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Analysing The Management Of Virgin Group Business Essay

In days gone by twenty years Richard Branson acquired long his Virgin brand from one business of any magazine called scholar to particular businesses like flight, trains, cellular phone, broadband, cola, bridal wear, financial services, retail chain, jeans, autos, and books. Branson started with a mag with name of Student when he was 16 years time in January 1968. He was successful in offering its 50, 000 copies at that time. (virgin, 2011) Later he quite the study and make it a fulltime job. In 1970 he began a mail-order company with name of Virgin that was name which now increase today in a big business empire.

Virgin now a day is fast extending business in world in many industries from airline to broadband services. It really is regarded as world's esteemed and leading brand. Sir Richard Branson started out what started in 1970 it is now successful empire of multi-businesses. It really is coping with 300 brands, more than 50000 employees and 11. 5 Billion Pounds business currently. (virgin, 2011) On this study we will observe how things are being monitored at management levels by Richard Branson and his team for virgin group and how it is leading towards success of business. This report focuses on finding such ideas, models of leadership that may be discovered from virgin to place these for success of other organizations we will also find how Sir Richard Branson is coping his own way to the group and how he's making progress in his business.

In this research we will have the progress made by Virgin and later we can make analysis of approach adopt by Virgin and other in same industry. We will also look at Sir Richard Branson leadership style and can look for some suggestion of improvement for Virgin in future times at end of our own study.

Virgin Success Model

Virgin under Sir Richard Branson promises they are difference maker on earth. For they are trying to innovation in their ways to get higher in competitive advantages and in their diversity. They bring in virgin as a brand that means quality, advancement, competitive challenge, fun and value for customers' money. They have good research and research system that help them in starting anything new. They declare that they put same shoe of customers to walk on the road of buying and utilizing things prior to going into a start. (Bartholomeusz, 2011) They are trend setter in the market somewhat than being just fans.

They deeply concentrate on their competitors strategy and then develop a strategy that is included with greater results. They make sure they are adding some beliefs to any brand. They focus on risk and rewards. They are extremely much selective and careful in appointing their employees and management team. They even for Recruiting went into joint-ventures with others to get maximum inputs and knowledge from skilled market.

They have diverse approach with variety in their products and services with bunch of variety in it. They are extremely much matter about their market and ways into that market. All of this is lead by Sir Richard Branson. The energy of virgin is covering with leadership style of Richard Branson who's good in his ways and style. His reputation, network, associates and management helped bring him to this level as it stated on the by company itself. They got rid of bureaucratic means of management and substituted it with competent self encouraged management that is capable of working with situation their selves most the times instead looking for directions upwards each time as it is in every bureaucratic framework. They are team as family even within their businesses and within the band of this brand 'virgin'. There are a few time certain problems for your their system offers a solution based command and at the top is Richard himself working like a good skilled innovator and administrator. Everything they try is customer feedback based mostly and makes right rules for them each time when they miss something.

Here is list of business under this group (virgin, 2011) :-

Virgin Atlantic Airways, hello Gorgeous

Virgin Blue (airline with its name as Virgin Blue, Virgin America, V Australia)

Virgin Getaways ( Virgin Holidays + Hip Hotels, Virgin Getaways Cruises, Virgin Limited Edition, Virgin Vacations, Blue Holiday seasons)

Lifestyle (Virgin Working UK)

Virgin Wines (Australia)

Virgin Dynamic (Australia, Italia, Portugal, South Africa, Spain)

Virgin Experience Days

Virgin Racing

Virgin Trophy

Virgin Mobile (Australia, Canada, France, India, Qtel's, South Africa, UK and USA)

Virgin Media

Virgin Produced

Virgin Money ( UK, Australia, South Africa, Money Offering)

Virgin Globe Challenge

Virgin Green Fund

Virgin Unite (NGO)

Virgin Megastore (music and entertainment)

Virgin Radio International

Virgin Festivals

We can easily see how diverse market virgin have to offer under command of Richard Branson. This sort of divers, spread and extensive business required higher degrees of authority with commitments to cope with it effectively that Richard does over the years.

Leadership in virtually any Corporation has some specific focal point on administrative authority as whole in that corporation and it will try to fill up the space of academics management theoretical analysis and its useful implication on bases of true to life situations.

Here we will find what kind of approaches, ideas and models are in practice with in authority concept in business world.

There are amounts of models and ideas in leadership research, here are many of these stated under (associates, 2011) :-

Appreciative Inquiry

Attributes of Management Excellence

Attribution Theory

Bases of Social Power

Beyond Budgeting

Centralization and Decentralization

Change Approaches

Change Behaviour

Change Equation

Change Management

Change Phases

Changing Company Cultures

Charismatic Leadership


Competing Prices Framework

Contingency Theory

Core Group Theory

Crisis Management

Cultural Dimensions

Cultural Intelligence

Culture Levels

Dimensions of Change

Dimensions of Relational Work

Emotional Intelligence


ERG Theory

Expectancy Theory

Five Disciplines

Force Field Analysis

Forget Borrow Learn


Functional Leadership


Growth Phases

Hagberg Model of Personal Power

Hierarchy of Needs

Inspirational Leadership

Instrumental Approach of Stakeholder Theory

Intrinsic Stakeholder Commitment

Leadership Continuum

Leadership Pipeline

Leadership Styles

Leadership Styles

Level 5 Leadership

Leveraged Buy-out

Levers of Control

Management Buy-out

Management by Objectives

Managerial Grid

Managing for Value


Moral Purpose

Normative Procedure of Stakeholder Theory


Organizational Configurations

Organization Chart

PAEI management roles

Parenting Advantage

Parenting Styles

Participative Leadership


Performance Prism

Portfolio Analysis


Positive Deviance


Result Oriented Management

Results-Based Leadership

SECI model


Seven Habits

Seven Signals Of Ethical Collapse

Seven Surprises

Situational Leadership


Social Intelligence

Spiral Dynamics

Stakeholder Value Perspective

Strategic Intent

Strategic Stakeholder Management

Hence we will look the right models and theories among all above for that we choose three which are more thorough in their procedure.

Part One (a)

1: Theory of Needs by David McClelland

The human inspiration is comprises of three main needs:

1 need for achievement

2 need for power

3 need for affiliation.

This theory of needs was presented with by North american psychologist David McClelland based on work of Henry Murray that was done in 1938. In 1961 he mentioned that "the desire of a person might result from three dominant needs: the Need for Achievement, Electricity and Affiliation. " (Pattanayak, 2005)

Every person wishes to achieve certain goals in his / her life that are very important to that person in the life. A while they look for success and positive feedback from others. They turn to widen themselves also to avoid risks situations. They typically stay away from low-risk because they would like to attained success easily. While in some high-risk tasks all achievers look the outcome as chance not the as a result for their attempts. They like to work their selves only or some time with someone else with high successes.

McClelland is convinced about these folks that those are always the best market leaders with some tendency of higher demands from their staff. They are result powered in their procedure. They seek higher personal relationships to check out popularity from others. They also are inclined look same kind of norms of their work group. They struggle to create and keep maintaining relationships with higher level of trust and good common understanding. They always choose co-operation on competition. According to McClelland they perform in customer support and dealing clients perfectly.

McClelland's this concept is also take as Bought Needs Theory, the Discovered Needs Theory, and Three Needs Theory.

2: Management by Targets: - (SMART) by Drucker

In this theory main emphasis is on defining main targets for organisation's employees and later directing their performance according to these aims. Peter Drucker presents it in his work 'The practice of Management' as "Management by Targets" in 1954. (Hurd, 2008)

Management by targets relies on focusing and defining the objectives for each staff and making their performance relating to these targets. The major goal is to increase performance in the business through coordinating organization's goals and employee's goals. Employees receive main id and acknowledgement in this system. Purpose is to entail evry one in the organisation rather than concentrating and offering importance to top professionals. In this manner all mangers start from their levels and they later contribute at the top level in planning and implementations.

Principles of MBO:-

1 flow of organization's goals and objectives

2 Specific objectives for each and every member

3 Participation in decision making

4 Explicit time period

5 well-timed performance evaluations with proper feedback.

Management by Targets is having a way for development called SMART method this SAMRT is taken from

* Specific

* Measurable

* Achievable

* Realistic


* Time-related.

This method of checking MOB is effective to keep company and staff on right course always.

3 Centralization and Decentralization

By changing the ways of decision making at expert levels and by equivalent organization's composition effectively higher goals may be accomplished. All organizations have to make many tactical and lots of the operational decisions. The question is who makes these decisions with what level. In normal bureaucratic composition decision are always made by top management. Thus this system holds the time and makes slow-moving of process and sometimes delays the required decisions. That is called centralisation and in Decentralisations thing is decided at implementations level other than any change required in coverage which is changed at top management levels this makes things done in swift way. (Pleasure, 2009)Thus

Centralization "is procedure for transferring and moving on decision making specialist at higher levels of hierarchy in corporation. "

In a centralized corporation decision are made at higher levels.

Most the data and information about organisation lay at top levels and are shared regarding o need at lower level.

Decentralization, " is procedure for transferring and passing on decision making specialist at degrees of hierarchy in company. "

In a decentralized firm decision are created at lower levels and they are informed to higher levels for records.

Most the data and information about company rest at lower levels and are shared according to need at top level also path are considered when those are essential.

Part one (b)

Implementation of models at Virgin and others

Branson believed in the best communication through setting an example by the leadership. Staffs have to have a role model whom they can follow. Branson being truly a reel from traditional management composition and systems followed a diverse strategy that reducing all three models talked about in our study previously.

We can look into these at virgin by Branson and at other businesses in same industry like Sir Terry Leahy ways in managing of Tesco and Keith Rupert Murdoch of sky group one at a time.

Theory of Needs

As mentioned previously this theory is dependant on three main needs of need for achievement, dependence on power and dependence on affiliation.

Richard Branson as son was looking for all these and thus he centered on achieving these goals at the earliest opportunity. For that goal he started his magazine pupil. With early sales he generated a lot of business and place virgin company. Old age he widened it in diverse business, looking for these placed goals of needs. He also made his company corresponding to this principal of human needs and placed a trusted device for every worker in virgin business.

As talked about by David McClelland he creates an increased degree of the motivation for an individual in his company to bring results from the satisfaction of these three dominant needs: the Need for Achievement, Ability and Affiliation. " He understands well that each person wants to accomplish certain goals in his or her life that those are extremely important to them. That also need support from company to give room to everyone to show capabilities and get rewards, that's what virgin follows as a strategy in their businesses. He like McClelland is convinced that people have great capacities if they are given proper training and chance to put their efforts in it. That's resin virgin have this type of setup that works with these essentials.

On other hand if we start to see the TESCO and Sky they may have different approach their business than what Richard brought to Virgin. (Telegraph, 2011) They have significantly more limited control over things their corporate ways aren't match need established theory but they have adopted some other ways to groom their corporate and business business. That reason that TESCO and Sky look more tight business in their conditions plus they sometime re strike by losses. When staff don't seems part of being into teams and they feel equally as working brains and hands unlike the individuals who just work at Virgin who look the Virgin as their life part due to its benefits that it is giving to them.

2: Management by Objectives

At virgin this model is followed completely as company focuses on its objectives and makes employees get their focuses on set accordingly. They have to modify things both way first company attempts to accommodate employee's aim and makes such corporate strategy that helps staff in achievement of their objective s and regulations are supportive to employees in their progress. While employees are also expected to go along with the broader aim s of company and be loyal to the business objective.

It is within many studies that virgin having higher level of such commitment from personnel. Virgin means that there will do support for employee's identification and acknowledgement in their system. Goal is to entail everyone in the company rather than focusing and presenting importance to top professionals. This way all mangers begin from their levels plus they later contribute on top level in planning and implementations.

Virgin comes after all rules of MBO like stream of organization's goals and goals at all levels is ensured, there is set of specific aims for every member, there is higher-level of participation in decision making by staff, There is certain time span for targets and everything is dependant on time and feedbacks.

Virgin also makes procedures and targets based on SMART way. Making all goals and aims Specific, Measurable, Achievable, Realistic and Time-related.

If we compare this with TESCO and Sky there is also this approach in their business and they try to keep them on this way of management by objectives. (mandmgloba, 2011) All three companies are doing well on it but it is fact that just how Virgin is third, rule is different from others two and they are doing remrably well in their performance compare to others two. Other two have huge investment funds supports but nonetheless if we compare the profits over investment funds Virgin is making forward. While this process of Management by goal is followed by each one of these mega businesses in their strategy of coping things in their business.

3 Centralization and Decentralization

There is beautiful balance of centralisation and decentralisation at Virgins Group this was gained through by changing their ways of decision making at specialist levels and by related organization's framework effectively higher goals may be accomplished. All decisions are made relating to need and capacities. There may be more freedom at lower levels in Virgin as Virgin control believes in individuals probable. Thus they avoid needless delays in decision at execution levels. On the other hand the concept of centralisation in TESCO (Hiscott, 2010) and at Sky is more tight than Virgin. Their decentralisation strategy is a while afflicted by the ways of decentralisation for brief times. These were failing woefully to develop such kind of trust over their professionals that the staffs of Virgin enjoy. The team development and amount of flexibility for performance relating to your skills is very high at Virgins comparing to TESCO and Sky. Both are facing good competition in their related product and services with Virgins. As three of these are into media, mobile industry and service providing in various sectors.

Part Two

Sir Richard Branson command style.

If we deeply study the style of Mr Branson he is a dynamic head that always looks higher towards major goals in life. For your he adopts few methods like

Theory of needs, MOB and well-balanced centralisation and decentralisation. He more targets brand value of his company. He has very simple ways of living, he believes in enjoying life and posting it with others. He's man of his own alternatives he choose what he liked rather than looking at his backdrop on that business and he made success. He always bucking his team on different situations as he would like them feels that he is with them in every matters. He is rolling out a culture at Virgins that cannot be within many organisations. All employees of Virgin are asked showing and perform their features. He is ground breaking person with many qualities of management running a business that reason his company is growing over the years. HE has spent his own rule for all of this and put all his initiatives as success doing this. The guy can identify many hurdles and made much better than his compotators. He has given his employees great independence in work as he also welcomed them for fast special offers over enough time. He has proven fact that anyone can overran the top in his company if they show such kind of commitments.

Virgin's all success in days of 1970s and 1980s is result of Branson's different way and management style that was part stone on all of this business and his commercial norms were different form the system that was existing in those days. He stopped wearing traditional entrepreneurs suit and tie instead he use to wear a sweater and slacks. He uses technology effectively compare to other and revel in his holidays and dealing everything on mobile phone, fax and internet. He gives his subordinates more independence to work their duties. He thinks everyone wants to deal with top person so he provides his managers to cope with him straight. He provides his staff powerful bonuses and he depends on his team. He also used a technique by which he have divided his company jobs into multi device businesses. His companies are linked with one another very well plus some time supports each other.

Most important is the fact he always prompted to his employees go and do some creativity and take more dangers instead of being in dread with failure hazards. He is well-known for his risk taking potential and behavior. He normally emphasise on the importance that a service should bring for customers for the value of these money. He's skilled with troubleshooting and making new assignments. His motto is to make such companies only in which he himself thinks.

Part Three

Proposals for development

Virgin group have their own ways of developing people it's the best way to allow them to bring things as Mr Branson himself was doing. As he can himself aware completely that every specific unlike his educational backdrop have such features that can make businesses expand remarkably. There should be something of skill advertising based on theory of needs for the personnel. It should more give attention to hidden capabilities of men and women who are working in Virgin and the ones want to attain higher professional success though their concealed skills. There should be culture of responsibility in the company where people do feel their own responsibility instead of whenever supervisors are making them to perform their work. This thing can be helped bring when people feel trust by the supervisors to make decisions and do things independently within certain limited that is secure.

The group is already doing well by giving people progressive ways showing their skills while they are working with the company. There must be continue system of need centered development and a balanced central and de-central strategy. Things for Virgin unlike other business are very much excellent as they have got diversity if businesses.

As Branson believed in aligning his company HR team with the prices of company he's more conscious about his brand value. He also makes smart decisions when picking people for any task as though they may have same flex of brain that is company value it might be easier for them to do best in their job.

Virgin has a diverse methodology so they don't really have any place traits for just about any person to become employee at Virgins. However they use to select folks who are prepared to take responsibility in their own and could work hard. Main target they always have is aligning with customers need and wishes. Thus company has generated its value in the business and market and made his brand as mark of success and trust.

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