Virgin Rail was a franchise of theGovernment of UK. It provided the services in the UK west coast regions. It wasstated that the franchise decisions made by Government had affected VirginGroups. Richard Brason had indicated that decisions made by the Government withrespect to revenue management, pricing strategies and customer services washighly ineffective and wanted to end the franchise to make independentdecisions for the customers (Trotman, 2017). Non-programmed decisions are madebased on the judgment and intuitions (Kusluvan, 2003). It is clear that non-programmeddecisions were planned to be made in this scenario as the firm had decided toformulate mew strategies based on the current scenario. Apparently, the franchise was due by 2012and the Government had provided the franchise to FirstGroup.
Virgin Train hadlost 15-year bid to the rival organisation FirstGroup. In accordance to theviews of Branson, the brand had failed to win the bids as it did not examinethe bids placed by the rival organizations. From the case study, it is evidentthat Virgin Rail had privatized in 1997. It had adopted the low pricingstrategies for the customers. The brand had provided additional services suchas free breakfast for the first-class passengers and 100% rebate of money spenton tickets for the trains which are delayed (Virgintrains, 2017).
This hadincreased the satisfaction levels of the customers. From the case study, it isclear that the financial returns and customer ratings on the services providedby the firm had increased drastically when it had started operating privately.The programmed decision making refers to the process of making decisions basedon the routine problems (Kusluvan, 2003). In this scenario, Branson had failedto examine the rival bids.
Thereby, the brand had failed to win the 15 yearbids. Thus, it is clear that programmed decision making process was adopted bythe founder of Virgin Rails in this scenario.