$1$ CASE EXERCISE: ALIBABA GROUP

$15$ points

$0259$:$48$

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The following questions are based on key symptoms $($both favorable and unfavorable$)$ of Alibaba Group and underlying causes that affect key symptoms as they are observed in the case. In addition, there is a general question on solutions that also addresses the causes. Each multiple cholce and short answer question number under Key Symptoms corresponds to the same question number under Underlying Causes $($e$.$g$.,$ Question $3$ under Key Symptoms $1$ corresponds to Question $3$ under Underlying Causes $1).$

Before beginning this exerclse, you will need to read the Allibaba Group case.

Underlying Causes $1$

Please answer the following multiple$-$cholce questions.

Increasing revenue and the tremendous growth trajectory of the company provided promising evidence that they would not have problems competing In the North American Market in $2014.$ What changed in $2018,$ and continues to be true in $2021$ to Indicate the company would have to confront challenges?

Revenue increased but the marginal cost of revenue was increasing.

Revenue increased but the marginal cost of revenue was decreasing.

Revenue decreased but the marginal cost of revenue was decreasing.

Revenue decreased but the marginal cost of revenue was Increasing.

$2$ Alibaba Group's revenue is generated through a range of diverse fees. For Instance, merchant fees are charged to users based on number of units sold in retall centers. More than $50$ percent of revenue is earned through

online advertising efforts.

varlable fees from merchant fees.

fixed fees from wholesaler centers.

account maintenance service fees.

The structure of the company is complex and growing globally with many divergent e$-$commerce trading relationships. Is the complexity a strategic asset or a liability that will Impede the realization of strategy?

Expansion and complexity are llabilities that will limit the expansion of functionality and the potential user base.

Expansion and complexity are necessary to satisfy the Chinese government's demands.

Expansion and complexity are assets necessary to expand functionality and the potential user base.

Expansion and complexity are necessary to keep employees highly engaged because of low wages the company pays.

A key factor enabling Alibaba to grow rapidly is the labyrinth$-$like internal structure that is complex when compared to most business models. What is the key to harmonizing the various businesses into a cohesive company?

developing businesses that focus on adjacent markets and sharing capabilities across the business group

developing businesses with a focus on speed, accepting that some businesses will fall

developing businesses in consultation with the Chinese government that help manage the complex structure

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