Jack Ma (Ma, Yun), “Alibaba” of China’s E-Commerce Business
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Jack Ma (Ma, Yun), “Alibaba” of China’s e-commerce business
As a young Charismatic leader, how will Jack Ma overcome challenges of running a big business and get success when going forward?
Alibaba Group, even only with 12years history, is one of the biggest e-commerce platforms for small businesses in the world. Its business includes: Alibaba.com, which is for small firms to find customers and suppliers without going through middlemen, has 57million users, nearly in every country. Another marketplace, Taobao.com, is for individuals buying goods from each other; it has 300million customers and $29 billion-worth of goods. Also, China Yahoo!, One of China's leading Internet portals, was acquired by Alibaba in 2005 as part of its…show more content… The top two executives at Alibaba.com have resigned to accept responsibility.
In the statement from Alibaba, an internal investigation had found that about 100 sales staff and "a number of supervisors and sales managers" were "directly responsible in either intentionally or negligently allowing the fraudsters to evade" various controls. Conclusion of the investigation report is: Excessive pursuit of performance makes the sales/managers to obtain short-term economic interests by any means, leading to the persistence of fraud. Jack Ma expressed his pity to lost 2 good leaders, especially when they were not personally involved in the fraud for any direct benefits. But Alibaba should be holding on the ethical principles, customer first value. Jack Ma emphasized that Ethics is the baseline when pursuing for performance. Although CEO or Alibaba.com – David Wei had lead to 4 years big increases, he still chose to agree his resignation. However, it shows that as the company is getting bigger, Jack Ma met difficulty to drive his own values & principles to the whole organization sustainably, if just by personal influence. As a big company already, should be Alibaba directed and managed by one people, or managed based on effective systems are more important at this stage? The origin of the fraud was: the performance evaluation system in B2B team(Alibaba.com) relies on Sales KPI too