Alibaba Analysis Gianpaolo & Arturo

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An strategic analysis of Alibaba based on scenario planning and execution plan.

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Alibaba Analysis Gianpaolo & Arturo

  1. 1. Final case exam: analysis & recommendation<br />Silva Arturo<br />Tepedino Gianpaolo<br />Madrid, 19/12/2010<br />
  2. 2. Situation analysis: Alibaba and its subsidiaries<br />Context <br />Mobile trend over PC<br />Fast growing industry<br />Customers<br />Wide: B2B, B2C, C2C<br />Company<br /><ul><li> Competition instead of cooperating;
  3. 3. Decision making and structure: decentralized;</li></ul>- Initiatives are mostly generated by the CEO;<br />- Span of control is getting too high (CEO);<br />- Subsidiaries’ products: fill gaps in the market; <br />Competition<br />PayPal (Alipay)<br />Joyo (Taobao) <br />Salesforce (Alisoft)<br />Collaborators<br />
  4. 4. Definition of the problem: statement & consequences<br />Problem<br />Is the model of competition between the different companies and the current organizational structure hindering the capability of the group to use internal synergies to face new challenges and new business opportunities?<br />Consequences<br />NBD<br />Strategy<br />IT<br />Sales<br />NBD: New business development<br />
  5. 5. Alternatives evaluated<br />I<br />Move to a centralized decision making structure<br />Severely damage the corporate culture as well as the employees’ morale, bureaucracy & span of control.<br />Status quo (decentralization) +<br />New supporting function for “Mobile solutions” + <br />Chief Technology Officer (CTO) <br />II<br />Guidelines and nice-to-have instead of MUST have <br />III<br />Status quo (decentralized) +<br />New structures (external opportunities) & synergies <br />
  6. 6. Implementation: strategic roadmap<br />Strategic imperatives<br />Organizational structure<br />(flexibility to grow & span of control)<br />Corporate culture<br />(collaboration in the competition)<br />Human resources<br />(employees’ alignment)<br />Information technology<br />(knowledge & ideas sharing)<br />Marketing & sales<br />(consistency & no-cannibalization)<br />
  7. 7. Implementation: Organizational structure & SM<br />2<br />1<br />3<br />4<br />Mobile solutions<br />
  8. 8. Implementation: Corporate culture and HR<br />Corporate culture *<br />“Collaboration in the competition”. <br />- Seminars & events;<br /><ul><li> Define short term goals: monitoring & adjusting;
  9. 9. Share the changes & involve people in the process: feedback & support;</li></ul>Strengthen: individual performance + group’s results <br />Human resources<br />“Aligning mission and actions ”. <br />- Involving employees; <br />- Identify opinion makers; <br />- Define clear career paths in the whole Alibaba Group; <br />- Training (courses, seminars, conferences);<br />Faster & better results <br />* Kotter’s 8-Step Change Model. www.mindtools.com, last visited on: 18/12/2010<br />
  10. 10. Risks & Contingency plan<br />
  11. 11. Final remarks and other recommendations<br />Financing small businesses <br />Joint venture with a financial firm <br />- Diversification & growing business<br />- Lack of expertise & liquidity<br />- No creation of synergies between the subsidiaries<br />Financial leverage<br />Leverage more<br />- Important way to create value within firms<br />- Higher debt to equity ratios (D/E) in similar companies<br />
  12. 12. Thankyouforyour time.<br />Q&A<br />
  13. 13. Annex I<br />Peterson’s model & scenario planning<br />
  14. 14. Peterson’s model & scenario planning (1/2)<br />Source: Peterson’s Model for Uncertain environments. http://www.geog.mcgill.ca/, last visited on 18/12/2010.<br />
  15. 15. Peterson’s model & scenario planning (2/2)<br />Result<br />

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