Alibaba Organizational Structure Essay

Introduction and Historical all overviewOver recent years the external environment and the marketplace countenance extend increasingly dynamic and competitive, with progressive consolidation of the market leaders and inveterate need of companies to adapt their structure towards our demanding society. This trend has led Alibaba Group guardianship ltd. to conduct some organizational considerations before being listed on the impudent York Stock Exchange last September. Alibaba is a Chinese e-commerce company founded in 1999 by hole Ma, who successfully created a B2B website and portal connecting Chinese manufacturers with thousands of overseas buyers. Ma howevertually managed to attract foreigners to run the company since, during that time, people in China had very little management expertise. This decision, together with the significant net profit penetration in China, directed in a vast growth of summarise export volume.Alibabas peculiar organizational human bodyAlibaba G roup guardianship Ltd.s partnership governance structure completely differs from the dual-stock-class governance design some public companies prefer. Dual-class stock structures enable companies to keep control even after they bring about public with their IPO. Companies with this approach (including Facebook, Groupon and Zynga) issue sh bes to founders enabling them to have multiple votes per share. Alibaba isnt doing a dual-class structure and the company is genuinely implementing a rather different concept. The Alibaba governance structure is probably inspired by the Chinese political structure. It is a 27-person partnership where partners have the right to pass water a majority of directors effectively controlling Alibabas board, even though they only own a minority stake in the company.David Webb utter The shareholders are equivalent to the People in China, who have no claim in how their country is run (www.webb-site.com) in his website about government and integrated af fairs. The Company justified this organizational design arguing that it wants to create a collegial leadership group that can make long-term decisions. simply this is non the onlyreason the Chinese e-commerce giant had in deciding how to shape its structure, a great deal of relevance was given to embodied culture. As a matter of fact Alibaba relies on this structure as the only solution for preserving the culture shaped by companys founders.Corporate culture as Alibabas extra engineA substantial part its incorporate culture is entrenched in Alibabas pile statement, aiming to build the future infrastructure of commerce and throw ining customers to meet, work and merry at Alibaba, at least for 102 years (http//www.alibabagroup.com/en/about/overview). This feel of commitment is well rooted in each employee, starting from Jack Ma himself. He always believed that Alibabas corporate culture has been lively to the success of the company. Transparency and critical approach are part of this ethnical mindset, strongly contributing to create a flattened hierarchy. Moreover, as a result of this horizontally integrated environment, one of the first things that new Alibaba employees are asked to do is to come up with nicknames for themselves.To reduce the esthesis of structure and superiority even those at the top of the pyramid are called by their nicknames. This sense of family unity has been shared within one of the biggest corporate events ever the Alibabas mass marriage hosted on May 9, 2014. During the event 102 married lucifer had to recall the 102 years that Alibaba shall sound, as stated in the company vision statement. The length of our marriage is 102 years, and we have 87 years left. After 87 years you can marry some else. But within these 87 years, you cannot change your mind said Jack Ma during his blessing. Alibabas corporate perception of unity perfectly aligns with the decision of not reshaping its organizational structure, which allows head Ma and top management to maintain control over Alibabas board members.ConclusionUndoubtedly, Jack Mas philosophy did not change to meet the IPOs requirements. The company will cover up to adhere to its principles, putting customers and employees before shareholders. Almost one year ago, Alibabas insistence on its partnership structure contributed to ruin plans for a viable stock market listing in Hong Kong. For this reason Alibaba chose to list in the New York Stock Exchange, where the so-called AlibabaPartnership will eventually survive together with its corporate values. The company turned to the U.S. mainly because American regulators allow different types of shares, and other similar strategies to give some shareholders more voting power.On the other hand, Hong Kong regulators insisted all shareholders receive a voice in corporate decisions equal to the number of share they held, somehow interfering with Alibabas partner needs. Choosing to be listed in a foreign country is actua lly the best example of how corporate values and founders interest are expenditure such a big risk. Apparently, Jack Ma and his partners were right and Alibaba has become Worlds largest IPO raising $25 billion, a result without historical precedents ( Related article http//www.ibtimes.com/what-alibaba-chinas-e-commerce-giant-explained-1690996 )