Richard Branson

Group OneChan Yin Mui, AngelChong Kar Yee, LucyWong Ka Pik, VenusWu Yi Hua, EvaYeung Chui Ying, Tracy

Outline of PresentationProfile of Richard BransonProfile of Virgin GroupRichard Branson's leadership style/approach Situational circumstances contribute to Branson’s successComments on Richard Branson

Profile of Richard BransonJob: Chairman, Virgin GroupAge:51Marital Status: Married, with 2 children2001 Ranking: 52

1) Profile of Richard Branson

& his Virgin

Profile of Richard Branson1950 Grew up in a traditional family and received education at Stowe School1970 Founded Virgin as a mail order record retailer. Later in this year, a record shop opened in London1992 Virgin Music Group---sold to Thorn EMI in a $1 billion US deal1992 Starting of the Megastore1984 Started the Virgin Atlantic Airways2001 Received 2 knighthood from Queen Elizabeth II

Impression of Branson…Impression of Branson…Enviably successful!Rich! Extremely Rich!Fun-loving~Flamboyant~

Virgin Key Businesses1. Virgin Travel Group Limited

(Includes Virgin Atlantic and Virgin Holidays)established in 1984big fleet with 26 Boeing 747s and Airbuses Revenues : 1.6 billionProfits : 151 million

Virgin Key Businesses2. Virgin Entertainment

(Includes Megastore and Virgin Cinema)Revenues : 1.3 billionProfits : 81 million

Virgin Key Businesses3. Virgin Rail

(Includes Cross country and West Coast)Revenues : 671 millionProfits : 22.9 million

Attributes-Risk-seeking & InnovativeRisk SeekingEvidence: His insatiable desire to take on Coca Cola and British Airways-the industry giantsCareful plan for aggressive competition:

make a lot of noise to irritate those gorillas,so that they tried to swat back.Then he waited for their mistakes

2) Attributes of 2) Attributes of Richard BransonRichard Branson

Attributes-Risk-seeking & InnovativeInnovativeEvidence: tried out every mean to promote his companyExample:

1) Drive a tank down 5th Avenue in N.Y city to introduce Virgin Cola to the States

Attributes-Risk-seeking & Innovative

2)Fly a hot air balloon across Atlantic to promote his Virgin Airlines3)Wear a wedding gown to promote his new bride chainsAND MANY MORE!

Attributes-Attributes-People-OrientedPeople-Oriented

His belief: PEOPLE COME FIRST‘PEOPLE’: includes Employees and Customerslikes to refer to the Virgin staffs as a large extended family

e.g. gives every new employee his telephone number & encourages them to call him if they come up with any bright ideas or complaints

Attributes-People-oriented

For customers, he tries to keep them paying the lowest price for their products as long as he can cover the cost and earn ‘some’ profit

Believes in keeping faith with the staffs no matter in good times or bad

E.g.He shared the settlement from British Airways equally with his staffs

Attributes-Determined & Optimistic

Failed to wrestle the UK’s lottery franchise from Camelot But was dignified in defeat Looked into the positive side

Attributes-Attributes-Determined & OptimisticDetermined & Optimistic

Immediate action:call the CEO of Camelot asked her not to feel sorry for him……

because he still had a beautiful life!Within days, he announced his own non-profit game.

3) Richard Branson’s Leadership Style

A) Transformational Leadership

“Master Motivator”

Pushing employees into their limits

Turning the self-interests of employees to the sake of “Virgin”

A) Transformational A) Transformational LeadershipLeadership

He believes: Enthusiasm is infectious! He is good at:

Attempting the impossibleTo excite, arouse and inspire followersGiving trust and encouraging followers

A) Transformational Leadership

Example: MISSION IMPOSSIBLEHe asked John, the marketing manager of Virgin, to place an ad in the London Evening Standard. Tomorrow will be the deadline! ** He gave confident to John and said, “Do your best all the same as normal.”

Result: John paid superhuman effort and spent entire day, did make the last edition of the standard.

B) Empowerment B) Empowerment Leadership StyleLeadership Style

Definition: Intrinsic motivation and

self-efficacy of people are influenced by leadership behavior, job characteristics, etc .

Transferring authority to subordinates

B) Empowerment B) Empowerment Leadership StyleLeadership Style

“Virgin” TrademarkSituation:More than 200 companiesNot feasible, hard to be

boss of all of themSolution:Empowerment

B) Empowerment Leadership Style

Branson Backseat Leader“ I know when to get out the way

and let people get on with it.”

= Want, X= don’t wantX people follow him blindlyX hired hands individual entrepreneurs

                                                                                   

B) Empowerment Leadership Style

Advantages of this style

Virgin staffs regard works are meaningfuldevelop self-determination and self-efficacy because they have a significant impact on works.

C) Charismatic LeadershipC) Charismatic LeadershipAttribution Theory

Charismatic leader

A form of INFLUENCEBased on followers’ PERCEPTION

Leader has exceptional QUALIUTIES

Example:Example:VIRGIN ATLANTICVIRGIN ATLANTIC

Founded in 1984Branson’s visionDangers behind?

Extremely capital-intensiveLaker Airline’s failureAviation industry: political

Example:Example:VIRGIN ATLANTICVIRGIN ATLANTIC

Branson: To be? Or not to be?That is the QUESTION!

Branson: Go on!Think about:

Risk: huge loss (Virgin)Personal failure: money, status!

Example:Example:VIRGIN ATLANTICVIRGIN ATLANTIC

What did Branson demonstrate?His……

Courage - VisionSelf-Confidence - CommitmentEmbrace to Changes

Dreaming Impossible Dreams ; ChallengeAct in unconventional ways

Example:Example:VIRGIN ATLANTICVIRGIN ATLANTIC

Branson’s decision making process:

Rational LogicalRealistic Assessment

Minimize riskBalance between DREAM and REALITY

Example:Example:VIRGIN ATLANTICVIRGIN ATLANTIC

Branson = Charismatic leader? Courage Self-confidence Commitment Think Rationally Embrace changes

Charismatic leaderVision, Confidence, Couragebearing substantial riskMinimize risk, at the same time~

Therefore……Therefore……

Richard Branson Richard Branson

= Charismatic Leader~= Charismatic Leader~

= Effective Leader~= Effective Leader~

D) Inspirational LeadershipD) Inspirational LeadershipManage employees with “Tough Empathy”Empathize peopleCare about employees’ work

Branson’s PhilosophyBranson’s PhilosophyAn ADVANTAGE of Virgin:

EMPLOYEES

SUCCESS of Virgin:EMPLOYEES + MOTIVATION

Branson’s concern:Employees’ cohesion +

satisfaction

Examples?Examples?Promote from within Assign Virgin’s bright people to new companies

Stretching, Developing employeesProvide opportunities!

More Examples?More Examples?Party Hard!

Throw a party…

When morale is low…………..↓↓Letter (sealed with a kiss…?)

Every month, Branson wrote personallyContent:

Heart-warming messages~~~Virgin’s plan~

Branson Cares!Branson Cares!Employees’ workTheir Feeling, Satisfaction

Branson: an inspirational leaderBranson: an effective leader

4) Our Stand Point:4) Our Stand Point:Richard Branson comes up Richard Branson comes up

with a great success !!!with a great success !!!

Argument for Branson’s success

1) High-high leaderBoth task and relations-orientedTasks: Clear objectives and goals for all Virgin Brand CustomizationRelations: treats everyone equally + supportExample: He writes birthday card to staffs to praise their effort of saving virgin’s reputation.

Argument for Branson’s success

2) Innovative and unique leadership style

Richard Branson likes creative and innovative ideas

encourages his subordinates to look

beyond the differences in each sector Adopts diversification strategy Sectors where he had set up never the

same again

Argument for Branson’s success

Our team impressed by his adventure-liked Style.

He likes daunting challenge, he views impossible as just another business opportunities.

Vision