.3 million IT infrastructure to Virgin Mobile. Retrieved September 4, 2009,

Olivia, C. (2008). Virgin Mobile hunting for DM specialist. B & T Weekly, 1. Retrieved September 6, 2009 from the proquest database

Optus (2006). Optus acquires Virgin Mobile Australia, from
Singapore Telecommunications reveals Virgin Mobile Australia acquisition (2006). Telecomworldwire, 1. Retrieved September 1, 2009 from the proquest database

Stieb, J. (2009). Assessing Freeman's Stakeholder Theory. Journal of Business Ethics, 87(3), 401. Retrieved September 5, 2009 from the proquest database

Unica to make a difference at Virgin Mobile Australia (June 2, 2005). AsiaPulse News wire. Retrieved September 10, 2009, from

Virgin Mobile Australia signs Unica software deal (2005). Precision Marketing, 9. Retrieved September 1, 2009 from the proquest database

Virgin Mobile (2009). Our story. Retrieved August 31, 2009, from