Performance Management Challenges: Essay Sample on Alibaba Group

Published: 2019-05-14
Performance Management Challenges: Essay Sample on Alibaba Group
Type of paper:  Essay
Categories:  Management Business
Pages: 7
Wordcount: 1786 words
15 min read

The Alibaba Group was founded in 1999 and to date it is one of the world's largest businesses that sell different types of platforms to large and small businesses and internet services. The vision of the Alibaba group is to build a future infrastructure of commerce. However, the company targets to provide online and mobile technologies with an aim of enabling other business to be run online. The company is based in China and operates online businesses, mobile solutions and e- commerce. In addition, Alibaba group operates its ecosystem as a third party platform. Alibaba holdings poses three retail marketplace called Taobao, Tmall and Juhuasuan marketplaces. Alibaba also runs Alipay; the most trendy third-party online disbursement solution in China. The CEO of Alibaba group strongly believe that the company has to grow to a worlds established business and provide its platforms everywhere in the world. Currently it is the tremendous company in internet retail in China by being the best among other companies like Amazon and eBay. However, the company is suffering from human resource management issues based on performance during its operations. Performance management entails a way of organizing and coordinating with the employees and plan on the strategies that would aid in meeting the business objectives and goals. The job environment should also be favorable to people operating within all levels thus, enabling all people to produce the best result. The analysis target to outline all the possible threats and their solutions in Alibaba group to enable the company become internationally established (Liu & Avery, 2009).

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Analysis regarding performance management

There are many ways of conducting analysis but the preferred was SWOT analysis methodology in analyzing the issue affecting the performance. The analysis shows the strength, weaknesses, opportunities and threats in the company (SWOT).

Business strength

The business strength is based on sufficient financial resources, competition trends, and good rapport that gives the company a competitive technological advantage. Alibaba is the leading position of domestic e-commerce websites in China. Alibaba has the largest market share. In 2012, Chinese B2B market report indicated, Alibaba, HC and global market occupied the following network share respectively, 52.4%, 8.1%, 3.7% respectively. The report indicates that Alibaba dominated the market. Alibaba has a superior brand and enjoys monopolistic location of the operational centre (Zhidao, 2013). It has a strong Union and good understanding of the Chinese customers.


The company has been facing the following disadvantages, lack of funds, management disorganized management, backlog of products and lack of foundation in producing technology. The model of Alibaba can be easily copied and replaced in the market, mixed and unruly platform ( Alibaba owns over 27 industry classification and different business categories) and failure to consider the demand of customers.


The opportunities available were; B2B market development, poor finances criteria of SMEs thus, paving an opportunity for joint guarantee loans, which brings big development in the company (Baidu, 2014).


There are several threats that affects Alibaba company and includes; political threats of the country, shrinkage of the market, economic recession and change of governmental policies. Alibaba can be challenged due to dependancy on one earning object (SMEs). Chinese imperfect market puts Alibaba at risks (Wenku, 2011) with low information level of Chinese enterprises. The other threat is the e-commerce union because many organizations are going for the new way of website acquisition where many of them are avoiding huge impacts from the industry magnate EC alliance. Almost all websites play the acquisition cards on the table for them to play for long and this has raised concern to Alibaba.

Alibaba group is experiencing problems with performance management from the human resource hence, bringing it down from its performance and this has become a barrier in growing to an international business. The company faces development challenges especially in implementation of the logistic network. Performance management entails the process of project evaluation, monitoring and project review. For the performance management framework, systems to be considered successful in Alibaba the following areas have to be rectified;

It must have strong executive leadership,

Good infrastructure to enhance good strategy and control,

Ensure that all policies and practices of the organization meant for attracting, developing, hiring and employee compensation are put in place,

The managerial practices at the workplace and working conditions must be shaped and team driven,

Staff involvement in decision-making

Several procedures and requirements are essential for one to fully accomplish the performance management process. Thus, the best way to counter this problem of performance management in human resource Alibaba group is by involving the entire staff in development meetings and conducting research and analysis in different locations and utilizing customer feedbacks. It is more important to ensure that the organization has the human resource management put in place so that it can support the process of performance management. In addition, the process includes job description, supervision, orientation and training, and good working environments. Alibaba had problems in managing its employees. The company also has good softwares that it markets but no good plans and meeting held with the staff to plan on when and how platforms can be produced and implemented. However, the company potential strategies in marketing though too much stringency to employee may bring negative feedback from the staff like it is the case in Alibaba( Clardy, 2013).

Performance Management Issue In Alibaba

Alibaba group is faced with great challenging issues regarding performance management. There are political problems, poor communication skills for example the fake listing on the company website. The shares are also put on the cusp of breaking the $80 level. Alibaba is also experiencing fake merchandise but the company is combating it, according to Luria. She further explained that other companies like Amazon and eBay had to get rid of inauthentic Merchandise even if it took them a couple of years. The other challenge failing the company entails how the company has been facing challenges of clients who want to interfere with the Alibaba system to get free services. Consequently, this is a challenge that is supposed to be solved via strengthening of the system. Alibaba infrastructure should be strong enough to counter hackers attacks since they can lead to business failure due to insecurity. The company is also experiencing developmental plans implementation challenges. For example, the company had to mobilized other internet retail companies so that they could put up the Chinese Smart Network Program on January 2013. Alibaba had a problem of starting the project by its own but chose to partner with other companies like; Shunfeng, Yuanfeng, Fosun Capital, China Yintai Holding among others due to financial problems. (Liu, 2010).

The political issue is always a threat to any organization due to new implementation of policies which may not favor the company. However, apart from public politics from the competitors there are a few political issues among its staff especially the one unable to meet the target sales. The communication method used in the company for example in 2014 through from the wall street journal regarding the sales targeted and the compensation was not a professional way of addressing the staff. The issue regarding fake merchandise is also a performance problem where the companies create fake customers and in return attract too many people. The act is a criminal act in western countries and China, so, the company should create real working strategies that are supposed to give out the accurate market research analysis. Nevertheless, Alibaba is also experiencing distribution problem just like any other e-commerce company in China. The figure below show the network distribution:

The challenge of network distribution in Alibaba group retail market results from the logistics fragmentation of the Chinese sector that disregards the customer value preposition. Alibaba confronted the logistics upon the issue and later decided to take advantage of the existing logistic networks and competence.

Reasons of why the company is supposed to take the initiatives and change

For every company to grow and meet, its objectives and goals it has to counter on its challenges affecting the developments. Alibaba is a growing corporation with smart applications that would satisfy the needs of many clients worldwide but for the company to meet these targets it is supposed to handle other external factors that affect the company developments.

Negative information towards a company kills the strength of operation resulting to minimal number of clients. For example, the case of fake merchandise in Alibaba would portray a bad company image. The other case includes inaccurate listing of sales in the company website may also result to bad picture of the incorporation (Caixin Online, 28. 04.2015).

The other reason entails building a good company structure of administration and communication. When the administration in accompany is strengthened then the policies, strategies, compensation and communication channels are well catered for. Ensuring sufficient information to the right people is a key issue to any company marketing and organization purposes. Alibaba is a company aiming to be established internationally thus, controlling all management problems invading the company at any time.

A solution to performance management paves way for the company to make more profits and increase its financial capability for example in 2011 and 2012 Alibaba made much profit as indicated in the following analysis;

This data indicates how Alibaba was able to dominate the internet market retails when the company had less management problems in the year 2011 and 2012. It also show the profit generated as the way to success.

A case change in Alibaba performance management

The major objective of Alibaba group is to provide online and mobile technology that enables business people and merchants to conduct business via the new technology from Alibaba. The company also provides other cloud computing and other services. The major challenges facing the Alibaba group results from the executives, poor marketing strategies, poor communication methods, poor planning and management (Paul, 2014).

The company also suffers from inefficiency and inaccurate data. These problems are the key factors that results to the company failure or low performance thus, becoming a less competitive in the international trade. To create a change in Alibaba the company has to establish a strong board of executive responsible for business planning and management. The company must be able face the market via systematic marketing strategies that will in turn be productive and avoid uploading fake data or listing in the website. In addition, the issue will also solve the issue of fake merchants (brushing in china) in the business and create real sales. The company can adapt a communication criteria especially the one used by Ferrari Company. The company uses a nice business language in addressing its clients and the staff thus, offends nobody. That criterion has made it thrive in its selling of its commodities and services worldwide. If Alibaba could try to copy a few routines from the management criteria rega...

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