AN ORGANIZATIONAL STUDY ON

ALIBABA.COM

SUMMER TRAINING REPORT

Submitted by
BALAMURUGAN.T
Reg. No: 20MBR004

in partial fulfillment for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION
in
DEPARTMENT OF MANAGEMENT STUDIES

VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY

(Autonomous)
ERODE - 638012

OCTOBER – 2021
VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY,
(AUTONOMOUS)
ERODE - 638 012

i
 Department of Management Studies

SUMMER TRAINING REPORT

OCTOBER 2021

This is to certify that the Summer Training entitled

An Organizational Study on (Company Name with place)
is the bonafide record of Summer Training Report done by

BALAMURUGAN.T
Reg. No: 20MBR004
of MBA during the year 2021 - 2022.

----------------------------- --------------------------------
Summer Training Guide Head of the Department
Dr.D.MUTHUKRISHNAVENI, Dr.T.VETRIVEL,
Professor Professor & Head
Department of MBA Department of MBA

Submitted for the Summer Training Viva-Voce examination held on

____________.

----------------------------
-
Internal Examiner
DECLARATION

ii
 I affirm that the Summer Training work titled “AN ORGANIZATIONAL
STUDY HYUNDAI MOTORS LIMITED, CHENNAI” being submitted in partial
fulfillment for the award of Master of Business Administration is the original work
carried out by me. It has not formed the part of any other Summer Training work
submitted for award of any Degree or Diploma, either in this or any other University.

BALAMURUGAN.T
Reg. No:20MBR004

I certify that the declaration made above by the candidate is true.

Dr.D.MUTHUKRISHNAVENI, MBA, M.Phil., Ph.D.

Professor, Department of MBA

ACKNOWLEDGEMENT

iii
 I feel a great pleasure to thank our Vellalar Education Trust, Secretary and
Correspondent Thiru.S.D.CHANDRASEKAR, B.A., for offering me a opportunity to do this
Summer Training.
I would like to express my deep sense of gratitude to our esteemed Principal
Dr.M.JAYARAMAN, M.E, Ph.D, MISTE. alibaba-import-business-5, and Prof.
P.JAYACHANDAR Dean of Velalar College of Engineering and Technology, Erode for
providing me with the great opportunity to undergo this Summer Training work.

At the outset I am grateful to Dr.T.VETRIVEL, B.Sc., MBA, M.Phil., MISTE.,

PGDCA., Ph.D, Professor & Head, Department of Management Studies for his Constant
encouragement and support to complete the Summer Training Report.

At the outset I am grateful to my Guide Dr.D.MUTHUKRISHNAVENI, M.B.A.,

M.Phil., Ph.D. Professor, Department of Management Studies for her proper guidance and
support rendered for successfully completing the Summer Training work.

I would like to extend my sincere thanks to all the Faculty Members of Department
of Management Studies, Velalar College of Engineering and Technology, Erode for their
constant encouragement and support for this Summer Training Report.

I thank the Almighty God and my beloved Parents for the blessings and my
Friends that have been showered upon me to complete the Summer Training successfully.

BALAMURUGAN.T

TABLE OF CONTENTS

iv
Chapter No. Particulars Page No.

1 Introduction 6
2 Industry Profile 9
3 Company Profile 10
4 Purchase Department 12
5 Manufacturers Department 14
6 Human Resource Department 19
7 23
Logistics Department
8 26
Quality Assurance Department
9 28
Marketing Department
10 36
Materials Department
11 38
Finance Department
12 42
Research and Development Department
13 44
Sales Department
14 48
Exporters
15 Importers 51
16 Wholesalers 54
17 Suppliers 55
18 Buyer 60
19 SWOT Analysis 62
20 Findings & Suggestions 64
21 Conclusion 65
22 Bibliography 66

v
 CHAPTER 1
INTRODUCTION

Alibaba is China’s — and by some measures, the world’s — biggest online commerce
company. Its three main sites — Taobao, Tmall and Alibaba.com — have hundreds of millions of
users, and host millions of merchants and businesses. Alibaba handles more business than any
other e-commerce company. Alibaba Group Holding Limited, also known as Alibaba Group and
Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail,
Internet, and technology.

https://www.alibaba.com images

Alibaba is a wholesale marketplace where you can buy products in bulk, affordably. It's
arguably the biggest
e-Commerce website in the world! With Alibaba you can buy a single item if you
negotiate with a supplier and they agree to sell you one item.

1
 www.alibaba owner.com

There are four main types of ecommerce models that can describe almost every transaction
that takes place between consumers and businesses.

Business to Consumer (B2C)

When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes
from an online retailer).

Business to Business (B2B)

When a business sells a good or service to another business (e.g. A business sells software-as-a-
service for other businesses to use)

Consumer to Consumer (C2C)

When a consumer sells a good or service to another consumer (e.g. You sell your old furniture on
eBay to another consumer).

Consumer to Business (C2B)

When a consumer sells their own products or services to a business or organization (e.g. An
influencer offers exposure to their online audience in exchange for a fee, or a photographer
licenses their photo for a business to use).

2
Examples of Ecommerce
Ecommerce can take on a variety of forms involving different transactional relationships between
businesses and consumers, as well as different objects being exchanged as part of these
transactions.

3
 CHAPTER 2
PROFILE OF INDUSTRY

Alibaba.com Limited operates as an e-commerce company. The Company distributes and

retails consumer electronics, machineries, apparels, food, chemicals, bags, sports, and other
products, as well as provides online shopping search engine development and cloud computing
services. Alibaba.com serves customers worldwide.

www.alibaba.com company images.com

4
 CHAPTER 3
COMPANY PROFILE
Alibaba.com is an online B2B marketplace where buyers and sellers from around the
world can connect and carry out transactions.It is a secure, trusted platform that is used by
millions and millions of businesses.

VARIOUS DEPARTMENT OF ALIBABA.COM :

• Manufacturers Department

• Purchase Department

• Human Resource Department

• Logistics Department

• Quality Assurence Department

• Marketing Department

• Material Department

• System Department

• Research and Development Department

• Sales Department

• Exporters

5
• Importers

• Wholesalers

• Suppliers

• Buyer

6
 CHAPTER 4
PURCHASE DEPARTMENT

Purchase departments help keep organizations financially healthy. They procure goods and
services designed to meet operational needs while providing the highest possible value. They
established procurement policies and procedures to ensure their organization operates with
integrity and the marketplace.
Purchasing departments keep operations moving smoothly because they monitor Supply
chains and take care of tedious tasks like negotiating contracts with vendors, so the department
has can focus on other things.
The role of the purchasing department plays within a company depends on the size of the
organization. Outsourcing and technological advances have affected the job outlook for the
purchasing professionn negatively, which is a trend we can expect to continue.

FUNCTIONS OF PURCHASE DEPARTMENT

All businesses need specific goods, materials and equipment to manufacture products,
offer goods for sale to customers, or perform the services they are selling. Someone has to
ensure that these goods are bought into the company, in the right volume and at the right time,
to meet the company's requirements. That role falls to the purchasing, or purchase, department.

The role itself is a broad one, covering such areas as market analysis, negotiations with
suppliers and producers, transport, storage options, procurement technologies and order times to
ensure that goods are bought as economically and time-efficiently as possible. Specific
functions include:

Identifying requirements for goods, materials and services.

• Identifying reliable suppliers.

• Price negotiations.
• Comparison of delivery terms.
• Establishing order quantities.

7
 • Writing requests for bids and awarding supply contracts.
• Coordinating delivery with the warehouse against storage capacities.
• Product testing and quality control.
• Managing budgets and payments.

In Alibaba.com ecommerce company the following functions are widely used

8
 CHAPTER 5
MANUFACTURING DEPARTMENT

It also features more than 70,000 Chinese and international brands from more than 50,000
merchants. The site serves 180 million buyers.Alibaba is the largest online marketplace of
manufacturers in the world and it's a great starting point for you to begin your search for suppliers.
What many merchants don't realize though, is that the manufacturers listed on Alibaba aren't
just factories. They are trading companies, wholesalers, and agents as well.
Alibaba's global headquarters at its Xixi campus in Hangzhou, China, is home to more than
20,000 of its 100,000 global employees. But it's more than just a corporate campus. It's an
incubator for all things tech. A manufacturer will manufacture products in-house.
When using Alibaba to promote themselves, they will be likely to list very high minimum
order quantities

www.alibaba manufacturing images.com

Stock is also rarely held by manufacturers on Alibaba as those who want custom products
and packaging will also want their company’s logo on the products and packaging.

9
 As a result, minimum order quantities can be high. It simply makes no sense for a
manufacturer to hold stock or run their entire factory just to make ten or twenty item.

www.alibaba manufacturing images.com

Therefore, you will need a sizeable budget if you’re seeking custom products on Alibaba.
Alibaba is a perfectly safe online platform to find products to sell online, providing that
you know which suppliers and manufacturers to trust, and which you should avoid.

10
FUNCTIONS OF MANUFACTURE DEPARTMENT

The production department is responsible for converting raw materials and other inputs
into finished goods or services. In between the processes of production, the department works
to improve the efficiency of the production or assembly line so that it can meet the output
targets set by company management and ensure finished products offer consumers the best
value and quality.

The following are the main functions of productions department which are followed by
Alibaba.com ecommerce company

Identifying Inputs:

A business determines the quantity or volume of goods that should be produced within a certain
time frame and passes the information to the production department. To meet production
targets, the department establishes the quantity of raw materials and types of machinery and
equipment required to achieve the desired output level, and may collaborate with the purchasing
department to source the inputs. If there isn't sufficient manpower to support productions
process, the production department asks the firm to hire more personnel.

Scheduling Production:

With the inputs ready, the production department schedules production processes. This involves
planning the tasks to be completed along the production line and allocating the tasks to various
production workers. In a woodworking business, for example, the department determines how
long lumber will be allowed to dry before being moved to the machining stage for sawing and
bending into shape – and finally through the assembly and finishing stages.

11
Minimizing Production Costs:

The production department is tasked with finding effective ways to lower production
costs. One simple way to do this is to keep the production machinery and equipment well-
maintained so the firm does not regularly incur repair costs. Along with advising the business to
adopt newer technologies, the department can also assess the production line to identify
opportunities for cost reduction. For example, if the type of wood used a long time to air-dry –
requiring an investment in wood dryers – it could be less costly for a furniture manufacturer to
purchase dried lumber.

Ensuring Product Quality:

A production department must ensure finished goods meet minimum quality standards.
Apart from checking all products for faults as they move through the production process, the
department must perform rigorous tests on prototypes for new products to ensure they meet
quality benchmarks before undergoing mass production. Techniques such as waste elimination
and process standardization also help to ensure and improve product quality.

Improve Existing Products:

From time to time, the production department will furnish the research and development
department with information it can use to improve existing products. For example, when the
production department of a smartphone manufacturer notices that the material it uses to make
phone casings bends when subjected to some pressure, the department must advise the research
team so that it can seek stronger materials.

12
 CHAPTER 6

HUMAN RESOURCE DEPARTMENT

A company's human resource department is tasked with the training and development of
its workers, who are considered some of the company's most important resources.Also known as
human resources (HR), the human resource department's mission is to make sure the company's
employees are adequately managed, appropriately compensated, and effectively trained. The
department is also responsible for recruiting, hiring, firing, and administering benefits.

13
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

In this alibaba.com human resource management it is discussed that the human resource
management plays a significant role in the success of any business organisation of company
(Snell, Morris, and Bohlander, 2015). Alibaba.com understands such significance of having the
necessary talent for performing various responsibilities and duties for the success of the company.

Alibaba.com's strategic objectives are closely aligned to the strategic objectives of the HR by
the human resource management function of the firm. The company believes that employees and
workers are one of the greatest contributing factors towards the success of any organisation. In the
case of Alibaba.com, companies committed towards improving and enhancing it skills of the
workforce by the means of efficient development and training programs.

As such, the self actualization and job satisfaction of the employees in staff members would
be enhanced. It was been discussed in this human resource management in alibaba.com company
primary functions of human resource at Alibaba.com includes selection and recruitment, training
and development, compensation management, maintenance of good relationship among
employees and ensuring legal and ethical compliance (McDonald and Hite, 2015).

14
 www.function of human resource department images.com

These functions help in promoting workplace environment for the employees that is
productive and helps the employees and workers in performing up to their potential. The human
resource functions of the company have held the employees in maintaining good attitude and
moral standards within the company. Thepurpose of the human resource management at
Alibaba.com is promoting cordial and self respect working relationships with the workers and
employees. The HR managers of the company work towards the satisfaction of the individual
needs and requirements of all the workers by providing them with a coordinating environment.
The workplace environment of any business should help in promoting the group as well as
individual performances within the organisation.

The strategies of performance management are utilised by Alibaba.com which help in

promoting the necessary behavior within the workers. The policies of the company are quite

15
flexible and relevant support to the Employees and workers for enabling them to achieve the
objectives and goals of the organisation. The system of reward management used by Alibaba.com
helps in enhancing the motivation and retention of employees, and improves their performances.
Bonuses, health insurance covers and pension benefits are provided by the organization for
motivating its employees (Alibaba.comJobs, 2019).

www.function human of resource department images.com

However, there were several reports from the media in the year 2008 regarding harsh
treatment of the employees of the company (Forbes, 2015). Although the allegation was nicely
excited by the media, the response of Alibaba.com was appropriate. A proper structure where
democratic representation of the employees is implemented should be established within the
organization. This would help in the promotion of the good relationship between the employees
and the management of Alibaba.com.

16
 CHAPTER 7

LOGISTICS DEPARTMENT

Logistics is a process of movement of goods across the supply chain of a company.

However, this process consists of various functions that have to be properly managed to bring
effectiveness and efficiency to the supply chain of the organization.

Order Processing:

It is an important task in the functions of logistics operations. The purchase order placed
by a buyer to a supplier is an important legal document of the transactions between the two
parties.This document incorporates the description or technical details of the product to supply,
price, delivery period, payment terms, taxes, and other commercial terms as agreed.

The processing of this document is important as it has a direct relationship with the order or the
performance cycle time, which indicates the time when the order is received and when the
materials are received by the customer.

The order processing activity consists of the following steps:

• Order checking for any deviations in agrees upon or negotiated terms

• Prices, payment, and delivery terms

.
• Checking the availability of materials in stock.

• Production and material scheduling for shortages.

17
 • Acknowledging the order indicating deviations if any.

Inventory control:

Inventory management is to keep enough inventories to meet customer requirements, and

simultaneously its carrying cost should be lowest.It is basically an exercise of striking a balance
between the customer service for not losing the market opportunity and the cost to meet the same.

The inventory is the greatest culprit in the overall supply chain of a firm because of its huge
carrying cost, which indirectly eats away the profits. It consists of the cost of financing the
inventory, insurance, storage, losses, damages, and pilferage.

The average cost of carrying inventory varies from 10 to 25 percent of the total inventory per year
depending on the products.

Warehousing:

Warehousing is the storing of finished goods until they are sold. It plays a vital role in logistics
operations of a firm. The effectiveness of an organization’s marketing depends on the appropriate
decision on warehousing.In today’s context, warehousing is treated as switching facility rather
than a storage of improper warehousing management. Warehousing is the key decision area in
logistics.

The major decisions in warehousing are:

• Location of warehousing facilities

• Number of warehouses

• Size of the warehouse

18
 • Warehouse layout

• Design of the building

• Ownership of the warehouse

Material handling and storage system:

The speed of the inventory movement across the supply chain depends on the material
handling methods. An improper method of material handling will add to the product damages and
delays in deliveries and incidental overheads. Mechanization and automation in material handling
enhance the logistics system productivity.

Other considerations for selection of a material handling system are the volumes to be
handled, the speed required for material movement and the level of service to be offered to the
customer.The storage system is important for maximum space utilization (floor and cubic) in the
given size of a warehouse.

The material handling system should support the storage system for speedy movement
(storage and retrieval) of goods in and out of the warehouse.

Logistical packaging:

Logistical or industrial packaging is a critical element in the physical distribution of a product,

which influences the efficiency of the logistical system. It differs from product packaging, which
is based on marketing objectives.

19
 CHAPTER 8

QUALITY ASSURANCE DEPARTMENT

Quality assurance (QA) is any systematic process of determining whether a product or

service meets specified requirements.QA establishes and maintains set requirements for
developing or manufacturing reliable products.

A quality assurance system is meant to increase customer confidence and a company's

credibility, while also improving work processes and efficiency, and it enables a company to
better compete with others.

FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT

Quality is an important factor when it comes to any product or service. With the high
market competition, quality has become the market differentiator for almost all products and
services.Therefore, all manufacturers and service providers out there constantly look for
enhancing their product or the service quality.

In order to maintain or enhance the quality of the offerings, manufacturers use two
techniques, quality control and quality assurance. These two practices make sure that the end
product or the service meets the quality requirements and standards defined for the product or the
service.

There are many methods followed by organizations to achieve and maintain required level
of quality. Some organizations believe in the concepts of Total Quality Management (TQM) and
some others believe in internal and external standards.

20
The standards usually define the processes and procedures for organizational activities and assist
to maintain the quality in every aspect of organizational functioning.When it comes to standards
for quality, there are many. ISO (International Standards Organization) is one of the prominent
bodies for defining quality standards for different industries.

Therefore, many organizations try to adhere to the quality requirements of ISO. In

addition to that, there are many other standards that are specific to various industries.

As an example, SEI-CMMi is one such standard followed in the field of software

development.Since standards have become a symbol for products and service quality, the
customers are now keen on buying their product or the service from a certified manufacturer or a
service provider.Therefore, complying with standards such as ISO has become a necessity when
it comes to attracting the customers.

21
 CHAPTER 9

MARKETING DEPARTMENT

A marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company’s hierarchical organization, a marketing director,
manager or vice president of marketing might be at the helm.

In some businesses, a vice president of sales and marketing oversees both the marketing
and sales departments with a strong manager leading each department.

www. marketting department images.com

22
MARKETING DEPARTMENT FUNCTIONS
The marketing department monitors market trends and identifies consumer needs and
wants. The team then developed a marketing strategy to create more awareness and purchases by
customers. In addition, they perform various tasks and activities such as market research, test
marketing, advertising, and branding.Functions related to the marketing mix are

Product. The marketing team designs products to meet customer requirements, such as the core
function, quality, size, color, and product packaging. Another role is to map product positions,
develop unique selling propositions, and design product differentiation/standardization to suit
market tastes and demands.

Price. The marketing division sets the right pricing strategy for the products sold. Various pricing
strategies include cost-plus pricing, competition-based pricing, loss leader pricing, penetration
pricing, and zone pricing. Which is the right pricing strategy? It depends on factors such as market
demand, production costs, and competitor pricing.

Promotion. The marketing division is responsible for informing and persuading consumers to buy
the company’s products. It combines various activities, such as advertising, sales promotion,
personal selling, direct marketing, sponsorship, and public relations.

Location. The marketing division manages how the product reaches the customer. It determines
which distribution channels are used and how intensively. Thus, the product is available in the right
place and at the right time. It involves choosing the right channel to market the product, for
example, distribution, online purchasing, retail outlets, or even vending machines.

23
 www.function marketting department images.com

Marketing department responsibilities:

Specifically, the responsibilities of the marketing department vary between businesses. It depends
on aspects such as the size of the business, the company’s strategy, and the resources at hand. They
may include:

Market research Identifying customer needs and wants. It may be through surveys, interviews, or
observations. The team segmented the market, selected target market segments, developed
consumer profiles, and developed the appropriate marketing mix. After the product is sold, the
team also examines whether the product and the efforts made, such as advertising, are successful or
not.

Competitive analysis – observing competitors and identifying their market position and strategies.
It is important to develop responses and design appropriate competitive strategies and tactics.

Promotion – presenting the company and its products to consumers, building brand awareness,
and strengthening the product and company image. The team selects and manages the most
appropriate promotional mix, whether advertising, sales promotion, or direct selling.

24
 www.function marketting department images.com

Sales – responsible for making money by selling products or providing services. This function
requires synergy with other business functions to support increased sales. In addition, the team
must also design the right marketing mix, such as designing attractive packaging and correct
pricing.

25
Product management – evaluating and mapping products to determine the right strategy, for
example, whether to withdraw, increase investment or collect as much cash as possible. A large
company can have a product portfolio consisting of various products and target markets. Managing
them requires intensive effort. The marketing team is tasked with mapping the market position of
each product to determine strategy, resource allocation, and investment. Two useful tools are the
BCG Matrix and the product life cycle.

Marketing information management – managing and integrating marketing information such as

sales targets, sales realization, industry competitors, customer profiles, and market trends. The data
is valuable for developing marketing strategies, making decisions, or designing the company’s
overall strategy. For example, information about sales targets is important for making production
decisions.

Pricing – determining the sweet spot between customer value and company profits. A company
may choose cost-based pricing, with the main consideration being the cost of production. While
others prefer market demand-based pricing or competition-based pricing.

Budget – responsible for managing the allocated marketing budget. Marketing managers must
secure space in the budget to fully support the marketing strategy. A sufficient budget is important
to generate more revenue, expand into new markets, and reach more potential customers

26
 .

www.function marketting department images.com

Distribution – developing the right distribution channels to reach customers. A company might
sell products directly to customers by establishing a retail outlet or creating an e-commerce
channel. Alternatively, they rely on various intermediaries such as distributors and retailers to sell
products.

Customer relationship management – this responsibility includes studying their target

customers, determining how best to reach and meet their needs, maintaining good relationships
with them, and encouraging them to continue purchasing the product. Since recruiting new
customers is expensive, this responsibility is crucial to keep the money flowing to the company.

27
Branding – responsible for managing the brand and ensuring the brand is marketed appropriately.
There are various branding strategies, including individual branding, family branding, or corporate
branding. Each has advantages and disadvantages. The marketing team’s duties include building
brand awareness, developing the brand, driving brand loyalty, and creating brand value.

Online channel management – manage and maintain online channel pages such as corporate
websites and social media. This is becoming increasingly vital as consumers get more and more
online. Companies use online channels to monitor and find out what’s trending, build good
relationships with customers, and even promote products.

www.marketting department images.com

28
 CHAPTER 10
MATERIALS DEPARTMENT

The major challenge that materials managers face is maintaining a consistent flow of
materials for production. There are many factors that inhibit the accuracy of inventory which
results in production shortages, premium freight, and often inventory adjustments.

The major issues that all materials managers face are incorrect bills of materials,
inaccurate cycle counts, un-reported scrap, shipping errors, receiving errors, and production
reporting errors. Materials managers have striven to determine how to manage these issues in
the business sectors of manufacturing since the beginning of the industrial revolution.

FUNCTIONS OF MATERIALS MANAGEMENT

All activities concerned form the materials part of the materials management function.

These functions are:

1. Purchasing:
Purchasing is one of the basic functions of materials management.

The objectives of industrial purchasing are the following:

(a) To maintain continuity of production.

(b) To buy for the best ultimate value, not necessarily always at the lowest price.

(c) To increase profits.

29
 Effective functioning of the purchasing function is vital to the smooth operation of many
other departments.

2. Inventory Control:
The word ‘inventory’ is defined as the ‘materials lying in storage or idle
materials’.Inventory control is the technique of maintaining all classes of inventory at
optimum levels, with the minimum investment of capital. In other words, inventory
control means balancing the two opposite forces, i.e., overstocking with all financial
hazards and under stocking leading to operational bottlenecks.

3. Stores Management:
Proper receipts, inspection, storage and preservations, safety and issue of materials
with efficient documentation assist in good house-keeping of materials in a warehouse.
This avoids shortage and surplus during annual or continuous stock taking and prevents
loss or deterioration of materials in hand.

4. Disposal of Surplus/Scrap/Obsolete Materials:

Another important area where materials management can play an effective role is
in the disposal of surplus/obsolete materials. Over a period of time manufacturing units
accumulate large amounts of obsolete and surplus materials. Since the materials
department is in constant touch with the market, the disposal of such materials is always to
the advantage of the materials department.

Not only is the materials departments in touch with the market, it is also aware of
the consumption of materials in the various divisions of the company and also in similar
units in the industry. By virtue of this knowledge, the materials department is in a position
to sell the surplus materials to advantage or dispose it off as per the company’s policy.

30
 CHAPTER 11
FINANCE DEPARTMENT

Finance is a broad term that describes activities associated with banking, leverage or debt,
credit, capital markets, money, and investments.
Basically, finance represents money management and the process of acquiring needed
funds. Finance also encompasses the oversight, creation, and study of money, banking, credit,
investments, assets, and liabilities that make up financial systems.

www.finanace department images.com

31
FUNCTIONS OF FINANCE DEPARTMENT
This department performs so many functions in an organization. Some of these functions
are as follow:

• The department is responsible for keeping all the day books and accounts that deal
with the financial affairs of the business or organization.
• All businesses pay taxes to the government, and the accounting department of a
company is the department that is responsible for preparing and paying taxes to the
government.
• The department prepares accounts and financial reports which it forwards to the
company’s Board of Directors. The Board of Directors also forwards these financial
reports to the shareholders at the Annual General Meeting.
• The department is responsible for the preparation of payment vouchers in order for
workers to be paid.
• The accounting department is in charge of the bank account and cash accounts of
the company.

32
 www.function of finanace department images.com

• The accounting department prepares invoices for debtors (people who owe the
company or business), and it also receives invoices from creditors (people or
companies the company owes).
• All payments made to creditors are done by the accounting/finance department.
• The department also receives payments from debtors.

33
 • The accounting department is responsible for making statutory payments on behalf
of workers of the company. Some common statutory payments include social security
fund and Pay As You Earn (PAYE).
• The department is the only department in a business organization which prepares
the major budget of the company.
• The department also calculates all costs involved in the production process.
• The stock records accounts are also kept by the accounting department. The stock
records accounts deal with materials that are bought purposely to be used in the
business

34
 CHAPTER 12
RESEARCH AND DEVELOPMENT DEPARTMENT

Research and development (R&D) includes activities that companies undertake to

innovate and introduce new products and services. It is often the first stage in the development
process. The goal is typically to take new products and services to market and add to the
company's bottom line.

FUNCTIONS RESEARCH AND DEVELOPMENT DEPARTMENT

When data is entered in to an information system, it has to be entered in a way that can be
managed and processed. When the data is processed it turns data into information which is then
output to end users of the system. The data is generated from various sources such as different
departments of a business as well as external sources. The data must be accurate or else the
information output can be inaccurate or misleading.

People:
Getting data and processing it involves the use of people in order to create information for
specific uses or purposes that are relevant to a business. Staff training and skills in relation to
information systems are important so that a business can get the most out of its information
system.

Hardware:
The hardware that IT systems use has to be capable of running the software required by
the business and also be capable of handling a large amount of data and information processing.
The hardware should be kept up to date which enables the fast capture, storage and use of data.

35
Software:
The software that is used by businesses and the staff has to have the necessary features and
functionality so that it can produce and use the information created by a business. The software
should also have the features necessary for staff to carry out their work efficiently, for example: to
analyse and process data and reports.

Telecommunications:
The information that is produced by various departments in a business needs to be shared
around a business as it will be used for different purposes. For doing this the telecommunications
in a business needs to be effective so that the information shared and distributed goes to the
correct destination after being processed.

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 CHAPTER 13
SALES DEPARTMENT

A sales department is the direct link between a company's product or service and its
customers. However, a well-trained sales department does more than making sales. Your sales
staff builds relationships with your customers.
Further, a sales department promotes the growth of your business as well as customer
retention.

FUNCTIONS OF SALES DEPARTMENT

1. Sales Force Representative:
Depending upon the size and bandwidth of the organization, a sales department can have a various
number of sales representatives. From cold-calling to acquire leads to researching and creating an
ideal customer profile, a sales force representative take care of the first step of the sales funnel. In
technical terms, their tasks include Sales Development, sales training, and Sales Force
Communications Management

Common Responsibilities Include

▪ Connecting sales teams to the most relevant content for each opportunity in the buying
cycle
.
▪ Qualifying the leads

▪ Connecting with the leads

▪ Communicating updates to the sales force (content alerts, product news, etc.)

▪ Empowering managers and peers to coach reps in a way that reinforces training as well as
promotes best practices.

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2. Account Executive:

Once the sales representatives identify the qualified leads and get in touch with them, the
account executive comes into the game. it is the account executive who brings in new business
and closes the final sales deal.

They create presentations, demonstrate the sales plan in a more succinct and elaborate
manner, write proposals, and negotiate the final terms with the client, and eventually, close the
final deal.

Common Responsibilities Include

▪ The account executive’s primary objective is helping businesses implement technology

solutions in a cost-effective way by determining the requirements of a project or
program and communicating them clearly to stakeholders, facilitators as well as partners
.
▪ Assisting with the business case.

▪ Planning as well as monitoring

.
▪ Eliciting requirements.

▪ Requirements organization, communication, and management

.
▪ Closing the final sales deal

3. Sales Administration:

The specialist helming the sales administration has in-depth knowledge of their business
and their business domain. Whenever the sales force representative or account executive gets
stuck with something, its the sales administrator who takes over and solves the problems. This

38
person is also involved in looking over at the tasks performed by sales reps and designating sales
target to them.

Common Responsibilities Include

▪A sales administrative assistant works with sales department management to provide office
support to field representatives.
▪ Sales administrators are in charge of all the employees working in the sales department.
▪ They have to delegate sales target and other such duties to the people working in the
department.
▪ Basically, they should train all the new workers in the department and even teach them,
all the company protocols.
▪ They have to carefully study the market conditions regarding their company’s products.
▪ Need to make sales strategies with the management and implement the strategies in the
sales departments as well as ensure that all employees adhere to it.
▪ They have to report to the management on what all is happening in the department.

4. Customer Success Planner:

This person makes sure that the customer is happy and satisfied with the sales, and then
accordingly works on following up and retaining them.

Common Responsibilities Include

▪ Customer retention

▪ Conduct monthly S&OP meetings for a handheld product

.
▪ Furthers the relationship with the customer to up-sell or cross-sell.

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 ▪ Create communication forums (such as “tilt meetings”) to address off-cycle problems and
close gaps to plan.

▪ Other relevant duties may include providing support for financial inventory analysis, the
creation of an annual operating plan, and special projects as needed to support cross-
functional initiatives.

5. Sales Operations Manager:

A sales operations manager is the Chief of Staff to the Sales Organization, the person who
leads the team and oversees every other function performed in the sales department. This person is
responsible for making sure the team is working in sync to achieve the targeted goals and meeting
their responsibilities. From measuring the performance to calculating the gains, this person makes
the final decisions and reports.

Common Responsibilities Include

▪ Preparation of design and presentation.

▪ Facilitation of Furniture installation and turn-over of products

▪ Overseeing every aspect of the department

▪ Devises strategies and techniques necessary for achieving the sales targets. Also, he is the
one who decides the future course of action for his team members.

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 CHAPTER 14
EXPORT
It is mandatory to have an import-export code to operate as an import-export business in
India. You can apply for an IEC online at DGFT.

Rules & regulations for exporting overseas :

• Obtain PAN card

• Register your business

• Open a bank account

• Have an import export code (IEC)

• Find buyers for your product

• Secure a logistic company

• Have a customs broker

• Credit card

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 www.exportingfromchina-alibaba.com

The top 14 exports from India are as follows:

• Mineral fuels

• Precious metals and gemstones

• Vehicles

• Computers, machinery and electronics

• Pharmaceuticals

• Apparel and accessories

• Organic chemicals

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• Iron and steel

• Leather footwear

• Rice and raw sugar

• Casual, comfortable footwear and clothing.

• Medical equipment, health and safety signage, hand sanitizer stations and disinfectants.

• Packaging and home office equipment to meet the increasing number of new
entrepreneurs and start-up businesses.

• Electronic devises and home office essentials. From headphones and video games to audio
devices and consoles, as more people than ever before start to work from home and
families try to entertain children, there has been a sharp increase in demand for electronics,
office equipment and entertainment such as drones, VR headsets, headphones and game
consoles and as Christmas approaches, this demand is set to increase further.

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 CHAPTER 15
IMPORT

If you are importing for resale or trade purpose, then you must have an IEC code issued by
DGFT department. You will need a Import export certificate to import from china or other
countries. IEC Code is primary proof as an Exporter/Importer in India. It has lifetime validity.
You don't need to have a company or any special credentials to use Alibaba. You don't
need a sellers permit, a website, a corporation nada.

www.importingfromchina-alibaba.com
In fact, most Alibaba wholesale suppliers don't care who they are working with as long
you buy in bulk, pay on time and order on a consistent basis.

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Best Products To Import From China:
Home décor and furniture. The real estate market is recovering at a fast pace and the
demand for furniture is gradually on the rise

• Children Toys

• Pet supplies

• Clothing, T-shirts and fashion accessories

• Electronic gadgets

• Phones and accessories

• Computer and office

• Mailing and Shipping Goods - Customs Duty Guidance:

• Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise
is from an IP. Up to $800 in goods will be duty-free if it is from a CBI or Andean country.
Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).

• Imports: The top imports of China are Crude Petroleum ($204B), Integrated Circuits
($123B), Iron Ore ($83.1B), Petroleum Gas ($47.8B), and Cars ($43.1B), importing
mostly from South Korea ($136B), Japan ($128B), Australia ($111B), Germany ($107B),
and United States ($103B).

• Alibaba offers 2646 Supplier List Suppliers, and Supplier List Manufacturers,
Distributors, Factories, Companies.

45
• The majority of AliBaba suppliers are manufacturers.

• Because manufacturers are the direct creators of the products, they can offer very low
prices on items.

• Alibaba is a B2B platform that helps connect suppliers, primarily from China, with buyers.

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 CHAPTER 16
WHOLESALERS
As a wholesaler, there are next to no limitations between you and retailers on every
continent.Alibaba.com facilitates communication and transactions between buyers and sellers
around the world, making international trade more feasible for you at any level.

Alibaba.com is part of the Alibaba Group and was founded by Jack Ma in 1999.
This company is based in China but serves business in 190+ countries and regions and 40+
industries with over 5,900 different categories of product offerings

Alibaba is a wholesale marketplace where you can buy products in bulk, affordably.It's
arguably the biggest eCommerce website in the world! With Alibaba you can buy a single
item if you negotiate with a supplier and they agree to sell you one item.

You can't start an online business without a product. So it makes sense to use Alibaba, the
world's biggest supplier marketplace. But is Alibaba safe? The short answer is yes, Alibaba is
absolutely safe.

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 CHAPTER 17
SUPPLIERS

Alibaba makes it easy enough to find a wholesale supplier at low costs. It offers an ever-
expanding choice of suppliers and an excellent search engine. But having numerous suppliers
offering countless products and services does not guarantee you find a trustworthy supplier.
There are many reports of scams on Alibaba, as well as other issues such as customer
service, packaging, shipping times, and more.

www.alibaba supplier.com

Most suppliers on Alibaba are manufacturers, but most require large minimum orders. As
middlemen, wholesalers usually allow for smaller orders.When on Alibaba, you are shopping
for suppliers. You want to screen for suppliers rather than products. To screen suppliers, use
Trade Assurance, Gold, and Assessed suppliers.

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 www.alibaba supplier.com

Gold suppliers:

Premium membership suppliers pay a high membership fee for the gold status. Scammers
usually go for the free Alibaba accounts.Although the membership fee does not guarantee they
are reliable, gold suppliers are less likely to be scammers who disappear.

49
 www.alibaba supplier.com

Go to the product page or supplier profile and look for the number, which tells you how many
years the supplier has had the Gold status.

Verified suppliers:

Verified suppliers may arguably be your best choice. They are gold suppliers from China,
Hong Kong, or Taiwan, who have been inspected by a third-party inspection company.If the
supplier has been verified, you will see this on their Alibaba profile, as well as a list of what
they have been verified for.

50
 www.alibaba verified supplier.com

To screen for Trade Assurance, Gold Suppliers, and Assessed Suppliers when you look up
suppliers on Alibaba, check the button that says each of the three so you see the relevant
suppliers and products.Alibaba also has ratings and reviews now, so you can see what other
buyers think about the suppliers and their products.

How to verify suppliers?

When you have the shortlist of suppliers, it is time to do some more research. Try to find
out more information online to verify who they are. Check the following information.Business
license.In China, a company name includes its location, name, main product, and partnership
type.

Business type: Suppliers may engage in manufacturing or trading. Many companies have
both the factory and export license, while others do only manufacturing or trading.Number of
years selling on Alibaba. This may indicate how stable and reliable the supplier isCompany
certifications: Make sure the supplier holds the necessary certifications for quality and
regulation purposes.

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How do you start an email to a supplier:

• First Contact with a Potential Supplier

• Introduce your company

• Explain why you are interested in their company/products

• Explain more specifically why you would like to meet

• Request a meeting

• Close politely

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 CHAPTER 18
BUYERS
The typical buyers are retailers, wholesalers, sourcing agents, and manufacturers who
source products for resell or private label for their own businesses.Sometimes, manufacturers
buy raw materials on Alibaba.com and also use Aliabab.com to sell their completed products.

www.buyers images.com

Finding buyers these days is very easy, compared to past time. To find buyers from
overseas you can list your products Many foreign countries have state-sponsored or state-
controlled companies—called trading companies—which import products, usually in bulk
orders.Do your homework and identify countries you believe your export would be great for,
then contact their embassy in the U.S. or their agency directly in their own country.

53
www.buyers images.com

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 CHAPTER 19
SWOT ANALYSIS
The SWOT analysis is a handy technique to analyze the present strength, weakness,
opportunity, and threats alongside their impact on the current business model of Alibaba
group.A qualitative strength of Alibaba is its founder, Jack Ma; his strong presence, ideas and
vision are adding to Alibaba's growth trajectory.

STRENGTH

• Well Segmented Product Portfolio

• Large and growing customer base of TMall

• Growing Demand for Marketing Services

• Taobao, China’s largest C2C sales channel

• Strategic Partnerships to create value propositions globally

• Strong Growth in Wholesale & Retail business

• Singles day - world’s largest shopping festival.

WEAKNESS

• Decreasing EBIDTA margins affecting core competency.

• Over dependence on Chinese economy.

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OPPORTUNITIES

• Opportunity to capture greater market share with Lazada and AliExpress.

• Potential of becoming market leader in cloud computing.

THREATS

• Stiff Competition in E-Commerce.

• AliPay may lose global market share to pre -existing local players.

• Increasing number of fakes may affect core competency.

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 CHAPTER 20
FINDING AND SUGGESTION
When searching for products/companies through Alibaba, check off the button that says
“Trade Assurance.” From there, you'll be able to look at products and suppliers who have
signed up with Alibaba's trade assurance policy.

Alibaba uses a mix of demographic, Psychographic and behavioral segmentation strategies

to fulfill its mission and transforming its business to emerge as a technologically advanced
company which will help customers, merchants and businesses to leverage the vast potential
of the Internet

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 CHAPTER 21
CONCLUSION
"A" stands for "availability." With two flagship websites - Taobao for consumer-to-
consumer and later Tmall (or "Tianmao" in Chinese) for business to-consumer, Alibaba
makes e-commerce very accessible to consumers in China. The reason for this is that sellers
don't need to pay Taobao to set up an Internet store there.Alibaba's strategies led to its success:
strong brand, providing customers with outstanding value and a superior shopping experience,
massive sales volume and realizing economies of scale.Alibaba focuses on being a platform
for suppliers to sell products in bulk at wholesale prices to small or medium-sized businesses
worldwide, who then resell them for a profit in their domestic markets.

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 CHAPTER 22
BIBLIOGRAPY

BOOKS:
1. Dr.Ying Lowrey,”The Alibaba Way” ,Indian Edition,2016.

2. Duncan Clark,”The House That Jack Ma Bullt” ,Last Edition,2016.

WEB RESOURCES:
• www.Alibababa.com

• www.Alibaba Cloud.com

• www.AliExpress.com

• www.AliOS.com

• www.Alipay.com

• www.AliGenie.com

• www.Taobao.com

• www.Tmall.com

• www.Lazada.com

• www.1688.com

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• www.Daraz.com

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