Business Philosophy and Leadership Style of Richard Branson

Business Philosophy and Leadership Style of Richard Branson

1. Introduction

Richard Branson is the founder of Virgin Group who was born on July 18, 1950. The Virgin Group is a special organization, since its establishment in 1970, virgin has covered in more than 200 fields including records, retail, soft drinks, railway, aviation, telecommunications, etc. (Branson, 2014). At present, it is the largest private enterprise in Britain. The Core of Virgin reflects its values, which can convey the main brand information to consumers about products and enterprises. In fact, the name of Virgin is anti-traditional and very special. More importantly, the brand is not only a name, Virgin means a kind of attitude to life, including freedom, rebellion, open up, full of passion and extremely precious romance (Shavinina, 2006). Virgin anti-tradition not only reflects by its unexpected brand extension, but also the founder Branson with his stunning movement and vivid interpretation; all his actions have become the focus from the public.

In this research, the author will analyze Richard Branson's business philosophy as well as leadership style on the basis of organizational theory, trait theory, behavioral theory and situational theory. Then, the author will make the comparison of business philosophy and leadership style between Richard Branson and other famous leaders, to analyze the difference and conclude the reason of Richard Branson's success in business.

2. Richard Branson’s business philosophy

2.1 Organizational theory

Richard Branson produces great relations with his employees and show the greatest respect to them. He treats his workers just like his family members rather than his subordinate. Once, he held a home parties and invites some of his junior members to celebrate (Dearlove 2007). He is willing to receive some suggestions, feedback and new ideas from his employees no matter you are junior, senior or newbie; employees in Virgin Group have their right to convey their thoughts. The Virgin group has no strict rules and Branson provides the freedom and initiative to his employees without hesitation. In the group, there are no explicit procedures; thus things do not have to be finished according to procedures. He advocates flat and non-hierarchical structure in Virgin Group, which is composed of clusters, and provided the maximum flexibility for his employees to work freely and independently, getting rid of much interference from outside (Dearlove 2007). The above characteristics obviously reflects that Branson's organizational theories possess more democratic and participative characteristics. Branson always emphasizes employees play more important role in his group; without great employees and without democracy and initiative, he could not be successful. In conclusion, the business style of Branson pays more attention on his employees compared to other traditional group.

2.2 Organisational Structure

The Virgin Group is composed of almost 150 units, or at least 150 small and medium-sized enterprises (Grant, 2008). A series of secrecy is kept in the financial structure and legal structure on the basis of complex network. The operational structure is undemanding and pays more attention to employees themselves. Employees there possess a stake of every company which would be the success to Virgin business. Under this situation, each company in Virgin Group can realize self-sufficient. Every company possesses the identity of Virgin Group; in other words, the employee would significantly produce the influence to the success of Virgin Group. This situation just like these employees under the umbrella of Virgin Group (Grant, 2008).

With the management system that responsibility and power allocated to every small unit. Therefore, the traditional organizational structure of Virgin Group has been reasonably distributed. However, an in-depth analysis points out this kind of structure is an unorthodox structure and more reasonable. This is obvious that senior managers plays a more important in the entire group.

Most of management system in the Virgin Group are connected with each other, Richard Branson's close friends as well as relatives have a business connection with him because of their position in this group. Each member has the ability to make the decision and run the daily operation in their department. They also can be advisers in strategy and planning of Virgin Group with plan assessment and new management team construction (Grant, 2008). In fact, there is no explicit structure of organization's management in the Virgin Group, The business and financial management of Virgin in a long period of time maintains centralized including Richard Branson himself, managers and executives.

2.3 Post-modern organization

Richard Branson is a reflective person. 40 years ago, he had already got the global consciousness when he created the Virgin Records label. Branson went to Los Angeles in order to collect his favorite Grammy Award, so that he could celebrate his devotion to the field of music. Branson always wear his classic black leather jacket, with long hair. He maintains his energy and power in Virgin Group; he expands its reach to including air travel, broadcasting, publishing and mobile communications (Branson, 2014). With the development of the globalization, Richard is going to build a more post-modern organization which adheres his personalities. This organization pays more emphasizes on innovation and freedom, which could assist Virgin Group to get more success in the modern business world.

3. Richard Branson’s leadership

3.1 Trait theory

Richard Branson possess some traits that adheres to leadership trait theory. First of all, he never doubt himself and full of confidence. He possesses a high self-esteem and willing to challenge the current situation and conquer it. Second of all, Virgin Group cover a large number of companies with different industries; therefore, as the leader, he should always full of passion and be energetic. He possesses professional knowledge with every industry he entered to; in other words, he always charges himself in order to enter a brand new industry (Branson, 2014). If one leader does not possess some professional knowledge, no one would respect him. Therefore, Richard Branson is a leader who is self-confidence, full of passion and possesses relevant knowledge in the target industry.

3.2 Behavioral