Assignment Sample on 7BUS2039 Strategic Leadership HR Management

Company description

Alibaba was founded in 1999, China. The founder of this company is Jack Ma. There have been around 117,700 employees in this organization till now (Alibabagroup.com. 2022). Alibaba isn’t a typical retailer. It does not source or store inventory, and third-party logistics companies handle the logistics. Instead, Alibaba is the result of integrating all the processes connected into a huge, data-driven system of vendors, merchants, network operators, logistics businesses, and suppliers. Indeed, Alibaba does what eBay, Google, Amazon, PayPal, wholesalers, and a significant part of American manufacturers do, helping financial services thrown in for good measure. Alibaba can do so by utilizing innovative network coordination and data intelligence technologies (Bieliaieva et al., 2020). It brings together the efforts of tens of thousands of Chinese companies to create an ecosystem that is more efficient than traditional business infrastructure. A key element of the company’s strategy is to deploy strong and unique customer loyalty programs targeted at each segment of the customer base. Operators should also be aware that one of the main benefits of network computing is the opportunity to increase efficiency and the information delivery system. Many companies have been developing networks in recent years. This makes cloud computing interesting because it enables companies to scale their data centres to meet changing needs and demands. In essence, companies take advantage of the scale provided by cloud providers to meet growing workloads from customers or third-party clients.

Business Strategy and competitive advantage

Alibaba is attempting to develop a retail environment that blends the internet and offline shopping experiences, while conventional e-commerce firms discover newer growth opportunities. To accomplish this, the business is said to be collaborating alongside Suning Commerce as well as Intime Retail. Alibaba’s long-term objective is to help merchants increase their actual revenue and promotional productivity while also improving the customer experiences via the use of digital technologies (Havinga, Hoving and Swagemakers, 2016). The corporation’s online to offline or O2O activities are aimed at achieving this objective, including its smartphone application (Qianniu, that serves approximately 6 million consumers) assists merchants operate their companies more effectively (Schmuck and Benke, 2020). Using Alipay (its payment system), that is being improved to match international security requirements, the firm is focusing on many projects throughout the payments market. Alibaba has formed relationships with a number of Asian logistics businesses in order to expand its distribution networks. The business is seeking to get thousands of small as well as medium-sized businesses onto its network and provide them with other services. Alibaba’s expansion should be fuelled by these initiatives throughout the foreseeable future.

Cloud Computing has now become a modest component of Alibaba’s operations, accounting for roughly 8 percent of its capitalization, as per Forbes calculations (Forbes. 2016). Cloud computing as well as data analytics, according to the business, will become the two key foundations that will empower its retailers in the coming years. As per Alibaba, computing capacity and analytics will become the two primary factors that will revolutionise the retail scene within the coming three decades (Schmuck and Benke, 2020). The firm has been actively spending within the cloud infrastructure, that is currently ranked in the leading three cloud technology businesses in the globe. Alibaba’s cloud hosts about one-third of all websites across China (Schmuck and Benke, 2020). Some other long-term objective of Alibaba’s plan is to use this network to help enterprises effectively sell their items and attract specific consumers.

Alibaba aspires to combine its services into a modern marketplace that may work as a facilitator for retailers to conduct operations efficiently as e-commerce firms hunt for the following surge of development. For that long run, such plan represents the best solution. The firm’s potential to implement this plan effectively in the face of fierce worldwide competition will become the primary engine of its development.

Alibaba is the most well-known brand within China’s e-commerce market, and its geography allows them to acquire a competitive edge. China has been considered to possess the world ‘s biggest Internet user marketplace, with 560 million individuals spending 20 hours per week online, more than double the magnitude of the American industry (Shen and Chen, 2015). China is likewise active in bypassing all conventional retailing through the preference of e-commerce. It presented a fantastic possibility across all Online sellers, particularly the early adopters, including Alibaba, which is developing an edge by the instant. China has jumped right into wireless communication, as well as Alibaba can provide all facilities and items via e-commerce.

Alibaba additionally benefits through economies of scale; this can reduce expenses connected with each of its offers for the selling of many and distinct commodities under a single business using the same distribution channels. Alibaba has two selling sites: Tmall includes all branded items while Taobao offers all non-branded items, primarily from independent sellers (Zhang and Wang, 2018). The range of things available on Taobao is incredible, and most individuals purchase there due to this.

Alibaba’s approach to managing human resource

Because of the COVID-19 situation, Alibaba has introduced an exceptional approach to its human resource management for continuing its business along with encouraging the employees in such crisis situation. With this distinctive approach, Alibaba has focused on three Cs which are- communication, connection and commitment.

Communication

The HR department collaborated alongside the communication department from the outset of the situation to launch a video programme termed “Daily news in the battle” (Liu, 2020). This aim was to create a unique communications network within Alibaba that would stream real-time facts and improvements to highlight how the company’s employees banded collectively to combat the struggle (Liu, 2020). They distribute the task for creating their individual regular news reports as well as disseminating the information to every division as part of a worldwide strategy. Throughout this type of case, it’s noteworthy to note how their HR department couldn’t complete the initiative on their own; they required the help of such communication division, and strong cross-departmental teamwork was critical to completing this first C.

Connection

Alibaba gathered friendly and optimistic responses across employees throughout Hubei and across the globe. Those responses will be disseminated throughout the organisation, with a focus on the line-up throughout Hubei, which became the centre for such downturn. The HR department also devised additional innovative and enjoyable ways to bring employees together, such as an interactive Karaoke utilising DingTalk (Alibaba Group established a cooperation platform) (Mo and Yu, 2017). Alibaba dismantles all barriers by allowing senior executives to sing at this Karaoke activity, reinforcing the all-united approach to deal with the struggle and bringing constructive progression. Alibaba is not even a stranger to involving senior executives in such activities; every year in the firm’s annual celebration, Jack Ma was indeed a performer on stage, performing role plays as well as singing to put on spectacular display. Someone may become a leader while also interacting and participating in team activities to foster a sense of togetherness.

The HR division was additionally in charge of dispatching all medical products for Alibaba workforce. Alibaba subsequently started a monitoring program for each worker by creating particular “health green QR code” which employees need to display when they arrive at workplace (Lei et al. 2020). Every resident throughout China may access their own “health green QR code” through the Alipay (Alibaba’s payment network) application to display when they wish to enter public venues including cafes, pubs, or office complexes (Lei et al. 2020).

Commitment

Whenever such a catastrophe occurs, Alibaba’s and perhaps many other firms’ key concern was how can they maintain encouraging workers to keep doing effectively during this tough time.  As a visionary leader, Jack Ma prepared a striking video message for HR workgroups: “Only those who can face challenges and businesses who can overcome challenges will have a bright future” (Warin, 2020). HR departments that are inspired may then convey that enthusiasm to the majority of the company’s workforce.

HR staff then prepared “employee’s story” and invited “Aliren” (the Alibaba workers) to film a video describing their regular workday (Warin, 2020). HR departments also generated motivating content such as posters featuring recommendations for improved scheduling at residence or indeed a freestyle song to promote the topic of work from home and make it more enjoyable. Alibaba adopted a highly down-to-earth content development approach to maintain the optimistic attitude alive, even during this difficult period.

Alibaba’s HR approach guarantees that each of these activities throughout the group’s various business segments are carried out smoothly during the catastrophe. This method is effective in keeping staff engaged and allowing them to develop. Human resource management within the Alibaba group has a strong business awareness, allowing them to integrate their strategy with the company’s goals (Warin, 2020). The benefits of such an effective HR strategy are enormous:

• Keeping workers psychologically healthy and cheerful.
• To ensure employee engagement as well as corporate sustainability.
• Putting HR inside a positioning strategy throughout the firm’s strategic plan.
• Improving business communication as well as openness.

Sustainability strategy in the long term – Refer to Porter’s Generic Model

The three major techniques underlying Porter’s Generic Model are cost leadership, differentiation, as well as focus.

The goal of any cost leadership approach is to achieve a competitive benefit through lowering costs. Alibaba’s fundamental general approach in numerous consumer segments includes cost leadership. The major goal of employing this approach is to maintain leading position through effective value chain administration. This approach enables Alibaba to increase market dominance by focusing on global middle class, that accounts for the majority of the entire consumer marketplace composition throughout most nations (Hidalgo Naranjo, 2018). The pricing issue is often very important to middle-class customers, therefore cost leadership provides the greatest option for meeting their demands. Alibaba places a premium on the affordability as well as accessibility among its products throughout the world, which contributes to increased brand recognition and revenue growth, as well as a significant competitive advantage. Aside from charging low rates through cutting manufacturing costs and increasing distribution network efficiency, Alibaba routinely gives discounts as well as vouchers to meet sales goals and counteract competitive forces from its nearest competitor (Hidalgo Naranjo, 2018). Such discount as well as promotional strategies are meant to raise brand awareness and drive consumption.

Another often utilised generic method for gaining a competitive benefit involves differentiation. Alibaba achieves its growth targets by combining distinctiveness with a cost-cutting approach. By highlighting the distinctive product qualities, Alibaba can extend its client base by using differentiation like a supplementary generic approach. Alibaba’s strategic goal with this approach aims to differentiate itself by integrating innovation and responding to consumers’ rising health issues. Alibaba, for instance, has expanded its product range in response to shifting customer demands in order to separate itself from competition and broaden the range of prospects in the business (Kuo, 2021). Alibaba has built a large and devoted client base by combining distinctiveness with cost leadership. Alibaba uses a differentiation standardised approach to structure its product offers so that they stand out as well as are distinct from the competition. The corporation utilises distinctiveness as a technique to alleviate the pressure from other brands because it is an established brand having a solid footing (Kuo, 2021). To set Alibaba apart from other firms, it spends a lot of money on marketing, advertising, and celebrity endorsements. Extensive expertise, the oldest name, and a global presence are among the differentiating aspects that the company’s advertising and communication initiatives stress. Aside from this, the brand symbol is also utilised to provide a basis for distinctiveness. In the minds of customers, the innovative and recognizable brand emblem has built a powerful brand image. Despite several alterations, the essence of the company has stayed consistent, which acts as a powerful differentiator.

The final generic competitive approach called ‘focus’ encourages businesses to spend their resources towards increasing narrowly defined areas. When organisations use the focus approach, they target certain market niches and use specialty marketing to gain a competitive edge (Li, 2019). Alibaba has a focus approach in regards of low costs and providing the highest value. Addressing the demands of a specialised market niche at the minimum possible pricing will be the low-cost focus approach. Whereas the optimum value focus approach is used by stressing the flavour, shape, and appearance of the commodity that best meets the demands and expectations of the clients (Li, 2019).

References

Alibabagroup.com. 2022. Alibaba Group. [online] Available at: <https://www.alibabagroup.com/en/about/overview> [Accessed 11 March 2022].

Bieliaieva, N., Krushelnytskyi, M., Voliak, L., Usata, N. and Sova, O., 2020. From survival to business prosperity: The financial aspect of managing an organization in a crisis. Independent Journal of Management & Production, 11(9), pp.2275-2290.

Forbes. 2016. A Closer Look At Alibaba’s Long Term Strategy. [online] Available at: <https://www.forbes.com/sites/greatspeculations/2016/10/13/a-closer-look-at-alibabas-long-term-strategy/?sh=1cf26fc92bc0> [Accessed 11 March 2022].

Havinga, M., Hoving, M. and Swagemakers, V., 2016. Alibaba: a case study on building an international imperium on information and E-Commerce. In Multinational management (pp. 13-32). Springer, Cham.

Hidalgo Naranjo, D.S., 2018. The e-commerce market development of China as the biggest in the world and Alibaba as a successful model of a market platform during the year 2015 (Bachelor’s thesis, PUCE).

Kuo, T.N., 2021. Business model of competitive advantage. Journal of Advanced Management Science Vol, 9(1).

Lei, T., Deng, J., Xie, Y. and Tian, Y., 2020, November. Using Health QR Code to Fight Against COVID-19: Chinese Government’s New Way of Collaborative Governance with Enterprises. In 2020 International Conference on Management, Economy and Law (ICMEL 2020) (pp. 194-198). Atlantis Press.

Li, J., 2019. Evolution process of an innovation ecosystem: case of the Alibaba Cloud Computing ecosystem in China (Doctoral dissertation, University of Manchester).

Liu, Y., 2020. The impact of crisis management strategies and corporate reputation on chinese consumers’ purchase intention in e-commerce.

Mo, Z. and Yu, Y., 2017. The mechanism of empowering leadership’s effect on employee creativity in dingtalk alibaba context. In Proceedings of the Fourth International Forum on Decision Sciences (pp. 99-117). Springer, Singapore.

Schmuck, R. and Benke, M., 2020. An overview of innovation strategies and the case of Alibaba. Procedia Manufacturing, 51, pp.1259-1266.

Shen, C. and Chen, W., 2015. Gamers’ confidants: Massively Multiplayer Online Game participation and core networks in China. Social Networks, 40, pp.207-214.

Warin, A., 2020. Alibaba’s winning HR strategy during the crisis. [online] Linkedin.com. Available at: <https://www.linkedin.com/pulse/alibabas-winning-hr-strategy-during-crisis-albin-warin-%E7%8E%8B%E4%B9%90%E5%BF%83/> [Accessed 11 March 2022].

Zhang, Q. and Wang, Y., 2018. Struggling towards virtuous coevolution: institutional and strategic works of Alibaba in building the Taobao e-commerce ecosystem. Asian Business & Management, 17(3), pp.208-242.