NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Managerial Skills and Abilities of Richard Branson-Founder of Virgin Enterprises Virgin Enterprises can definitely be considered one of the most efficient and profitable companies in the world right now, and the main reason for that is its owner Richard Branson. A high school drop out, he managed to create his own businesses starting from a school and college newspapers and ending with transnational corporations. Within the course of this paper, we will elaborate on Branson's managerial abilities and skills, as well as see how he is able to run a business that huge. The main attempt of this report is to discover what skills and abilities are most helpful to Branson in his operating the businesses he owns. He has been crowned the world's sexiest businessman. He's more popular than the queen, almost as trusted as the archbishop of Canterbury, and just as daring as Philips Fogg.
He is Richard Branson, part-time balloonist and full-time billionaire of the people. He can do no wrong these days. Nearly 30 years since he founded a mail-order record business called Virgin in the basement of a London church, Branson, now 51, has gone on to start more than 150 other businesses, and the Virgin name is emblazoned throughout the British Isles: on planes (Virgin Atlantic), trains (Virgin Rail), music stores (Virgin Megastores), drink bottles (Virgin Cola, Virgin Vodka), theaters (Virgin Cinemas), even investment funds (Virgin Direct). Altogether, you " re looking at a $ 3. 5 billion company with profits of $ 350 million. (Marquardt, p. 123) Branson is the first to admit he is an unlikely success story, that it seems "a little funny" that the same young promoter who brought the world the Sex Pistols is now hawking pension funds. Yet the smile that forms on his lips after he says that betrays that he likes the idea -- really likes it -- for there is nothing that seems to get him off more than taking on the establishment, in whatever industry it may be: music, travel, or financial.
Branson is gearing up to launch Virgin Cola in the United States. The kickoff show is under wraps, and judging from his previous publicity stunts, it shouldn't be dull. What Branson hasn't kept a secret, however, is the formula behind Virgin's prosperous streak. Dressed casually in a loose-fitting navy blue dress shirt, Virgin's slight but fit leader leans back in his office chair and says, "We look at markets where things have been done the same way for a long time, and we ask whether we can do anything differently. " (Brown, p. 55) In the case of Virgin Atlantic, the idea was simply to provide better service than the other major carriers did. His airline offers such "Virgin touches" as massages and manicures on the plane to first-class customers, who pay business-class fares.
With Virgin Direct, Branson's plan was equally simple: he would charge far lower commissions than other investment funds did. "Everybody laughed at first, " says Will Whitehorn, Virgin's corporate-affairs director, "because what relevancy did Virgin have in the financial market?" In 2000, he says, Virgin Direct took in $ 650 million. (Marquardt, p. 129) Both Branson and Whitehorn agree that part of the reason Virgin has done so well is that Britain has a pretty ossified market structure compared with the more competitive American structure. There are plenty of companies in the U. S. , for example, that have long offered products -- say, 401 (k) s -- similar to Virgin Direct's. But they think there are U. S. industries -- movie theaters and cola, for starters -- that can be "Virginized. "Our challenge is to extend the Virgin name while maintaining its high standards, " Branson says. "In the past, we had a few problems with some licensing deals.
So now we bring out almost all of our products ourselves. " (Marquardt, p. 137) "The main thing we look for in our employees is people skills, " says Branson. (Manfred, p. 36) But beyond that basic credo, he has always treated his employees with respect. "He sees all business as people business, " says Whitehorn. "I think his whole philosophy goes back to the record company, where he saw himself as a manager of artists -- helping develop and nurture them. " (Branson sold Virgin Records to EMI in 1992 for $ 1 billion to finance the then struggling Virgin Atlantic. Since then, he has started a new record company, V 2. ) (Marquardt, p. 140) In the entire time Branson ran Virgin Records it never lost a major artist; that, Whitehorn claims, was because of the way the artists were treated: as part of a team. Even as Virgin has become a conglomerate, Branson has practiced minimalism. He still works out of the London house that was his former residence (his current home, where he lives with wife, Joan Temple man, and his two children, is just a few doors down from his office), and he doesn't like to put more than 100 people in a single building. "Everybody should know each other, so they can learn each other's strengths and weaknesses and feed off them, " he says. (Brown, p. 89) Branson is also continually breaking up his companies or creating spinoffs that he lets talented former department heads run so that he can focus on the big picture. That independence makes ambitious employees -- some of whom could start their own businesses -- stick around.
But at the same time Branson can be obsessive about details (he's a big note taker), especially when they involve a large capital expenditure -- like new high-speed trains for Virgin Rail. "He knows those trains inside out, " says Whitehorn. (Marquardt, p. 144) He's thrifty as well. Instead of doing the kind of expensive, two-year market-research study that a FMCG (fast-moving consumer goods) company like Procter & Gamble would do before launching a new drink, Branson tested Virgin Cola, which is cheaper than Coke or Pepsi, in one major supermarket in England over six months. He started Virgin Atlantic with a single 747 (now he has 20 wide-body jets). His test: "I remember I called up People Express, and I couldn't get through to them.
And I thought, well, they must be doing really well or they " re really inefficient. If either was true, I figured, there was room for competition. " (Marquardt, p. 147) Branson then called up Freddie Laker, whose airline, Laker, had gone out of business, and asked for advice. It was Laker who told Branson he should use himself to promote Virgin Atlantic to compete against British Airways' vast advertising budget. Today Brits affectionately use the term Bransonesque to describe anybody who's flamboyant. There are the daredevil boating and balloon expeditions and the April Fool's pranks: one time Branson dressed up a balloon as a UFO and, when it landed, had little green men emerge from it. "Editors have to put pictures in their publications, " he says. "Without being too crass about it, we try to make their jobs a little easier. " (Manfred, p. 56) He has this advice for publicity seekers: "As long as you don't hurt anyone and are creative, the authorities are usually fairly forgiving. " (Marquardt, p. 150) Even with all the success, Branson has managed to remain an underdog by slipping up a few times and not being too flashy. "I don't own a Rolls-Royce, because, really, any car will do to get you around town, " he says. (Manfred, p. 59) He's also able to put a positive spin on such defeats as crash-landing his balloon in the Irish Sea, among other places around the globe. "If we'd made it the first time across 'the Atlantic, people wouldn't have rooted for us or been as happy as they were when we finally did make it. " (Marquardt, p. 155) Richard Branson's marketing savvy has made his Virgin Group empire seem larger than life, and his latest endeavor, an online radio network based in Los Angeles, is no exception. Radiofreevirgin.
com is the first official online investment by Branson, chairman of the Virgin Group, who has pledged to pour $ 247 million into Internet ventures. (Marquardt, p. 156) More than 400, 000 users worldwide have downloaded the Radiofreevirgin player, which allows users to listen to a host of online music channels. In the overcrowded online radio market, the company's advantages include a strong affiliation with the Virgin Megastore chain, not to mention Branson himself. "Building relationships is potentially quite important, and obviously Virgin has a lot of ability to do that, " said Jeremy Schwartz, media and entertainment analyst with Forrester Research. (Marquardt, p. 159) When Virgin Megastore launched its Virgin Mega. com Web site a couple of years ago, the site's developers thought streamed music would be a good accompaniment for users as they searched for their favorite titles to purchase online. A downloadable radio player was added as a small tuner buried in the Virgin Mega. com site.
In a short time, thousands of people had downloaded the tuner, through which they could listen to sets of streamed music specially created for the site. "It got rave reviews, and we never spent any money on marketing or put it prominently on the site, " said Zack Zalon, general manager of Radiofreevirgin. (Marquardt, p. 167) After about 100, 000 people across the globe had downloaded the tuner, executives realized they had a viable business on their hands and brought a business plan for an online radio network to Branson. Radiofreevirgin. com was established as a separate private company owned entirely by Branson and headquartered in the Miracle Mile district of L. A. , under the official name of Virgin Audio Holdings LLC. Users can now download a beta version of the Radiofreevirgin tuner for free at web There are already thousands of online radio sites in operation, according to industry analysts. The sites range from traditional broadcasters net casting their over-the-air programs, to specialized broadcasters that focus on one type of music, to network-style companies like Radiofreevirgin that nutcase a wide variety of music channels. "There are a whole slew of Web sites that are for music, but I don't think Radiofreevirgin is necessarily a late entrant.
Radio via the Internet is still wide open, and I don't think anyone has established any kind of advantage, " says Richard Branson. The next several years will bring more competitors and consolidation, and creating a strong brand will be very important, Branson said. (Marquardt, p. 170) "I'm looking at the site right now, and the way they name their channels -- 'Guilty Pleasure, ' 'Game Goth, ' 'Hip Hop 101 ' -- this is the way that you " re going to cut through the clutter, with clever branding, " Branson said. "And Virgin itself is a strong brand in music. " (Marquardt, p. 172) Those brands and the station's programming have been dominant factors in the network's word-of-mouth success. About 25 online music channels, from "Love Sexy" (think Barry White) to "Guilty Pleasures" (Olivia Newton-John ballads and the like) are currently available. Radiofreevirgin's in-house staff puts together the playlists for the channels, but outside experts have been hired to program certain genres of music, such as Delta blues.
They also have tapped into the Virgin Megastore's resources, including the deejays who program the music that's played over the in-store sound systems. The company's relationship with the Virgin Megastore has helped Radiofreevirgin move ahead in other areas as well, such as e-commerce. Radiofreevirgin features a "Buy it" button, which users can click to be transported to the Virgin Megastore Web site. There, they can buy albums and read reviews, while the Radiofreevirgin tuner continues to play music.
Radiofreevirgin plans to bring in most of its revenues through advertising, but will focus on trying out new methods, such as in-stream audio ads during the net casts, similar to commercials on broadcast radio. "People are sick of banner ads, " Branson said. Meanwhile, Radiofreevirgin executives are keeping in mind that the industry is changing rapidly and that users want to listen to music other places than on their desktop computers. That's why they " re currently negotiating deals to make the network accessible through set-top boxes, as well as via digital satellite radio and wireless devices. "It's like how movies started out like theater, and television started out like radio, with a guy just reading to the camera. Traditional radio is still related, but this is a different medium, " Branson said. "The progression of radio to the Internet has not matured. " (Marquardt, p. 175) The money is important. It always is. But, if nothing else, Branson has been able to show that having fun and creating is more important. "I remember walking down the street after I sold Virgin Records, " he says. "I was crying.
Tears of grief. Streaming down my face. And there I was holding a check for a billion dollars. " He pauses for a second, and then adds, "If you'd seen me, you would have thought I was loony. A billion dollars. " (Manfred, p. 63) Definitely, Richard Branson is a unique person and a very efficient manager. Among the main abilities and skills we can emphasize his ability to work with people, structure his businesses in such a way that they would function in the most efficient manner and his willingness to take risks when necessary in order to obtain profits. Personally, after doing a lot of research on Branson, I think that his success is based on the fact that he is not creating new businesses solely for money, but just for the fun of it.
Words Count: 2, 214. Bibliography: Brown, M. Richard Branson: the inside story. London: Headline Book Publishing plc, 1996. Manfred F. The New Global Leaders: Richard Branson, Percy Barnevik, and David Simon.
New York: Harper Collins, 1999. Marquardt, M. Global Leaders for the 21 Century. Michigan: Zondervan Publishers, 2002.
Free research essays on topics related to: skills and abilities, strong brand, virgin, billion dollars, record company
Research essay sample on Skills And Abilities Billion Dollars
