This paper reports on research on Alibaba Company.
The name of this course is dynamic environment. The specific requirements are based on the materials.
Welcome to Dynamic Environments
You are expected to read the contents of this study guide, also available on Blackboard under “AllMy Courses”.
This is a level 6 paper, worth 15 points. This paper runs for 12 weeks (excludes exam weeks) and has1 session per week.
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Academic study is intellectually challenging. To come to grips with the content in your paper, what itmeans, and how it is applied, you need to do the following:
• attend all lectures and hear key concepts and theories explained by your lecturers, who areexperts on their subjects
• attend all workshops to make sense of what you’ve learned and to apply it to authenticscenarios
• read all material given by your lecturers, make notes on it and make sure that you havegrasped the information
• undertake three hours study for every one hour of lectures – draw up a weekly timetable tohelp with scheduling your study time
• complete all assessments
All your lecturers want you to do well and to be well. Make sure you use the many student supportservices on offer at AUT, if you feel that you are struggling with your studies.
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Paper information
Pre-requisite/Co-requisite/Restriction requirements
There are no pre-requisites / co-requisites / restriction requirements for this paper.
Paper aim
Students will gain a thorough grounding in analysis of the global macro context. Through aninvestigation of key trends in the global environment and country characteristics, students willdevelop research skills in sourcing, evaluating and presenting data for strategic insight.
4Learning outcomes
1. Identify key aspects of the economic, socio-cultural, political, legal, financial,
technological and ecological dimensions of the international business environment.2. Discuss the current dynamics of change in the global environment.
3. Apply appropriate frameworks and tools to analyse the global business environment.
4. Understand how businesses can use information to gain insight into the global businessenvironment.
5. Source, evaluate, interpret and present data in a meaningful way for internationalbusiness decision-making.
Content• Strategic tools and frameworks to analyse the external business environment andhistorical trends.
• Economic, socio-cultural, political, legal, financial, technological and ecologicalenvironments of international business.
• Country comparison of international business environments.
• International trade theories and policy, including the role of trade agreements, nationaland international institutions and economic integration.
• Role of data and insight in strategic management under conditions of complexity,uncertainty and change.
• Ethical challenges relating to international business and strategic insights.
Blackboard programme organisation
Details of all papers, major requirements, full paper descriptors, exam schedules (midsemester/term/trimester/year and final), assessment forms, timetables and all other informationrelevant to current students can be found on Blackboard (https://blackboard.aut.ac.nz) under:“My Organisations” Business Undergraduate Programme Information
Required texts and recommended reading
Due to the diverse nature of the material covered within this course there is no set core textbook,however your lecturers will recommend book chapters where relevant. Other readings will beprovided via the Talis Reading List on Blackboard. Please ensure you download and read the requiredresources.
Recommended Books
Verbeke, A., Roberts,R., Delaney.D., Zámborský,P., Enderwick, P., & Nagar, S. (2019) Contemporary
International Business in the Asia-Pacific Region, Cambridge, England: Cambridge University Press
Morrison, J. (2017). The Global Business Environment (4th Ed). London: Palgrave Macmillan.
Harrison, A. (2014). Business Environment in a Global Context (2nd ed.). Oxford, England: Oxford
University Press.
Hamilton, L. & Webster, P. (2015). The International Business Environment (3rd ed.). Oxford,
Weekly programmeWeek Topic Readings – Morrison 20171 Introduction to ‘Dynamic Environments’Purpose of the firm, stakeholders, global envrionmentChapter 1 - The businessenterprise in focus2 Globalisation and the business environment Chapter 2 - Globalisationand the businessenvironment.3 Globalisation and the business envrionment Chapter 2 - Globalisationand the businessenvironment.4 International trade and globalisation Chapter 7 - Internationaltrade and globalisation5 The political environment Chapter 5 - The politicalenvironment: State andbusiness actors6 The legal environment Chapter 6 - The legalenvironment7 Societal impacts (socio-cultural environment) Assessment 1 (Due)Chapter 3 - Thesociocultural environment8 Technology and innovation Chapter 9 - Technologyand innovation9 The ecological environment Chapter 10 - Ecology andclimate change10 Ethics and corporate social responsibility Chapter 11 - Ethics andsocial responsibility.11 Presentations and revision Assessment 2 (Due)12 Final test In class (in workshop)Assessment informationAll students should obtain a copy of either the Business Programmes Assessment and StudyHandbook or the Law Programmes Assessment and Study Handbook, which include information on:• Academic Integrity• Attendance• Assignments (Format, Presentation, Referencing, Submission)• Exams (Regulations, Schedule)• Assessment (Return of Assessments; Review/Reconsideration, Uncollected Assessments)• ResultsThese handbooks are available online from “My Organisations” on Blackboard(https://blackboard.aut.ac.nz)Please note: Assessments may be copied and kept for moderation and programme administrationpurposes. Presentations may also be videoed.Extensions and other Special Consideration Applications (SCAs)Students may apply for an extension or for special consideration where there are exceptionalcircumstances.6The SCA online request form is available through Blackboard. Access the form via the “SpecialConsideration” tab at the top of the Blackboard home page once you have logged in. Follow theinstructions provided.Penalty for late submission of assessment itemsThe penalty for late submission will be a reduction by 5% or one grade (e.g. B+ to B) per day up to amaximum of five days. An assessment item will not be marked if it is more than five days late.Assessment structureItem % of markallocationMaximummarkGroup/individual Due dateAssessment 1:(Report)40% 40 Individual Week 7Turnitin – Monday NoonAssessment 2:(Presentation)20% 20 Group Week 11In classAssessment 3:(Final Test)40% 40 Individual Week 12In classReconsiderationYou are entitled to make a formal request for reconsideration of marks in cases where you believeyour assessment work has not been marked in accordance with published marking criteria. Thisrequest can only be made when assessed work is returned, or during review/reconsideration. Thereis a strict process to follow – refer to the Business Programmes Assessment and Study Handbook orthe Law Programmes Assessment and Study Handbook for details. Note that, where assessments havebeen submitted electronically, you normally only have 24 hours from the time the graded assessmentis made available on Blackboard to apply for reconsideration.Exam scheduleAll exam schedules are available on Blackboard, under “My Organisations”, via the Examinations tab.Visit the student computer kiosks on WF1 and WF7 to view the schedules, or go to Blackboard(https://blackboard.aut.ac.nz).Pass requirementsYou are expected to complete all assessment events and need to achieve 50% overall to pass thepaper. Note: if you do not attempt the final assessment you cannot pass the paper.7Assessment event detailsAssessment 1: Individual ReportDue date Week 7 (Monday – noon)Weighting 40%Type ReportLength 2,000 words maximum (+/- 10% without penalty, excluding list of contents,tables, charts, infographics, diagrams, reference list and appendices). A4,1.5 line spacing; Times New Roman font size 12.Submission Online – soft copy to Turnitin by NoonRequirements For this assessment, you will examine a firm within an industry (and byextension the sector) in which the firm (emerging or developed MNE) isachieving an increased or dominant global market share and discuss how thishas been achieved.Your analysis should consider:1. The global dynamics of the industry;2. The underlying determinants of competitiveness of the firm and theindustry;3. The competitive strategy of the home country government and the MNE;4. The sources of competitive advantage of the MNE;5. The competitive response of incumbent competitors;6. The impact (if any) on business models, consumers, workers and globalproduction systems.You are expected to relate key concepts from both lectures and readings, tothe context of the focus country.Programmelearning goals1. Be inquiring, open, and agile thinkers able to seek out and addresscomplex problems2. Be knowledgeable in a specialist area(s)3. Be adept at working in changing local and global contexts andenvironments4. Be future generators of sustainable value for business and society atlarge6. Be effective communicatorsPaper learningoutcomes1. Identify key aspects of the economic, socio-cultural, political, legal,financial, technological and ecological dimensions of the internationalbusiness environment.2. Discuss the current dynamics of change in the global environment.3. Apply appropriate frameworks and tools to analyse the global businessenvironment.4. Understand how businesses can use information to gain insight into theglobal business environment.5. Source, evaluate, interpret and present data in a meaningful way forinternational business decision-making.England: Oxford University Press.
Alibaba Company
Name
Institution
Alibaba Company
Executive Summary
This paper reports on research on Alibaba Company. The article presents detailed descriptions and discussions on the dynamic environment and global dynamics of the organization. Specifically, the several sections of the paper begin with findings on the nature of the company and the industry that it operates in, where Alibaba is the central host of millions of all kinds of businesses and other online sales platforms. Secondly, the report uses Porter's Diamond Model to explain some of the underlying determinants of the organization's competitiveness. Moreover, this paper contains analyses on the company's competitive strategy in its home country, China, and as a multinational enterprise. Further, the author uses the information on the OLI Model to discuss the findings of the sources of the firm's competitive advantage as well as the competitive response from other organizations. Lastly, the paper provides insight into the impact of the company's change in business models, workers, and consumers.
Introduction
All kinds of organizations require strategies for their operations and those that will guarantee the achievement of their goals and objectives. However, although some companies establish fruitful strategic plans, most of them fail because there is a clear disconnectedness between the management and the workers at the firm, poor communication, inadequate resources, poor skills, and employees' lack of dedication in their responsibilities. Moreover, strategies fail because the persons, whom the organization has delegated to watch the attainment of the objectives, do not perform their jobs to a satisfactory. This paper seeks to discuss the dynamic environment of Alibaba Company, the industry that it operates in and the competitiveness that the firm faces. The report also covers the competitive strategy of the organization and explanations as to why Alibaba has a profoundly positive competitive advantage compared to other firms in the industry.
Nature of Alibaba Company and its Global Dynamics
Jack Ma, who was an English teacher in China, founded the company in 1999 alongside eight other assisting founder members. The organization began as Alibaba Group and has grown to become the best market in online commerce in China and one of the best in the world amid Amazon and eBay. The company operates in three different domains: Taobao, Tmall, and Alibaba.com (Glowik, 2017). A survey that an online website blog, LiveMint, performed in September 2019, shows that Alibaba Group has 960 million active users all over the world as it has added Freshippo into its enterprise (S.H., 2019). Majorly, the organization sells smartphones and other electronic devices online, but it also performs cloud computing and other technological services. Moreover, the firm has expanded its ecosystem by introducing third-party payment methods and logistics and providing B2B, B2C, and CSC retail and wholesale services (Anwar, 2017). Further, a report that the NYSE issued in 2019 states that the organization has a $447.2 Billion market cap.
Alibaba Group acknowledges and adopts the rapidly changing features and occurrences in the global environment. Since it is a multinational enterprise, the organization has made numerous diversifications in its business, starting from the establishment of its e-commerce official websites to different payment systems, online traveling services, and digital platforms. The group founded TaoBao in 2003 to connect small companies and other businesses to consumers (Appelbaum et al., 2018). The modification that the organization made to the affiliate branch is that it offers free registrations and maintains commission charges for sellers. The particular feature is attributed to the company's market share gain over Amazon in the early stages of its operation. Also, the company has made Tmall a business-to-business platform that serves popular brands from overseas, such as Nike, Apple, and P&G. In turn, Tmall makes its revenue from registration, advertisement, and commission fees and the support of its loyal sellers. Further, Alibaba Group founded Alipay, an online payment platform, in 2004 to mitigate problems on trust and confidence between sellers and buyers of TaoBao (Anwar, 2017).
Determinants of the competitiveness of the company (Using Porter’s Diamond Model)
Alibaba Company could use Porter's Diamond Model to establish its competitive advantage and global competitiveness in general. It can use the information, in theory, to translate those advantages into modes of expanding its popularity in countries that are far beyond its Chinese home base. Porters suggest that the national home base of a company determines how an organization could create advantages on a global scale (Grant, 2016). In this case, China provides the Alibaba Group with primary forms of support, such as the help of the government and the loyalty of the locals. However, it is apparent that many companies, including the one in the case, could alter the essential factors of home base operations by establishing advantages in global competition. In general, the model states that the ability of a firm to be successful in the international arena mainly depends on the benefits that the company gets from its original location.
According to the Theory of National Competitive Advantage of Industries, the first determinant of competitiveness is factor conditions. In the case of Alibaba, numerous situations yield the production of the organization. The company has one of the best human resource teams in the world. The cost of labor at the firm is relatively above average. The payment not only encourages more people to want to trade with the company but also builds a spirit of commitment among the workers (De Souza, 2020). For the second determinant, support from the industry and other related companies, the success of Alibaba in the global realm depends on the aggressiveness of associated organizations and commerce, and the availability of suppliers and investors within one particular region. The third determinant is home demand conditions, and the competitiveness of the case depends on the overall market of China, the cost of transportation, and the firm's economies of scale.
According to Porter's Diamond Model, the fourth determinant of competitiveness is the strategy of the organization, its structure, and rivalry. This factor addresses the organizational features of the Alibaba Group, its management, its corporate objectives, the capacity of contention within the industry, and its organizational culture (Grant, 2016). It also deals with the conditions of China, the culture of the people, and the impact of cultural differences on the organization. Moreover, in this theory, Porter states that the competitiveness of a company relies on its domestic rivalry and its degree in the search for a competitive advantage over other companies. Further, the government plays a significant role in determining how competitive a company would be. The government of China encourages the development of both national and international industries as it could finance its top profile organizations, develop its infrastructure, healthcare, and education (Zhou, 2017). Lastly, chance could gear up the competitiveness of the company by providing opportunities for the innovation and establishment of new companies.
Alibaba Company’s competitive strategy
The company has numerous strategies that will not only ensure that it remains competitive in China but other nations as well. In its home country, China, there is a massive impact of small and medium-sized enterprises on the Gross Domestic Product of the nation due to their trading activities and operations that contribute to over 60% (Glowik, 2017). Also, in the country, SMEs provide more than 80% of total employment opportunities and 70% of all the activities of trade. The accomplishment of the mentioned spheres is one of the strategies of Alibaba because it has started to identify opportunities to provide such SMEs with a business and a platform to help in their growth and the diversification of its customers. Also, the company has numerous strategies on globalization as the nation continues to experience advancements in technology and the improvement of both offline and online data security (Anwar, 2017). Currently, China, and the whole world, has a high demand for a diverse range of products. To meet this need, Alibaba created Tmall, Taobao, and Alibaba.com, among other websites, to build the connection between the company in its home country and the rest of the world.
A study on the relationship between age and the Internet showed that younger consumers tend to incline more into online shopping than older people. Another literature states that the present customers would continue to shop online if their initial experiences meet their objectives and requirements (De Souza, 2020). It is also evident that young people feel more attracted to buying their products online and having them delivered at their locations. Studies reveal that 50% of online co...
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