Richard Branson: The Three Key Issues

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Richard Branson List three 'key' issues in the case and explain what makes them strategically important issues. The three key issues inside the case include: Richard Branson's management style, his approach to running his businesses and the values that he applied to business situations. Branson's management style is very informal. This means that he does not have a company headquarters that he will work out of. Instead, Branson will conduct business from his family homes or out of his houseboat. This is different from most corporations that have a clear division between the activities of managers and their personal lives. ("Richard Branson and the Virgin Group," 2007) The style that Branson is using to run the business is to focus on each entity as a single operation (which is individually financed). This makes it difficult for most financial analysts to accurately value Virgin. However, Branson is not concerned about these issues, as he believes combining the total profits together will provide inaccurate results. Instead, he is focused on using cash flow and fair value to determine the net worth of his different businesses. ("Richard Branson and the Virgin Group," 2007) The ethics that Branson applied to his businesses were to show how he was an honest person (who was doing the right thing). During several high profile disputes with large customers / competitors, is when these values helped him to prevail. This is because he could demonstrate how he was trying to
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