Decisions made are very important for business. Richard
Branson was really good in making decisions in order to make company to be in a
better position among its competitors. As it is mentioned in the presentation,
the decentralized diversification of Virgin has become one of the main source
of their competitive advantage, it creates modern image for the company. The
other aspect to take into account is that the management style is different.
Richard Branson is well known for stylish but competitive leadership skills
which drives company for better results. Richard Branson only looks for people
that are interest in what he does within Virgin brand. Therefore, because of his
leadership style and unique organizational culture, Richard Branson was able to
bring several followers to its Virgin brand, in addition to a good relationship
within its stakeholders.
Nowadays strategy of corporate parenting is not very
popular, but Virgin group gave its name to all the businesses acquired or
created in order make them easier to gain market share. Also, this gives chance
for relatively small companies to use resources available in order to become
more successful in business.
A diverse business portfolio gives chance to increase are
of influence in business, to become more compatible. Virgin was creating
diversity in a business unit level, which means a profit center which focuses on product offering and market
segment. The last and the most important decision was to create value for
money, customer gets fair service or product for the price offered.
5. RICHARD BRANSON LEADERSHIP STYLE & THE EFFECT ON ITS BUSINESSES
As it is
mentioned before, Richard Branson is well known for his stylish, courteous but
competitive leadership skills. During the years of Virgin Group´s growth,
Richard Branson took over several risky within its ventures in order to stablish
a well-recognized brand and to improve his businesses differentiation. In most
of the ventures, Richard Branson focused on minute segment of a specific market
and provided a more quality products/ services.
Branson’s leadership style is very related to a transformational leader. This type of leader works with its team members in order to identify a
needed change, and creates a vision to guide the change through inspiration,
and encouragement within its employees. As a result, everyone inside the
corporation are willing to sacrifice for a better result. There is no doubt about the fact that Branson’s success is dependent on
his team and the way he manages them. In his approach, the barrier existing
between the employees and management is broken.
Sir Branson’s approach does not mean that the employees are entirely dependent
on the chairperson’s thoughts. They also have right to participate or to bring
up new ideas in production process of services and goods. Especially Human
Resource department encourage and reward employees for better contribution. As
a result, Virgin brand has a recognition over 90% worldwide.