Brief Insight of the Company - Alibaba

The Alibaba is one of the online shopping stores opened in the China in the late nineties. The company was run close with the collaboration with the users. The company provided the easy access to communication between the buyers and the sellers.  The company was also running the risk because the buyers and the seller had the direct communication and both the Chinese and the foreign firms had knowledge regarding the products on the website.

The course of the company changed when e-bay entered the Chinese market and started sharing the market with Alibaba. In 2003, Ma launched the Taobao in the market to supply the products to the retailers. Unlike the previous firm, Taobao had the free membership and late provided the multimedia messaging service between the buyers and the sellers. Along with the maximization of the profit companies, the company brought in the concept of the Alipay. The Alipay was formed to build the trust between the buyers and the sellers. The Alipay also made the policy that would benefit both the buyers and the sellers.

In 2008, there was pressure from the branded companies for selling their products in the Taobao. To counterfeit this issue, the Taobao launched the new merchandised the launch of the Small. Small used to sell the branded and the international products to the people ranging the commission between the 0.5% and 5%. The popularity of the company was increasing. The Alipay alone handled the 70% of the total China’s electronic payments. It leads to the establishment of the Yu’e Bao bank. The interest rate of the bank helped the maximum flow of the deposits, which made the bank the world fourth-largest money market fund in the year.

The company also went viral in the social media. Alibaba was heavily investing in the social media. The application was designed as per the needs of the consumers. The maximum transaction was done by the use of the smartphones and the tablets. The internet service providers became one of the important stakeholders for the company.

In the later date, there was an issue of the ownership of the company. During the previous days of the establishment, the owner of the company had taken the aid from the various person. One of the success factors that lies behind the wide growth of the company is the philosophy behind the partnership. The company had a strong belief that the partnership has helped in managing the business of the company. The partnership strategy has helped in enhancing the excellence, innovation and the sustainability of the organization. There is also the provision to vote the founder member. This method helps them in preserving the company cultures as set by the previous founders. The company was initially working on the small budget.

Background on the case study

The wants, and the demand of the people are increasing day by day.  There is the changing pattern in the global market and the increasing in the competition and the uncertain demand of the consumer, the manufacturing company has to come along the innovative and the effective market strategy. Such kinds of the ideas help in the attracting the larger numbers of the consumers and also enhances the competitive advantage in the marketplace. The future of the marketing company is led by the use of the technology, social and the economic challenges and their effect on the business market is also the important factor.

The study of this article is based on the journal article of “Alibaba goes public”, published by Havard Business School. The study accounts the online marketing company of the People’s Republic of China. Alibaba.com was established by Main early 1999 in the small city of Shanghai. The company was run in the linked with the small and the medium-sized Chinese manufacturers and the international buyers. In 2002, the company had the nominal profit. The company is then expanded by having a close discussion and working out on the users’ suggestions, trade and free communication between the buyers and the sellers. The company was also established in the various forms making the supply for the consumers easy and convenient.  Taobao and Tmall are some other online shopping store made by the founder.

The company has undergone lots of the test situation for its success. The topic of the article of very relevant to the content of the article. The content shows the struggle of the team in providing the proper and the international quality goods in low price. The articles emphasize on the trust essential between the buyer and the seller. The risk in the online market is also highlighted in the text.

The article also has shown the corporate governance of the company. The CEO has tried to list his organization in the various exchange stock. His effort of listing his company on the Hong Kong Stock Exchange and the New-York Stock Exchange has been clearly showing. Therefore, it can be concluded that the topic and literature are the perfect complements to the one another. In the initial phase of collaborating with the Hong Kong Stock Exchange, Alibaba had to face the hurdles.

 The Hong Kong stock rejected to provide the company the two classes stock. One of the stock was for the management, which was per regarding the voting rights per dollars of equity. The other was of the dual class share is not structure listed on the Honk Kong Stock Exchange. In additions, the Honk Kong Stock Exchange contained the one-quarter of the China-based company. The company is not listed on the Shanghai Stock Exchange, which was the China-based company. This particular movement restricted the company’s limitations in trading, timing, limitations in the speed in the exchange the capital and restricting the other exchanges.

Alibaba’s chairperson Ma then disclosed that he had twenty-eight partners. The executive vice-chairman was quite sure that the partnership policy and the structure of the company would remain unchanged. The retaining of the composition of the board members would preserve the company’s culture. It would also allow the company to make the long-term opportunities and boost the short term profit.

Chinese economy and business enviroment

The market reform of the People’s Republic of China was done around in the late 1970s. The paradigm of the market shifted from the centrally planned to the market-led economy. This major shift in the paradigm brought the rapid change in the economic and the social development of the country. The country’s Gross Domestic Product was also enhanced. The country has become the second largest economy in the world and powerful enough to influence the global economy. The rapid change in the Chinese economy has also brought many challenges that include the inequality, rapid growth of the population, environmental sustainability and problems to manage the old-age population and internal migration of the labor. The World Bank, in 2014 mentioned that the People’s Republic of China has surpassed the Purchasing Power Parity of the United States of America. China did not suffer the recession in 2009. However, the gross domestic product of China was in decreasing trend in 2014. Although the economic growth rate of China, there was an 11% increase in the retail sales market. The retail sales market is the result of the online shopping pattern of the Chinese consumers. The online consumers are one of the factors for the Chinese Economic growth rate. The major gross domestic product of the Chinese economy consists largely of the consumption followed by the investments and contributions. Declining GDP and the slow economic growth rate has alarmed the Chinese government and has enforced the government of China to make the new financial policy. The government is providing the tax subsidy on the small scale enterprise. The middle scale enterprise is provided with the export credit insurance.

Effect of corporate social responsibility on brand value

Corporate social responsibility has become the greater field of importance in the business industries of the global business world that helps to make the business not only recognizable but also supports to earn the brand value for the firm. Company’s brand value is the attracting point for the internal and the external stakeholders of the company, most importantly customers and the shareholders of the company. The tourism industry has to perform its corporate social responsibility like the protection of the environment, use of the renewable source of energy, waste management created by the company, ethical consideration, and the labor issues in the company. The effort of the TUI Travel PLC for the reduction and the management of the waste made by the company stops creating negative effects on the company. Similarly, it delivers the positive message in the company about the organizational activities. Adopting and performing the corporate social responsibility is the way of influencing the peoples of the society. Further, the corporate social responsibility of the TUI Travel means creating the positive environment that reduces the possibilities of the harm for the people and the society. Strengthening the strong bond to the people and the community and creating an environment for the business sustainability of the company. TUI become the first choice of the larger numbers of the customers is a result of its attempt of the corporate social responsibility. With the use of the multi-channel distribution by the company, it has made easier to provide the customer service to the larger numbers of the customers of TUI. Similarly, the offer provided by the company as different types of the packages has helped to hold the loyal customers. The company strictly follows the ethical issues the human rights issues that are a part of the corporate social responsibility. It helps to reflect the positive message the people and the society and helps to create the brand value of the company. TUI Travel was shortlisted for holding the ‘Best CSHR Strategy’ in the year 2014 by HR Excellence Award. The great and the sustainable holiday’s plans made by the company for its customers helps to develop the positive attitudes and behaviors of the customer to the company. Excellent human resource management, customer service, social responsibility are the leading factors of for creating the brand value of the company.

Corporate Social Responsibility Roles in Tourism Industry

Tourism industry holds the greater economic activity sin any nation and is a great way of the revenue collection for the both the business companies and the company. Tourism is not only working for the purpose of customer service and money making, but it has become the great source of the employment for the greater population of the world. Moreover, tourism is understood as the great source of revenue collection. Tourism creates both the positive and negative impact on the environment. So, the corporate social responsibility has the great role in the tourism industry. A green environment is the great tourism promoting sources. Tourism industry with the help of the environmental resources makes the great business. But money-making without bearing corporate social responsibility is not fair. Along with the globalization of the business market, the increment in the consumption of the natural resources the world has started facing the challenge of global warming. Performing the corporate social responsibility by the company helps in the protection of the environment and the natural resources. Corporate social responsibility is not only the responsibility of following the rules, regulation and the business ethic. Rather it is a strong process of performing positive activities to the people and the society. It helps to earn the long-term business sustainability of the business companies by addressing the consumer’s needs, societal needs and the positive effects of the organization on the environment. The corporate social responsibility roles of the TUI Travel PLC has helped to address the needs and interest of the larger numbers of the customers. Social responsibility of the company and the adaptation of the green initiatives program by the company helps to balance the firms and societal relationship throughout the high business competition. Similarly, the corporate social responsibility performed by the TUI Travel PLC has helped the company a lot of holding the positive relationship and trust with its customers. It helps for increasing the number of the loyal customers of the company that directly helps the business growth of the company. Hence, the role of the corporate social responsibility performed by the TUI Travel PLC has the great impact on the brand value and the great business earning of the company.