Question 1
Alibaba Group Holding being a business like any other has strength, weakness, and opportunities and threats (SWOT) the same way other business experiences. The company operates in greater parts of China, India, Korea, Japan, US and UK with its’ headquarter in Hangzhou, China and employs a total of 24,000 employees. The following refers to Alibaba’ SWOT analysis.
Strengths:
Strong market position; since Alibaba is the largest e-commerce company, it enjoys a wide and strong market position compared with other enterprises.
The presence of electronic commerce value chain; since launched, Alibaba has developed to be one of the leading online payment, e-commerce, cloud computing, and business-to-business market sites.
Global player; Alibaba is a global player in China, India, Korea, Japan, US, and UK and thus reaches internet users worldwide.
Weakness:
Unsustainable price wars; Alibaba took share in the market by competing on commission from eBay.
Piracy issues; Alibaba has been experiencing issues with piracy on its products.
Opportunities:
High growth in Chinese e-commerce market; as the Chinese market is set to increase, Alibaba is exploiting this market.
Positive trends in cloud computing marketing; Since the Chinese computer market has grown in the past years, Alibaba has experienced rapid growth.
Threats:
Most headwinds impacting Chinese consumer spending; the Chinese has witnessed several headwinds that affect consumer spending, although it is the fastest growing company.
Question 2
Part (a)
Cultural intelligent quotient is very crucial for any company transacting business to success towards its goal(s). Globally CQ is of great importance it business brings together people from diverse countries with different background and culture (Taewon, 2010). Anybody learnt from the other person while he or she interact since one try to fit the other person by teaching and learning strategies and methods by which the company’s goals attained. Nobody can say that he or she have achieved whatever he or she are after unless the same measured. CQ can work on personally and also as a team. The logic is that if an employee sent overseas for the purpose of learning from the other employers from a different country so that they can come and improve the employers’ business/company. Through the face-to-face exchange of ideas, we learn new strategies and ideas.
As a manager, training employees on cultural intelligent quotient are vital. The rationale for this is that employees learn and emulate the management in whatever they are supposed to do for the company to grow and gained confidence from the clients. In addition, the importance of CQ should not be overestimated since it might cost the business, especially when it comes to the real action of fulfilling the task assigned. In the management there is no room for error it can become one step for the company to fall, therefore overestimating of CQ should not entertain and should avoid at any cost.
According to Alibaba, there are four major factors considered so as to succeed in any cultural intelligent quotient and include the following: CQ drive, CQ knowledge, CQ strategy and the lastly CQ action. All the four factors incorporated so that management through their proper planning and strategies fulfill the company’s primary goal of satisfying customers and grow financially. CQ drive refers to the employee’s level of interest, motivation, and confidence to persevere cross-cultural. Meaning, before sending an employee overseas for cross culture, the motivation and interest to travel must come from inside him or her. Otherwise, the company can waste resources by sending someone not willing to travel in the first place and also not ready to withstand other people's culture. Second is CQ knowledge; this refers to the level of understanding about cultural issues. The employee and management should cope and understand to appreciate other people’s culture, so as to build a good reputation.
Third is CQ Strategy; this refers to the ability and capability to apply individuals drive and knowledge to develop an appropriate and efficient strategy. For every company to succeed, employers together with the management must be creative in terms of strategy in that they can come up with better ways of improving the business. The same employs should be encouraged and rewarded whenever an employee come up with a viable strategy for the best way to improve the company/business. Thus, it is one way of enhancing the morale and can work hard to ensure that the company grows globally. Fourth, is the CQ action; this refers to the ability to flex the behavior when a cross-cultural situation calls for it. The same way one behaves at home country should not necessarily be the same way others behaves due to differences in culture. Therefore, one should be cautious about whatever kind of behavior portrayed away from home. What it means is that not everybody appreciates what one does even though it seem right to the other.
Part (b)
The CQ and U.S employees are much higher compared because of a growing technology that opens up the mind of the minds of the workers and assist in thinking outside the box. It is evident because of the competition among the companies in U.S because no company wants to be left back in terms of technology. The other countries employees see the US CQ as superior and dominant in that there is a perception that the employee is far much better. US workers are more exposed in terms of interaction with the rest of the developed countries. The CQ level is high enough to work globally, and this achieved through forums organized by the employers. Every CQ level must improve so as to incorporate others or pull up the ones left behind for business to grow.
Question 3
The term “culture free” and “culture bound” are two major issues that affects any kind of business that globally regardless of the size of the company. First, “culture free” is an excellent habit that develops and enhances business in that the management must encourage the employees to embrace it. The rationale is that with the said attitude, the employee will accept and be ready to work with other employees globally with different culture. Thus, creating a warm and healthy environment for transacting business and exchanging new ideas. “Culture bound” is the second habit that affects the organization or business negatively and thus hinders global business growth and expansion. It inhibits the development because some of the employees are not ready to accept change and appreciate other cultures and such business may end up losing ground globally. Flexibility among employees and the management is crucial for any business.
Reference
"Alibaba Group Holding Limited SWOT analysis." Alibaba Group Holding Limited (2013): 1-7. Business Source Premier. Web. 1 Dec. 2014.
Taewon, Moon. "Organizational Cultural Intelligence: Dynamic capability perspective." Group & Organization Management 35.4 (2010): 456-493. Business Source Premier. Web. 1 Dec. 2014.
