The Alibaba Group is China’s largest e-commerce company.

Its main platforms—Taobao, Tmall, and Alipay—offer the largest online marketplace for Chinese businesses and consumers to connect. Alibaba has evolved into a business giant with company acquisitions reaching into a range of industries such as entertainment, real estate, mobile technology, and finance. Its recent IPO on the New York Stock Exchange (NYSE) reflects its dominance in the area; it made Wall Street history when the company raised $25 billion as capital. No longer confined to the emerging online markets of China, Alibaba now plays on an international level, with plans to compete for customers from around the world.71 Jack Ma, Alibaba’s founder and executive chairman,

fuels the motivation and inspiration for the company’s competitive spirit. Alibaba’s bedrock rests in Ma’s enthusiasm for fulfilling dreams and creating a lively atmosphere in which employees strive for success as a family. These ideals can be traced back to the company’s roots. Ma and 17 other cofounders launched the Alibaba website from his humble sixroom apartment. In his living room, the determined group set out to not only become one of the world’s top Internet companies but to also be one that will survive for 102 years. Ma and his team believed that together they could achieve the extraordinary by valuing the customer and focusing on the future.

The company now has over 34,000 employees and continues to grow, and Ma’s motto of “customer first, employee second,

and shareholder third” guides the company even today.

Alibaba’s leaders try hard to maintain the culture that was established during those first days in Ma’s apartment. Despite having offices worldwide and a 17.2-acre campus for its headquarters,

the company seeks to maintain a transparent environment where employees are encouraged to challenge ideas at all levels. Each employee adopts a nickname to help reduce a sense of hierarchy and spur innovative dialogue. Annual events like Alifest celebrate employees and customer unity. During these celebrations, Ma has been known to wear dazzling costumes and sing. Employees are taken care of beyond their paychecks through access to benefits like iHome, Alibaba’s own mortgage fund, which is used to fund interest-free loans for employees.

Despite such motivators, the company faces challenges to its retention. Losing employees who possess critical knowledge threaten its long-term vision despite it continuously attracting new talent. Over a quarter of its employees own company shares, so the temptation to cash out and walk away is common as the company rides the waves of the Wall Street.

In response, Ma has penned letters to employees exhorting them to remember the company’s ideal of keeping the customer first and to consider the longer journey. Ma cautions employees to be wary of the temptation of easy wealth and to keep the greater good at heart. Such talk is reflected in Ma’s actions and statements.

Now one of the world’s leading billionaires, Ma focuses on motivations beyond just money. He has set up numerous charities focusing on education, the environment, and health. In a recent presentation to the Economic Club of New York, he reflected on how happiness does not always come with money; some of his happiest moments were when he was making $12 a month as an English school teacher. The question that remains is whether these ideals will keep Alibaba on its path toward its 102 years Discussion Questions 1. Alibaba has a vision to be a 102-year-old company. How can a manager motivate an employee to stay and effectively contribute for more than 30 years? Consider Alibaba’s founding ideals.
2. How would you retain employees who are sitting on lucrative stock options and could walk out the door tomorrow knowing that they would never have to work another day in their life?
Use various motivation theories to support your answer.
3. Explain Jack Ma’s statement that he was happier earning $12 a month as a school teacher using motivational theories.
4. Where would equity theory be relevant in Alibaba’s history?
5. Having read this case, which motivational theory do you feel best represents Ma’s ability to lead his team to overcome all odds?