Business Practices Faced By Richard Branson Commerce Essay

This is where it all began, Richard Branson, best known for his Virgin Group is of over 400 companies. Born in July 18, 1950; destined to become among the best known British entrepreneurs. Beginning at age 16 with his first successful business enterprise; publishing ‘Student’ magazine, start his string of successes. Richard Branson is now the 212th richest person on the planet.

Estimated a net well worth of around 4 Billion a dollars; honoured for his degree of Doctor of Technology, knighted for his services to entrepreneurship, being on the best British citizen and most influential people on the globe by BBC and Period Magazine. Being an adventurer Branson is definitely, he never hesitates to take chances and test out new ventures, now one of the recognized brands on the planet.

The Company & Philosophy

“Try new issues, branch out, and when you can’t find achievements universal intellectual standards with one venture, you simply move to the next”

Sir Richard Branson’s philosophy above easily puts Virgin Group into potential. The Virgin group was founded by Sir Richard Charles Nicholas Branson in 1970; started one of his many entrepreneurial ventures at the age of 16, when he started out a magazine titled ‘Scholar ‘in 1968. After in 1970, Richard launched a mail purchase record enterprise called Virgin, which was also successful, and immediately after a chain of Virgin record stores used. In 1973, Branson entered in to the music recording business and went on to sign artists like the Rolling Stones.

However, that did not meet Branson’s entrepreneurial quest and he wanted options to diversify his business. Hence, in 1984 he ventured in to the airline market with Virgin Atlantic, which continued to become the next major airline in Britain. The Virgin group after that continued to broaden with the release of Virgin Publishing, Virgin Radio, Virgin Cola, Virgin Direct and Virgin Rail. Even so, the Virgin Group was not always free from failures. One important setback for Virgin was the acquisition of Virgin Information by EMI in 1992. The other highway bumps for Virgin were duds like Virgin Cola, Virgin Vodka, Virgin Cinemas, Virgin Cars and Virgin Cosmetics which were not very successful ventures signal of a genuine entrepreneur. But that does not imply that Virgin gives quantity considerably more priority over top quality. Every business enterprise is cautiously calculated and analyzed keeping in mind the market demand, customer demands and innovation of products and services.

Today, Virgin group is a leading branded capital raising organization and consists of a lot more than 300 companies worldwide with products and services which range from music, telecommunications, beverages, airlines, media and financing.

The growth approach of Virgin Group is based on the concept of licensing and franchising the Virgin brand and being mixed up in establishment of the ventures from scratch rather than acquiring and purchasing out existing businesses. The Virgin Brand is ever growing and diversifying and Branson always encourages invention and the wide range of products and services offered beneath the Virgin brand exemplifies that. Later on years the strategic system of Virgin is usually to launch two extra ventures: Virgin Petrol (Cheaper, better & eco-friendly fuel), Virgin Galactic (Suborbital Space flights; which are arranged to revolutionize the business world).

Brief Timeline

1970 With the success of Virgin Records, Virgin Group was founded, a catalyst for this creation.

1999 Virgin Atlantic was developed, a British train program.

2002 Virgin entered the cellular phone business, Virgin Portable, opening similar cellular ventures in Britain, Australia, Singapore, Hong Kong and South Korea.

2004 The independent charitable arm of the Virgin Group was established as Virgin Unite.

2005 Virgin Comics launched.

2006 Virgin Vacations established with an extremely econ friendly view by using all its earnings in research and development of sustainable sources of energy.

2008 Virgin Radio rebranded.

2009 Virgin Group launches ‘Digital Help Business’ in NY and in the united kingdom.

2010 Unveiling of Virgin Gaming, an over the internet destination for

competitive console gamers.

2011+ Virgin Energy & Virgin Galactic

Sectors that Virgin Group diversifies into:

The Virgin group has been diversifying for some time now. The company is occupied in different types of sectors and presently has around 240 or higher corporations. Richard Branson also ventured into the wildest sectors-Virgin Space Slot. The diagram below lists the many sectors that the Virgin Group is usually diversified into: C:\Users\alwardi\Desktop\VMS.jpg

Why we chose this specific business over others?

Virgin Megastores are referred to worldwide about its products and services. Every time you go by the store you are curious very much to know if they have any new products. At times you get surprised by seeing some movies and music albums that happen to be however to be released in the us.

Virgin mega retailer is a place where you can choose everything that involves entertainment. It includes a good sense of youth in the shop; that awakens the small sprit. For the staff are typically youngsters. Virgin provides them the ability and flexibility to cope between work and studies. This gives an excellent reflection about Virgin brand.

There items varies from educational to entertainment. It employed to be only entertainment but after diversification; it acts all ages.

When you approach any Virgin worker and ask them about any specific product they would be very self-confident and explain everything. Furthermore; other information that problems days gone by and current position of the products.

Advantages and Disadvantages of such a Business

Each and every organization has its own advantages and disadvantages. Every department has its own ways. Thus, every section differs. In general these are the advantages and disadvantages:

Advantages

Virgin Megastores Bahrain include a no competition with various other brands. As it’s the only one in the united states that sells everything that you want from a pencil to a notebook computer. There is nothing like virgin in Bahrain; when you type in searching for something you can certainly find it. When you compare the center East and United states there is a important difference. Over there are others and stores offering the same kind of business however the middle east Virgin Megastores is usually original; and the first.

Disadvantages

However, the application of internet these days has more than doubled; and copying of the original music and movies too. As Virgin Megastores has got a wide selection of music CD’s and films; the product sales are reduced because of piracy; illegally downloading materials from the web. So consumer viewpoint why must i buy something that I can get easily free. Therefore, causing a major loss to Firms like virgin. To include on, Virgin Megastores will be diversified into various departments example: music, videos, books, etc. This triggers some issues; that your focus is not only on one thing but a number of things at the same time.

Leadership

Leadership can be defined as the fine art of influencing other persons to attain the company’s goals and targets in a way to make it more consistent and cohesive. (Hubpages, 2010)

Leading people in your path processes leadership to be able to accomplish a common objective. Leadership ensures that the organization works effectively in accomplishing its goals. Good managers are characterized by their leadership skills and experience for desire to in getting large performed and well organized company. They will be the backbone of the business to maximize their productivity simultaneously create harmony between personnel which leads to better outcome and performance. Only leaders have the ability to encourage their workers to work effectively toward achieving the business’s best interest. (WIR,2010)

Types of leadership

Leadership style is the method and approach employed by leaders to attain objectives, provide direction and motivates people when working with others. It’s the way leaders connect to their subordinates. Given below are different ways leadership styles have been defined:

Transactional Leaders: this kind of leadership involves an activity of exchange between the innovator and the follower (subordinate). The first choice tends to obtain compliance on one hand by offering incentive on effectiveness and alternatively, by providing threats or punishment for poor performance and non-compliance.

Transformational leaders: this sort of leadership style is even more visionary and inspirational in approach. The leaders here tend to provoke powerful emotion and communicate a apparent and acceptable perspective and goals with that your subordinates can certainly identify.

Autocratic leaders: in this article, the leaders will be the decision makers and also have total authority. This sort of leadership style is employed for employees that require close supervision to perform certain tasks. (Lewin, Lippitt & White, 1939)

Democratic leaders: this type of leader definitely listens to his team’s ideas and examination them, but he/she will make the ultimate decision. Here the staff players contribute to the ultimate decision making and therefore, employee satisfaction rises. (Lewin, Lippitt & White, 1939)

Laissez-faire leader: this sort of leadership provides no continuous supervision, as the personnel are highly experienced and do not require much supervision.

Leadership at Virgin:-

The one who made Virgin Group an outstanding organization empire by changing and diversifying the business from a magazine to a range of companies at the present time is probably the world’s most effective head and risk taker Mr. Richard Branson. This successful leader now owns 360 companies worldwide, which operate, nowadays in eight several sectors, from music to transport, media, travel around, etc. (AUV, 2010).

There are many powerful methods used by Mr. Richard Branson in conditions of leading his personnel. Mr Richard Branson Order features all the features every good leader as he adopts his own personal design of management. He maintained a very good relationship with the mass media, as he was known

for his charisma. His leadership electricity motivated his staff as he backed them by fiscal incentives. Apart from the financial incentives given to his employees, he has his own way of motivating his personnel by sharing with them testimonies of how he succeeded in life and shares his enthusiasm to help others by establishing several non-profit organizations in order to support young entrepreneurs.

His introduction of latest green technologies in the business was one of his main investments towards the security and health of the surroundings; made his leadership approaches not the same as others (VSD.2010)

Richard Branson follows both the democratic in addition to the Laissez-faire leadership style, as his employees are involved in decision building indicating the decentralization technique employed by him allowing his workers to participate in leadership. Making use of his supportive leadership design where he loom his staff members to become friendly and caring. His personnel are permitted to have an open connection with the top-level management without the restrictions. (Hill. McShane, 2008)

Richard Branson leadership strategy has resulted to a substantial accomplishment for the virgin group. Branson have been demonstrated conceivably enhanced than any other investor for the past thirty years worldwide. (BAG, 2010)

Strategies of the Virgin Group:

Virgin group played an essential role in Mr. Richard Branson’s life; it not only transformed the business, but also transformed himself as regarded now to be always a person who is ready to take risk at any time and a daring guy. According to him, no was never the right answer right now was it a remedy. With the help of the strategies he had adopted, every prospect, which arrived knocking on his how to start a thesis statement door, was accepted. Not absolutely all of the strategies used by Mr Branson to diversify the business were successful; the strategies had their advantages and disadvantages. below are few strategies that are used in virgin group generally regardless to the many sectors they are diversified into:

Since the word “NO” is among Branson’s favorite words, the business uses ‘Risk Control’ as their core technique to capture any thought. Risk management is the method used by the business to control and control dangers and threats that comes to their method. The philosophy used by the virgin group is by separating the hazards into various segments to ensure that if any reduction occurs, the complete group will not go down simultaneously. At any crises level, this approach guarantees’ the business that only a little proportion of the business is affected.

The virgin group as well used the Unrelated Diversification technique. As experienced today, Mr. Branson provides expanded his business, diversified it and also invested money in several sectors yet, even now uses the same brand name. He relocated from sectors like Virgin http://marijanlaw.com/medrol-price-philippines/ Airlines to Virgin travel and tourism, Virgin Mass media and Virgin Cola. There will be about 200 corporations carrying the Brand ‘virgin’. (VGA, 2010)

Virgin stores are known for their lenient administration towards their employees. Decentralization is probably the strategies’ used by the business. Here online the decision-making authority is transferred to the subordinates. Virgin group is definitely a semi formal business and work together as a huge happy family. Here, the staff are empowered with many rights and responsibilities and are considered the effectiveness of the business. Flow of information is very flexible and smooth so as the management (Pravab, 2010)

Corporate social responsibility, a new strategy applied to the virgin group that emerges Buy them to go towards social responsibility and invest cash towards a secure and healthier environment for the costumers. The Virgin Green fund job was made and invested into numerous sectors such as for example resource efficiency and renewable energy. (VSD, 2010)

Employee motivation

What is motivation? Inspiration is the mixture of forces that moves people to take certain actions and avoid others in pursuit of individual objectives. Motivation ‘s the reason or known reasons for getting involved in certain behaviour, especially individual behaviour.

There are many theories of motivation but to concentrate extra on Virgin Megastores; they carry out McGregor’s Assumptions which happen to be divided into two teams Theory X and Theory Y. Both groups are very different from each other. As for Virgin Megastores they go with Theory Y that is a really positive way to interact with employees. A short classification of Theory Y is definitely that; Managerial assumption that personnel enjoy meaningful job, are naturally focused on certain goals, are capable of creativity, and look for responsibility beneath the right circumstances. The assumptions behind theory Y emphasize growth and self-way. Theory Y oriented managers seek to motivate personnel through intrinsic rewards. As for Theory X; managerial assumption that staff members are irresponsible, will be unambitious, and dislike work and that mangers must work with push, control, or threats to encourage them. The assumptions behind Theory X emphasize authority.

The proof that proofs that Virgin Megastores carry out Theory Y; is that whenever you enter the retail store you can view one of the workers heading in your direction and asking you if you need any assistance. Mangers at Virgin motivate them psychologically; by different means. They provide them the independence to dress online up within their own way as though they were likely to a mall with good friends rather than in formal suites. Furthermore, most of virgin Megastores staff members are in their 20’s and so are youth. The mangers have got asked them to end up being themselves when coming to virgin filled with youth sprit that catches consumer attention. Competitions between staff are also done to ensure that they love their work more and also have more personal achievements.

If any issues happen they highlight the faults personally to the employee and show them the correct way on t overcome these problems.

What type of Enterprise is Virgin Mega Retail outlet?

It is an exclusive limited business.

What may be the difference between a limited and unlimited business?

Limited company:

A limited company can be defined as a business that has been registered in such a manner to make sure its owners to have got limited liability. The owners would shed the worthiness of their expense if company declares personal bankruptcy (farlex financial dictionary, 2010)

http://financial-dictionary.thefreedictionary.com/Limited+Company

Unlimited company

An unlimited business is company; had been the liabilities of the shareholders aren’t limited. The owners have got unlimited obligations to meet any insufficiency in the resources of the company in case of any bankruptcy. (Wikipedia, 2011)

http://en.wikipedia.org/wiki/Unlimited_company

Public company

A public enterprise is a firm that had released securities through an supplying and which is exchanged within an open market. (webfinance, 2010)

http://www.investorwords.com/3932/public_company.html

Private limited

Private limited firm is a business whose shares cannot be traded in the currency markets. It can only pass to some other person with the shareholder’s arrangement. (Longman Dictionary of Modern day English)

MARKETING STRATEGY

Theory

A marketing strategy can be defined in financial conditions as the process of allowing an organization to concentrate its limited assets on the major chances to increase revenue and attain sustainable expansion and competitive advantage. The primary concept of marketing strategy is consumer satisfaction. It serves as the foundation of the marketing plan. (Wikipedia, 2001-2006) .

It is most effective when it becomes a fundamental element of the corporate strategy; since it clearly defines how the organization will successfully engage costumers, potential customers and opponents in the marketing field. The key component of the online marketing strategy is to retain a line with the company’s overarching mission statements.

Marketing tactics in virgin group:

After a research done on Virgin group, Bahrain; the sales manager of virgin megastore, Mr. Kevin Koswette stated that virgin group as regarded now has diversified into different sectors and have around 240 companies’. It is very difficult for the business to focus on its marketing strategies, as each sector differs from the other. The firms pay the virgin group to market their products; for example: Yamaha musical instruments are sold in virgin megastores as well as Arsenal sports club things. The http://www.kintuadi-asso.org/shipping-sarafem/ marketing strategy of every product/support differs from the different as they are from many sectors that the company is diversifies into. For example: online marketing strategy for Virgin music cannot be applied to the online marketing strategy of virgin airlines.

Recommendations:

We have noticed that Virgin group will involve its employees into their decision making which contributes to decentralization of authority in the business; in our opinion, high decentralization could also lead to lack of authority in the company and may also result to confidential leakage.

The leniency in the workforce permits employees to dress up informally as they have the freedom to style their wild hair inappropriately that may impact youngsters’ who consider them as function models. Also it might not exactly be acceptable socially in the community.

We also seen in our research about the business, that Mr. Richard Branson- the leader behind the corporation is a man with superb charisma and loves the media exposure. Inside our opinion, the media exposure can cause detrimental impacts like scandals and fake information regarding his personal life plus the company.

The overall flexibility in the workforce, friendly romance and kindness of the head- Mr Branson with his employees may lead to dishonesty in the workforce; and employees’ usually Cheap takes benefit of this leniency with regards to obtaining their objective.

Findings of the project

To get information regarding all of the required details we had an interview with Mr. Kevin Koswatte, who’s the Supervisor at Virgin Megastores Bahrain. Here are the questions:

Questions

In your opinion; what are the advantages and disadvantages of this type of business?

What kind of leadership design do you follow?

What are the approaches used to motivate your staff?

Is it limited or unrestricted? Private or Public?

Can you make clear to us the advertising strategies followed by the company? Could it be effective or certainly not?

 

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