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Discussion For Team Report Alibaba

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Management
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Central Washington University
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DISCUSSION FOR TEAM REPORT
COMPANY AND MANAGER: ALIBABA GROUP HOLDING LIMITED; JACK MA
Topic Outline
1. Definition of decision-making
2. Company Background of the Alibaba Group Holding Limited
3. Identifying the decision-making model of Alibaba
4. A comprehensive explanation of 8-step rational decision-making process
5. Conclusion of the importance of decision-making in business
Decision making is a vital part of business management. Every success of the
business is a result of effective and strategic decision-making processes. One of its
roles is to act as a key function in ensuring that businesses are always leading to
organizational growth. By definition, decision making is a course of action purposely
chosen from various sets of alternatives in aims to achieve the company's objective.
The key characteristic of the decision-making process is how it differs from companies
to companies. Some large companies adapt to a different process compared to small
enterprises. Thus, there are so many decision-making models that are only appropriate
for a specific business.
For over 21 years, Alibaba Group Holding Ltd., a multinational company
specializing in e-commerce and the internet, has been a platform for small enterprises
to grow and compete with other businesses in the industry. Its founder, Jack Ma,
devotes himself to making a unique decision-making model that configures perfectly to
Alibaba Group. Today, the company has grown to be a global leader in online retailing
and commerce. From having the world's largest initial public offering to surpassing other
retailer's sales, Alibaba achieved a large market share in the retailing industry.
It all comes down to the decision model used by Alibaba Group. In an interview with
Daniel Zhang, current Chairman and Chief Executive Officer (CEO) of Alibaba, said that
leaders should make tough decisions and initiate the team to have the same vision and
make concrete results. He adapt this strategy from Jack Ma when they worked together
for 12 years. From this, decisions are both programmed and non-programmed. The
management follows a decision rule that is to be driven by its mission and vision but at
the same time, create decisions that are guided by empirical data. According to Zhang,
they adapt to Jack Ma's sense of visionary by combining intuition and rational in every
decision the company will make.
The rational decision-making model is an 8-step process that is designed to identify
problems and make comprehensive solutions through logical reasoning. About Alibaba's
approach in decisions, the rational decision-making model is relatively similar to how the
company usually solves a problem. To state an example, Alibaba had to decide
strategically before the launch of Alibaba's Freshippo, a grocery retail chain. Zhang saw
the opportunity to address the customers' problem, and that is to make online shopping
convenient, most especially that pandemic causes surges in demand. Alibaba

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DISCUSSION FOR TEAM REPORT COMPANY AND MANAGER: ALIBABA GROUP HOLDING LIMITED; JACK MA Topic Outline 1. 2. 3. 4. 5. Definition of decision-making Company Background of the Alibaba Group Holding Limited Identifying the decision-making model of Alibaba A comprehensive explanation of 8-step rational decision-making process Conclusion of the importance of decision-making in business Decision making is a vital part of business management. Every success of the business is a result of effective and strategic decision-making processes. One of its roles is to act as a key function in ensuring that bu ...
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