Term Paper on

The Management System of Alibaba: Takeaways for Strategical Business

Management Based on International Perspective

Course Name: Management and Organizational Behavior (MGT7301)

Submitted to
Brigadier General Akhtar Shaheed
Faculty of Business Studies
Bangladesh University of Professionals

Submitted by
Name: Sadia Sefat
ID: 24230335018
&
Name: Ishrak Sharear Mahmud
ID: 24230335052
Section: C
MBA Professional, Batch 35th
Bangladesh University of Professionals

Date of Submission: 10.04.24

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Abstract
Recently, China’s e-commerce industry upbringing has been in full throttle and has had a
significant impact on financial development. Alibaba Group, established by Jack Ma, has become
an international pioneer in multiple sectors such as e-commerce, cloud computing, and digital
entertainment. This paper will give a concise but informative analysis of Alibaba’s management
system, with an impact on its internationally developed organizational structure, leadership style,
decision-making processes, entrepreneurial approaches, and corporate culture. It is concluded that
Alibaba adopts a diversification strategy, and its internationalization strategy can be summarized
as a “dual-track system”; amplification of Alibaba’s business abroad with e-commerce as its core
in overseas acquisitions; and its organizational structure, human resources, business model
innovation, expertise in technology, and business structure are adjusted in line with its
internationalization development. By exploring these, the paper aims to provide the key elements
that have contributed to the worldwide growth and achievements of Alibaba’s and takeaways to
implement in our day-to-day corporate attributes so that it can enhance our real-life contributions
to whom we may answer ourselves.

Keywords: Alibaba Group, management system, organizational structure, leadership, corporate

culture, human resource management, strategic management, internationalization strategy,
diversification strategy,

1. Introduction
As the leader of cross-border e-commerce industry, established in 1999 Alibaba is the dominant
e-market in China, with a market share of more than 60% entered the international market as the
wave of globalization swept through. Alibaba Group was formally listed on the New York Stock
Exchange in September 2014, setting the way all over the world. In 2016, Alibaba became the
world's largest retail trade platform, serving over 200 countries and regions. By 2021, the Alibaba
ecosystem have roughly 1.280 billion active users worldwide, with 301 million of them coming
from externally. Alibaba provides an open platform for small and medium-sized enterprises
(SMEs), which may join with minimal restrictions. Jack Ma founded his first firm, Haibo
Translation, in 1992. He founded Alibaba shortly after, and the firm has developed significantly
over the course of the next two decades. In 2004, Alibaba.com became the world's largest online
business-to-business (B2B) platform for global trade, attracting China's top domestic B2B trading
groups. Whereas the dot-com boom of the 2000s ruined many information technology (IT)
enterprises in China, Alibaba survived the crisis and has since grown to become the world's top e-
commerce company. Alibaba is expanding not just as a Chinese e-commerce platform, but also as
a global electronic marketplace (GEM) platform. It began with a simple idea: allow millions of
Chinese SME suppliers to connect with customers all over the world online. The fast expansion of
online consumer and e-business websites in China stimulates Alibaba's e-business ecosystem,
including its dynamic evolutionary path.

Alibaba manages multiple segments which includes e-commerce, cloud computing, digital

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entertainment, and financial services:

1. Alibaba.com: Distinguished online B-2-B marketplace collaborating with thousands of millions

of consumers and suppliers from all over the world.
2. Taobao: Online shopping platform in China provides services with a wide range of products
starting from clothing to electronics and household goods.
3. Tmall: Online platform within the Alibaba’s spheres, solely concentrate on high-quality
products. Tmall provides with more delicacy in shopping experience compared to Taobao.
4. AliExpress: Worldwide online retail platform for international buyers, operates specially in
global markets rather than China.
5. Aliyun: Alibaba's cloud computing service that offers a wide range of cloud services, enclosing
computing power, storage, and big data processing.
6. Alipay: A digital payment platform in China that provides services such as online payments,
money transfers, and bill payments.
7. Ant Group (formerly known as Ant Financial): Responsible for managing Alipay and
provides a set-up of financial products and services which mobile payments, financial
management, and micro-credits.

2. Organizational Structure of Alibaba Group

Alibaba Group operates many companies, including China Business, International Business, Local
Living Services, Cainiao, Cloud Business, Digital Media & Entertainment, Innovation, and more.
This may be separated into three parts: First, there's e-commerce, which includes production
organization, manufacturing, finance, shipping, information flow services, and online sales. The
second category is e-commerce services, which include information platforms, third-party
payment, credit assessment, partner e-commerce assistance, and networked logistical services. The
third category includes cross-border e-commerce and related operations. Initially, Alibaba Group
had five subsidiaries: Yahoo! China, Taobao (a marketing platform), Alibaba.com (a B2B
commerce platform), Alipay (an online payment system), and Alibaba Cloud Computing (Zhu,
2013). However, its organizational structure shifted in 2011, 2012, and 2013. The first of the three
changes reorganized Taobao, splitting it into three separate B2C enterprises (eTao, Tmall.com,
and Taobao Marketplace). Secondly, Alibaba Group divided into seven business units and made
Alipay a business associate. During the third restructuring, the corporation was separated into 25
smaller units. The organization's new structure makes it apparent that the corporation aims to serve
a wide range of needs. By dividing into smaller entities, Alibaba Group enables each branch to
focus on its own goals and thrive freely.

2.1. Product Operations

To maintain all these internal corporate activities as fluent as it can be Alibaba operates with a
strong organizational managerial structures.

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i. Centre Business Operation: Innovative business platforms like Taobao, Tmall, Alibaba.com
is the foundation of Alibaba's revenue.

ii. Cloud Servicing: Alibaba Cloud (Aliyun) is a storage of cloud services which includes
databases, storage, virtual networks, and big data analysis.

iii. Digital Media and Entertainment: Alibaba has introduced with Chinese video-sharing
website/media enterprises like ‘Youku’. Other digital segments like- Alibaba Pictures, Alibaba
Music and educational platforms.

iv. Programs Innovation: Alibaba's evolution into a digital powerhouse demonstrates a

successful blend of innovation and business strategy. The company shifted from conventional
commerce to online e-commerce by adopting digitalization. Using technological research and its
improvement, along with other experimental initiatives.

v. Financial Management Services: Ant Group (formerly known as Ant Financial) is a sister
concern of Alibaba which operates Alipay, one of the largest mobile and online payment
platforms. Moreover, it provides financial management services, credit systems and insurance
services.

To be more flexible Alibaba has structured its organizational process to the fast-growing
technological industry. Combining centralized and decentralized authorization in maintenance and
punctuality across all business areas to ensure strong corporate structure.

2.2. Vision

Alibaba aspire to be a good company that will last for 102 years. They envision that their customers
will meet, work and live at Alibaba.

2.3. Mission

As part of the Alibaba Group, their mission is to make it easy to do business anywhere.
Accomplishing this by giving suppliers the tools necessary to reach a global audience for their
products, and by helping buyers find products and suppliers quickly and efficiently.

2.4. Values

• Customers first, employees second, share-holder’s third

• Trust makes everything simple
• Change is the only constant
• Today's best performance is tomorrow's baseline
• If not now, when? If not me, who?
• Live seriously, work happily

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3. Leadership Style at Alibaba Group

The Alibaba start-up has three origins. In 1992, Jack Ma founded Hangzhou Haibo Translation
Agency to offer translation services to company owners, students, and engineers in Hangzhou. In
addition, he delivered English lectures. Jack was involved in intermediated transactions and retail
trades to generate earnings to sustain the firm, which subsequently became the foundation for the
establishment of Alibaba. The second root was the era when he created China Yellow Pages in
1995 and began an internet company. This was China's first website development firm, and it
produced home sites for small and medium-sized businesses in Hangzhou, laying the groundwork
for Alibaba's entry into the e-commerce industry. In the third root, Ma established the first e-
commerce platforms for big businesses using 27 categories while working for a Chinese
government agency. The above-mentioned occurrences resulted in the establishment of Alibaba, a
Hangzhou-based B2B platform firm for small and medium-sized businesses. From the first
encounter, he learned about transactions; from the second, he learned about e-commerce for small
and medium-sized businesses; and from the third, he learned about operations platforms. Alibaba
launched as a single platform for corporate transactions built on the principles of Guanxi, the
ancient Chinese concept of connections and mutual trust based on a company's internal structure.
Ma discussed his idea for the firm at the time with the eighteen co-founders. According to Jane
Xiao, director of Alibaba's Hangzhou headquarters, the company's 18 founders and their
relationship are symbolized by 18 sculptures of milk cows erected in the main office. At the
moment, Alibaba's culture is built around its employees' familiarity with one another, or guanxi.
Jack Ma has been a culture setter since the company's founding. He reads the Tao Te Ching by
Laozi and likes reading Jin Yong's books. As a result, they have brought their spirit and culture
into the construction of corporate culture.

3.1. Succession Planning and Leadership Transition

The charismatic co-founder of Alibaba, Jack Ma, played a pivotal role in structuring the company's
leadership style. Through the integration of his visionary approach, entrepreneurial courage, and
straight-forward decision-making, Ma strengthened the importance of innovation, customer
orientation, and longevity in thinking. With his cheerful and authoritative approach to leadership,
Alibaba inherits a culture of empowerment, motivating employees to take risks, enlighten thinking,
and pursue ambitious goals. Following Ma's retirement in 2018, Daniel Zhang took over as
Alibaba's chairman and CEO. Zhang, known for his acute strategic and operational expertise, has
continued Ma's legacy while also introducing his own leadership style to the company. After
Zhang's retirement in 2023, Eddie Wu took over as CEO. Both of them, as Ma’s successor (also
founding members of Alibaba), advocate for a data-driven approach to decision-making, giving
priority to operational efficiency, and emphasizing the importance of fostering talent and nurturing
collaboration across teams. During Ma's tenure, several key aspects characterized Alibaba's
leadership style:

i. Visionary Approach: To connect small and medium-sized enterprises (SMEs) with global
markets, Ma started Alibaba with a vision. He prioritized the importance of innovation and
longevity in thinking.

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ii. Entrepreneurial Encourage: Alibaba inspires an entrepreneurial culture, motivating
employees to be a risk taker, innovative in mind, and operate outside the box thinking. That kind
of practices eventually leads the improvement of new business lines and technologies within the
organizations.

iii. Customer Orientation: Progressive customer oriented service model and positive user
experience are core motive to Alibaba's business philosophy. To match up with the evolving needs
of its customers Alibaba research with in depth consumer/business behavior.

iv. Adapting Technology: Alibaba represent itself as the frontier of technological innovation.
Under Ma's leadership, the company financially enrich in research and development, particularly
in areas such as artificial intelligence, cloud computing, and big data.

v. Decentralized Management Approach: This set of non-authoritative managerial operations

enhance employees creativity and aptitude within the organization.

vi. Social Responsibility: Given the importance of corporate social responsibilities, Alibaba has
taken various initiatives to provide society with promoting environmental sustainability, and
support social welfares.

From the start of the company to the present moment of successive recognition worldwide,
Alibaba’s leadership style has introduced new challenges and opportunities in the national and
global markets. After the retirement of Ma, with new leadership taking control, the company
believes there will be changes in the culture and leadership approach.

3.2. Leadership development program

Alibaba Global Leadership Academy (AGLA), a leadership development program, aims to locate
and develop future leaders within Alibaba’s ecosystem. It typically targets individuals with high-
potential across different departments and business units within the company. Participants are
involved in a set of programs like intensive training, mentorship, and transfer to various aspects of
Alibaba's business operations.

4. Corporate Culture at Alibaba Group

“The length of our marriage is 102 years, and we have 87 years left. After 87 years, you can marry
someone else. But within these 87 years, you cannot change your mind.” Just three days after the
business filed for its highly anticipated initial public offering (IPO) in the United States, Jack Ma
gave his support to an Alibaba employee mass wedding that took place in Hangzhou on May 9.
The 102 married couples connected with Ma's prediction that Alibaba would endure for another
102 years. This kind of bonding event is just a small portion of Alibaba's corporate culture, which
the filing said had been "critical" to the company's success. Even though the Alibaba team has
grown from its initial 18 founding members to a massive 24,000 people, part of its early start-up

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culture has been thoughtfully preserved. Transparency is prominent among them all. On the
company's internal messaging network, "Aliway," Alibaba staff members of all ranks are free to
criticize defective items, although the product development team is free to respond. Employees
frequently dedicate a few hours of their workdays to these honest conversations. Often, consumer
concerns span several hundred pages, as was the case after Alipay Wallet launched and users had
some rough times. Employees can also challenge unsatisfactory work assessment results on
Aliway by requesting feedback from the general public, a method that supervisors use more
frequently than those listed below. Seeking retribution is obviously forbidden, but users are free
to reward or penalize a commentator with virtual credits. Ma has personally lost "seame seeds" for
remarks he made that were not well-received. There is a flattened structure in the organization
along with this openness to criticism. Creating an identity for yourself is among the first tasks
assigned to newly hired Alibaba staff members. To lessen the feeling of hierarchy and superiority,
even individuals at the top of the pyramid are addressed by their nicknames. COO Daniel Zhang
is known as "Old Xiao," although his real name is Xiao Yao Zi, which means "free and unfettered
man." Feng Qing Yang, which translates to "The Wind Blows Brisk and Light," is Ma's nickname;
however, it doesn't seem to be used often. The names originally originated in Chinese martial arts
literature. However, when the workforce grew, those quickly ran out. A sense of interpersonal
togetherness is the third feature of the corporate culture at Alibaba. One instance of Alibaba's
efforts to provide its workers with family-like support is the mass wedding. In October 2011, the
firm established its "iHome" mortgage fund, which enables staff members to apply for interest-
free loans for down payments on properties. Internal corporate data indicates that by April 2014,
3,852 workers had received loans totaling over $150 million. The clause simply states that
"Alibaba has the right to decide to never hire back an employee who, upon leaving the company,
does not repay the loans within 90 days." This is not to suggest that defaults have not happened,
but Alibaba has been quite forgiving.

4.1. Innovation and Risk-Taking Culture: Radically Changing the

Manufacturing Sector

An example of how innovation, strategy, technology, and quality are all common is Alibaba's
subsidiary Ant Financial, which the World Development Report 2019 lists as one of the most
valuable fintech businesses globally. The business is among the Alibaba Group's most valued
affiliates. Ant Financial boosts quality and productivity via automation. Based on algorithms,
credit evaluation is completed automatically without the need for human labor. The consumers
perceive this as a quality increase since it enables quicker operations at lower prices. Cost
reduction and quality improvement have rarely been mutually exclusive. Technology-enabled
innovation may cut costs and improve quality simultaneously, as the Ant Finance story
demonstrates. Established in 2004, Alipay—which changed its name to Ant Financial in 2014—is
capable of handling financial transactions with ease and dependability. These were unusual at the
time of its founding. In China, there was virtually little legal protection for clients. The Chinese
counterpart of PayPal was called Alipay. Using Alipay, Alibaba Group aimed to boost trading
volume. Ant Finance wants to make financial transactions simpler so that little but meaningful
improvements may occur in the globe. Digital technology facilitates the evolution of business
models and the regeneration of the infrastructure of the financial industry. This may lead to cost

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reductions, modifications to the business plan, and adjustments to the strategic objectives of the
organization. In advance altering the company strategy enhances value generation in the event of
fast technological migration. In the event that technology spreads more slowly alterations an inside
company-launched secondary business concept may be quite effective. Alibaba and Beijing's
"Made in China 2025" initiative have the potential to drastically alter the global industrial
landscape. B2B platforms, like Alibaba's platform, enable industrial enterprises to reconsider their
business strategies. Businesses need to go beyond simply producing goods and managing the
supply chain so that they can be sold through conventional marketing methods. Industrial value
chains can be altered by network effects produced by B2B platforms. Open platforms that welcome
contributions from outside parties, like Alibaba, include openness into their value offering.
Alibaba's ascent to dominance in the digital sphere may be attributed to its adept integration of
innovation and strategic business planning. The company used significant advancements in
digitalization to successfully migrate its conventional commercial operations to online e-
commerce. IPOs may cause a company's decision-making process to become less focused on
innovative tactics. We can observe that this impact did not occur in the case of Alibaba. 2014 had
the biggest IPO on the stock market, which was Alibaba. With revenues that surpass Walmart, the
firm is currently ranked in the top 10 globally. As technology developed, a number of corporate
operations, including marketing, financing, and shipping, moved online. Alibaba's success may be
attributed to developing a platform that allowed for the invention of a manufacturer network effect,
which revolutionized the Chinese retail industry. Alibaba uses a data-driven network of
manufacturers, sellers, service providers, and shipping companies to handle organizational
operations online. Alibaba recognized that was being done in the USA by FedEx, Google, eBay,
PayPal, and Amazon in China. The majority of the most valuable internet companies, including
Alibaba and Tencent in China, Amazon, Google, and Facebook in the US, were founded in the
previous decades. These businesses expanded quickly as a result of their use of new technologies
like networking and data intelligence.

5. Human Resource Management Practices in Alibaba: Vision of Ma

Corporate entrepreneurship (CE) gives businesses a competitive edge over rapidly advancing
technology and intense international rivalry, which has a favorable impact on an organization's
development and profitability. The implementation of a change-oriented structure and the creation
of new goods, services, and procedures are two ways that CE activities improve business
performance. High-performance human resource practices (HPHRPs) support organizational
outcomes as well as intra-firm-level entrepreneurial activities. In conjunction with the impactful
influence of corporate entrepreneurship endeavors, HPHRPs facilitate the attainment of enhanced
organizational performance. Entrepreneurship is not only known as the development of a new
product, service, or production method but also as the discovery of a new market opportunity, the
redefinition of an industry, and the restructuring of an industry (Agca & Kandermir, 2008; Fis &
Wasti, 2009). Intra-company entrepreneurship may be used as a system within the firm to support
organizational transformation and strategy renovation, boost organizational growth, gain a
competitive edge, and provide unique goods that provide value for customers. Human resources

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management (HRM) practices seem to be effective in creating an entrepreneurial context (Holt,
Rutherford, & Clohessy, 2007). High-performance human resource practices (HPHRPs) enhance
employees' motivation to take initiative and involve themselves in decision-making processes
concerning their workforce and thus facilitate CE (Appelbaum & Kamal, 2000).

As Alibaba's successive dependency in global recognition is with wellbeing and advancements of

its employees, their core motive has always been to develop with high performance human
resource practices and enhance corporate entrepreneurship. The entrepreneurial approach of Jack
Ma has had a profound impact on several emerging enterprises:

i. Enthusiastic Leadership
Jack Ma invites open discussions from staff members and urges them to cultivate flexibility in the
workplace. In addition, he has a strong sense of identity and is a kind, reliable leader. For CEOs,
this is crucial since it cultivates loyalty and creates a strong basis for the expansion of the business.

ii. Operating from Customer's Point of View

Jack Ma does not perceive the goods via a technological view. He approaches markets and goods
from the standpoint of the customer. Because of this, Alibaba consistently creates goods that are
relevant to real requirements and are helpful and practical.

iii. Pursuing a Mission

Jack Ma has a significant goal. He felt that under Mao Zedong, China's culture and national spirit
had been lost and undermined, and he wished to restore them. In line with that goal, Jack Ma's
approach to human resource management has always been to eradicate corruption and provide
employees with equity in the company so they may profit directly from Alibaba's overall successes.

iv. Recruiting Passionate People

Jack Ma would rather work with enthusiastic entrepreneurs than experienced staff members. This
is why he values commitment and creativity over accomplishments that seem good on paper. All
businesses want to be led by individuals who are natural, flexible, and committed to a shared
objective.

6. Strategic Management Process of Alibaba

Alibaba has set up an enterprise resource management (ERM) system that incorporates holding
co-location practices. This system enables online services to run within a packet data transfer
system, while batch jobs are finalized directly on physical servers. Alibaba's inventory
management is a crucial prospect for its operations within its two-staged distribution system
(Zhang et al., 2022). The company tends to maximize its advantage with information technology
to develop its supply chain system, which is crucial to enhancing its overall efficiency and
profitability (Xiao & Xiong, 2023). To maintain fluency and continuity, Alibaba has introduced
advanced fraud detection mechanisms based on data analytics and artificial intelligence, which
will allow them to operate automatically for real-time fraud prevention (Ikhsan et al., 2022).
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Developing a reputation in management systems within these sophisticated entities for its online-
to-offline (O2O) e-commerce markets, Alibaba's dynamic cloud-native operations have
demonstrated remarkable data operation capability, supporting massive transaction volumes
during rush hours (Xu, 2023). In spite of Alibaba’s technological progress, the company has
involved itself in social initiatives. They are in collaboration with governments and cities to
establish smart city projects, focusing on transportation management and urban infrastructure
development (Blanchard & Hooijmaaijers, 2021; Ma et al., 2021). Alibaba is also focusing on
poverty alleviation programs by providing resources and training for online store managers,
showcasing its commitment to social responsibility.

Alibaba's strategic management operation is committed around its in depth business process,
innovative product and service solution, and progressive ecosystem structure. Targeting strategy
revolves around three core pillars:

i. Dominance in E-commerce Platform: Alibaba intends to sustain its leadership position in

China's e-commerce market as well as elaborates its existence globally. To take this as starter, it
continues to invest in enhancing its global platforms, user friendly business plan, and diversifying
its product offerings to capture a larger share of consumer spending.

ii. Superiority in Cloud Computing: Alibaba Cloud or Aliyun is the main concentration area for
the organization, as it tends to capitalize on the growing demand for cloud services both in China
and internationally. To achieve this specific goal, Alibaba is investing heavily in expanding its
cloud systems, developing new technologies, and collaboration with other cloud based business
entity to strengthen its competitive position in the cloud market.

iii. Digital Conversion and Originality: Alibaba is eager to drives digital transformation across
industries through originality and technological adaptability. The company intends to generate
profitability through its expertise in areas such as artificial intelligence, big data, and IoT to
develop innovative solutions that empower businesses and drive efficiency.

6.1. International Market Entry Strategy

When e-commerce firms internationalize, Alibaba Group, a global e-commerce company, varies
from conventional business strategies in that it frequently creates subsidiaries in foreign countries.
Alibaba Group mostly uses one of the following three privatization strategies when expanding into
foreign markets:

i. Merger & Acquisition (M&A)

Holding M & A is a common way for companies to expand in international markets. On the one
hand, Alibaba’s net profit and free cash are rising year by year, and its financial strength is
sufficient to support high strategic M & A; on the other hand, M & A is much less risky than new
construction for an Internet company like Alibaba when making foreign direct investments. In
addition, countries in Southeast Asia and South Asia are the fastest growing economies in the

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world, and given the good development of Alibaba’s portfolio companies in these regions, Alibaba
has increased its stakes in these companies several times.
ii. Equity investment
The model of equity investment is relatively equal, without spending a lot of money to grasp the
dominant position, but with a smaller share, to enter the niche industry, both to assist SMEs to
improve their own strengths, and to obtain the data or platform needed from it to improve the
ecosystem of Alibaba Group. Alibaba’s investment in equity participation accounts for about 62%
of its overseas expansion. Alibaba’s investment has mainly started from 2013, covering everything
from retail e-commerce to luxury e-commerce, from payment to logistics, from social to venture
capital, covering all aspects of the industry chain and life, which also plays a good complementary
improvement as well as innovation to its main business.

iii. Strategic Cooperation

Strategic cooperation also accounts for a relatively large proportion of Alibaba’s overseas
expansion. Instead of emphasizing control, strategic partnerships are targeted and simple, and do
not require large amounts of capital, with many parties “helping” each other to get what they need.
Alibaba’s strategic cooperation has been prevalent since 2014 and 2015, i.e., after Ali’s listing on
the New York Stock Exchange. The cooperation targets are mostly foreign government agencies,
traditional retail industry and upstream and downstream enterprises in the industry chain, involving
mostly European and American powerhouses. Cross-border logistics is a major direction of
Alibaba’s strategic cooperation. Alibaba is building its own cross-border logistics service network,
Cainiao Network. In order to improve the international standard and level of Cainiao, Alibaba has
carried out a series of investment acts in logistics.

7. Takeaways for Strategical Business Management Based on International

Perspective of Alibaba

i. Innovative Business Models: Alibaba established itself as a pioneer in developing innovative

business models, especially in the fields of e-commerce and digital technologies. Studying
thoroughly its organizational structure students, scholars and businesses can gain insight into the
structure, management, and optimization of business models, which eventually lead to profitable
outcome.

ii. Cultivation of Management: Alibaba's upbringing is not only limited to its business model,
but also to its efficient management practices. Analyzing its organizational actions can help
getting insights into various management aspects which includes leadership styles, decision-
making processes, and effective corporate culture.

iii. Cross-border Business Approach: Being born in a socialist nation with limited resources,
Alibaba has developed to a unique business entity. Showing the world how business is not limited
within a philosophy but greater than any restricted socio-economic agenda.

iv. Cultural Diversification: Not only the socialist China or Russia but capitalist Europe and
America also integrated themselves with the diversified cultural motives of Alibaba. It has shown

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the world that any business approach with consumer oriented model and structure can thrive like
a smooth flow of wind, overcoming any strong blizzard.

7.1. Learning from Ma’s Leadership

Ma has focused on Alibaba's new values, mission, and culture thus far, all of which benefit society
as a whole rather than simply the company's workers. This implies that even in cases where a
recently introduced business model contradicts the goals of the current enterprise, it may serve as
an inspiration for increased member participation if it encourages positive social values. Ma noted
the need for mutual openness for building social values when he began to emphasize social values
in executive and staff training programs: "Everyone needs to have an open mind to communicate
with each other." Ma emphasized that Alibaba introduced a logistics platform as a business model
with an open mind rather than an imperial mindset, pointing out the enhancement of social values
through the integration of social resources. This reduced the cost of open innovation and increased
the culture of open innovation.

7.2. Alibaba’s Innovation Strategy: What to Take?

Alibaba's motive for innovation is clear in its acceptance of cutting-edge technologies such as
block-chain. The company has operated significantly with its introduction to block chain solutions
for supply chain management through Alibaba Cloud BaaS (block chain as a service) (Joo & Han,
2021). Additionally, Alibaba has demanded patents for block chain-based domain name
management systems to enhance its operational infrastructure (Patsakis, 2019; Patsakis et al.,
2020). The innovation might be successfully absorbed into the organizational culture of many
high-tech companies. Alibaba's story demonstrates how crucial it is for the company to create a
strategy that works and an innovation plan that goes along with it. A strong business strategy
frequently identifies how each department—manufacturing, marketing, finance, or R&D, for
example—supports the overarching business plan. Alibaba's success can be attributed to their
implementation of "smart manufacturing," which involves automating as many processes as
possible through the use of the following techniques: monitoring customer behavior; connecting
software solutions for every operation activity; sharing information via streaming; and learning
the most effective working algorithms.

8. Conclusion
Standards in leadership and HR positions don't have to be fancy; they just need to support a
vision—a vision that enhances the lives of workers and others around them. To create a better
society, businesses should incorporate that objective into their culture and carry it out at all levels.
The era of traditional thought leaders is long gone. Many firms have adopted Jack Ma's leadership
attitude as a guide in recent years. It's a way of thinking that emphasizes outstanding talent and
treats them with the utmost enthusiasm and integrity. Additionally, modern business leaders will
assemble a dream team that is eager to work together to advance both their company and the game.

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