2019

Case study: Evaluate the leadership of Jack Ma

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Table of Contents

Executive summery.................................................................................................................................... 2
Introduction.................................................................................................................................................. 2
Mr. Jack Ma nature of ecommerce business ......................................................................................... 3
Management styles .................................................................................................................................... 3
i. Autocratic Management Style ................................................................................................... 3
ii. Conductive Management Style ................................................................................................. 4
iii. Persuasive Management Style ............................................................................................. 4
iv. Democratic Management Style ............................................................................................. 5
v. Walking around Management Style ........................................................................................ 5
Discussion ................................................................................................................................................... 5
Conclusion ................................................................................................................................................... 6
References ................................................................................................................................................. 7

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Executive summery - “Alibaba, a company started out of Mr. Ma’s apartment in 1999, is now
a technology colossus worth more than American stalwarts like eBay and Hewlett-Packard”, these
are some of the words taken from David Barboza report published in New York time dated
September 06, 2014. In his report Barboza explain that how Jack Ma started ecommerce in china
and how he make it one of the leading ecommerce and trade business in china. Alibaba, one of
the most renowned online company in the globe was founded by Jack Ma has applied and
enhanced their administration system in many diverse styles to make it one of the competing and
leading business in the world. In Ma’s thought, dictatorial or autocratic style of management is
used in order to make the employees more receptive.
Though, it will apply restrictions on the freedom of the workforce when there is need to take
suggestion from employees or there is making of decision. Furthermore, Jack Ma has altered his
management style into conductive style. This concept has powerfully erected devotion as well as
enthusiasm within the workers. After attaining more experience, he used persuasive style of
management for managing Alibaba group. As the business has extended worldwide, persuasive
style of management is boosted. So, the executives started to give further time working with their
juniors in order to persuade them of the welfares and other benefits of the judgments that have
been taken by the management. It meant that the executives permits the workers to take part in
organization decision making and agreed upon something on which majority has been agreed.

Introduction
Alibaba a Chinese based company was initiated by a Chinese tycoon Mr. Ma Yun, who is well-
known in the English language mass media as Jack Ma. He is presently the wealthiest person in
china and 18th wealthiest person in the Globe, due to the best management and success of
ecommerce company Alibaba (Adizes, 2004).
However the organization was started initially in 2nd floor flat situated at the Lakeside Gardens in
Hangzhou with having 17 friends in the meeting, which is now developed into the Alibaba group.
Alibaba ecommerce based company key website is in the world’s topmost visited websites. Jack
Ma, just like his ecommerce company, arose from modest early period. His paternities were
musicians and a story tellers. Mr. Ma himself was an ordinary learner but he made it by working
hard every time. Ma has started his profession as a teacher who likes English as a language. In
his mind he looks to the internet as a new and valuable source of income (Wikipedia, 2006).

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Mr. Jack Ma nature of ecommerce business

Alibaba, a company that works online and helps in business connections through internet. Unlike
other businesses, Alibaba group is not trying to sell their products but mostly they links one
businesses and helps to provide a virtual marketplace can be accessed through tying the URL
“alibaba.com” in your computer or smart phone browser. It provides trusted services by ensuring
class sellers by applying excellence check methods such as standard seal and reliable rating
system. Alibaba mostly aims on Asian market due to its large number of population and most of
the Asian peoples have more confidence on a local seller instead western markets, such as. eBay
and like such other concerns. Additionally, it is also very problematic and costly to travel in Asian
countries and so it is the greatest technique to stimulate, support and trade your stuffs is through
the internet. Alibaba take this as an opportunity for their business and took advantage of the
comfort of communication they are providing to the buyer and seller against a minor payment they
received. As the time pass and they gain experience in their business they have added further
features to their ecommerce business by adding pictures, videos and music to please their
customers and have cemented their success in the ecommerce.

Management styles
Mr. Jack Ma used different styles of management since the company foundation and with the time
he got experience. Here will briefly explain some of the management practices that he used.

i. Autocratic Management Style

The main reason behind Alibaba success is that of putting into practice a decent style of
management. Management style is the key for the success or letdown of any business. In the
case of Mr. Jack Ma Company, he experimented various styles of management before reaching
to the best style of management for the Company. He experimented new ways unlike other
managers that select one style of management and then stick to it. Being a Chinese gent, Mr.
Jack is very much aware of the autocratic style of management (Bassett, 1966). In autocratic
style of management decisions are taken by the executives unilaterally and implement on the
subordinates. As a result the strong and capable juniors may become annoyed because of the
limitations placed on their freedom and decision making and it turn into a higher turnover rate,
and it negatively suffer the organization (Benfari, 2013). At the start of Alibaba he had to first show
to his associates and family members that the internet is real and existed by viewing them a web

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page that appeared on his computer. As there was no one to help him, As a result Jack took all
the administrative decision of the company and all other matters regarding the business of Alibaba
group that was a small business in these days (Bolton, 1984).

ii. Conductive Management Style

As the company developed and extended they start to attract more skilled individuals who desired
to work and each with new thoughts and experience. Mr. Jack Ma recognized he had to change
his style of management style. He was still Chief Executive officer of the Company, he used to
share authority and responsibilities with his reliable workers. This style of management allowed
more workers to work together with him just like a team (Gough, 2014).
In this style of management the communication goes both downward and upward to maintain
morale of the workers. This is more advantageous for the company as endeavor more devotion
from the workers, which results in a lower turnover from the Company (Guilford, 2014). It is a very
huge development from the autocratic or dictatorial style of management where there is a lack of
motivation in the employees because of no such a relation between managers and subordinates.

iii. Persuasive Management Style

As time pass and Mr. Jack Ma got experience in his career through different analysis, the
management style that was used by him is persuasive style of management (Li, 2008). As the
business expanded and goes beyond national level the company demanded foreign partners and
workers and also its problems increases and start facing political problems (Osawa, 2014). They
will have to use new techniques to keep the investors and other stack holders happy and give
them recognition in the Company that the Company cement their success in other countries,
particularly when they started working within the USA where the society and culture is totally
different from that of China. In this situation, Mr. Ma this style of management was very helpful
(Prez-Cerezo, 2013).
This style of management have some of the common characteristics with that of autocratic style
of management, as the managers maintain some of the control over the subordinates in decision
making process (Prez-Cerezo, 2013). The main difference between persuasive style of
management and autocratic style is that the managers spend a lot of time with subordinates to
convince them about the benefits of the decision that have been taken by the managers.. To
achieve its objective the manager will have to be more aware of its employees. This style of
management help the Alibaba group to flourish more rapidly (Schepp, 2010).

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 iv. Democratic Management Style
Mr. Jack Ma the ecommerce business tycoon uttered on some instances, that his style of
management is more democratic (Shearer, 2012). As he grow up in the People’s Republic of
China, But he used the mix of democratic and autocratic style of management that bring about
good results for the business. In a democratic style of management, the executives allow their
workers to have a part in decision making. In this style communication flows in both directions
from up to bottom and from bottom to top (Woolfs, 2013).
It is more useful when there is a complex and technical decision which involves the specialists of
the related field. As a result the work force will be keep motivated and their efficiency will be
improved by their more contribution (Sin-Kwok W, 2010). This style has also some of the
limitations as it slow down the process of decision making. There is a difficulty of consensus
among the members present in the decision making process. But Mr. Jack Ma has the greatest
quality that he do not stick on one style of management but he change his style of management
when he feels that it is better for the company development. He is a man of experiment and do
not hesitate to change his style of management for the betterment of Alibaba’s group (Solomon,
May 2014).

v. Walking around Management Style

This style of management is used by active managers and leaders as they always communicate
with media, workers and other stack holders of the company (Steadman, 2013). As all know Jack
Ma who is very well known person in the media and also among his workers. In walking around
style as the name communicates that the managers always keep himself inform of the situation
that it turn into positive way (Watling, 2014). He listen to the employees that carefully and also to
their suggestion and problems which helps the company to keep their employees motivated, give
them recognition and solve their problems timely (Wee, 2013).
Discussion
One of the key factor of success of Alibaba group is that of style of management of Mr. Jack Ma
who also respond to the environment and change his management style. It is clearly evident from
his variant nature in business that he is both a leader and a good manager. In early stages he
take the risk just like great leaders of starting such a new business that no one know in the People
republic of China. He also take decisions himself and make their friends to follow him in his sole
decision that he took. Just like a leader he set the objectives of the company and plans for the
achievement of these objectives. Jack Ma also led from the front and coordinates his workers and
make them to achieve their goals. He also takes corrective measures when he feels necessary.

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He impress the people by the success that he achieved in his career. On the other hand he also
has the qualities of a good manager. He has gain experience because he led a small company to
grow up into such a huge company in the world. He has better communication skills, knowledge
about the business and very stick to time management (international, 2013). He is also a reliable
person in such a business in which reliability is of very importance. So, it is clear from his qualities
that he is both a great leader and a good manager because of the skills and experience that he
achieved in his career.
The greatest skill that he has that of quick response to change as he always goes with business
environment and responded that problem in such a way to solve them not to delay or suspend
them. Mr. Ma this quality of response help him to drive the Company to such high level that it
defeat the large western companies in ecommerce business (woolf, May 2013).
Mr. Jack Ma style of management would result in further development of the company because
he also tries to change the company business according to the requirement of the customers and
market. He always tries to find new markets for his company and deeply looks to the society and
culture of the area where he operates his business. He always strive for the best and is very
hardworking though he was an ordinary student in his studies.
It is clear from the above discussion that Mr. Jack Ma is the most suitable person for the company,
as he has gained every experience and knowledge about ecommerce because he started the
business from the very start in China and becomes a business magnate in the globe. During his
career he saw every thick and thin in the business environment. He also has both the qualities of
a great leader that led from the front and qualities of a good manager.
Most of the material on the internet confirm the David Barboza opinion about Jack Ma and Alibaba
Group and the story of his success, development, hardworking and innovative style of
management.
Conclusion
Great success always become an example and inspiration for everyone else and then they
analyze their success and development. Just as Alibaba company gained such a tremendous
development in the business through under the great leadership of Nr. Ma. It is evident from the
overall analysis that the business that is new for the people in the china and especially in Asia got
such position that everyone inspire from him is due to the person that likes innovation and new
techniques in the business. In terms of Alibaba group, victory means gaining of public applause
for being doing his business in such satisfying way that it got global appreciation. So this a very
proud for Alibaba management especially Mr. Jack Ma that they connects the global business
through a virtual market that got reliability among the public.

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References

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