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This report will focus on Sir Richard Branson and what are Virgin Groups strategy, culture, marketing and motivation. The name of Virgin Group was combined by words fun innovative daring and successful. (Johnson, Scholes, Whittington, 2009). And this report will explain what factors make The Virgin Group to be success. The success of Virgin Group is depending on five aspects: firstly, to enjoy the working atmosphere. Secondly, is to create something new and outstanding which can attract more customers. Thirdly, create something that the employees really proud of. Fourthly, to be a good leader that let employees are willing to contribute to the company. Finally, have a warmth and friendly work culture, to provide a pleasant working environment to the employees. (Branson, 2010). This report is being produced for Mr. Burns, Mr. Cowley and Mr. Nair, as part of the FC088 assessment.
2.1 Profile of Richard Branson:
Sir Richard Branson, the founder of Virgin Group, one of the most successful entrepreneurs in the world. He was born in 1950 in Surrey. He was a good student at school, he worked very hard, but he dropped out at school with dyslexia when he was 16, then he began to start his own business - Student Magazine. This magazine was for the students and its publication was run by the students. Richard Branson decided to send the magazine for free to the students. This is a good decision, this magazine became most popular topic between students, and the magazine makes lots of profit from the magazine's advertising. This is Sir Richard Branson's first business. He started his first business when he was 16. A few years later, he began to start many different types of business, such as Virgin record and Virgin media. Nowadays, Virgin Group is one of the most successful enterprises in the world, includes more than 360 companies in over 30 countries.
Richard Branson is a very success entrepreneur he also is an adventurer, he is the first human who was crossing the Atlantic Ocean (1987) and Pacific Ocean (1991) by hot air balloon. (Branson, 2012). This adventure makes Sir Richard Branson to be a success entrepreneur.
Richard Branson has many of the characteristics of other entrepreneurs. !!!
Determined doesn't give up, although he has made mistakes, it has not put him off from starting again.
2.2 Virgin Group's Marketing Strategy:
Marketing Strategy is a long term action plan to achieve the goal in the future (Class notes,2012). Virgin Group has more than 360 companies over 30 countries in the world. There are different marketing strategies in each company. According to Virgin Atlantic Airline is the highest revenue of Virgin Group, this part of the report will take Virgin Atlantic Airline as an example to explain the marketing strategy of Virgin.
The mission statement of Virgin Atlantic Airways is "Safety, security and consistent delivery of the basics are the foundation of everything we do."
Virgin Atlantic Airway's marketing strategy is by being fun in the trip, more innovative, so Virgin Atlantic Airways provide movie, food and music in the flight, and it is all for free. Good training for the employees is also important. Base on the employees' characteristic to arrange the different position in order to give the best service to the customers.
Virgin Atlantic Airways know that the marketing mix is also important for a company. Marketing mix means to combine the entire element to know what the customers' needs and set a strategy to meet the customers' needs (Egan and Thomas,2003).
Marketing mix is making by the "4P's". "4P's" including "Product", "Price", "Place" and "Promotion".
Lets take Virgin Atlantic Airlines as an example:
Product means the right product for service, such as its design and quality.
Virgin Atlantic Airline no just only provide a flight, it can also help you to book a car and hotel. It is convince for the customers.
Price means to sell in a right price, how much the customers will pay for.
Is to provide the cheapest price to the customers, let everyone can afford the price.
Place is means to sell the product into the right place.
Virgin Atlantic Airline's place is become worldwide. Everyone can through the Internet to buy an air ticket.
Promotion means using the most suitable for the promotion, because the promotion will affect the first image for the customers.
The promotion of Virgin Atlantic Airlines is to advertise in the TV, magazines and the taxi sides' posters. One of the promotions is to having a club for saving the miles you have before, then you can use that miles to exchange for a free gift even can exchange a free flight. This is a good way to increase the market share (Virgin Atlantic Airline, 2012).
Motivation is a very important element for the business, which means the factors that to push employees to work hard and achieve their goal. (Surridge & Gillespie, 2011). If the employees are motivated, they will work hard and provide a better quality of work with fewer mistakes. Motivation includes three theories. These are "The School of Scientific Management" (Taylor, 1911), "The Human Relation School" (Mayo, 1935-1937) and "The Neo-human relations school" (Maslow & Herzberg). cita
Taylor noted that people were motivated only by money. Mayo believed that social needs are the most important to motivate employees to work. Maslow and Herzberg believed that psychological needs are the only way to motivate employees to work. (Surridge, Gillespie, 2011). Virgin Group are following Maslow and Herzberg's ideas, that is focusing on psychological needs of the employees, there are some motivations of Virgin Group such as "Let employees loose", "Encourage informality " and "Praise people rather than criticizing them"(Dearlove, 2010).
"Let employees loose" means do not give too much stress to employees, if they work in a relax environment, they will have more creativity and they will enjoy more of their environment. Richard Branson advocates "Encourage informality " which means the employees of Virgin Group belong to a large family, so everyone works in the Virgin Group can call Branson by his first name and Mr. Branson would also try his best to remember all employees' name who is working for him, let the employees to feel warmth and valued. Besides, "Praise people rather than criticizing them" means in spite of the employees have done some mistakes, Branson do not punish them, he even give chance to the employees to correct the mistake (Nelson and Quick, 2008). This is a part of motivation of Virgin Group.
2.5 Culture (about250words):
Organization culture is means "The values and maxim of behavior to constitute a special culture for the organization." (Alvesson, 2002). There is a corporate culture of the Virgin Group.
Virgin' culture is based on the owner - Sir Richard Branson's management style. He believed "happy people at work really works." His management style is to provide a relax environment for the employees, to make the employees and the customers feel happy. Everyone would enjoy their job, if the employees are really enjoy working for the company, they will more concentrate to work, and they can provide a better quality of service. There are five ways of culture in the Virgin Groups: First, is to listen. Is to listen to the employees carefully and ask them what the staff are really wanted, and improve it. Second, to perform the promises of the employees, Branson remembers, analyzes and improve it finally. Make the employees feel they are important. They will please to work for the company. Third, set a higher aim and let the employees to achieve and let them improve their work. Fourth, Make sure everyone who is working in Virgin really understand the mission statement and they can easy to catch the goal. Finally, let employees to know their responsibility for the company.
3.0 Conclusion (about200words)
According the report, Virgin Group is an effective company