How Social Perceptiveness Reflects in the Alibaba

China now has about 800 million user of internet making them a market target for Alibaba, (Smith, 2001). Therefore, in this analysis report, focus will be based on the internet and culture theories and how the social perceptiveness reflects in the Alibaba. In comparison, analysis reflective perspective and social perspectives will help in understanding Alibaba’s operations and how entrepreneurship skills have been applied to the company by its management through Jack Ma, the CEO of the company. The purpose of this report is to identify how entrepreneurship is based on social perspective and economic perspective through comparison and basing arguments on Alibaba. In this case, the theories that will be focusing on are economic perspective theory which identifies decision making in entrepreneurship, and social perspective theory which identifies how internet, cluster, and culture affect enterprises, (Marshall, 1890).

With over 600 millions of Chinese being able to access internet through their mobile phones, it has made it easier for Alibaba to concentrate of generating relevant traffic to specific people based on their history of purchases through the site and related search engines. Through utilization of one’s listening skills, confirmation of the identification of a problem and the process of analysis/evaluation can begin. The decision making process consists of, but is not limited to identifying the problem and the criteria that equates with such, allocating weights and criterion, selecting and applying an alternative, and then evaluating the entire process. There is no single universal approach in this process, (Dension, 1984). Evidence shows, however, that sometimes situations call for an approach that is taken into consideration by an individual, as opposed to that of a group.

Known to be structured and programmed, this approach provides clarity, reason, and efficacy as illustrated through experience and provides expected outcomes; because it implements a procedure, or a plan. The bounded by rationality approach is similar to the rational, but here the managers that make informed decisions do not have the capacity to be able to process this information, (Shumaker, 2013). However, this is another method that will inadvertently prove sufficient in the chosen scenario. Group decisions are not ideal for all situations but then again, neither is decisions made by one person. Through the Taoist Culture, the company has been able to identify its competitors by understanding the advantages and disadvantages that the competitions has and through them, the company has been able to initiate its own payment plan or rather software-Alipay.

As electronic business starting to take the main stream of business in China, Alibaba has become a behemoth dominating the market. Moreover, Alibaba is also supported by the Chinese government on policy benefits. People who do business in China know that companies who have policy benefit from Chinese government will be operating so easily in China. Above is the advantage or strength for Alibaba, (Ershi, 2016). Nonetheless, Alibaba is not perfect. in this case, Jack Ma as an entrepreneur, has been able to judgmentally make decisions based on the resources that were available in order to develop the Alibaba enterprise. In this case, the scarce resources are labor, capital, land and entrepreneurship and through economic perspectives, Jack Ma was is able to integrate scarce resource to virtually unlimited want of people.

In this case, focus is directed on the decision maker and the environment that he or she is in, (Lytras, 2011). Jack Ma was able to invest in the opportunity that he saw. This is practically an opportunity assessment decision since he saw the need for the establishment of Alibaba to satisfy the needs of the people. However, disadvantages of decisions made by a group can consist of, but not be limited to rank experience and skill. Simply stated, group decisions provide more complete information than do individual ones,” Advantages include having more information, a larger variety of expertise, and new innovations through knowledge and the sharing thereof, (Lytras, 2011). Disadvantages, on the other hand, are associated with time consumption, conformity, and inequality of opinions within the group.

The decision making process involves business rules, analysis, collaboration and efficacy in consistent responses and outcomes. To be prepared for a situation that does not happen is much better than to be unprepared when a decision of this caliber arises, (Lui, 2013). Through this, he was able to impact his knowledge on the opportunity that he saw. Since he was once a trader, he had sourcing knowledge on how to solve problems. By integrating moral behavior and organization context, Jack Ma was able to source funds for establishment in to internet business. The cluster factor is the main focus in this analysis and understanding how this theory has been able to reflect the company as successful is important. Therefore, Alibaba is an industrial cluster-based business which has been developed on an Internet Industrial Cluster, (Xei, 2001).

According to research, Hangzhou is identified as the city that has enabled growth of up to 10. 8% in entrepreneurship and other private enterprises that are being established. The growth of the SMEs in Hangzhou has played a major role in the GDP growth where this has contributed a 6% growth. There has been a creation of about $150 billion to the municipal economy. There has been an involvement of the government to establishing moderate ground for business which has brought light to the establishment of small businesses and enterprises. With the initial attempt to succeed, all possible odds were against him and everything he seemed to get involved with wasn’t in his favor, (Dengzhe, 2011). Failing two college entrance exams, numerous rejections and turndowns on jobs applications, even with KFC, gave him the inner inspiration to invest the rest of his existence in something he can create, invent and innovate, to suit his ideas, model of operation and most importantly, impactful and influential to the society and the world at large, (Shepherd, Williams & Patzelt, 2015).

On his first travels to the United States in 1995, Jack was fascinated by the internet, using it for the first time, (Dengzhe, 2011). It is reported that Jack Ma’s first ever search word on the internet was "beer", but surprisingly to him, there was no result for any sort of Chinese beer that was already well known to him on the Internet in the US. This was the exact moment Jack Ma had the creative idea to introduce a cyber marketplace in china, to expose manufacturing and productions of all works of markets and industries within the country, including all other business transactions that might be possible to make public and available through the rapid expansion and influences of internet usage, (Dengzhe, 2011).

Therefore, I have been able to identify that the internet has initiated all the operations based on the search engines and data –centric cloud computing systems that the company has been based on. The cluster factor is the main contributor to the Alibaba existence at the moment. However, the internet factor has majorly affected the sales and marketing of the company to an extent of formulating a well developed shopping interface through its application that not only initiates, consumer-to-consumer as well as business-to-consumer relations, it has also made it possible to accurately link businesses through business-to-business interface. On the other hand, I have identified that economic perspective theory is mainly focused on decision making processes and circumstances based on opportunity identified and opportunity cost.

Hangzhou, the region where the Alibaba headquarter is located has a major role to play through history and nature that is defined by the small SMEs which operate in the region. Exploring entrepreneurship practices and perspectives. Oxford: Oxford University Press. Chen, R. Intelligent Computing and Information Science: International Conference, ICICIS 2011, Chongqing, China, January 8-9, 2011. Proceedings, Part II. Virtual reality & augmented reality in industry. ShBerlin New York: Shanghai Jiao Tong University Press. Ershi. Proceedings of the 6th International Asia Conference on Industrial Engineering and Management Innovation: core theory and applications of industrial engineering (volume 1. Amsterdam: Atlantis Press. Taylor and Francis: CRC Press. Lytras, M. Digital culture and e-tourism: technologies, applications and management approaches. , Pa: IGI Global (701 E. Chocolate Avenue, Hershey. A. , & Patzelt, H.