Alibaba Company Case Analysis Study (Part II)

Alibaba Company Case Analysis Study

by Medio Putra (English Version)

(This Article are based on opinion)


E-commerce, is the activity of distributing, selling, buying, marketing products (goods and services), by utilizing telecommunications networks such as the internet, television, or other computer networks. In simple terms, e-commerce is the process of buying and selling products electronically. E-commerce is certainly closely related to connectivity between sellers and buyers, with various other supporters such as shipping, technology officers, and those engaged in technology. Alibaba is one of the well-known companies engaged in e-commerce around the world. However, does Alibaba really value diversity in it?


In this case study, we will discuss diversity through various aspects of the company founded by Jack Ma and friends. This case study will also discuss global challenges and cultural approaches that play a role for Alibaba in a diversity perspective.


Daniel Zhang, Alibaba CEO, at the company’s Hong Kong IPO debut / Photo credit: Alibaba and Techinasia

CASE DESCRIPTION

It does not hesitate to understand what the vision and mission of the Alibaba group as an e-commerce firm is being a unicorn before entering into the case to be addressed. Everywhere the Alibaba group's task is clear company. Alibaba claims that its goal would encourage corporations to alter the way they advertise, sell and function and improve their productivity. It is noted that Alibaba would have the infrastructure and marketing scope of technology to enable retailers, brands and other organizations leverage the potential of digital technology to connect and work in a successful manner with their consumers and customers. The company of Alibaba encompasses core trading, cloud infrastructure, new technology and entertainment, and innovation projects in an encrypted way. Furthermore, Ant Group, a financial support firm founded by Jack Ma, an unconsolidated partner, provides payment services and offers financial services on the Alibaba network to customers and merchants. The digital ecosystem has grown around our platform and industry, consisting of users, distributors, products, distributors, third-party service providers, partners in strategic partnerships and corporations. According to Alibaba's website from the page https://www.alibabagroup.com/en/about/overview, Alibaba's digital economy generated RMB7,053 billion (US $ 1 trillion *) in GMV in the 12 months ended March 31, 2020, which primarily includes the RMB6,589 billion (US $ 945 billion) GMV transacted through Alibaba's own Chinese retail market, as well as when GMV transacts through Alibaba's international retail markets and local customer services.


Alibaba's vision implies that they are not pursuing size or power; Alibaba is thinking about aspiring to be a good company that will last 102 years. Alibaba itself has a goal to build a trade infrastructure in the future. Alibaba imagines that Alibaba will meet, work, and live with Alibaba's own customers. Surviving 102 years for a corporation founded in 1999 means we have walked for three generations, an accomplishment that only a few firms can claim. The society, business model and structures of Alibaba are designed to last, so that it can be viable in the long run. The principal aim of Alibaba is to generate good for humanity and help find solutions to the problems of society. The task itself is to turn the capital of Alibaba into fuel for small and medium-sized companies that in turn, would promote the development of society. Through its mission, Alibaba itself facilitates commercial and social connections between hundreds of millions of people, between customers and retailers, and between companies daily. Alibaba empowers consumers with basic exchange and emerging technology infrastructure so that they can develop enterprises and generate shareable wealth among digital economy participants. Of course, what has been done now, Alibaba aims to grow goods and services and become the core of the everyday life of consumers. Alibaba has grown into a special, energetic, and creative global economy as they continue to grow their company from trade to cloud computing, digital media and entertainment, among other industries. By the end of fiscal 2024, as the direction of globalization progresses, Alibaba has set a five-year target of servicing more than 1 billion active customers annually and achieving more than RMB10 trillion in annual consumption through our Chinese market sector. Alibaba believes that their five-year goal brings them closer to achieving their 2036 vision: serving 2 billion global consumers, making it possible for 10 million businesses to be profitable and creating 100 million jobs. Reporting from Comparably, the company responsible for assessing company data and comprehensiveness, Comparably lists and assesses that there are diverse employees at Alibaba Group Holding Limited by giving the company a score of 80/100 in various cultural categories, placing Alibaba Group Holding Limited in the top 5% of companies in the United States with 10,000+ Employees for a Comparable diversity score. The Diversity Score provides insight into how diverse employees feel and assesses their work experience at Alibaba Group Holding Limited across multiple cultural dimensions. This is also supported by Statista, the company based on the global business data platform reported that in early 2020, Alibaba had more employees than Yahoo and Facebook combined. The majority of them work in the operations / customer service and research & development departments of the company. In 2018, more than a third of Alibaba's senior management were women and about 45 percent of all staff were under 30. Every year on May 10, the Alibaba group celebrates Employee Appreciation Day. All employees, also called Aliren, bring their families to the company campus for the all-day carnival. When compared with Asian culture where women are always mired in corporate patriarchy, Alibaba has slowly tried to get out of the label with two demographic approaches to women and young people under 30 years of age. This is supported by the presence of employee families who make Alibaba very concerned about the health of happy employees.


This is also supported by how Jack Ma, reported by China Daily, said that women are the key to Alibaba's success, this recognition is not careless because Ma said more than one-third of its founders were women, with a similar percentage taking senior management roles. So, it can be concluded that this company is friendly to the presence of feminism as one of the important structures of Alibaba's work that requires extraordinary focus. Alibaba uses women power to promote female entrepreneurship and showcase its own gender diversity. It aims to find ways to encourage women to pursue their professional and personal ambitions.


This is also supported by how diversity of age is the key to Alibaba's success in elevating the company to the top ranks in the role of e-commerce. Wan Ling Martello, executive vice president at Nestle who also sits on Alibaba and Uber's board of directors gave his explanation in the Yahoo Finance session, Wan sat on Alibaba's board of directors, and then chief executive Jack Ma was 54 years old, he was 54 years old, and he one of the most innovative people. Counting 54 years in the position of chairman of the executive board of directors is young although the average said by Wan for executive positions such as CEO is 32 years, but the proof that parents must provide innovation and experience to young people is the proof needed in this case because of the Board of Directions. filled predominantly by men and aged over 55 years mostly. Wan shares his vision with Alibaba regarding 102 years that he is eager for any child under 32 to take up the CEO position at Alibaba.


THEORITICAL AND CONCEPTUAL DESCRIPTION


Nevertheless, the report published by Alibaba in 2018 provides statistics that 45% are indeed dominated under 30 years, while 47% are dominated by 31-40 years, this is considered young as one of the demographic concentrations, namely 92% under 40 years is an extraordinary achievement for Alibaba as one of the diverse ages, because technology is a product of young people, while 8% over 40 years of age do focus on the vision and mission of experience. Managing (& celebrating) cultural diversity in view of life in diverse organizations involves both an attitude of action whereby managers & employees must view diversity as a challenge & as an opportunity, not as a problem to be addressed. It should be knowledgeable about the needs & contributions of the various members of the organization. Alibaba in this concentration has proven how Jack Ma and Wan's statement sees youth as a necessary diversity and 34 percent of female senior workers who hold critical things are one of them. The scope of activities carried out as theoretical based diversity is in educational programs, where there are human resource systems, organizational culture, diversity mindsets, programs that support work-family health & combat problems such as sexism & discrimination. It was explained about Alibaba in implementing family gatherings for employees as a very mandatory thing for family health. The Global Challenges this time reminds us that how the members of the "sandwich generation" cope with work pressure & family problems, the sandwich generation itself is difficult to relate to and theoretically it is difficult to deny that there are difficulties in reach but one way is that the family can become a based control demography problem in this case.


“We must leverage our technological capabilities today and build a credit system based on big data, to get rid of the pawnshop mentality.” Jack Ma (Source: China orders Alibaba founder Jack Ma to pare down fintech empire by The Guardian)

Based on Strong Culture (Deal & Kennedy, 1982) there are Values, Heroes, Rites & Rituals, and Cultural Network. Values applies to vision and belief, heroes apply those values, rites and rituals about ceremonies and celebrations, and networks about their communication systems. Alibaba in this case implements these 4 things in a proven manner and this will also be linked to excellent culture (Peters & Waterman, 1982), namely a bias for action, close relations to the customer, autonomy & entrepreneurship, productivity through people, hands-on, value-drive, penetration and joining, simple form, and simultaneous. This relates to how there is control, complexity, and also innovation with various supporting aspects such as performance, analysis, planning, ideas, and relationships. This concept will be analyzed to what extent Alibaba captures it.


ANALYSIS


In analysis, everything has been fulfilled, it's just that there is still a shortage in terms of age diversity for women which has not been explained in detail, but has met the criteria as a company with diversity according to the demographic that tends to be millennial This is supported by a family culture such as gathering which is mandatory and required for employees to maintain family health, which is the basis of thought and enthusiasm for every HR at Alibaba. Related to this, their 102-year plan has been very much directed towards the future and the idea of 102 years is difficult to achieve because it is required to change continuously in this case the matter of controlling matters such as sophistication and technological breaches which are also increasingly difficult to deal with.


CONCLUSION


It can also be concluded that Alibaba is friendly to diversity, considering that they distract from global companies, it is a super responsibility to be able to embrace every country they spread to, especially Indonesia. In diversity, from the start Alibaba itself has been filled with women that Jack Ma needs as the inventor and founder of Alibaba, without a foundation of women as a difference, Alibaba is certainly just stuck in the Chinese market, not global. The criteria for fulfilling this diversity have an effect on corporate culture that is separated from the influence of authoritarian China because the base in Hong Kong which has various working races, from the board of directors is also not only the race from China, but also from Canada, Sweden, and India. It is very relative and needs to be focused on that the board of directors is not only the point of view of China as the founding country of Jack Ma but global as E. Börje Ekholm who is the former CEO of Erickson.