2.1 Branson's Personality: The first and a very important source and link for interaction leading to synergies between the separate Virgin companies is the presence and the role of its founder and instigator-Sir Richard Branson. Branson, right from the humble beginning of the student magazine, has been at the helm of affairs in building the business empire known today as Virgin Group Ltd. Branson has instilled his entrepreneurial spirit and business values throughout Virgin Group. His disdain for bureaucracy has brought about transparency and quick interactions among management and employees of Virgin group of companies. This level of interaction, courtesy Branson's business acumen and entrepreneurial vigor has seen a number of cases where, monies accrued from another Virgin company are used to expand that business, resuscitate another ailing company or develop entirely a new line of business within Virgin. For instance, the continual expansion of Virgin group using internal cash flows from Virgin Atlantic Airways is a typical example of this scenario. Similarly, the Virgin Megastores provided another opportunity for expansion, with new such stores opened in other locations such as Japan, United States, Australia, Spain and the Netherlands. Being a private group of companies, with few individuals at the top of decision making, it is fairly-easy to cause such internal interactions to create the desired synergy within Virgin Group.
2.2 Group's Brand Name (Virgin): Aside Branson's personality, and business charisma, another important asset that serves as strong source of synergies for the entire group is the use of common brand name (Virgin). The use of 'Virgin' brand by this diverse range of enterprises creates that sense of belonging and cooperation within the group. The brand name is perceived by many to be the single greatest asset binding these different companies. The brand name and the novel entry of Branson into new business frontiers has become an open door to the entire group, as the companies collaborates in business. Branson's modest approach to business has done a lot to strengthen the brand name, which in turn strengthens the synergies among the separate Virgin companies. Despite public criticisms over possible over extension of this brand, the wide spread use of the brand in capturing new and ailing business is enjoyed by many within the Virgin group. The business collaborations among the ever expanding Virgin group of companies are indeed a strong indication that without such synergies through use of its brand, majority of the Group's firms would have folded up and cease to exist. From customers' point of view, Virgin's desire and ambition to be known as 'customers' champion' is achieved basically by delivering brand values across the entire Virgin Group.
2.3 Organizational Structure: Another critical indicator that attests to the existence of synergies between the separate Virgin companies, is the combined effect created by the different entities through what many describe as a 'loosely-random-organizational structure'. Although, many analysts criticizes Virgin for its composition and lack of defined structure and hierarchy; but, the over two hundred Virgin companies operate together, with most of the operations conducted through other companies within the group; creating that combined effect. Irrespective of the fact that there is no overall single parent company for the entire group, there exist some companies within Virgin whose functions are basically to own and manage other operating firms within the group; which indeed creates the desired synergies of working and helping one another. Of all these over 200 Virgin companies, majority are operating companies who own assets and offer goods and services, the remaining few are holding companies. For example, Virgin Travel (Holdings) Ltd is said to own Virgin Group investments in Virgin Atlantic, Virgin Blue, SN Airholdings, and Virgin America; while the overall ownership of most of the Virgin Group is under the direct control of Virgin Group Investments Ltd. Therefore, no matter how seemingly-chaotic the Virgin situation might be, in terms of established structure and formal control systems; this weakness is effectively balanced by their high-level of cooperation.
2.4 Management Style: The lack of hierarchical structure and Branson's disregards to established business principles and conventions has succeeded in fostering stronger synergies between the separate Virgin companies. His unhappiness to function as the chairman of public corporation in the merger between Virgin's music, retail and vision businesses attests to this. Each of Virgin group of companies, are known to be individually setup and managed; unlike what is obtained in large established corporations such as Shell, Chevron, and British Airways etc. In Virgin Group today, the aspirations of employees of each individual company are properly aligned to those of the company; which gives the employees the desired latitude to do a lot of business exploits for their individual companies/group. There are no boards of directors for Virgin Group, and strategic decision making is solely the responsibility of Branson with a few top management executives. This type of management system offers short lines of communication and prompt response to urgent issues; instead of bureaucratic process of waiting for approvals and responses. This is defined almost entirely from Branson's own personal values and management style. Ironically, this style of leadership, coupled with absence of established formal business conventions, has made many undermine the values and business powers of the Virgin Group; with British Airways being a major victim of this 'corporate disguise'.
2.5 Financial Structure: This is another link/source of synergy to the Virgin group of companies. Business analysis from sources such as the Economist and the Financial Times, have consistently criticized Branson's sense of business, alleging that most of his companies are underperforming and making losses; while some are taking cover under the viable ones. Branson also has consistently disputed such allegations, pointing that each of his numerous companies is setup and operated as a standalone company. Whichever is the true position on the group's financial structure, the synergies created by way of combined effects by these companies are the attractive dimensions for this analysis. The bottom line here is that, these companies are not public, but privately owned and financed by internal cash flows and equity. Others are financed through joint venture agreements or external debt. According to Branson, each of his companies is funded individually and separately on a standalone basis. The idea is to nurture the companies to stand on their two feet and compete favorably among themselves and others in their lines of business. Reports from publicly available sources has it that since before now, Branson has taken a more radical and conservative approach of funding his businesses; which helps Virgin to have little income output while still having chunk equity stake when setting up new businesses.