Richard Branson, Virgin Group & Strategy

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Richard Branson's Virgin Group is in many ways a victim of its own successful philosophy. Branson set out decades ago to upend traditional business, offering customers "value for money, good quality, brilliant customer service and innovation" (Case study, n.d.). In addition, the company works at being irreverent, thumbing its nose at tradition, in large part to gain publicity and notoriety. Adding fun into the mix further helps customers identify with the brand. Branson has been able disrupt industries, through the use of novel business ideas. The Virgin Group's successfully competes in "sectors ranging from holidays and health & wellness" (The Virgin Group, 2013).
The case study uncovers an issue, however, that the organization is widely diverse, following atypical procedures in financing and management. Thus, while the company is able to gain a great deal of publicity through its flamboyant innovative strategy, it has deviated from tradition and operates hundreds of companies under a corporate umbrella without a clear profitability or management model. This causes concern over the organization's ability to manage the separate businesses and maintaining an overall profitable picture for the company as a whole.
Branson and his team of executives run the Virgin Group as a series of diversified businesses, in an "informal, freewheeling management style" (Case study, n.d.). There is some question as to the ability of the organization to continue in this manner as it expands into more business opportunities, most seemingly chosen randomly rather than some having a linkage to a particular core competency of the operation. The company thrives on flying in the face of tradition, with Branson treating the business, seemingly, as a game of pretend, complete with dress up costumes. Yet, the results have been inspiring. Branson has built himself and the Virgin brand into household names, transforming industries in the process. The company refuses to focus on one business, one industry, or even one management style. Each business is allowed to run on its own, within the group. The businesses are "empowered to run their own affairs" (Case study, n.d.), helping share best practices with each other as needed, and focusing on "shared ideas, values, interests and goals" (Case study, n.d.).
Branson has been the driving force for the group, since its inception, with the organization's management and financial practices largely a reflection of Branson's own personality. The entrepreneur consciously focused on having multiple smaller companies, rather than a conglomerate, stating that when a "company got to a certain size; he'd break it into parts" (Ankeny, 2013) to maintain a fine balance of excitement, drive for success, and motivation. This results in a complex web of companies, however, ...