PESTEL Analysis of Alibaba and the Usefulness of its Network Sociogram

This report provides a PESTEL analysis of Alibaba, a Chinese multinational technology enterprise, and explains the usefulness of its network sociogram. The report examines the impact of political, economic, social, technological, environmental, and legal factors on Alibaba's operations. The sociogram helps the company gain a better understanding of doing business in China and provides an internal view of the corporate climate.

Activity 1.1 Case study

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL Analysis of Ali baba................................................................................................1
2.Using Alibaba’s network sociogram below, explain why this network is useful...............2
CONCLUSION................................................................................................................................3
REFERENCES ...............................................................................................................................4
Online ....................................................................................................................................4

INTRODUCTION
The present report basically focuses on PESTEL analysis of the organization “Alibaba”
based on the case study “Alibaba- The Yangtze River Crocodile”. The company is a known
Chinese Multinational technology enterprise who has its specialization in technology, e-
commerce, internet and retail. The present report involves the PESTEL Analysis of the company
and how the company uses Sociogram.
MAIN BODY
PESTEL Analysis of Ali baba
The PESTEL Analysis of Alibaba basically examines the different external factors which
basically impacts or affects the operations of the organization.
Political Factors: In case of Alibaba, the foreign investors cannot directly own stakes in the
Alibaba Group. Also the government of China, could close loophole of the different foreign
investors anytime when it comes to performance of the company (Jean and et.al, 2021).
Economic Factors: In reference to Organization, there are various opportunities which
comprises of combination of government, cultural and linguistic factors who has basically kept
the western internet firms at the arm length when it comes to Chinese Market. According to these
factors, the organization developed its own websites such as Taobao and Tmall.
Social Factors: In case of China, the major problem basically involves Population aging. Factors
such as One child per family rule in 2013 and the drying traditional supply of young labour was
falling by three million workers a year. All such social factors resulted in leading to a destructive
reduction of company's able-bodies employees.
Technological Factors: With their competition with the JD.com organization, the company
began to engage in the introduction of smartphones e-commerce which offered the organization
with huge profits (Schlegelmilch, 2022).
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Environmental Factors: Based on the case study, President Xi was quite happy when it comes
to restraining the expansion of high polluting industries including steel, cement and coal. All
these limitations impacted the earnings of the company who basically deals with the raw material
processing.
Legal Factors: In the year 2015, the China's State Administration for commerce and industry
took Ali Baba under special control. Also they recovered fake listings and counterfeit goods on
the Group's Taobao site which resulted in harming company's reputation and reduction in
incomes (EXPLORING STRATEGY ELEVENTH EDITION).
Using Alibaba’s network sociogram below, explain why this network is useful.
There are various reason why the company is winning from the social network which basically
comprises of the following key points and also the reason why sociograms is useful:
 With the help of Sociograms, the company can have better understanding about doing
business in China.
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 Sociograms supports the organization in providing an internal view on what's happening
in the corporate climate.
CONCLUSION
From the above analysis of macro and industries carried out for the Ali baba Group, it can
be recommended that the company should pursue the new strategic direction of moving further
in the global market as it will allow the organization to enjoy various benefits such as having
right tools and facilities for the implementation of policies and growing internet users.
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REFERENCES
Books and Journal
Jean, R.J., Kim, D., Zhou, K.Z. and Cavusgil, S.T., 2021. E-platform use and exporting in the
context of Alibaba: A signaling theory perspective. Journal of International Business
Studies, 52(8), pp.1501-1528.
Schlegelmilch, B.B., 2022. The Global Marketing Environment. In Global Marketing
Strategy (pp. 19-49). Springer, Cham.
Online
EXPLORING STRATEGY ELEVENTH EDITION. [Online] Available Through
<https://www.academia.edu/44504531/EXPLORING_STRATEGY_ELEVENTH_EDITION>
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