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1. What did Jack Ma do that was so different from other company leaders?

In what

ways is he a revolutionary?

Jack Ma was different from other company because he challenges the status-quo in

China. He can be said as a good entrepreneur and strong man due to he successfully faced all

risk. After the discussion with group members, we found that Jack Ma has used some

management theory during the process of revolutionary.

Besides, Jack Ma is different from other company leaders because he has used

Scientific Management Theory by Taylor. W.F. There are three elements of sciencetific

management, the study of work using scientific methods and time measurements to increase

productivity, the standardization equipment for workmen and the improvement of working

conditions, Sciebcetific recruitment, assignment, and training of workers by a central

personnel departmen. Jack Ma is able to developed he’s own revolutionary that means act

with conventional wisdom and longstanding by their own creativity to manage the company

although there are major cultural, technical and economic changes in this era globalization.

Jack Ma also has fulfilled one of the principle of this theory is he has scientifically teach,

train and develop his workers. For example, Jack Ma told his workers need to put more time

than others and out-innovate competitor to reach the maximum level of proficiency while

other companies employees might prefer work as normally office hours from 9am to5 pm on

working place. This is an efficient for the entrepreneurs to do the innovation that enable the

company can compete with others. A systematic study about the relationships among people

and tasks is needed during redesigning the work process for the efficiency purpose.

Besides that, based on our group members’ opinion, Jack Ma also uses Administrative

Management theory of Bureaucracy by Max Weber in his company management. Hierarchy

of authority is one of the important elements in this theory and Jack Ma has the

responsibilities to direct and control employees’ performances to reach organization goals. It

said like that because Alibaba company was controlled the Chinese e-commerce market by
controlling the platform of the Tmall. He also manages the online setting and indexing of

Taobao retail website. It has showed the power on how to hold accountable for their actions

and to make decisions regarding to concern the use of organizational resources.

Behavioral Management Theory also a theory that implemented in Jack Ma’s

company revolutionary. This theory has implemented well by Jack Ma because he able to

motivate his employees and encourage them to commit at high level. According to Anthea

Yan Zhang, professor from Jones Graduate School of Business at Rice University in Houston

said that Jack Ma is the spiritual leader for his staffs and always with lots of energy and ideas.

Ma’s company get the critic during his leading but he is not shirk but face immediately. So,

the decision that he has took is open New York Stock Exchange (Baram, 2014)(NYSE)

through the aggressive competition after getting despise from others. An excellent leader

characteristic and behavior will lead a company to succeed.

Lastly, we also think that Jack Ma uses the Fayol’s Principles of Management

(Fayol,H.). There are 14 principle in this theory and Jack Ma able to fulfill it. It is because he

always be honest and direct to challenge the old standards which that ability to act on one’s

own without the direction from a superior when conducting the company. Also, sometime we

think that Jack Ma has showed autocratic practices in certain incidents during the

management of company. It is because as we know he is the founder and chairman for

Alibaba company by making the all major decision. What has Jack Ma said will be an order?

For example, Jack Ma announced in February there is no any person in Alibaba company will

get the Spring Festival bonus and a hiring freeze was implemented with the motive to

enhance the efficiency(Ma. F.J.,2015).


2. What is “conventional wisdom,” and why is it necessary to challenge it?

Conventional wisdom is the body of ideas or explanations generally accepted as true

by the public or by experts in a field. According to Longman dictionary, conventional

wisdom can be defined as the opinion that more people will consider to be usual, normal and

right, and it might sometime showed to be wrong. The public are generally can accept certain

ideas, opinions or understanding common sense that also can be consider as conventional

wisdom.

In our group members opinion, conventional is necessary to challenge due to the

increase of quality output able be produced. Alibaba company gave the best example of

challenging the conventional wisdom. First, Jack Ma has challenged the status quo in China

and the innovation and successful was achieved by him. For example, Jack Ma priority the

major owner and customers and the third are shareholders that shows obviously difference

with other companies or organizations. It’s hard to imagine the company founder put limited

investors above those who started the enterprise and putting customers first might not be the

best thing a company can do for its shareholders. Despite of challenging the status quo need

taking the high risk, but still need to do because without trying we will never know the

outcome will be. So, the careful planning and the solutions need to be considered clearly in

advanced before doing an important management decision.

Conventional wisdom sometime might be good because enable people to satisfy with

the status quo but sometime it should be challenge because it might stopped people from

being creative and inovative. For example, Jack Ma is able to become Alibaba company

reach a new level of success. That can be seen when his company initial public offering price

$68 and initial value of $167 billion, which grow to over $ 200 billion in less than two weeks,

exceeding that even Facebook . Despite his management style is controversial. On the other

hand, wisdom can be developed by ourselves in nature but we might need to not agree or

follow with certain conventional wisdom due to our personal thinking and behavior. For
example, Jack Ma showed unexpected action by open the New York Stock Exchange (NYSE)

after failure to reach the deal with Hong Kong exchange and this drew gasps of surprise. This

showed that the conventional wisdom not necessarily definitely correct and we need to take

high risk if we want to challenge it.

Apart from this, conventional wisdom needs to be challenge for the benefits of public.

Nowadays, many companies caught in the scandals, bankruptcy and taxpayer-funded bailouts

problems. It showed that we need to make a change or reformation on a company

management and the governance status quo policy. The main motive of challenging the

conventional wisdom is to increase the transparency and the credibility of an organization or

company. The trustworthy from public is an important key to the success of a company.
3. Why did so many people criticize Ma and Alibaba?

Jack Ma and Ali Baba have the onslaught of criticism from competitors, analysis and

academics Alibaba’s founder, Jack Ma who defied conventional wisdom and longstanding

corporate governance practice to clear a new path for creative, innovative entrepreneurs .

People criticize Jack Ma and Alibaba because he remarked that the shareholders are his third

concern after partners and customers. Many people said that customers are tertiary status and

should not be on the top of an organization. It is because customers will have public relation

problems and this will give some effects to the company.

Other than that, based on the report from a Chinese regulatory agency said that most

of the goods sold on Alibaba’s website are counterfeit. Pirate problem also an issue to be

critised. Alibaba company claimed that all the goods sold on their website like handbags,

shoes and other goods are all made by the company itself. But after the report had been carry

out by customers claimed that Alibaba company had cheated them. They criticized that Jack

Ma and Alibaba are not honest in doing their business.

Jack Ma and Alibaba got another critic when China’s State Administration of Industry

and Commerce (SAIC) said that the Alibaba company has not done enough to stop the

Internet for the sales of illegal goods by it was denies by Jack Ma. According to SAIC, there

are some employees of Alibaba company accept bribes that permitted merchants to sell goods

such as illegal wine, handbag and others without getting the required license. Many of the

samples that showed in the Taobao retail website has not licensed products through the

investigation.

Besides, Alibaba company had offered stock shares to the public on the New York

Stock Exchange (NYSE) . There is added by the critism from American analyst as they said

that it is do not fair for another company when Alibaba shares be on the NYSE as it is a
Chinese-based company. In addition , people said that Alibaba company do not deserve to be

in the NYSE as before this they sold goods that do not belong to them .

The other reason is Alibaba’s website, Taobao which had violated marketing rules

and had a poor consumer rating system. So, the westerns accused the Alibaba company for

stealing intellectual property and selling illegal product to their customers. This is unfair and

will give an impact to the company that produce the product because the buyer can get the

same product in a cheapest price .

In addition, Jack Ma and Alibaba have been criticized by saying that he is challenging

the corporate governance status quo .It is said like that because lots of models of corporate

governance failed to uphold the trust that society or even their investors put in them . The

scandals, bankruptcies, and taxpayer-funded bailouts of recent years have only brought into

public view a system of corporate governance that has been long characterized by secrecy ,

greed and lack of transparency .

Jack Ma and Alibaba company hold on the principles building trust with customer ,

partners and shareholders . This makes people criticize Alibaba Company as the governance

age-old paradigm does not apply this principle in their companies on doing business. Ma does

not look back as he believed in what he done.

Another critic come when people said Jack Ma only own about ten percent of the

shares. They said it could bring Ma and Alibaba company down the line, in other word

instable. People always look down on what Alibaba done and what they had achieved as they

felt the competition in doing business would become too great between Chinese-based

company. It is hard to get into American business and Jack Ma able to do it. SAIC report that

had been carried out created more critic on Jack Ma and Alibaba as they do not want another

company challenge them.


Due to the expectation of people on Alibaba were too high but when Alibaba reported

its latest earnings in late January , the good news was that profits better than expectation but

the sales missed estimates. So, another critic of Alibaba is that like Amazon. People said that

Alibaba are a company for Amazon. This is because Alibaba has stakes in soccer team and

movie studio in addition to a mobile video game. The company is also looking to expand

beyond China and United States is definitely one of Jack Ma’s big target.

Alibaba company also had been accused by U.S. government and others for allowing

sales of counterfeit goods but Wednesday’s report was the first time Chinese government has

criticized a company that is leading star in an Internet industry communist leaders are eager

to develop. So, people criticized Alibaba when Alibaba.com and Taobao were named in the

“notorious markets” each year from 2008 to 2011 but noted that the marketplaces had been

removed from the list.


4. Jack Ma’s sudden emergence “rocked the boat” in China and around the global. Are

lots of other business leaders likely to follow his example, and challenge the status quo?

Jack Ma’s sudden emergence “rocked the boat” in China and around the globe. Are

lots of other business leaders likely to follow his example, and challenge the status quo?

Jack Ma’s make the decision sudden emergence “rocked the boat” in China and

around the globe because he challenges the status quo. It would said like that because Jack

Ma put the customers and his employees as priority compared to the shareholders that show

his management style is different with other company. Nowadays, Jack Ma becomes one of

the richest and successful people in China despite there are many people critic and disagree

with his mode of operation.

High returns require high risks. So, not as many company leaders as braver like Jack

Ma to take high risk in challenge the status quo. Based on our group member opinion, we

cannot deny by saying that Jack Ma is really success in his business but it too risky to put the

shareholders as the third important category after his customers and employees. While, as

commonly known normally a company or organization priority is to maximize the profit for

shareholders. So, his company might lead to public relations issue with outside world if they

control over the right.

After the discussion, we found that The CEO of the Yahoo! Inc., Bartz is the best

example of leader who does not satisfied with the management of Jack Ma. It is because the

previous CEO of Yahoo! Inc., Jerry Yang who held nearly 39% shares of the Alibaba but

only 25% voting right and it showed unfair. She also critics Jack Ma about he lost part of the

social capital from Yahoo! Inc. Bartz was not satisfied with Jack Ma’s job in Yahoo! Inc.

China. According to Bartz, she has claimed that Yahoo! Inc. may execute its majority

shareholder right in October 2010 and expressed her intention to join the board of directors of

Alibaba. This decision is giving the rise to corporate the conflict between Yahoo! Inc and
Jack Ma (Kong, 2014). So, by putting the shareholders as the third important people will

make the shareholders feel do not satisfy and the conflict between two parties may occur. It is

because shareholders have the mindset by thinking themselves are more important that

customers and employees because they are the person who invest to the company and should

have the voting right. But, Jack Ma has challenged it.

While from the other side, many business leaders or entrepreneurs are started to

accept and believe nothing is impossible in the management field after seeing the success of

Jack Ma and his company. Jack Ma has become the role model for other companies and

motivate them to make the innovation by likely to take risks and challenge the status quo

despite do not follow Jack Ma style in their management. Also, in this recent years people

who involve in the entrepreneurship have showed significant increased that includes

Malaysia. These kinds of new entrepreneurship are more likely to challenge the status quo

rather than follow the traditional way like Jack Ma did.

Through the Jack Ma and Alibaba case study, we have learnt that every business have

its own risky. Also, a good leader should not be afraid of the risky and problems. We learnt

from mistakes even Jack Ma also failed many times before getting success. According to Ma,

he failed twice in his study due to weak in Math because but he able to manage such big

company-Alibaba nowadays. Also, Ma rejected by three other institutions that were the

police force, Harvard University and Kentucky Fried Chicken (Leung, 2015). These are the

some examples of obstacles facing by Ma.

In short, most of the other business leaders do not fully agree and follow the

management style like Jack Ma did, but Jack Ma has become their motivation for them to

take risk in the business and challenge the status quo.

Mark Zuckerberg, the founder of Facebook is one of the best example which get the critic but

still uses his own management style in organization operation. According to Hisdustan Times,
the India’s Save The Internet coalition has criticized Mark project-Internet .org. The reason

is it might bring confusing to the whole emerging market users through this project by

thinking that internet and Facebook are one and the same. But Mark argued with his view by

saying that Internet .org is a free service basically and emphasis that all web services should

be accessible equally.

Based on our discussion, sometime Mark Zuckerberg’s management way is same

with Jack Ma. Both of them priority human skill in their company management that mean

they are able to work well with other partners and people both individually or in a group.It is

because both of them also the person who play important role in decision making process.

Otherwise, both of them often encourage employees to express their views and opinions that

is not same like some conservatism organization. For example, Mark Zuckerberg use an hour

to have a public question and answer meeting for his company on every Friday in his own

company management that can increase the motivation of his staffs. In short, the other

business leaders do not follow the management style like Jack Ma did, but Jack Ma has

become their motivation for them to take risk in the business and challenge the status quo.

Mark Zuckerberg, the founder of Facebook is one of the best example which get the

critic but still uses his own management style in organization operation. According to

Hisdustan Times, the India’s Save The Internet coalition has criticized Mark project-

Internet .org. The reason is it might bring confusing to the whole emerging market users

through this project by thinking that internet and Facebook are one and the same. But Mark

argued with his view by saying that Internet .org is a free service basically and emphasis that

all web services should be accessible equally.

Based on our discussion, sometime Mark Zuckerberg’s management way is same with

Jack Ma. Both of them priority human skill in their company management that mean they are

able to work well with other partners and people both individually or in a group.It is because

both of them also the person who play important role in decision making process. Otherwise,
both of them often encourage employees to express their views and opinions that is not same

like some conservatism organization. For example, Mark Zuckerberg use an hour to have a

public question and answer meeting for his company on every Friday in his own company

management that can increase the motivation of his staffs.

However , that still something that business leader acceptable and likely to follow

from Jack Ma’s and Alibaba’s IPO. According to Jack Ma , a business leader should Be

innovative ,Build in trust and passion ,Cut revenues today to have benefits in the long run,

Keep trying and trying, Never stop learning, Empower your employees, Challenge yourself

and your team . This 7 things are likely to follow from Jack Ma’s and Alibaba’s IPO from

time to time .