Leadership and Change Management Report: Alibaba Case Study

This report offers a comprehensive analysis of Alibaba's leadership and change management strategies. It begins with an overview of Alibaba's background, industry dynamics, and relevant leadership models like situational, contingency, and behavioral theories. The report then evaluates the leadership style of Jack Ma, examining his skills, traits, behavior, personality, ethics, motivations, leadership styles, power types, and communication methods. A gap analysis is conducted to compare Jack Ma's style with leadership theories, followed by the development of a leadership improvement plan using Lewin's Change Model. The report also identifies potential barriers to the change process and concludes by highlighting the importance of leadership in generating success and differentiating between managers and leaders. The analysis incorporates insights from various sources, including online articles, books, and journals, to provide a well-rounded understanding of Alibaba's leadership journey.

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Leadership and Change Management

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Table of Contents
Introduction................................................................................................................................4
Background of Alibaba..............................................................................................................4
Type of Company and Industry..............................................................................................4
Industry Dynamics.................................................................................................................5
Leadership Models and Theories...........................................................................................5
Situation Theory.................................................................................................................5
Contingency Theory...........................................................................................................6
Behavioural Theory............................................................................................................6
Participative Theory...........................................................................................................6
McGregor Theory of Leadership.......................................................................................6
Leadership Model Suiting the Industry..................................................................................7
Evaluation of the Leadership Style of Jack Ma.........................................................................7
Background of Jack Ma.........................................................................................................7
Evaluation of Jack Ma............................................................................................................8
Skills...................................................................................................................................8
Traits..................................................................................................................................8
Behaviour...........................................................................................................................8
Personality..........................................................................................................................8
Ethics..................................................................................................................................9
Motivations........................................................................................................................9
Leadership Styles...............................................................................................................9
Power Types.......................................................................................................................9
Method of Communication................................................................................................9
Gap Analysis..............................................................................................................................9
Development of Leadership Improvement Plan......................................................................10

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Reasons to Change...............................................................................................................10
Lewin’s Model for Change..................................................................................................11
Unfreeze...........................................................................................................................11
Freeze...............................................................................................................................11
Refreeze............................................................................................................................11
Anticipated Barriers to the Change Process.............................................................................11
Conclusions..............................................................................................................................11
Importance of Leadership for generating Success...............................................................11
Difference between Manager and Leader............................................................................12
References................................................................................................................................13

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Introduction
The report focuses on generating an overview of the online commerce company, Alibaba. It
reflects on the industry to which Alibaba belongs to while conducting the analysis of
leadership style both of the founder of the firm and the industry as a whole. Further, the
report also focuses on conducting a gap analysis of the leadership style of Alibaba’s founder
based on leadership theories. The report also focuses on the development of a leadership
development plan through the use of Kurt Lewin’s Change Model while also reflecting on the
barriers to the change process. Different types of theoretical models would be incorporated in
the report for effectively analysing the leadership style of the online commerce industry and
also that of the founder of the organisation. The report would focus on conducting an
effective empirical analysis through the study of online articles, books and journals for
gaining needed inferences to the topic.
Background of Alibaba
Type of Company and Industry
Alibaba Group based in China focuses on transforming the marketing, selling and operational
procedures of business institutions. It works in providing the right quality of technological
infrastructure and marketing network for helping companies effectively engage with the final
users or customers. Alibaba’s business constituted by elements like core commercial
activities, digital media and cloud computing functions and also entertainment and innovation
helps the business organisations for effectively teaming with logistics and other service
provider firms for rendering services to other brands and merchant firms (Alibaba Group ,
2017).

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(Alibaba Group , 2017)
Industry Dynamics
The e-commerce industry of China is observed to be the largest in the world. The first quarter
of 2017 reflects that sales of products and services through use of the e-commerce interface
have grown to around 1.40 trillion Yuan which was around 32.1 percent higher than 2016
where sales of physical stores gained an increase by around 7.2 percent. Further, in terms of
annual growth rate on a compounded basis, growth rate of online retailing grew from around
17 percent during 2017 to around 25 percent of total sales in retail during 2020. Chinese
consumers are observed to be avid users of mobile and social commerce and other digital
platforms for purchasing and making payments (PwC, 2017).
Leadership Models and Theories
Situation Theory
Situational theory of leadership identifies leadership behaviour associated to the emergence
of different types of situations. The situational theory of leadership further determines what

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the leaders are required to perform based along different situations or circumstances
(Fairholm & Fairholm, 2009).
Contingency Theory
The Contingency Theory of leadership is identified as the leader-match theory wherein it
endeavours to match leaders to different contingencies or situations. The Contingency Theory
further endeavours to understand the manner in which the expertise of the leader contributes
in handling the contingencies (Northouse, 2012).
Behavioural Theory
The behavioural theory of leadership reflects that the activities of a leader are highly
influenced by the behavioural qualities or approaches of a leader. The success of the
leadership approach of an individual is highly dependent on the behaviour of the leader rather
than on the traits (Chandra, 2014).
Participative Theory
In Participative form of leadership, the leader encourages the growth of participation of
organisational members in decision making activities. Members are empowered to generate
their own ideas and rationale and thereby enhance the growth of teamwork in the organisation
and accountability and organisational citizenship among the members (Nevarez, Wood, &
Penrose, 2013).
McGregor Theory of Leadership
McGregor Theory of Leadership is also identified as Theory X and Y Leadership. The
Theory X and Y of leadership was first coined by Douglas McGregor, a social psychologist.
The Theory X Style of Leadership is observed to reflect authoritative and also traditional
style of leadership where it is customary on the part of the leader to coerce and threaten the
organisational members for effectively fulfilling business and institutional objectives
(Rozkwitalska, 2012). Herein, the human resources are identified as a cost to the firm and
thereby needs to be optimally utilised for generating needed productivity. The authoritarian
style of leadership identified in Theory X also reflects subordinates to be prone in avoiding
work and responsibility. It is therefore required of the leader to strictly monitor and direct the
team members for generating needful performance (Ferdman & Sagiv, 2012).
On the contrary, the leaders identified as Theory Y leaders are observed to be dignified and
also enlightened in nature. Herein, the business leaders and organisational managers assume

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that organisational members require be respecting, loving and honouring and also recognising
for their performances such that the same contributes in generation of greater productivity.
The internal people in a firm are viewed as assets rather than cost (Podsiadlowski, Gröschke,
& Kogler, 2013). The institutional manager or business leader thus focuses on training and
honing the skills of the staffs and also in motivating and encouraging them through
introduction of financial and non-financial rewards (Olsen & Martins, 2012). Further, the
Theory Y Leaders are such that focus on empowering individuals to take part in decision
making activities. Theory Y leaders also focus on encouraging workforce participation in the
firms (Landy & Conte, 2010).
Leadership Model Suiting the Industry
The leadership model concerning Innovative Leadership or leadership styles associated to
innovation leadership are observed to effectively suit the e-commerce industry both in China
and also along the global scale. The Innovation Leadership Styles (ILS) are further observed
to be divided along four segments like charismatic, instrumental, strategic and also interactive
styles that contribute in identifying of innovative projects, ecological inputs and also
developing on knowledge potential and needed competencies (Bhatia & Kaur, 2014).
Similarly, the parameter of innovation involved in the leadership styles of e-commerce firms
also contribute in the development of potential strategies for countering of potential
challenges (Benlamri & Sparer, 2016).
Evaluation of the Leadership Style of Jack Ma
Background of Jack Ma
Jack Ma as the founder of the e-commerce giant, Alibaba based in China is evaluated to be
richest individual in the country. Ma is evaluated to value around $25 million during 2014
and tends to hold around 7.8 percent share in Alibaba. Jack Ma’s story reflects on his rising
from rags to riches such that rising from a very poor upbringing based in Communist China
his youth times reflected large numbers of failures from academic to jobs where he finally
ventured and gained success in terms of creating the online commerce company, Alibaba
(Stone & D'Onfro, 2014).

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Evaluation of Jack Ma
Skills
 Jack Ma works based on instincts.
 Focuses on working based on vision and mission objectives.
 Focusing on inventing and sighting new opportunities.
 Empowering organisational members to participate in generation of new ideas.
 Focuses on expanding business boundaries.
 An avid Teamworker and also rooted to tradition.
 Focuses and works towards achieving greater results.
 Analytical skills associated with larger amount of data (Ward, 2017).
Traits
 Ma stresses on existence of right type of attitude.
 Focuses on uniting people and working in an integrated fashion.
 Depends on foresightedness
 Interested in development of skills
 Tenacious and hard working
 Learning from failures
 Loves to enjoy Life as it is (Kux, 2017).
Behaviour
 Entrepreneurial mindset
 Always hunting for new opportunities
 Innovating attitude
 Friendly and collaborative behaviour
 Charming and fun loving in nature (Zakkour, 2014).
Personality
Jack Ma reflects a strong personality that helps him in identifying opportunities in the face of
continual failures. Further, his charismatic personality and strong will force helped him in
making a global e-commerce organisation (Infoginx, 2017).

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Ethics
Jack Ma focuses on conducting the online commerce business in a highly ethical fashion.
Jack mentioned that he would never tolerate any ethical misconduct conducted by his
organisational members and other partners while conducting business (George, 2015).
Motivations
 Inspiration from failures and life as a whole
 Optimistic in nature
 Focusing on new opportunities that promote growth (George, 2015).
Leadership Styles
 Charismatic and visionary approach in e-commerce
 Innovation Leadership focusing on new opportunities to innovate
 Focusing on empowering employees and developing teams
 Participative Leadership in working with others in group
 Visionary leadership owing to working based on new vision and mission objectives
(Kux, 2017).
Power Types
Jack Ma reflects that development of small business enterprises would help in creating
greater employment and business opportunities on a global scale. Thus, promotion of small
business segments is identified by Jack Ma as the potential source of power (Balakrishnan &
Summerville, 2017).
Method of Communication
Jack Ma focuses on fostering an environment of open communication such that he
encourages the development of a transparent work atmosphere in Alibaba. Ma likes to
communicate with his staffs both formally in meetings and discussions while also favours
communicating with them in informal settings (Ward, 2017).
Gap Analysis
Leadership Theories and Styles Jack Ma’s Leadership
Visionary Leadership Jack Ma is observed to be a
visionary leader such that he

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Participative Style of Leadership
LMX Theory of Leadership
focuses on the development of new
vision and mission objectives and
thereby guides his organisational
members to achieve big targets.
Jack Ma focuses on empowering his
team members to think in an
independent fashion. This enhances
accountability and performance for
the team members (Dartey-Baah,
2013).
Jack Ma focuses on developing
effective exchanges with members
having needed skills and expertise
at the cost of other staffs that do not
reflect such expertises (Salas et al.,
2012)..
Development of Leadership Improvement Plan
Reasons to Change
Jack Ma as the Chairman and Daniel Zhang as the CEO of Alibaba group viewed that the era
of technological disruption with also emergence of new technologies is requiring them to
incorporate newer changes in the organisation. In a recent move, Jack Ma focuses on
collaborating with brick-and-mortar retailers and helping them gain advantage of online
retailing platforms, cloud computing services and online advertising segments (Cendrowski,
2016).

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Lewin’s Model for Change
Unfreeze
Jack Ma viewed that the emergence of Artificial Intelligence and its future development
would create a challenge for the business organisations. Increased level of automation would
result in increased job losses thereby increasing unemployment (Solon, 2017).
Freeze
The business institutions are thus required to continually focus on training its internal
members on cloud computing technology and also artificial intelligence for developing their
expertise in countering the situation (Solon, 2017).
Refreeze
Training of work groups on such soft skills associated to cloud computing and also Artificial
Intelligence (AI) would enhance their expertise to operate in the digital platform and thereby
help them to adapt to the new technological setting (Solon, 2017).
Anticipated Barriers to the Change Process
 Fear of losing jobs for increased automation contributed by incorporating AI
 Failure in effectively understanding technological systems like Cloud Computing and
Artificial Intelligence
 Employees needing to shift their focus to complex jobs owing to increased automation
tend to create cultural barrier to the change process (Adam-Gedge, 2017).
Conclusions
Importance of Leadership for generating Success
The case of Jack Ma, founder of the Chinese online commerce company, Alibaba potentially
reflects the manner in which his leadership skills ideally contributed in the formation of a
billion dollar enterprise. It reflected the power of acting with a visionary and charismatic
approach in motivating team members to achieve farfetched objective.

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Difference between Manager and Leader
The essential differences between manager and leader are enumerated as follows. The
managers focus on executing and implementing vision and mission objectives. The leaders on
the contrary focus on the formulation of vision and mission objectives and thereby focus on
motivating the team members for effective fulfilment of the stated objectives. Further, the
manager is identified in setting targets and allocating tasks to organisational members for
effective accomplishment of the same within a stipulated period. The leader on the contrary
act as a role figure to the team members and thereby inspires them to accomplish stated tasks.
Finally, the manager also focuses on generating new rules and regulations and focuses on
monitoring and governing the performances of the staffs. The leader on the contrary focuses
on the identification of newer opportunities and also takes on new challenges and risks for
moving over to new markets and territories (Jehanzeb & Bashir, 2013).