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  • Essay / Organizational Structure and Management: Alibaba and the 21st Century

    Millman (3) asserts that a company's organizational structure has a great influence on its progress and its relationship with the public and employees. Management is influenced by the command structure from employees to management. An ideal design facilitates communication, fosters competition, and fosters innovation. The design of an ideal organizational structure depends on many factors, directly and indirectly related to the organizational environment. However, many intrinsic factors have a great influence on the system in which an organization is designed. Each unit is headed by a department head who reports to the overall head of the organization. However, different organizations apply different structures adapted to their functionality and type of work. This article therefore offers an analysis of Alibaba's organizational structure and the management of 21st century organizations. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayAlibaba is one of the leading countries in the world with operational branches in USA, India, China, Malaysia , Thailand, Turkey and the United Kingdom. , Japan, Vietnam and Taiwan. A high number of customers in different stores requires an organizational system that will allow the company to satisfy the needs of its customers and, at the same time, make a profit on its services. The organization of the company is defined as a classic VIE (Variable Interest Entity). The system is integrated into the operation of the company to propel it towards success among other competitors (Picker and Wu 5). The VIE structure works with other subsidiary bodies that monitor the flow of goods and market systems in the different parts. For a full cycle of relationships within the organization to occur, local companies work closely with WFOEs (wholly foreign-owned enterprises). Management is done through 27 managers without representation of shareholders in the company such as SoftBank and Yahoo! The organizational structure was designed so that Chinese companies with government licenses that did not allow them to operate in the international market would have access to markets on the global stage (Picker and Wu 5). Applying the structure to Alibaba involves five companies that have the expertise to operate in local markets. The companies' largest owners include co-founder Jack Ma, executives Xie and Ma (Reuters 6). Local businesses are used in creating variable interest for a larger organization and are used in evaluating the company's progress in different markets. The advantage of the structure is that shareholders can be integrated into the progress of the company through a contract that binds them in their agreements. Alibaba applies the VIE structure without assuring its shareholders that the company will always move forward with shareholder interests first. The company also does not ensure that they ethically respect their agreements and, in the event of a breach, settle the debts incurred. The structure of the organization divides the different departments into subunits, each headed by a department head. The department heads are responsible to the director of the agency and who is the overall decision-maker of the agency. Dividing the management of an organization into different smaller sectors results in more competent work compared to traditional management structures. Division of departments of an organization helps in management through samplinginformation from different departments of an organization. These divisions provide an organization with the ability to monitor different sectors and, at the same time, implement the policies that propel the organizations operations. Alibaba is divided into different subsections, which are supervised by managers as chief. Each of the managers manages a branch with the mission of ensuring that the collective operation of the branch achieves the set objectives. The article is a representation of the approach used by Alibaba to create a market entry and maintain its position over its competitors. The detailed definition of the VIE structure provides insight into the functioning of the organization and the relationship that management has with employees and the market. An effective management system of the organization is a representation of the systematic system of relationship between the CEO (Chief Executive Officer) and the different branches of the international market. Market trends in different locations where Alibaba has opened branches present different systems and approaches. which are sensitive to the functioning of the organization and the management of different departments within the organization. Three key determinants are applied to determine how Alibaba performs in the different markets where it operates. The way work is distributed among employees and the management system, the coordination of different jobs and who will make decisions within the organization. Work differentiation at Alibaba follows a horizontal system with employees accountable to managers in their department. Communication therefore takes place either from management to employees, or from employees to managers. However, it follows that employees pass information to department heads, who then inform the manager. Once the decision is made, the same channel is followed. Local businesses have been used as a local hub for the organization's operations, but with the incorporation of other international stores, the organization can operate with less tension and competition in local markets. . The structure is a link between Alibaba's different stores around the world and provides guidance on what is expected of different managers. In conclusion, Alibaba is one of the current generation companies that still apply the VIE structure of the organization. The structure matches the company with a large international market it serves and a high number of customers. The efficient structure has enabled Alibaba to introduce its products to new markets and become one of the leading suppliers and service providers. However, from time to time, changes are made to the organizational structure to help determine areas that lack improvement and what strategies should be implemented. Changes in the structure are intended to ensure that the organization operates within the set goals and can propel the business towards success. The framework is a system that has helped many companies efficiently manage their operations on the global and local stage, with a huge return for owners and shareholders. However, the VIE structure has weaknesses that could harm the organization's market position and advertising, leading to loss of sales. Likewise, the structure gives the organization a direct system of administration and helps manage all the different stores. Implications Modern age management systems are based on the operations of the organization and not on the factors that might influence changes. Thus, in the event of a problem in the management and.