Case Study Of The Virgin Group Essay

Virgin Group is made up of more than 200 companies, which employ about 50,000 people all over the universe. The concern has witnessed continual growing since it was started. The grosss reached a record grade of 10 billion sterling lbs in the twelvemonth 2006. This reveals the magnitude and degree of concern in which Virgin Group is runing. The nature of leading in being in Virgin Group draws many characteristics from the personality of Sir Richard Branson. The concern doctrine postulated by Sir Richard Branson believes that the ultimate consequences of client satisfaction and stockholders ‘ addition is the duty of every person. He believes that if the staffs are kept happy so the clients are traveling to be happy significance that the stockholders will be happy excessively ( Branson 1998, pp. 14 ) . Consequently, the direction of Virgin Group does non fall in to any peculiar theoretical account. It has a alone direction construction whose features do non suit those of the bing theoretical accounts. The merger of constructs makes it typical. A critical reappraisal reveals that the success witnessed by Virgin Group can be attributed to the singularity of its direction manners.

Management Theorists like F Taylor foremost created the construct of scientific direction. This scientific construct postulates that there are six chief characteristics of direction, viz. ; experiment, observation, choice, standardisation, and preparation. Scientific doctrine of direction expects that wagess and employee compensation should be pecked on public presentation and co-operation. Although some aspects of this theory are outdated, some of its characteristics are still applicable in the concern construction of modern times. As a good illustration, Virgin group may be holding what appears as a relaxed on the job environment but some characteristics of scientific direction are in the application.

We will write a custom essay sample on
Case Study Of The Virgin Group Essay
or any similar topic only for you
Order now

Such facets of scientific direction used in Virgin Group include preparation, choice, and payment pecked on consequences. Some employees are compensated because of their outstanding entrepreneurial aspiration and advanced thought. Outstanding public presentation in Virgin Group is non merely step by the sum of fiscal input an employee has brought but besides creativeness and ability to believe outside the box. Another theoretical account of direction is bureaucratism, which sees the organisation of concern as one unit. The innovators of this school of idea believed that household patterns could non be delinked from the organisation. Therefore, there a demand to unify household ends with those of the full organisation.

Organizational ends of Virgin Group can non be dissociated with those of Sir Richard Branson. This is adequate ground to reason that the direction manner in the organisation has some elements of bureaucratism in leading. Max Weber foremost formulated this sort of direction attack. The impact of the full society is given considerable attending by the direction. In this theoretical account, the organisation forms an built-in portion of an formless society. Despite holding some draw dorsums, this theoretical account has found its manner in to the Virgin Group ‘s direction manner. In a command to run into the demands of the society it is functioning, virgin direction give precedence to the impact, its schemes will hold on society. This is the ground as to why Virgin Atlantic, an air hose company under Virgin Group, has been on the frontline on the campaign for environmentally friendly jet fuel.

Furthermore, there is an component of administrative theory in the direction of Virgin Group. Propounded by Henry Fayol, administrative theory position direction as a chronological procedure comprising of planning, organisation, preparation, and coordination of maps. This theoretical account represents the transitional theory between the traditional and modern theoretical accounts. It is characterized by stiff and mechanistic dogmas. Virgin Group has a small spot of these direction rules. It has deviated from it by leting liberalized direction at departmental degree. However, at the departmental degrees, there is a demand to progress the rules of direction. The ideas of employees should stay to be customized to accommodate these rules.

The direction of Virgin group with a heavy weight is contingency attack. The decision-making and programs executings are done with close mention to the job at manus. This has seen the group attain noteworthy mileposts in streamlining its direction, which finally translates in to grosss. In this direction theoretical account, the kineticss of concern environments is appreciated. It recognizes the fact that different environments require different direction attacks ( Damanpour1996, pp 694 ) .

Concisely, it is true to reason that Virgin Group ‘s success narrative of many old ages is a factor of many things including it optimum direction theoretical account. The group has been able to mix the presets of every theoretical account to accommodate its present demands. What is emerging vividly from this planetary organisation is the fact that the efficaciousness of direction is determined by its ability to travel off from conventional and stiff demands. Traveling with the tendencies in the market has been proven good in optimisation of net incomes.

From the descriptions given above, it is apparent that Virgin Group leading is a transformational. In transformational leading the direction looks beyond the compensation to employees. The theoretical account, which is in usage at Virgin Group, explores the interior factors, which enhance public presentation of employees through motive. On the contrary to the transactional theoretical account, which look at compensation entirely, transformational leading looks at the manner of accomplishing high-ranking trueness and committedness from the followings.

The trade name in the name of Virgin was founded in 1968. Since so it has grown beyond boundary lines and go a world-wide merchandise. Its venture into many different industries is a true contemplation of the success. Sir Richard Branson is the present president of the group. He is good known for his fashionable but competitory leading accomplishments. Many analysts and bookmans attribute the success of Virgin Group to the originative leading accomplishments of Branson.

In the procedure of enlargement, he took over several hazardous ventures in a more to diversify and better his concern. In most of his concern programs, he focused on minute section of a specific market and provided quality merchandises or services. This attack allows for creative activity of little monopolistic markets with high net income borders. One major subscriber to Branson ‘s success narrative is his ability to take people in researching advanced and profitable ventures. Therefore, the leading manner depicted by Branson is a subject to be investigated in the undermentioned treatments. The sort of leading doctrine advocated by Branson has been infiltrate into the full company.

Sir Richard Branson ‘s leading manner falls in the class of transformational. He has an outstanding ability of conveying out the best out of humanity. Interpersonal and relational accomplishments possessed by Branson are faultless. He has near touch with the twenty-four hours to twenty-four hours activities of assorted companies within his group. The most common characteristic that has made him accomplish great mileposts in concern development is the ability to actuate and beat up fellow spouses in chase of a concern gap. If the recent acquisitions are taken as an illustration, he managed to convert fellow stakeholders in acceptance of a new scheme.

In his ventures, he looks for people who are surpassing and willing to get down new concerns. His capacity edifice nature has made him an admirable leader of modern concern. His focal point spans beyond the Orthodox position of employees where the direction expects the workers to execute to merit compensation. The involvement of Branson surrounds inquiring the inquiry as to whether a spouse or employee is optimising his or her capacity. He is interested besides with people who are willing to take hazards and the best in their undertakings. For a long clip, he has succeeded in conveying out the best out of his staff, a nucleus character of transformational leader. There is no uncertainty about the fact that Branson ‘s success since 1970s is attributed straight to his attitude towards direction of a squad. In his attack, the barrier bing between the employees and direction is broken.

In fact, many people working with him attacks concern issues with a doctrine of accomplishing through advanced thought and non adhering to the preset regulations. Because of the political orientations propagated by Branson, all participants in the organisation portion similar values. He formulated his ain manner of leading, pluming himself on incorporating the employees in to his manner and seeking their ideas on ways of bettering value to clients. Employees are expected to internalise these values and respond in conformity to them. Integration of corporate values in leading schemes means that there is small intervention by external forces ( Werdigier 2007, pp. 4 ) . Nevertheless, Sir Branson ‘s attack does non intend that the employees are wholly dependent on the president ‘s ideas. They are every bit accountable of their actions like fellow employees under transactional leading. In order to actuate his employees, Branson and his direction squad, particularly human resources direction section have systems of heightening committedness of employees through fillips, stock options and net income sharing, and internal publicity wherever possible.

Apart from Sir Branson ‘s input in the success of the Virgin Group, there is a part of organisational civilization in the company. Organizational civilization bing in Virgin Group in reasonably complex. The Group serves more than 100 companies runing individually in the industries which are non wholly related. The common characteristic within of all time company in the group is the glamourous Virgin Brand. The trade name remains unchanged in all companies runing in different concerns. This is a similarity, which puts a heavy duty on each section or division to positively stand for the trade name. The image reveals an overall image of quality and invention inherent in the group. Through the creative activity of an sole trade name, the company has been able to consolidate and keep desirable trueness degrees among the clients.

The diverse concern portfolio evident in Virgin Group concerns is helpful in edifice and keeping trueness in assorted industries. This is the chief ground as to why the company has witnessed high degrees of success. The directors in the company employ the construct of creativeness to promote employees to heighten their part to the group in whatever degree of hierarchy. They discourage the scenario where employees sit back to put to death instructions. Employees have the capacity of bring forthing cutting-edge merchandises, which the whole company will be able to present to the market. They can besides explicate ways of bettering efficiency in the company. This is an outstanding characteristic of Virgin Group. Every person has a say when it comes to merchandises development. The direction manner in application at Virgin Group encourages members of staff to be competitory. This will finally construct a desire in the Black Marias of employees to see the company win so that they can be recognized as subscribers to new and advanced concern theoretical account.

There is no clear cut between direction and leading within Virgin Group. Transformational leading emanates from executives and top directors in the company. There are consonant ends set by Sir Richard Branson and fellow company executives. Assorted companies within the group will work towards accomplishing those ends. These ambitious ends range from use of new engineering, enlargement in international markets, joint venture with other bing companies and trueness among clients.

Goals formulated at this degree of direction are communicated to every employee in the company. This is a good scheme, which gives every employee a undertaking to carry through in furthering the group ‘s mission. The senior direction implores the employees to end product their accomplishments in such a manner that they are traveling to complement the company ( Virgin Group n.d. ) . The impression behind this attempt is to progress the doctrine that the full benefits of the group will finally take to single additions for every individual involved. The part to the group will finally ensue in wagess for directors, employees, stockholders, executives, and clients likewise.

One desirable characteristic of Virgin Group is its organisational construction. Through its construction the company has succeeded in get the better ofing the challenges related to enlargement. An expansive organisation like Virgin Group must research ways of managing the monolithic information within the company. Through its level organisational chart, Virgin Group Limited has been able to manage it expansive concern portfolio with much easiness. The decrease of horizontal concatenation of bid agencies that interdepartmental communicating is enhanced.

As the degree of hierarchy moves down, the lower degrees of direction tend to concentrate more keenly on the direction of the company. Although leading is ever encouraged among the directors, it requires some degrees of rigorous direction to do certain that the undertaking has been accomplished. Different divisions within the company hold different direction map. At Virgin Group, directors have several ends of broad range. Because of the fact that different divisions of the company are specialized in their operations, well-trained and qualified troughs are required to pull off it efficaciously. In most instances, directors employed by the company have a house background in their sector of specialisation. They must besides turn out that they are capable by demoing a successful record of achievement. It is the exclusive duty of directors within Virgin Group to guarantee that daily operations needed to maintain the division running are executed efficaciously.

Organization is a critical ingredient in the success of Virgin companies. Since the group in an formless company comprising of several companies, organisation is really critical in seting together the procedures ( Human Resources Magazine, 2003 ) . To get down with, the company has many ends to be achieved like spread outing the planetary presence and edifice of client trueness. The top executive are responsible for finding these ends and doing them available to the full company. The same executive must guarantee that these ends are accomplishable for them to be received good by employees. However, cautiousness should be exercised to guarantee that the employees are non underutilized. Ambitious ends are of import for employees to experience that they are engaged in meaningful undertakings. Organization of these ends within the division will guarantee that specific marks are made. Every division has separate and specialised ends aimed at increasing market portion and betterment of merchandise and services.

As the hierarchy advances to the junior staffs, ends become more precise and short lived. The marks set at execution degrees are easy accomplishable because they are really specific. These specific ends are formulated by division directors with close mention to those of the full group. This system of information transportation enables the company to stay on path on the journey to run intoing the marks set by executives. Virgin is a living grounds for the fact that this sort of organisation is a major requirement for concern success. Interrupting down of general ends in to actionable points is a desirable characteristic revealed in Virgin ‘s organisation.

A healthy and feasible organisational construction witnessed in Virgin Group ‘s concerns is attained with many changing schemes. Transformational leading is one of these schemes that have seen the company attain great highs of success. This scheme enables people of diverse backgrounds and ability to portion a common end. Through working together, a squad can unite its members ‘ attempts and work towards accomplishing a common end. Transformational leading gives everyone an equal opportunity to end product his or her ability without reserves. A critical reappraisal of Virgin Group concern reveals that its versatile and advanced work force is due to the transformational leading in topographic point. This is in contrast with transactional leading in which employees are compensated harmonizing to public presentation. The draw back with this sort of leading is that it breeds avaricious employees whose end will be to accumulate wagess every bit much as possible ( Gill 2006, pp. 63 ) .


In decision, there are many things to be learned from leading and direction of Virgin Group Limited. The company has cut itself a niche in assorted industries. It has besides proven that all things are possible with dedication and committedness. Through the able leading of its Chairman, Sir Richard Branson, the direction squad has come up with a alone expression of pull offing large-scale concerns like Virgin Group. To a big extend, the success of Virgin Group is straight attributable to the input of Sir Branson. He has succeeded in opening a new chapter of direction, which deviates from conventional methods ( Robert 2000, pp.4 ) . His broad and all suiting attack is desirable. There is a formidable blend between direction and leading. A critical reappraisal of these two elements reveals that there is no clears cut between the two: a characteristic that has worked good for the company.


Hi there, would you like to get such a paper? How about receiving a customized one? Check it out