Alibaba's Internal( just internal?) Environment Timothy W.C. Burke, Firas Faraj, Leon Edwards, and Hinde Ahzi STR/581 January 22, 2015 Dr. Kamal L. Ranasinghe Ph.D., D.B.A. Running head: ALIBABA'S INTERNAL ENVIRONMENT 1 ALIBABA'S INTERNAL ENVIRONMENT 2 Alibaba's Internal Environment Alibaba Group Ltd. is the world's leading company in online trade. It helps exporters around the globe connect with buyers in over 190 countries. The research team noted that, Alibaba’s core competency is the choice of leadership in the company. The top executives of Alibaba are educated at prestigious schools is the United States and China. The internal competitive environmental scan will incorporate the environmental factors, strengths, weaknesses and the future of the organizational structure. External Environmental Factors Economic and Social Factors: The fundamental information that affects a businessHmmm obviously, my good intent notwithstanding …some pay only scant attention to my reviews . and the environment in which a company operates concerning the direction of the economy is considered economic factors.)) Yes …well , it would , would it not . What else could it be … )) “At the national and international level, it must consider the general availability of credit, the level of disposable income, and the propensity of people to spend” (Pearce & Robinson, 2009). China has been gaining momentum for years to become the world next financial super power. “The social factors that effect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning” (Wang, 2012). “One of the most profound social changes in recent years has been the entry of significant members of women into the Chinese labor market” (Pearce & Robinson, 2009). In this researcher’s opinion,Hmmm I was under the impression this was intended to be a collaborative research effort BY A TEAM of researchers ? getting more women in the labor market will increase the productivity of companies in China. Hmmm An overtly sweeping assertion folk . Did you all read this before allowing it to be in this paper ? I speak now to the absolute requirement to substantiate any such sweeping assertion with current , irrefutable, globally-acknowledged citations. Whoever included this , in this paper , please do raise in class and defend this assertion . Goods and services require expanding and emerging economy resources and infrastructure in order to facilitate increasing sales. Political and Technological Factors: “The direction and stability of political factors is a major consideration for managers in formulating company strategy. Political factors define the legal and regulatory parameters within which Alibaba operates” (Pearce & Robinson, 2009). China’s regulatory environment has encouraged, but also impedes company’s s.

1. Alibaba's Internal( just internal?) Environment
Timothy W.C. Burke, Firas Faraj, Leon Edwards, and Hinde
Ahzi
STR/581
January 22, 2015
Dr. Kamal L. Ranasinghe Ph.D., D.B.A.
Running head: ALIBABA'S INTERNAL ENVIRONMENT
1
ALIBABA'S INTERNAL ENVIRONMENT
2
Alibaba's Internal Environment

2. Alibaba Group Ltd. is the world's leading company in
online trade. It helps exporters around the globe connect with
buyers in over 190 countries. The research team noted that,
Alibaba’s core competency is the choice of leadership in the
company. The top executives of Alibaba are educated at
prestigious schools is the United States and China. The internal
competitive environmental scan will incorporate the
environmental factors, strengths, weaknesses and the future of
the organizational structure.
External Environmental Factors
Economic and Social Factors: The fundamental information
that affects a businessHmmm obviously, my good intent
notwithstanding …some pay only scant attention to my reviews
. and the environment in which a company operates concerning
the direction of the economy is considered economic factors.))
Yes …well , it would , would it not . What else could it be … ))
“At the national and international level, it must consider the
general availability of credit, the level of disposable income,
and the propensity of people to spend” (Pearce & Robinson,
2009). China has been gaining momentum for years to become
the world next financial super power. “The social factors that
effect a firm involve the beliefs, values, attitudes, opinions, and
lifestyles of persons in the firm’s external environment, as
developed from cultural, ecological, demographic, religious,
educational, and ethnic conditioning” (Wang, 2012). “One of
the most profound social changes in recent years has been the
entry of significant members of women into the Chinese labor
market” (Pearce & Robinson, 2009). In this researcher’s
opinion,Hmmm I was under the impression this was intended to
be a collaborative research effort BY A TEAM of researchers ?
getting more women in the labor market will increase the
productivity of companies in China. Hmmm An overtly
sweeping assertion folk . Did you all read this before allowing
it to be in this paper ? I speak now to the absolute requirement
to substantiate any such sweeping assertion with current ,
irrefutable, globally-acknowledged citations. Whoever included

3. this , in this paper , please do raise in class and defend this
assertion .
Goods and services require expanding and emerging economy
resources and infrastructure in order to facilitate increasing
sales.
Political and Technological Factors: “The direction and stability
of political factors is a major consideration for managers in
formulating company strategy. Political factors define the legal
and regulatory parameters within which Alibaba operates”
(Pearce & Robinson, 2009). China’s regulatory environment
has encouraged, but also impedes company’s success.
“Excessive regulations tend to hinder entrepreneurial and
commercial activities as managers and employees must spend
more time and money to comply with rules and regulations”
(Pearce & Robinson, 2009). An unstable political environment
will also correlate the quality of goodthat is getting produce.
Did you all read this before allowing it to be in this paper ?
Watch the English please ! It is public knowledge that china
has underwhelmingDid you all read this before allowing it to be
in this paper ? Watch the English please ! in the quality of
some of the goods that the country is producing. Alibaba is a
technology company in a remote environment without factors
that involves constant technological change. The implication
here is detritus .Aside from the fact that – especially in a
technological interconnected eras- no one cares about how far
away a nation is from America …distance from America is not
the be all and end all of all life …. Did you all read this before
allowing it to be in this paper ? Whoever included this , in this
paper , please do raise in class and defend this assertion .
Ecological Factors: “The most prominent factor in the remote
environment is often the reciprocal relationship between
business and the ecology. A threat to our life supporting the
environment caused principally by human activities in an
industrial society is always a primary cause for concern”
(Pearce & Robinson, 2009). The global climate has been an

4. enormous factor that has been in a constant stage of change over
the past several years. Climate change is a great area of
importance because of the habitat loss.
Internal Strengths and Weaknesses
Most important internal strengths. One internal strength is that
Alibaba generates a substantial amount of income without
carrying inventory. The business is considered an asset-light
model (Alibaba Group Holding Ltd., 2015). With that fact, the
research team believes the most important internal strength is
Alibaba’s core competency. The leadership, who are the
corporate officers, are those core competencies. The company
itself does not produce products; they connect people with
people. To do this, requires staying on the cusp of technology,
monitoring ever changing international law, and understanding
the customer.
Assessment of the organization’s resources. The research team
determined; Alibaba’s top executives are educated experts in
their field based on their backgrounds. The executive chairman
and founder, Mr. Jack Ma, is the visionary of the company, who
started with just 18 people (Alibaba Group Holding Ltd., 2015).
Now, the company employs 26,845 people throughout the world
(Alibaba Group Holding Ltd., 2015). The top executives all
have completed their degrees at various prestigious schools in
China and the United States. These schools are Hangzhou
University, Shanghai University, China Europe International
Business School, and Yale College (Alibaba Group Holding
Ltd., 2015). Key executives have their certified designations
with related experience in the respective fields of endeavor.
Their experiences are broad and include auditing, law, e-
commerce, network security, human resources, sales, and
technology (Alibaba Group Holding Ltd., 2015). All of these
skills brought together develop the most important internal
strength the corporation could ever have: core competency.
Good research in this section. Well Done.
Most important internal weaknesses. Alibaba's most prevalent
internal weakness is their lack to maintain the network economy

5. equally to all their members (Mourdoukoutas, 2014). A network
economy (n.d.), according to Black’s Law Dictionary, is an
interlinking of economic activities with business processes
using information technology. As Alibaba increases in size,
members may lose benefits offered (Mourdoukoutas, 2014).
Mourdoukoutas (2014) explains, “The larger the number of
people using a product or service, the more valuable the product
or service is to every user” (P. 2). This is odd…at least to me .
Perhaps you would explain your reaction to it when we meet in
class . As Alibaba becomes larger and provides service to more
members, both large and small, members with higher purchasing
power will benefit from reducing costs of bulk orders and fees
spread across a wider order size. Now, smaller buyers may not
benefit after factoring in their shipment size, fees, and other
related costs. The research team concurs with the fact; the
larger member can still sell the same product offered by the
smaller member for less. To further the analysis,
Mourdoukoutas (2014) mentioned the possibility of Alibaba’s
network splitting up into different sections and benefiting only
the few that are high-volume members.
The research team recognizes the current internal weakness in
Alibaba's network layout and the destructive possibilities it may
have on the company. Ironically, this is how Alibaba's Taobao
( Citation ?) website outperformed eBay (Mourdoukoutas,
2014). When Alibaba was a start-up, the company recognized
an opening in emerging markets that eBay failed to recognize
(Mourdoukoutas, 2014). The research team believes Alibaba
will reduce the chance of smaller start-ups taking over other
emerging segments by keeping an equal playing field for all
members.
Long-term strategy. Growing the company is Alibaba’s long-
term strategy (Alibaba Group Holding Ltd., 2015). These
strategies include increasing the number of members using their
site to purchase products, enhance seller's success rates and
develop more opportunities for international trade (Alibaba
Group Holding Ltd., 2015).

6. The strategies in place by the company never considered remote
external circumstances. These included conditions related to
the socio-economic factors in potential member countries. The
research team believes that the company may have taken
measures on the correct timing of the Initial Public Offering. In
1999, the company was founded, and the IPO was not offered
until September 19, 2014 (Alibaba Group Holding Ltd., 2015).
The research team agrees the launch of the IPO occurred after
the “smoke” cleared from the financial fallouts and geopolitical
unrest in the world.
Future competitive positions and possibilities. Alibaba Group
Holding Ltd., (2015) remains steadfast in their primary mission
"to make it easy to do business anywhere." The company seeks
to enable small businesses to grow and be competitive in the
market (Alibaba Group Holding Ltd., 2015). The company has
opened different online affiliate companies to service a wide
variety of cliental.Hmm …clientele perhaps ? Now, that would
be English. Albeit the derivation of the word is mid 16th
century (in the sense of ‘patronage’) via the French.
Essentially it derives from Latin clientela The company's
structure, called their ecosystem, postures the company as more
competitive for future possibilities (Alibaba Group Holding
Ltd., 2015).
Organizational structure. Alibaba Company is one of the
world's leading online enterprise both supporting mobile
platform and online trade. Alibaba is identified to have
responsibility for controlling both wholesale business and retail
in its operation (Corporate Governance, 1999-2015). However,
Alibaba is known to participate in offering services regarding
the cloud computing as one of the alternatives. The vision of
Alibaba Company is to erase the business transactions globally
I see the citation …but was it actually worded thus? TO
ERASE?! Please explain . (Everybody Wants Alibaba, 2014).
This is because it focuses on the growth of longer terms
infrastructure in terms of business operation. Alibaba has over
time, full-fledged a sudden growth rate since it entered the

7. markets because of its business potentials on transactions
whereby it portrays Company's integrated structure (Corporate
Governance, 1999-2015). I see the citation …but when you
extrapokated from your source , was it actually worded thus? I
ask because much of this is not in English …at least not correct,
well-phrased, well-constructed, English . Do remember my
cautionary comment during week two, to distance yourselves
from writing which is, essentially, frayed English. This is after
all , graduate school…in an English-speaking nation .
The Company has adopted the organizational structure which is
known as the strategic business units structure (SBU) (Strategic
Business Units, 2011-2013). Considering this structure model,
the implemented change in strategic business units are set up
preferably from Company’s operations that undertakes
responsibilities for the appropriate losses and bulky profits.
This aspect explores that the success of each unit tends to
increase the Company’s earnings (Martinsons, 2008). The
strategic business unit structure is identified as the product, a
geographical based and market within the Company's
management. Indeed, the Alibaba Company is known to operate
from different primary sites including Tmall, ( CITATIONS ?)
Taobao, and more websites WHICH belong to the Alibaba
Group (Everybody Wants Alibaba, 2014).
Future organizational performance. Alibaba Company has faced
big challenges including diversity, consumer needs change and
wants. Really? Well where are your examples of such
circumstances/instances ? Where are your citations ? Due to
these challenges, Alibaba needs to implement strategic business
units preferably in the United States( Why preferably in the
US?? Is there something special about America , as opposed to
say , the EU , or S.E.Asia , or Central and south America . ? Do
not make these statements unless you are willing to explain and
defend in depth . Otherwise it appears inclined . and other
nations (Strategic Business Units, 2011-2013). The reason is
that, the independent business units have to create branding
products concurred with both culture and customs pertaining

8. geographical areas. A country like America, the products seem
to have high profits registration (Martinsons, 2008). The benefit
of applied strategic business units is to enable a Company
control itself from adverse loss along other failures so as to
create a small-scale business. Meaning that, a Company is
capable of exploring its current professional talents. That is not
– reading this in English – what your line means . Do raise and
explain whatever it is you are trying to suggest . I do not
understand it at all . Also …Alibaba is one of the largest , all
encompassing ( geographically) , businesses on the planet .
What’s all this stuff about it wishing to crate small scale
businesses . Did you all read this paper thoroughly before
submitting it ?!v In a point of view, the future of Alibaba
seems to opt for organizational strategy adoption. Taking into
consideration the changes in customer needs, Alibaba Company
takes control of the trends of strategic business units so as to
avoid collapsing. In recommendation, Alibaba Company has to
consider the creation of much more strategic units so that both
countries and the geographical locations are well served
(Everybody Wants Alibaba, 2014). Furthermore, the Company
claims that the strategic marketing is identified ( really ? Where
are your citations to prove this ? ) as the future of all sorts of
business transactions.
Conclusion
Alibaba's internal environment scan is assuring. The company’s
analysis of the internal environment included factors related to
the economy, society, politics, technology, and ecology.
Alibaba’s strength is the connection they have with shoppers
globally by providing consumer products and services for
business and personal purposes. Alibaba’s focus is to maintain
their core competency by retaining experts in the field wherever
they are globally.
References
Martinsons, M. G. (July 01, 2008). Relationship-based e-
commerce: theory and evidence from

9. China. Information Systems Journal, 18, 4, 331-356.
Corporate Governance. (1999-2015). Retrieved from
http://www.alibabagroup.com
Everybody Wants Alibaba. (2014). Retrieved from
http://www.forbes.com
Strategic Business Units (SBUs). (2011-2013). Retrieved from
https://managementmania.com/en/strategic-business-units-sbus
Alibaba Group Holding Ltd. (2015). About us: Company
overview. Retrieved from http://www.alibabagroup.com
Alibaba Group Holding Ltd. (2015). About us: Leadership.
Retrieved from http://www.alibabagroup.com
Alibaba Group Holding Ltd. (2015). About us: FAQs. Retrieved
from http://www.alibabagroup.com
Alibaba Group Holding Ltd. (2015). About us: Our businesses.
Retrieved from http://www.alibabagroup.com
Mourdoukoutas, P. (2014). Alibaba’s weak spot. Forbes.
Retrieved from http://www.forbes.com
Network Economy. (n.d.). Black’s Law Dictionary. Retrieved
from http://www.thelawdictionary.org
Pearce, P & Robinson, K. (2009). Changes in the remote
environment of us business marketing Retrieved from
http://www.ukessays.com/essays/marketing
Wang, K. (2012). The External Environment and influence of
companies in the South Pacific Retrieved from
http://www2.uhv.edu/wang/MGT6331/Notes/chapter3.htm