This is where it all began, Richard Branson, best known for his Virgin Group is of over 400 businesses. Born in July 18, 1950; destined to become among the best known British business owners. Beginning at age 16 with his first successful business enterprise; publishing ‘Student’ magazine, beginning his string of successes. Richard Branson is now the 212th richest person on the globe.
Estimated a net well worth of approximately 4 Billion a dollars; honoured for his degree of Doctor of Technology, knighted for his providers to entrepreneurship, turning into on the greatest British citizen and most influential people on the globe by BBC and Time Magazine. As an adventurer Branson is certainly, he never hesitates to take chances and test out new ventures, now just about the most recognized brands in the world.
The Company & Philosophy
"Try new issues, branch out, so when you can’t find achievement with one venture, you simply move to the next"
Sir Richard Branson testmyprep‘s philosophy above easily sets Virgin Group into potential. The Virgin group was founded by Sir Richard Charles Nicholas Branson in 1970; started one of is own many entrepreneurial ventures at the age of 16, when he started out a magazine titled ‘Student ‘in 1968. Later on in 1970, Richard launched a mail purchase record firm called Virgin, which was also successful, and immediately after a chain of Virgin record shops used. In 1973, Branson entered into the music recording business and went on to sign artists like the Rolling Stones.
However, that did not fulfill Branson’s entrepreneurial quest and he was looking for prospects to diversify his organization. Consequently, in 1984 he ventured into the airline sector with Virgin Atlantic, which continued to become the next greatest airline in Britain. The Virgin group after that continued to extend with the launch of Virgin Publishing, Virgin Radio, Virgin Cola, Virgin Direct and Virgin Rail. Even so, the Virgin Group was not always free from failures. One major setback for Virgin was the acquisition of Virgin Data by EMI in 1992. The other road bumps for Virgin were duds like Virgin Cola, Virgin Vodka, Virgin Cinemas, Virgin Vehicles and Virgin Cosmetics which were not so successful ventures sign of a true entrepreneur. But that does not mean that Virgin gives quantity extra priority over top quality. Every business venture is properly calculated and analyzed remember the marketplace demand, customer needs and innovation of products.
Today, Virgin group is usually a leading branded capital raising organization and involves a lot more than 300 companies global with products which range from music, telecommunications, drinks, airlines, media and financing.
The growth technique of Virgin Group is based on the concept of licensing and franchising the Virgin brand name and being involved in the establishment of the ventures from scratch rather than acquiring and purchasing out existing businesses. The Virgin Brand is ever expanding and diversifying and Branson often encourages advancement and the wide selection of product or service offered beneath the Virgin brand name exemplifies that. In the foreseeable future years the strategic system of Virgin is normally to launch two extra ventures: Virgin Energy (Cheaper, more efficient & eco-friendly petrol), Virgin Galactic (Suborbital Space flights; which are established to revolutionize the business enterprise world).
1970 With the success of Virgin Records, Virgin Group was founded, a catalyst for this creation.
1999 Virgin Atlantic originated, a British train service.
2002 Virgin entered the mobile phone business, Virgin Cell, opening similar mobile ventures in Britain, Australia, Singapore, Hong Kong and South Korea.
2004 The independent charitable arm of the Virgin Group was set up as Virgin Unite.
2005 Virgin Comics launched.
2006 Virgin Getaways established with an extremely econ friendly view through the use of all its gains in research and advancement of sustainable sources of energy.
2008 Virgin Radio rebranded.
2009 Virgin Group launches ‘Digital Help Provider’ in New York and in the united kingdom.
2010 Unveiling of Virgin Gaming, an on the net destination for
competitive console gamers.
2011+ Virgin Gas & Virgin Galactic
Sectors that Virgin Group diversifies into:
The Virgin group possesses been diversifying for a long time now. The business is occupied in various types of sectors and presently has around 240 or higher corporations. Richard Branson likewise ventured into the wildest sectors-Virgin Space Port. The diagram below lists the many sectors that the Virgin Group is certainly diversified into: C:\Users\alwardi\Desktop\VMS.jpg
Why we chose this specific business over others?
Virgin Megastores are regarded worldwide about its products. Every time you go by the retail outlet you are curious much to know if indeed they have any new products. Sometimes you get amazed by seeing some movies and music albums that happen to be however to be released in America.
Virgin mega shop is a place where you can go for everything that involves entertainment. It has a impression of youth in the retail outlet; that awakens the adolescent sprit. As for the staff are largely youngsters. Virgin provides them the chance and flexibility to cope between work and research. This gives an excellent reflection about Virgin brand.
There goods varies from educational to entertainment. It utilized to be just entertainment but after diversification; it acts all ages.
When you approach any Virgin worker and have them about any specific product they might be very self-confident and explain everything. In addition; other information that problems days gone by and current position of the merchandise.
Advantages and Drawbacks of such a Business
Each and every organization has its advantages and disadvantages. Each and every department has its own ways. Thus, every department differs. In general these are the advantages and disadvantages:
Virgin Megastores Bahrain include a no competition with other brands. As it is the only one in the country that sells everything that you require from a pencil to a laptop. 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 of America there is a significant difference. Over there will be other companies and stores that offer the same type of business but the middle east Virgin Megastores can be one of a kind; and the first.
However, the use of internet these days has increased significantly; and copying of the initial music and movies as well. As Virgin Megastores offers a wide range of music CD’s and movies; the sales are reduced due to piracy; illegally downloading resources from the web. So consumer watch why must i buy something that I could get easily free. Hence, causing a major loss to Firms like virgin. To include on, Virgin Megastores are diversified into various departments example: music, videos, books, etc. This triggers some problems; that your focus isn’t just using one thing but several things at the same time.
Leadership can be defined as the art work of influencing other persons to attain the company’s goals and targets in a way to make it more regular and cohesive. (Hubpages, 2010)
Leading people in the right path processes leadership as a way to accomplish a common target. Leadership ensures that the business works effectively in accomplishing its desired goals. Good managers are characterized by their leadership skills and experience for the aim in getting excessive performed and well-organized company. They will be the backbone of the company to maximize their productivity as well create harmony between employees which results to better outcome and productivity. Only leaders have the ability to encourage their workers to work proficiently toward achieving the company’s best interest. (WIR,2010)
Types of leadership
Leadership style may be the method and approach employed by leaders to accomplish objectives, provide route and motivates people whenever using others. It is the way leaders interact with their subordinates. Listed below are the different ways leadership styles have been defined:
Transactional Leaders: this kind of leadership involves an activity of exchange between your head and the follower (subordinate). The leader tends to obtain compliance on one hand by giving incentive on efficiency and on the other hand, by offering threats or punishment for negative performance and non-compliance.
Transformational leaders: this kind of leadership style is even more visionary and inspirational in strategy. The leaders here have a tendency to provoke powerful emotion and talk a clear and acceptable eyesight and goals with which the subordinates may easily identify.
Autocratic leaders: here, the leaders are the decision makers and also have total authority. This sort of leadership style is employed for employees that require close supervision to execute certain tasks. (Lewin, Lippitt & White, 1939)
Democratic leaders: this kind of leader definitely listens to his team’s ideas and research them, but he/she can make the ultimate decision. Here the team players contribute to the final decision making and for that reason, employee satisfaction rises. (Lewin, Lippitt & White, 1939)
Laissez-faire leader: this sort of leadership provides no constant supervision, as the staff are highly experienced , nor require much supervision.
Leadership at Virgin:-
The person who made Virgin Group a superb business empire by changing and diversifying the business from a magazine to a range of companies at the present time is one of the world’s most effective head and risk taker Mr. Richard Branson. This powerful leader now owns 360 companies all over the world, which operate, now in eight several sectors, from music to transport, media, travel, etc. (AUV, 2010).
There are many effective methods employed by Mr. Richard Branson in circumstances of leading his staff. Mr Richard Branson has all of the features every good leader as he adopts his own private design of management. He maintained an excellent relationship with the press, as he was known
for his charisma. His leadership power motivated his workers as he backed them by financial incentives. Apart from the financial incentives directed at his employees, he has his personal method of motivating his workers by posting with them testimonies of how he succeeded in existence and shares his enthusiasm to help others by establishing many non-profit organizations in order to support young entrepreneurs.
His introduction of new green technologies in the business was one of is own main investments towards the safe practices and health of the surroundings; made his leadership strategies different from others (VSD.2010)
Richard Branson follows both democratic as well as the Laissez-faire leadership style, as his employees get excited about decision building indicating the decentralization approach employed by him allowing his staff members to take part in leadership. Applying his supportive leadership design where he loom his staff members to be friendly and caring. His staff are permitted to have an open conversation with the top-level management without the restrictions. (Hill. McShane, 2008)
Richard Branson leadership procedure has resulted to a substantial achievement for the virgin group. Branson have been demonstrated conceivably enhanced than any other trader for the past thirty years worldwide. (Carrier, 2010)
Strategies of the Virgin Group:
Virgin group played a very important function in Mr. Richard Branson’s life; it not only transformed the business, but likewise transformed himself as regarded now to be a person who is willing to take risk at any time and a daring guy. Regarding to him, no was by no means the right answer right now was it a solution. Through the strategies he had adopted, every option, which came up knocking on his door, was accepted. Not all of the strategies used by Mr Branson to diversify the company were successful; the approaches had their benefits and drawbacks. below are few approaches that are applied in virgin group in general regardless to the various sectors they happen to be diversified into:
Since the term "NO" is among Branson’s favorite words, the company uses ‘Risk Operations’ as their core technique to capture any thought. Risk management is the method used by the company to manage and control dangers and threats that comes to their way. The philosophy employed by the virgin group can be by separating the risks into various segments in order that if any damage occurs, the complete group will not decrease simultaneously. At any crises stage, this approach guarantees’ the business that only a tiny proportion of the business is affected.
The virgin group also utilized the Unrelated Diversification technique. As seen today, Mr. Branson possesses expanded his provider, diversified it and in addition invested money in various sectors yet, still uses the same brand name. He relocated from sectors like Virgin Airlines to Virgin travel around and tourism, Virgin Media and Virgin Cola. There are about 200 businesses carrying the Brand ‘virgin’. (VGA, 2010)
Virgin stores are recognized for their lenient administration towards their employees. Decentralization is among the strategies’ used by the company. Here the decision-making authority is used in the subordinates. Virgin group can be a semi formal firm and work together as a huge happy family. Below, the staff are empowered with many rights and obligations and are considered the effectiveness of the business. Flow of information is quite flexible and smooth in order the management (Pravab, 2010)
Corporate social responsibility, a fresh strategy applied to the virgin group that emerges them to move towards social responsibility also to invest cash towards a secure and healthful environment for the costumers. The Virgin Green fund project was created and invested into different sectors such as resource efficiency and renewable energy. (VSD, 2010)
What is motivation? Inspiration is the combination of forces that moves individuals to take certain activities and avoid others in search of individual objectives. Motivation is the reason or known reasons for getting involved in certain behaviour, especially individual behaviour.
There are various 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. The two groups are very different from each other. For Virgin Megastores each goes with Theory Y that is a really positive method to connect to employees. A short explanation of Theory Y can be that; Managerial assumption that personnel enjoy meaningful job, are naturally committed to certain goals testmyprep, can handle creativity, and look for responsibility under the right conditions. The assumptions behind theory Y emphasize expansion and self-path. Theory Y oriented managers seek to motivate employees through intrinsic rewards. As for Theory X; managerial assumption that staff are irresponsible, will be unambitious, and dislike function and that mangers must apply force, control, or threats to motivate them. The assumptions behind Theory X emphasize authority.
The data that proofs that Virgin Megastores carry out Theory Y; is that whenever you enter the retail store you can observe one of the workers heading towards you and asking you if you want any assistance. Mangers at Virgin encourage them psychologically; by different means. They provide them the freedom to dress up within their own way as if they were likely to a mall with close friends rather than in formal suites. Furthermore, all of virgin Megastores personnel are in their 20’s and are youth. The mangers possess asked them to end up being themselves when arriving at virgin full of youth sprit that catches customer attention. Competitions between staff members are also done in order that they love their function more and also have more personal achievements.
If any complications happen they highlight the blunders personally to the employee and show them the way in which on t overcome these problems.
What type of Enterprise is Virgin Mega Store?
It is an exclusive limited business.
What may be the difference between a restricted and unlimited business?
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 reduce the worthiness of their expenditure if company declares bankruptcy (farlex financial dictionary, 2010)
An unlimited firm is company; were the liabilities of the shareholders are not limited. The owners possess unlimited obligations to meet up any insufficiency in the resources of the company in the event of any bankruptcy. (Wikipedia, 2011)
A public business is a business that had released securities all through an giving and which is exchanged in an open market. (webfinance, 2010)
Private limited provider is a enterprise whose shares cannot be traded in the currency markets. It could only pass to some other person with the shareholder’s arrangement. (Longman Dictionary of Modern day English)
A marketing strategy can be defined in financial conditions as the process of allowing an organization to concentrate its limited assets on the major possibilities to increase revenue and attain sustainable production and competitive advantage. The main concept of online marketing strategy is consumer satisfaction. It serves as the building blocks of the marketing method. (Wikipedia, 2001-2006) .
It is most reliable when it becomes an integral part of the corporate strategy; since it clearly defines the way the organization will effectively engage costumers, potential customers and competitors in the marketing field. The main element component of the marketing strategy is to preserve a line with the business’s overarching mission statements.
Marketing strategies in virgin group:
After a research completed on Virgin group, Bahrain; the sales manager of virgin megastore, Mr. Kevin Koswette explained that virgin group as referred to today has diversified into different sectors and have around 240 companies’. It is extremely difficult for the company to focus on its marketing tactics, as each sector differs from the other. The firms pay the virgin group to market their products; for instance: Yamaha musical instruments can be purchased in virgin megastores and Arsenal sports club items. The marketing strategy of each product/provider differs from the various other because they are from several sectors that the business is diversifies into. For example: marketing strategy for Virgin music cannot be applied to the marketing strategy of virgin airlines.
We have noticed that Virgin group entails its employees to their decision making which brings about decentralization of authority in the business; in our opinion, high decentralization may also lead to lack of authority in the company and may also lead to confidential leakage.
The leniency in the workforce enables employees to dress up informally as they have the freedom to style their head of hair inappropriately that may affect youngsters’ who consider them as role models. Also it may well not be acceptable socially in the community.
We also seen in our research about the business, that Mr. Richard Branson- the first choice behind the corporation is a man with wonderful charisma and adores the media exposure. In our opinion, the media publicity can cause detrimental impacts like scandals and false details about his personal life along with the company.
The flexibility in the workforce, friendly romantic relationship and kindness of the innovator- Mr Branson with his employees may result to dishonesty in the workforce; and employees’ might take good thing about this leniency when it comes to obtaining their objective.
Findings of the project
To get information about all the required details we had an interview with Mr. Kevin Koswatte, who’s the Manager at Virgin Megastores Bahrain. Here are the questions:
In your opinion; what exactly are the advantages and disadvantages of this kind of business?
What type of leadership style do you follow?
What are the techniques used to motivate your staff?
Is it limited or endless? Private or Public?
Can you clarify to us the marketing strategies accompanied by the company? Is it effective or not?