Number of words: 1,994 eBay’s biggest mistake was in getting the culture wrong. A “leave it to the experts” attitude demoralized the original EachNet team in Shanghai, as eBay executives were parachuted in from headquarters in San Jose or other parts of the eBay empire. No matter how skilled the new arrivals, most spoke no … Read more

Number of words: 161 Although it sickened thousands and killed almost eight hundred people, the outbreak had a curiously beneficial impact on the Chinese Internet sector, including Alibaba. SARS validated digital mobile telephony and the Internet, and so came to represent the turning point when the Internet emerged as a truly mass medium in China. … Read more

Number of words: 383 Yet Jack’s first effort to tap into Zhejiang’s entrepreneurial fizz was not a success. In 1994, his Hope Translation venture had gotten off to a troubled start. While his monthly office rent was almost $300, his first month’s income was just over $20. Hope may spring eternal, but cash is king. … Read more

Number of words: 113 In the earliest days of China’s economic reforms, entrepreneurship was viewed as a highly risky,even illegal undertaking. Memories then were fresh of those imprisoned or even executed during the Cultural Revolution for carrying out commercial activities. From 1978, the establishment of a “household contract responsibility system” allowed farmers to sell surplus … Read more

Number of words: 106 Jack’s mother, Cui Wencai, worked on a factory production line. His father, Ma Laifa, worked as a photographer at the Hangzhou Photography Agency. But both share a passion for pingtan, a form of Chinese folk art performance that involves the singing of ballads and comedic routines punctuated by the sound of … Read more

Number of words: 102 Most companies bear the imprint of their founders, but few more than Alibaba. Jack Ma’s outsize influence stems from his passion for teaching. Although he left the profession two decades ago, Jack has never really stopped being an educator. He used to joke that in his case CEO stood for “Chief … Read more

Number of words: 91 As a form of escrow, Alipay diffuses trust throughout Alibaba’s e-commerce empire. Consumers know that when they pay with Alipay their accounts will be debited only when they have received and are satisfied with the products they have ordered. Only then, after freezing the amount on the account, will Alipay release … Read more

Number of words: 160 Alibaba’s websites are popular in part because, as in the United States, shopping online from home can save time and money. More than 10 percent of retail purchases in China are made online, higher than the 7 percent in the States. Jack has likened e-commerce to a “dessert” in the United … Read more

Number of words: 222 One of the biggest mistakes I have made during my career was coining the term profit centre, around 1945. The truth is that inside the business, there are only cost centres. The only profit centre is a customer whose check hasn’t bounced. We know literally nothing about the outside, and yet, … Read more

Number of words: 45 I have often advised managers that a 20 – 1 salary ratio is the limit beyond which they cannot go if they don’t want resentment and falling morale to hit their companies. Excerpted from Page 103 of ‘Managing in the Next Society’ by Peter Drucker