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