Control System Design
Major Projects for Alibaba's B2C Business
Three types of control
- Output Control
As far as control type is concerned, Alibaba's B2C business is an output control as of now. It focuses on measurable results such as sales, profits, customer satisfaction, etc.It establishes clear, quantifiable performance indicators (KPIs) and standards for this purpose, such as order quantity, order conversion rate, customer retention rate, customer satisfaction score, etc. In addition, use quarterly reviews to make sure employees are assisting the company in meeting its expected output targets. The output control system can help Alibaba monitor its business performance and improve it, but it can also lead to high levels of stress and tension among employees, as well as high levels of competitiveness. Meanwhile, it can resultin an overemphasis on KPI performance, which gives innovative programs little chance of survival.
It's difficult for me to say whether this is appropriate for this organization since it runs its business on a day-to-day basis with this type of control.best solution,but at least this type of controlgets the job done. - Behavioural Control
In Alibaba, behaviour controls pertain more to the management of sellers, platform transactions, and internal workflow requirementsthan to organization management.
On the platform, behavioural control ensures compliance and security. It focuses on controlling behaviours that lead to results, such as merchandising rules, audit procedures, policies, or seller codes ofconduct. For example, sellers and customers are required to register with their realidentities, upload information to be audited according to investment requirements, use specific payment methods, and comply with consumer dispute resolution mechanisms.Through behavioural controls, it can provide guidance and reduce platform risk for sellers and customers on Alibaba's B2C platform, but it can also limit seller creativity and autonomy, as well as not be flexible enough to respond quickly to a rapidly changing online shopping environment. Clan Control For Alibaba's B2C business, clan control is an appropriate way of promoting innovation and collaboration among online sellers.Usually, clan control is based on shared traditions, expectations, values, and norms that inspire people to do what isright for theorganization. This includes culture, socialization, mentoring, or peer pressure.
Alibaba cultivates a sense of community and belonging among its B2C sellers. For example, it encourages sellers to share their stories andinsights, offers them regular offline training, and communicates with them individually to hear their opinions about the platform. In my opinion, clan control is effective for promoting the Alibaba B2C platform, as well as some friendly relationships between Alibaba's top sellers. However, it may not be as effective for the longer-tail, decentralized network seller groups.
Reference:
Alibaba.com. (2020, December 15). How to buy and source from Alibaba. Retrieved from
https://seller.alibaba.com/businessblogs/px65f6s8-how-to-buy-and-source-
from-alibaba
Oro Team. (2022, May 5). What B2B eCommerce Businesses Can Learn from Alibaba.
Oro Inc. Retrieved from https://oroinc.com/b2b-ecommerce/blog/b2b-ecommerce-
businesses-can-learn-alibaba/
Thank you for taking the time to read my post and I would appreciate it if you would leave any comments.
Sakura thank you for this valuable information. I didn’t know about these types of controls used by Alibaba. In my opinion, they are controls that are in line with their type of business. However, as you mention, they can be so elaborate that they do not allow the flexibility that the market currently demands, but they are still excellent for the efficiency and effectiveness of the business.
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