Alibaba Organizational Structure

 


 


 


 


 


 


 


The Organizational Structure of Alibaba


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The Organizational Structure of Alibaba


            Alibaba is a multinational based in China that specializes in internet, e-commerce, technology, as well as retail. It offers consumer-to-consumer (C2C), business-to-business (B2B), as well as business-to-consumer (B2C) sales services through shopping search engines, web portals, cloud computing, and electronic payment services. Formed in 1999, the company operates a wide range of businesses in various sectors around the world. It has been cited as one of the most admired businesses in the world (Tung, 2018). In 2018, the company recorded a net income of $9.791 billion, and its total assets were valued at $114.326 billion. It employs more than 60,000 people worldwide (Alibaba Group, 2018).


Organizational Structure


            The company’s organizational structure borrows heavily from the Chinese political structure. It features a partnership governance structure that differs largely from the dual-stock-class governance structure adopted by various public companies. Normally, the dual-class-stock design allows the companies to retain control of the company even after going public. It is used in companies such as Groupon and Facebook. On the contrary, Alibaba has a more different construct. The company features a 27-person partnership. Though the partners own a minority stake of the company, they have the powers to nominate a majority of the directors. They, therefore, control the board of the company. In defense of this formation, the company argue...