Virgin Group Intro (Principles of Management)

Principles of Management

Formation and early yearsVirgin Group

Sir Richard Branson

• British business tycoon• Est. net worth $2.5 billion• Founder, Chairman of Virgin Inc.

• First successfully business at age 16• High school dropout• Knighted in 1999 for “services to entrepreneurship”

Brief History

• Started out as a mail-order record business

• 1969: incorporated as a holding company• 1972: Virgin Records• 1984: Virgin Atlantic Airways• 1999: Virgin Mobile• 2001: Virgin Galactic• 2006: Virgin Fuels, Virgin Comics• 2007: Virgin Health Bank, Virgin Money• Various humanitarian and philanthropist efforts

Corporate Overview

• Branded venture capital organization• Holds stock of more than 200 companies worldwide• 50,000 employees, 29 countries• Est. revenue $17 bn (2008)

• Brand controlled by Sir Richard himself• Unique management style

Values and VisionVirgin Group

Values and Vision

We believe in making a difference. Virgin stands for value for money, quality, innovation, fun and a

sense of competitive challenge. We deliver a quality service by empowering our employees and

we facilitate and monitor customer feedback to continually improve the customer's experience

through innovation

Values and Vision

• Corporate strategy and values reflect those of Sir Richard Branson• Innovation and nurturing big ideas• Aim of helping the world & humanity, not just making quick money• A challenge in each business venture• Enter and reinvigorate stagnating markets with potential for growth• Take care of customers and employees first• Respond to customer needs

Competitive EdgeVirgin Group

Competitive Edge

• Market Analysis• Is this an opportunity for restructuring a market and creating competitive advantage?• What are the competitors doing?• Is the customer confused or badly served?• Is this an opportunity for building the Virgin brand? Can they add value?• Will it interact with other Virgin businesses?• Is there an appropriate trade-off between risk and reward?

Competitive Edge

• The power of the Virgin name

• Richard Branson's personal reputation

• Their unrivalled network of friends, contacts and partners

• The Virgin management style

• The way talent is empowered to flourish within the group.

Organization LifecycleVirgin Group

Lifecycle

• Entrepreneurial stage• Mail-order record business• First store in 1971• Signed The Pistols in 1977

• Collectivity stage• Expansion into the airline business• Relaxed management style• Autonomy to managers• Breaking up of business into manageable units

Lifecycle

• Formalization and control stage• Further expansion into diverse fields• Development of partnerships and joint ventures• Some failed ventures• Plans for the future