Custom «Management and Organization of Alibaba» Sample Essay
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In 1999, Jack Ma lived in Hangzhou, China and he was the one who had come up with the idea of Alibaba. The apartment, where Jack Ma initially developed the idea, is now a sacred point of technology after this idea has grown into becoming a multi-billion company. The Alibaba.com, which is an associate company of Alibaba Group, has developed to become the world's biggest business-to-business trading forum.
Strategic Analysis of Alibaba
The operation strategies of Alibaba have rendered it the biggest online business group and the one that has grown quickly within a few years. It has built a strong brand on the Chinese market and gone global after initiating an expansion in its planning and strategic organizational aspects. The company provides an ideal environment for the SMEs and other developing entrepreneurs. Moreover, it has developed IPOs that help to fundraise and define their plans that the management has constantly worked on to get to become the best performing in e-commerce. For this reason, Alibaba has chosen to work in the area of e-commerce business and specifically dealing with business-to-business online trade as well as serving as a host for an online shopping search engine (Cavusgil et al. 48).
Alibaba has laid down strategic plans that should steer the company towards differenciating itself from other e-commerce competitors, including Amazon, PayPal, and eBay. As a result, Jack Ma, the co-founder of Alibaba, publicly shared his vision that he desired to see Alibaba have a great impact on the world just like IBM, Wal-Mart, and Microsoft. Presently, Alibaba has approximately 278 million buyers and traders are worth $14 billion annually (Lowrey 233). However, Jack Ma and his leadership team have a challenging hurdle for placing Alibaba in its growth phase as outlined in its vision. A major step towards realizing this objective has been the company’s increment of the market share for both new and existing customers through the introduction of loyalty initiatives along with the provision of a robust customer service. In addition, since the success for Alibaba is dependent on the success of the sellers, the management makes extra efforts to ensure that they too become successful. In addressing this issue, the management has introduced Alimana, which is a marketing consultancy marketing service.
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The Cultural Aspects of Alibaba
Alibaba is built on strong cultural values, appreciating the fact that the customer comes first, and the essence of embracing changes as the key factors defining a successful management philosophy. A good organizational culture is one that educates and brings unity to its people and hence, it greatly affects the employees. Alibaba’s cultural values are a great pillar for the company’s success. It is the cultural foundation set by Jack Ma that has continued to drive Alibaba and its employees to date. The employees are accorded equal treatment just like members of one big family. As Hamilton and Zhang claim, in this manner, each one of them has a right to express their opinion or criticize the way of running the affairs of the company, including the executive board so long as it is done in a reputable way (74). When a company upholds transparency even in criticism, it opens the opportunity for better ideas. Consequently, Alibaba’s culture has created a platform, where the employees have become very comfortable in expressing their individual opinions and the rapidly growing innovative ideologies.
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Furthermore, Alibaba indicates a true reflection of organizational culture through the Jack Ma’s annual wedding ceremony conducted in May. The ceremony is customary an indication of the amount of care the leadership of Alibaba owes to the employee fraternity. Despite having been a loss-affiliated exercise, an irresistible bond has been created between the company and its employees and it is of great importance to the performance of the employees (Hamilton and Zhang 79). Another crucial thread that has taken Alibaba from its humble beginning to what it has become today is the Tai Chi. The latter is an essential component of Alibaba’s culture and a factor of its wellbeing. This ancient martial art harnesses and integrates the energies exercised by the employees and it is even incorporated during the recruitment procedure. Appreciating this art, Jack Ma has pointed out that Tai Chi just like yin and yang can be compared to a stream flowing diverse directions but the manner of channeling, gathering, or dissolving it is equal to the way of managing a company (Zhao and Rosendo-Rios 132).
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The corporate culture of Alibaba is a unique component composed out of the Chinese myths and legends regarding the martial arts. Jack Ma argues that since his early days, he has always been entertained by Kung Fu heroes. In fact, he attributes his roadmap of the successful business strategy to them. He has adopted the virtues of the Kung Fu legends and transferred them to his own working as well as that of his staff. For instance, Jack Ma goes by the nickname, Feng Qingyang, who was a famous swordsman in the Kung Fu novels (Lowrey 241). The character of Feng as exemplified in the legendary case is that he is both aggressive and reclusive. Indeed, it is funny that the same employees have assumed nicknames of the Kung Fu characters and this way, this exercise has promoted a form a flattened hierarchy for all.
Alignment between Strategy and Culture
Alibaba’s strong alignment between strategy and culture is largely associated with profit making. On the contrary, other Chinese-based firms, which have not embraced strategy-culture alignment, have reported exceedingly high turnover rates. As argued by Lowrey adopting a good definition, understanding, and actual living of the new values and culture are key for the strategic execution as well as the success of the change management (243). This has allowed the testing and capturing of new innovative ideas as demonstrated by the Alibaba’s management program. Therefore, Alibaba can proudly claim that it has realized a great respect, inspiration, and ambition from the particular positive behavioral practices that have ensured the maintenance of the company's vision and strategy. For instance, the creation of create the programs that have sustainable social implication is duly challenging unless one has courage and ambition to perform. As a result, Alibaba has created an open and progressive work environment, where the management and the employees can freely share their ideas.
Alignment between Personality and Culture
A person’s personality ideally is responsible for shaping their behavior. This is a good measure for understanding the behavior of employees in an organization like Alibaba. Going it influences the way of living and behavior (Zhao and Rosendo-Rios 131). However, the management of Alibaba appreciates that personality traits could be different across various cultural groups. Understanding this diversity is healthy for the company in a bid to incorporate people of diverse background towards the achievement of a common goal.
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