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LEADERSHIP ANALYSIS OF MA YUN 1
Abstract
This paper is about the leadership analysis of Ma Yun.At the beginning of the paper,it talks about the background of Ma Yun, his pioneering work, the growth of Alibaba and Ma Yun’s latest situation.Then, it would introduce his leadership behaviors.There are two main behaviors which are obvious on him.It contains supportive leadership behavior and charismatic leadership behavior.According to his leadership traits and behaviors, I evaluate the effectivene if his leadership applies to the hospitality industry.The conclusion about what I learned during the proce of researching will be presented at the ending of the paper.Key words: Ma Yun,Alibaba, leadership, hospitality industry
LEADERSHIP ANALYSIS OF MA YUN 2
Contents I.Abstract..................................................................................................................1 II.A Brief Introduction of Ma Yun’s Life Experience................................................1 From teacher to businemen.............................................................................1 Development of his career..................................................................................2 Founder of Alibaba.............................................................................................3 The resignation of CEO........................................................................................4 III.The Leadership Traits of Ma Yun.......................................................................4 Self-confidence...................................................................................................4 Persistence............................................................................................................5 Fluency of speech...............................................................................................6 Integrity..............................................................................................................7 IV.The Leadership Behaviors of Ma Yun................................................................7 Supportive Leadership Behaviors.......................................................................7 Charismatic Leadership Behaviors.....................................................................8 V.Apply Ma Yun’s Leadership Style into Hospitality Industry.............................9 Put employee in the first place.........................................................................9 Innovation.........................................................................................................10 Conclusion.................................................................................................................11 Reference...................................................................................................................12 LEADERSHIP ANALYSIS OF MA YUN 3
Leadership Analysis of Ma Yun The reason why I choose Ma Yun as my leader is simple.I read an article talking about him on a magazine in high school.At that time I was interested in commerce.Until now I still have a strong interest in electronic commerce, and open the Taobao shop and micro shop when I was a sophomore.During this proce, I also realized the importance of busine opportunities, supply channels and innovation.I am deeply impreed by his busine acumen and personal charisma.Ma Yun is a Chinese entrepreneur and philanthropist and also is the founder and Chief Executive Officer of Alibaba Group.He is the first Chinese entrepreneur that has ever appeared on the cover of Forbes from mainland.In America financial magazine “Fortune” published in 2014 March, he was honored by one of the “50 greatest leaders around the world”.In addition, Ma also serves as Chairman of the Board of Directors of Yahoo China.On May 10 in 2013, Ma retired from Alibaba Group as CEO.On September 23,2014, Ma Yun became the richest one in China by the fortune with $ 150 million, whose wealth had been increased by 5 times compared with that in 2013.Ma was ranked first in 2014 Forbes China Rich List and Hurun Philanthropy List.(Bai,2014)From the teacher to the businemen In 1964, Ma Yun was born in an ordinary family in Hangzhou.When he was a child, he does not like study, and also is a skip cla student in the eyes of the teacher.His transformation is started when he entering Hangzhou Normal University with English major.From that time on, he desperately learned English.Because he wants to know what things he doesn't know in the other side of the ocean.In 1988, Ma Yun graduated from the University, he came to Hangzhou to teach foreign languages in Electronic Industry College which is his first job.His monthly salary is about 110 Yuan.At the same time, he used his spare time to do much part-time jobs, such the guide LEADERSHIP ANALYSIS OF MA YUN 4 for the foreign tourists.The first English corner in West Lake side is initiated by Ma Yun.In 1992, Ma Yun and his friends established the earliest profeional translation named Haibo translation agency in Hangzhou.Each month's revenue is only 200 Yuan, But the leasing fee has been pay off 700 Yuan.In the first year, the Translation agency was unable to maintain the operation.Ma Yun began to do the busine;he sold the gift package, flowers, books, clothes and flashlight.And then he used the money to maintain translation agency.Ma Yun said: “The person who really wants to make money cannot take it much too seriously, if your mind is always thinking of money, you would not get much wealth.In 1995, the translation agency gradually became famous, and an American cooperation Company commiioned him to seek a debt in American.Then everything happened just like in Hollywood movies.The American businemen wanted to default and pulled out a gun to make Ma Yun locked in the house for two days.Ma Yun was released in panic and anxiety, he lost the luggage and had to earn $600 back home on the casino in Las Vegas.(Liu,2009)Development of career The nightmare of trip was over;Ma Yun went back to Hangzhou sadly.Although he had no cent in his pocket, the trip let him found a ”treasure house“ in Seattle.It is the first time he used the Internet without any knowledge, and he also makes advertisement for his translation agency on the internet.He sent out the advertisement at 10 a.m., only 2 hours later, he received six emails respectively from the United States, Germany and Japan.These businemen said this is the first Chinese Website that they have seen.”There is big busine!“ At that time, he was aware that the Internet is a gold mine.Ma Yun immediately found a partner, there only has three people add his wife.They had twenty thousand Yuan as the start-up capital.His first Internet Company set up called the Hai Bo network and the product called ”China yellow pages“.This is the first the commercial information website appeared on the Internet in China.LEADERSHIP ANALYSIS OF MA YUN 5 At that time, many people still do not know what the Internet is;they thought Ma Yun is a liar.In 1995, he went to the CCTV, a director told reporters: ”this man does not look like a nice guy!“ Actually, Ma Yun was called ”liar “in lot of cities which did not have the Internet.But he is still like a madman to introduce the Internet to people and convince the customers.He reminded himself every day: “The Internet is the long running with 3000 meters, which will affect the future of humanity living in 30 years;you have to run fast like a rabbit, also like a turtle with the spirit of perseverance.”In 1996, his company’s revenue is incredibly reached 7 million Yuan(Wang, 2010)Founder of Alibaba
In ancient mythology, the Alibaba can open the door which will lead to the wealth with a spell “sesame, open the door!”
At the beginning of 1999, he raised 500 thousand yuan, the Alibaba was born in his house.At the start-up stage, Ma Yun commanded that each employee must rent the house within five minutes’ distance from his home.At that time, the 18 employees kept working day and night.The things make employees happiest is that MaYun cooked the dinner himself and made a table of good dishes for everybody.In the next 6 years, Ma Yun used 6 minutes to persuade Softbank investment Fund Company and got the venture capital investment.Then, many investors joined the Alibaba Company.In 2003, Alibaba launch website taobao.com for consumer services.Ma yun set up an online payments system,alipay in 2004.Today, even Ma Yun is in his sleeping, Alibaba also could earned 1 million Yuan each day.The Alibaba opens the treasure's door with the spell “sesame, open the door.” in myth.But what is Ma Yun's spell? We could know when we have a look at Ma Yun's spending habits.Although Alibaba has tens of millions of funds, but never make the big advertising promotion, never open the domestic pre conference.In company, each page is used by LEADERSHIP ANALYSIS OF MA YUN 6 double-sided printing.Until the end of 2007, Alibaba spent the first round of investment;the second round of investment is still not moving.“I have strain every nerve to spend money.” Ma Yun said, “I has been accustomed to poverty and left over more money to spend on other important things.(Li, 2009)The resignation of CEO On May 10th2013, Ma Yun as Alibaba Group chief executive announced that he would step down, although he still remains as chairman.It is also a piece of shocking news in China.This year, Ma is 49 years old, but he has been planning for retirement.Ma Yun said that the younger employees are better placed to run the company and he will name the succeor by May 10th.Ma said stepping down as a founder CEO is a difficult decision.The shift is a significant one for Alibaba and follows moves announced last week to chop the group into 25 smaller divisions to give managers more flexibility.In September 20, 2014, Alibaba was listed succefully in America with $23833.2billion.So far, Alibaba executive chairman Ma Yun’ worth reaches $2121.20 billion more than Wang Jianlin and Ma Huateng.As the new richest man in China, he donated 14.5 billion refreshing the charity record and became the new “China most generous philanthropist”.(Bai,2013)
Leadership Traits of Ma Yun Self confidence There is no doubt that Ma Yun is self-confident.At the first meeting in Alibaba, Ma Yun have predicted the company’s bright future, he required the employee to record the entire proce with video which is a historical witne.In 2002, the short meage service and gaming unit busine appears the tremendous profit space, but Ma Yun still did not change his mind, he insisted on his way in the field of electronic commerce.By the end of 2004, Alibaba won the favor of investors after experienced the setbacks.When all the people think that LEADERSHIP ANALYSIS OF MA YUN 7 Alibaba will expand deeply in the field, he suddenly decided to create taobao.com.Alibaba would challenge the strongest global company eBay.The annual revenue of eBay has reached the 7 billion dollar, however Alibaba’ annual revenue only has billion RMB at that time.Alibaba would fight against eBay, which looks like a myth.“When Ma Yun made this decision, almost all of the people are against it.Alibaba fighting with eBay is crazy, “Jin Jianhang said.”But Ma Yun insisted his decision and believed in himself.” The confrontation is cruel.In the face of the challenge, many mainstream portal website become a “conspiracy” to block all publicity channels.In the desperation Taobao only made advertising in buses, elevators, subways and sports events.At this time, Alibaba's good luck was coming.When Taobao was attacked seriously, eBay required membership to charge a fee.This gave Taobao the opportunity for counterattack.Ma Yun immediately announced that the “Taobao will be free for anyone in the next 3 years.” This news immediately makes the eBay company crumble.Finally eBay was sold to the Tom Online and quit China market.Ma Yun is crazy and self-confidence, but all this succeful results are based on his rational analysis.A person that makes once succe is accidental, but Ma Yun is succeful from Alibaba institution to the today’s development.We cannot say that Ma Yun only has boldne and self-confidence;the succe must also include intelligence and reason.(Hu, 2011)Persistence Persistence is the neceary quality for most leaders and Ma Yun is not an exception.He is persistent for his busine to achieve the succe.Ma Yun he clearly knows what he would do.Because of his clear goal, he can stick to the last one when encountered any setbacks.A lot of people are difficult to understand the succe of Alibaba, Ma Yun said: ”Many people are smarter than us, many people work harder than us, why do we succeed? Do we have wealth, but others not have? Of course not.LEADERSHIP ANALYSIS OF MA YUN 8 One of the important reasons is that we have the persistence.“When Alababa founded in March 1999, Ma Yun said: ”Even Tyson break me down, if I die, I would jump up and continue to fight!“ Ma Yun graduated from the Hangzhou Normal University, which sounds like a “unknown” the school, his study experience is also bumpy.However, he created the world's largest e-commerce website.Why? For the failures and setbacks, Ma Yun said: “Doing busine is very tired;and the busine failure rate is very high.Among100 people, 95 people do not know how to die, even did not hear voices when fell to the cliff.There are 4 people that hear a scream when he fell.The remaining one may not know why he is still alive, but also he do not know whether he still live on tomorrow.So failure is common problem that most entrepreneurs have encountered.”So Ma claim that young entrepreneurs must never, never give up.This is the only way to win the final victory.(Hu, 2011)
Fluency of speech Ma Yun is active in the public, he always make the wouderful speech for his personal image.Ma Yun's eloquence is very good.His speech reveals the humor and wisdom.He can expre himself with simple words.His words are very encouraging, which let the people to think and to be inspired.“Ma internal speech” is representative of his speech.In this book, he not only points out that the company's problems, but also makes the development direction of the company.When Ma Yun achieved succe, many universities and TV station invited him to make a speech.Every time for his speech the house is full of audience, and the applause is long and loud.Many his inspirational quotes inspired the young people who want to start a busine.As a leader, his speech skills enhance the leadership greatly.When Alibaba was listed in USA, his fluent English in advertising video also impre all the world people.(Liu, 2009)LEADERSHIP ANALYSIS OF MA YUN 9 Integrity “For the entrepreneur, the most important and greatest wealth is your integrity.An entrepreneur must have a group of friends;these friends are accumulated by sincerity for you in so many years.“Ma Yun warned the young entrepreneurs must be honest.On the TV shows winning in the China, he said, small busine succe depends on shrewd, meddle level of busine succe depends on management, but the big busine succe depends on the integrity.I have always believed, honesty is valuable, it can be turned into money, and honesty is the biggest fortune.(Liu,2013)
Leadership Behaviors of Ma Yun Supportive Leadership Behaviors From Ma Yun’s personality, he is really supportive to his employees.Talent is his capital.If a company gets talents, and it means the company wins market and its future.Ma Yun helped followers develop abilities and careers very much.In the management level, there was a very important work.Ma Yun think, one of the biggest wealth in a busine is employees.Alibaba also put the employee at the first place in the company.So he proposed a concept, ”Invest the money in the employees“.He said, ”We think invest money on employees that instead of putting money in the bank, we believe if employees do not grow, the enterprise is not growing.” Alibaba attached great importance to training people, let the employee more outstanding, let old employees don't fall behind.In order to train employees’ busine ability, Alibaba has created the first enterprise busine school—the Ali Institute.Ali Institute mainly aims to train staff in continuous exploration and practice.The teaching mode of online training, on-site instruction and training certification has been has been gradually formed.The concept that “No busine is difficult in the world” is extended by Alibaba to the education level.(Liu, 2013)LEADERSHIP ANALYSIS OF MA YUN 10 He also showed his concern and respected his followers.The most obvious example is happened in the acquisition of the Yahoo.At the beginning, Yahoo’s Employees did not trust Ma Yun, Ma still treat employees sincerely.He made the N+1 plan for Employees, and used the equity genuinely to retain staff.The results is only 4% of employees chose to leave;most workers are moved by Ma Yun and chose to stay.When Yahoo’s Staff arrived at Hangzhou, Ma invited them with a sincere heart, even for the employees’ breakfast staff, he made discuion and adequate preparation.Considering employees living habits, Ma prepare the special breakfast for them.When the train loaded with employees arrived at Hangzhou, each person received a small bag which is filled with two hot steamed stuffed buns, a bottle of milk and napkin.Considering these people travel with long distance, washing is not convenient, small paper bags even has a pack of gum.The breakfast let YAHOO employees feel warm in their heart.Ma Yun really made employees moved, so the employees would be loyal to him.Ma Yun believes that management is not restriction but the truth;he brings employee motivation to develop their potential.For example, the equity incentive as everyone knows, many staff hold the stock of the listing Corporation;the administrative incentives, as long as employee work time is achieved a year and who pa the examination, he are eligible to participate in the internal competition;mail incentive, Ma is good at email, he write to employees and give them various spiritual motivation.For example, the “poor happy” strategy is in the early starting.One of them has good performance;he would be added up his life.All of them work hard for life longer.(Liu, 2009)Charismatic Leadership Behavior
Ma Yun is charismatic, he did something that was great in people’s mind.He advocated moral miion and vision.He always uses simple words to build a development perspective for employees.Ma Yun has a strong sense of miion.He said: LEADERSHIP ANALYSIS OF MA YUN 11 “Why would an enterprise survive? It’s because of miion.For this point I am confident “;he thought that employee should have it in mind.A person must have great mind, and the mind must contain the sense of miion.Now, Alibaba is the world's largest B2B e-commerce site, also is the largest C2C electronic commerce website in Chinese.However, Ma Yun's ideal is far more than this.In the next ten years, Alibaba’s goal is to rank among the top 3 in Global Internet Company.Ma Yun wanted to build the world's greatest company created by Chinese.Ma Yun attracts talent by his personal leading charm.Cai Chongxin, who helped Alibaba find investment with his own financial contact when Alibaba was in the most difficult situation.Cai Chongxin’ joining to Alibaba is very dramatic.Because of the work relationship, he came to Alibaba to see about.The purpose is obvious, to find an ideal investment object.Ma Yun talked about his idea of electronic commerce with Cai Chongxin, described his own plan of the largest B2B website “open sesame” in the world, and invited Cai Chongxin to “the location of company” which is also his home in Lake Garden.Soon after, Cai Chongxin came to Hangzhou for Ma Yun, this time he almost didn’t talk to Ma Yun about investment matters, but is very interested in Ma Yun’s story of “Eighteen Arhats”.It can be seen that Ma Yun and his “Eighteen Arhats” story touched him.Such stories are numerous in Alibaba.Ma Yun was invited to make the speech at Harvard University, Ma Yun’s wise and humorous speech touched the MBA students in Harvard.After the ”brainwashing“ of Ma Yun, Harvard elites respected Ma Yun to a great extent.(Liu, 2013)
Application of Ma Yun’ Leadership in Hospitality Industry Put employee in the first place Ma Yun said that the employee is first, customer is second.Without emplyees, there will not have this website.Only they are happy, our customers will be happy.He encourage LEADERSHIP ANALYSIS OF MA YUN 12 the staff to work crazy and make employees smile to go home, the smile is an important culture in Alibaba.He said, “The biggest challenge and breakthrough is the person, and the biggest breakthrough of employing is to trust people”.He pays attention to communication with employees, even holding the collective wedding for company staff.Therefore, employees can have happy work and go all out to work.Only the satisfying the employees will have the satisfaction of customers.In the service industry, the staff directly contact with the customer.Employees' work attitudes and emotion will directly affect the service quality.Hotel provide reliable, quality service for customers, it must place the staff at the first place, and take consideration the needs of staff.High staff turnover has been a headache in China's hospitality industry.Employee turnover will bring a series of negative effect to the hotel management, such as service quality, customer losing, and the training cost increasing.The hotel must attach great importance to the needs of staff and put staff in the first place, it can reduce staff turnover rate and improve employees’ satisfaction.So, the hospitality will make greater succe.(Liu, 2009)Innovation One of the biggest factors for the succe of Alibaba is innovation.Ma Yun made a lot of innovation behaviors in the development of Alibaba.At the beginning of the busine, he take the strategy from first overseas to the domestic.This behavior helps export enterprises pull more overseas buyers.Then,Alibaba use the free strategy for three years.It is a huge attraction for busine people.When Taobao battle with eBay, it makes the promotion in outdoor advertising signs, plane, radio, television, subway, bus.The innovation of guest rooms, catering and service can let the customer directly to experience.Creative promotion competition and realization of creativity is the soul of hotel industry.The hotel needs to upgrade hardware every three to five years.The hotel food needs to be updated, tastes is ever-changing, dishes needs to be developed.New food source LEADERSHIP ANALYSIS OF MA YUN 13 reflects the deepening customer eating desire.The hotel needs to update the service with the increase of customer demand growing.The standardization, reutilization and standardization of service have become the shade.To anticipate and meet the personalized service is the key in modern hotel service.(Wang,2013)
Conclusion Through studying the traits and leadership of Ma Yun, it is easy to find his self confidence, integrity;persistence is worth for young people to learn.He put employee in the first place and make investment for developing employee, which is worth applying in hospitality industry to optimize and improve productivity and public image.Ma Yun knows his goals what he need do.He focuses on his goal when working, and strive to complete the miion, leaving all behind including himself.He achieved a miracle in Chinese entrepreneurship, and his innate wisdom of management is also like an important reference book for Chinese enterprise development.In continuous economy development today, Alibaba group will continue to show the world a new look.Ma Yun’s wisdom management may become a beacon, which is sufficient for leading Chinese e-commerce enterprises towards the light of the world.Alibaba team will still hold on together in an extremely harsh environment, to solve the enterprise crisis and make the Alibaba team more cohesive, more paionate, more courageous for change, and more confident for higher peak!
LEADERSHIP ANALYSIS OF MA YUN 14
Reference
Bo,S.(2011,December11).Ma Yun's ambitions and dreams.China Academic Journal,pp 38-42.Fu, G.(2004, 5).Ma Yun's pioneering story.China Academic Journal , pp.23-25.Lan,L.(2011,October 05).Analysis of Ma Yun's leadership.Time Magazine, pp 23-25.Li, W.(2005, September 2).Ma Yun's challenge.China Academic Journal , pp.40-45.Shi,L.(2007).The True Story of Ma Yun.Southern publish house.Wei, C.(2011).Ma Yun Management Journal.May: 01.Wei, C.(2011).This is Ma Yun.Zhe Jiang : Zhejiang people's Publishing House.Wei, F.(2009, December 5).Ma and Alibaba group.Times Magazine , pp.32-40.Xin,L.(2004).Ma Yun talk about entrepreneurship.Zhe Jiang: Zhejiang people's Publishing House.Zhang, L.(2013, December 11).Alibaba founder jack ma.China Academic Journal , pp.1-7.
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