Introduction
The modern business environment is changing due to various factors, such as the desire for fast economic development, technological advancements, and concepts of sustainability and corporate social responsibility (CSR). Leaders of companies that want to succeed should address every issue stakeholders raise and implement evidence-based strategies for continuous improvement. The discussion below gives a detailed analysis of Alibaba Group as it plans to meet the needs of its western customers while at the same time remain profitable. This is the case since many companies expect different suppliers to be more transparent and fulfill every outlined social standard.
Central Issue
Alibaba Group has grown rapidly to become the leading player in the Business to Business (B2B) market segment. This organization offers a wide range of products from Asian suppliers via its Internet-based platform. The current issue affecting this company’s performance is the fact that many customers from Western countries are focusing on European standards and strategies that are sustainable and associated with the concept of CSR. The other minor concern that Alibaba Group’s leaders should consider includes the need to strike a balance between Western expectations and Chinese cultural practices (Leelapanyalert et al. 5).
There is also a need for this company to develop powerful models for ensuring that customers view the commitments and responsibilities of different suppliers. The issue of CSR is critical since many non-governmental organizations (NGOs) require that all companies follow strict guidelines for producing different goods and protecting the natural environment.
From this analysis, it is agreeable that the identified stakeholders’ demands will affect several functions. For instance, the marketing segment will be unable to meet the demands of the existing customers. The personnel functional area will be forced to consider the issues different stakeholders raise (Leelapanyalert et al. 8). The HR department is currently forced to identify the best ways of fulfilling the emerging needs of customers and suppliers.
Definition of Goals and Constraints
The current goal is for Alibaba Group to maximize its profits by fulfilling the changing expectations of all stakeholders from different parts of the world. Unfortunately, this aim is unachievable due to various issues, such as the expectations of Western customers, the issues different NGOs raise, and the desire to empower local manufacturers and entrepreneurs in China (Leelapanyalert et al. 9). This means that there are specific inconsistencies between this organization’s goals and its projected performance. In order to emerge successfully, there is a need for Jack Ma and his followers to formulate an evidence-based model for addressing existing concerns and improving organizational performance.
The studied case study goes further to identify several constraints to the targeted objectives. The first obstacle is that the established Chinese business model requires business organizations to engage in appropriate practices that support the needs of emerging entrepreneurs. The second one is that Chinese children are expected to socialize and engage in economic activities in order to develop the most appropriate values and competencies. The third concern affecting the targeted goal arises from the increasing pressure from customers and NGOs. The current business structure focuses on the most appropriate procedure for maximizing profitability and fulfilling the needs of different online customers (Leelapanyalert et al. 11).
The implementation of the most appropriate solution will attract several drawbacks, such as inadequate human resources, limited finances, and the presence of competitors who fulfill the required standards. This analysis reveals that there is a need for Alibaba Group to consider the best action plan to tackle such constraints.
Relevant Alternatives
The current situation requires a superior strategy to ensure that the expectations of all key stakeholders are fulfilled. The main concern revolves around the need to strike a balance between business success and CSR. The first alternative entails the implementation of a powerful model for guiding suppliers to improve their working conditions and production standards. This requires increased financial and human resources if positive results are to be recorded.
The second one is excluding and delisting suppliers and partners that do not focus on the outlined standards (Leelapanyalert et al. 18). Such a strategy will require a signaling platform that will be used to identify the working and quality standards of all suppliers. The final alternative is to combine the above two approaches to ensure that companies that perform positively receive adequate support. Firms associated with unacceptable standards will be delisted and their contracts terminated.
Best Alternative
The first option is advantageous since more suppliers will be empowered in order to continue supporting Alibaba Group’s business model. The main disadvantage is that such an idea will take long before delivering the anticipated aims and increasing the trust of different stakeholders. The second one is important since it will ensure that only responsible suppliers do business with Alibaba Group. Delisted companies will have to implement superior models in accordance with this organization’s CSR objectives. However, this model does not resonate with the cultural attributes and expectations of the Chinese.
Finally, the third option will fulfill the needs of willing suppliers and empower more customers to achieve their potential. The option appears to be the best for Alibaba Group (Leelapanyalert et al. 19). This is the case since it will present a new opportunity for addressing the diverse demands of different customers and empowering suppliers to transform their processes. This solution will ensure that the company increases its business performance and develops a superior CSR.
Implementation Plan
Alibaba Group requires a powerful plan to implement the selected alternative in an attempt to emerge successfully and achieve its CSR aims. Kurt Lewin’s change model presents a powerful framework for transforming most of the existing practices. The first step is that of refreezing whereby suppliers, NGOs, customers, and employees are informed about the intended solution. They will receive timely guidelines and ideas revolving around the need to support willing companies to improve their standards. Organizations that fail to transform their operations will be identified for deregistration. The second phase is that of introducing the targeted solutions or initiatives.
This plan will ensure that the company continues to grow and improve its CSR image (Leelapanyalert et al. 19). The number of loyal customers will increase significantly. The final stage is to make the introduced changes part of the organization. The concept of continuous improvement in accordance with emerging trends will become a norm at Alibaba Group.
Conclusion
The above discussion has outlined various issues that might affect Alibaba Group’s future performance. Many customers require that this organization monitors labor issues and quality standards associated with different suppliers. Some NGOs have claimed additional transparency on its website. The implementation of the suggested alternative will, therefore, tackle most of these predicaments, empower more suppliers to achieve their potential, and eventually make Alibaba Group one of the most successful and socially responsible companies in its industry.
Work Cited
Leelapanyalert, Kannika, et al. “Alibaba.com between Economic Success and Corporate Responsibility.” Oikos, vol. 1, no. 1, pp. 1-22. Web.