Enterprise Management: Analysis Of Alibaba'S Internal Control Dilemma

　 　 Internal risk control mechanism And per capita failure!

When Wei Zhe left, he attributed the responsibility to the company's values and took full responsibility from the company's management and management. Public relations talent show After that, the credibility crisis of Alibaba has been eased. You can regard it as an account of the public or a scapegoat for a listed company, but it can not cover up the inherent defects of Alibaba's internal control management. Ma Yun is hard to blame in this process.

B2B e-commerce is the most critical issue of spanaction information and integrity, so integrity should be a major control point for Alibaba's survival. In the past two years, there are four big opportunities to prevent and control risks, but the board responsible for internal monitoring and risk management is missing.

Credit crisis lurking the board of directors

In response to the financial crisis, in November 2008, Alibaba launched a low price product export, priced at 19 thousand and 800 yuan.

　　 Alibaba The board's approval of this major move is correct, but the risk of lowering the access threshold must be carefully assessed before decision making. The board of directors did not pay enough attention to credit risk, laying the foreshadowing for the credit crisis erupted this year.

Since 2009, fraud has emerged. These stores offer high demand consumer electronics and trade at very attractive prices, low minimum purchases and relatively unsafe payment methods, because buyers believe Alibaba has the ability to verify the authenticity of suppliers, resulting in buyers' losses.

It should be said that from the point of view of the system, the Alibaba has indeed established a more stringent key management process (see Figure 1) to prevent fraud from the source. 7500 or so front-line sales staff, their certification should be the most direct, the most effective, the most three-dimensional supervision, the local sales branch personnel cross certification is also the most effective means, but when sales personnel collude with each other, this most effective authentication system will fail. At this point, it is very important to verify the materials submitted by other control departments at headquarters and verify or check the relevant materials on the basis of the third party. Unfortunately, we saw that 1.1% and 0.8% of new customers were suspected of fraud in recent two years. Some fraudsters even passed the certification with no annual inspection licenses. Some fraudsters' accounts were sealed up and changed to a company name without changing their contact modes. Facts have proved that Alibaba's multi-channel cross certification has not been effectively implemented. Otherwise, how dare some marketing units cheat collectively?

Since 2009, 2249 victims have been cheated, and some of them have complained directly to Alibaba, with 45 complaints per working day. Alibaba handles complaints by combining manual control and automatic control in two ways. When automatic control can not solve disputes between the two sides, supervisors from all over the place will intervene in coordination. Facts have proved that they have violated Ma Yun's "company values" and the handling of the problems is often not enough.

Business driven internal corruption

The Alibaba's profit model determines that it is a business driven company, with 8400 salesmen among its 13500 employees, 5000 of whom serve the "export link", and 2500 people serve "China integrity". Their treatment is made up of low base salary plus high commission, such as the "export through" department, the basic salary of the salesperson is between 1000 yuan and 3000 yuan, and the sales commission is carried out by a ladder type rate, ranging from 6%30%, and the performance of the executives is also linked to the total sales volume, ranging from 0.5%6%. Because the interests of sales managers and salesmen are highly consistent, profit driven and performance pressures weigh on them, it is possible for them to achieve a tacit agreement of interests. While the headquarters's management is loose and other people's success is stimulated, they dare to take risks, and high mobility makes many of them free from punishment.
{page_break}

I believe that as a chief designer of Alibaba's profit model, Ma can not feel the whirlpool of prosperity.

Internal control is a means of enterprise risk prevention. The sorting out of enterprise risk is from top to bottom, from heavy to light. The credibility problem of member suppliers is the first risk point of Alibaba's survival. When the company makes the threshold of reducing supplier's payment, it should have a greater risk of anticipation of credit risk. The board of directors should increase the risk prevention funds and personnel input budgets, improve the effectiveness of multi party certification implementation, and increase the third party's sampling and certification, and reduce the conditions of artificial intervention. Unfortunately, two years after the incident, Alibaba began to self examine and correct itself under the pressure of outside world.

After defending the values, Ma made the biggest mistake: ignoring the importance of the system. In the state of internal control mechanism and per capita failure, it is reasonable for the Alibaba to expose its integrity risks.

Rebuilding internal control system

Because Ma's world-class public relations show avoided an unforeseen result of the industrial earthquake. But what is the most effective way to reflect on the internal control system of Alibaba?

First, led by the board of directors of the company, the three level internal control system from the board of directors, the management level and the departments should be constructed, and the three level internal management system of sales system covering sales branches, sales teams and sales representatives should be established. The Board regularly and periodically listens to the internal control report on the company's strategic risk points, finds problems and solves problems in time.

Two, we should explore new business models and profit models, avoid training suppliers' participation through training and sea style sales tactics, and focus on providing higher value services to suppliers, so that suppliers can voluntarily pay for them. Otherwise, even today, if we control risks, the risk of enterprise's own profit mode can not be reversed and controlled.

Three, strengthen the advantage of on-site supervision of sales personnel, strictly check the supplier certification process, strengthen the construction of after-sale service system according to the principle of compatible duty separation control, enhance the on-site monitoring capability while enhancing the service level, entrust the internal supervision department and the independent third party to carry out procedures certification and large scale sampling inspection, seriously deal with disciplinary actions and stop the wind of fraud.

Four, reform the company's remuneration and incentive policies. For ordinary employees to develop development channels, strengthen the use of medium and long-term incentive policies, enhance the sense of belonging of sales team employees, spanform the assessment of important sales personnel at the top level into annual assessment, and increase the incentive to disclose fraud behavior, from the current short-term incentive to the combination of short-term incentives and long-term incentives.

Just as Jack Ma The world is not for what you can do, but for what you should do. If you try to build a healthy internal control system and reverse the internal control crisis after fraud, believe that Alibaba will leave the public and business schools a classic case of profit mode and business model upgrading.