ASS2 PDIB Essay Example

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[Alibaba Group Analysis]

Table of Contents

1.0 Introduction 3

1.1 Company Overview 3

1.2 Mission Statement 4

1.3 Vision Statement 5

1.4 Alibaba Espoused Values 5

2.0 Business Environment Analysis of Alibaba 6

3.0 Aspiration to be a Logistics Manager at Alibaba 6

3.1 Professional Standards of a Logistics Manager 6

3.2 Qualifications and Experience Required by Logistics Managers 7

4.0 References 8

Executive Summary

This report will provide an analysis of a preferred company. The company in this context is Alibaba Group. First, the report will provide an overview of the company. Within this subject, various aspects such as company’s purpose, its espoused values and business environment will be discussed in detail. This will be followed by a discussion of an aspired position to hold at Alibaba. The position in this context is that of a logistics manager. In this case, the professional standards of logistics manager will be described. The report will finalise by highlighting the qualifications that are required to be developed in order to hold logistics manager position and execute the duties effectively.

1.0 Introduction

1.1 Company Overview

Established in 1999 by a Chinese group of 18 individuals led by a former teacher Jack Ma, Alibaba Group is currently among the leading e-commerce companies. It is based in Hangzhou China and the key stakeholders are Chinese. The company was established with an objective of taking an advantage of technological marketing and help small entrepreneurs to market their products easily and faster. It started as a wholesale marketplace for small retailers. Alibaba Group uses the mobile and online platforms to reach the customers and it does both the wholesale and retail marketing. The Company’s goal is to set up a future business infrastructure by providing various technologies and services that enable business to take place. Due to its robust technological advancement, it has seen an immense growth both financially and area of operation. As of 31st March 2016, Alibaba Group had 90 office outlets in China and 19 others outside China and 36,446 employees in all these outlets (Alibaba Group, n.d.-b). Additionally, its financial base has grown from $3.2 billion in 2012 to $15.686 in 2016 (Alibaba Group, 2016).Since establishment, Alibaba has seen steady growth and this has been attributed to the innovative spirit. Currently, the Company offers a range of services that include; virtual products, brand promotion and services (Wang & Lim, 2011). Virtual products include the e-commerce platforms that have been established to provide e-trade services. The name ‘Alibaba’ in itself is a brand promoter because it is well known. Goods and services advertised in the Company’s website have an opportunity to promote their brands. According to Osawa (2013), clients pay promotional fees in order to be highly noticeable from competing businesses found on Alibaba’s sites. The Company generates most of its revenue from advertising. On the side of services offered by Alibaba Group, the Company has developed subsidiaries such as Alitalk,, Yahoo among others which act as communication tools between clients and business individuals (Wang & Lim, 2011).

1.2 Mission Statement

The Company’s mission is “To make it easy to do business anywhere” (Alibaba Group, n.d.-a). Alibaba seeks to help both small and big establishments globally to use technology to reach their clients easily and faster as well as meet their needs efficiently. This has been accomplished through the established technological infrastructure which help businesses to engage with their customers (Alibaba Group, n.d.-a).

1.3 Vision Statement

Alibaba’s vision is to “To build the future infrastructure of commerce” (Alibaba Group, n.d.-a). The Company aims to bring all the customers to meet, work and live at Alibaba and that it lasts at least 102 years (Alibaba Group, n.d.-a). Through social interactions, business individuals and consumers meet at Alibaba.

1.4 Alibaba Espoused Values

Alibaba’s culture is all about empowering small businesses (Alibaba Group, n.d.-c). All participants be it small or large corporates are provided with a platform to operate equally. Alibaba Group has six core values it operates on. They are; teamwork spirit, customer first, embrace change, integrity, passion and commitment (Alibaba Group, n.d.-c). Operations at this Company are guided by these six values. Alibaba Group puts these values into action through various ways. One major way in which these values are put into action is through enhancement of innovation spirit in the company. The Company has a team that is always motivated to search for better technology to make e-commerce efficient and effective. The team always works to enhance the accuracy and protect the clients from fraud (Sau-ling Lai, 2014). Besides this, the team has enabled the Company to move its operations to mobile platform. The introduction of Alipay in 2004 reduced the risks of e-transactions and also it has enhanced service delivery through sellers/buyers feedback system (Tan Hunn Li & Yazdanifard, 2014).

2.0 Business Environment Analysis of Alibaba

Various environmental aspects have an impact on a company which can either be positive or negative. The general environment suits the operation of Alibaba Group. Three major environmental factors that have impacted the growth of Alibaba Group are economic, global and technological environment (Tan Hunn Li & Yazdanifard, 2014). In the economic aspect, small and medium scale establishments have a major impact on the country’s gross domestic product. For instance, the 2013 financial report indicated that about 80% of China’s employment was provided by these SME’s (Liu, 2008). Alibaba Group majors in providing a platform for equity in the business environment for these SME’s. Moreover, most setups are currently focussing on globalizing the operations. Alibaba provides a platform for globalization of operations thus the global aspect suits the company favourably. Technologically, the company is ahead and there is a great enhancement of technological advancement. Therefore, the technological aspects favours Alibaba Group. Generally, the attitude towards the environment by the company is positive.

3.0 Aspiration to be a Logistics Manager at Alibaba

I aspire to hold the position of a logistics manager at Alibaba. Logistics is the overall unit in an organization that engages in planning and coordination of products and service delivery. The tasks involved in logistics are forecasting, inventory control, warehousing, materials handling, strategic planning, customer service, transportation and purchasing. The function of logistics manager is to oversee these functions, direct daily operations, coordinates logistic activities and manage logistics personnel (Christopher, 2016).

3.1 Professional Standards of a Logistics Manager

Any logistician should always maintain the highest standards of conduct while in practice. The codes include protection of confidence of employers, workers, suppliers and customers and not take privilege of this confidence and use it unethically (The International Society of Logistics (SOLE, n.d.). Confidence is maintained by making reports to employers honestly. Additionally, logistics managers should at all times ensure any personal activities should not conflict with the interests of the employer. Actions taken should not also influence decision making of the employers and the interests of the employer should be served (Institute for Supply Management, 2014). Moreover, confidentiality ought to be observed at all times. Information which may be considered confidential include terms of contract, wages and salaries and information about employees (Institute for Supply Management, 2014). Logisticians should generally not engage in activities that will discredit logistics as a profession.

3.2 Qualifications and Experience Required by Logistics Managers

Just like any other profession, certain qualifications should be attained for one to execute duties effectively. I as an aspiring logistics manager at Alibaba will need to develop a range of skills to fully qualify for the position. The skills include experience, professional skills and possess information technology skills. To qualify for this position, I will need to enrol for a degree program in either business administration, supply chain management, logistics or business management. Experience is required to understand the special storage and transport requirements. Professional skills required by a logistics manager include good communication skills, active listening, problem solving skills and good leadership skills. Being a manager requires one to have strong interpersonal skills to lead other employees in a company. Above all, to adapt to changing technological trends, it is important to have IT skills at hand.

4.0 References

Alibaba Group. (2016).Quarterly Results. Accessed on 26th Aug 2016. <>

Alibaba Group. (n.d.-a).Company Overview. Accessed on 25th August 2016. <>

Alibaba Group. (n.d.-b). Frequently Asked Questions. Accessed on 25th August 2016. <>

Alibaba Group. (n.d.-c). Culture and Values. Accessed on 28th August 2016. <>

Christopher, M. (2016). Logistics & Supply Chain Management. London: Pearson Publishers. ctive%0on%20SME%20Industrial%20Clustering.pdf

Institute for Supply Management. (2014). Principles and Standards of Ethical Supply Management Conduct with Guidelines. Tempe: Institute for Supply Management.

Liu, X. (2008). SME Development in China: A Policy Perspective on SME Industrial Clustering’, In , H., Lim. (ed.), SME in Asia and Globalization, ERIA Research Project Report 2007-5, pp.37-68. Accessed on 29th August 2016.

Osawa, J. (2013). How Does Alibaba Make Money? Retrieved from Wall Street Journals, Digits. Accessed on 28th August 2016. < does-alibaba-make-money/>

Sau-ling Lai, L. (2014). Chinese Entrepreneurship in the Internet Age: Lessons from (1st ed., pp. 1-7). International Science Index: World Academy of Science, Engineering and Technology. Accessed on 28th August 2016. <>

Tan Hunn Li, M. & Yazdanifard, R. (2014). The Review of Alibaba’s Online Business Marketing Strategies which navigate them to Present Success. Research Gate.

The International Society of Logistics (SOLE). (n.d.). Code of Ethics. Accessed on 30th August 2016. <>

Wang, G. and Lim, Y.T., 2011. Research in China’s Alibaba’s Development. In Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on (pp. 2295-2301).