The Reason He Can Say That Is Because After All

By Brooke Bigley

Profit margin, which can be roughly understood as the difference between total value minus total cost, or between effort contribution and reward, always fluctuates greatly between individuals. Activities with high profit margins, although only a minority of the company's total activities, give the unit a very large portion of the total profit ea

• Language: English
• Publisher: Brooke Bigley
• Release date: May 5, 2024
• ISBN: 9798869360472

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The Reason He Can Say That Is Because After All

The Reason He Can Say That Is Because After All

Copyright © 2024 by Brooke Bigley

All rights reserved

TABLE OF CONTENTS

CHAPTER 1 : THE BIG VISION OF THE TIME

CHAPTER 2 : DON'T TRY TO START A REVOLUTION

CHAPTER 3 : THE OPPONENT IS OFTEN FASCINATED

CHAPTER 4 : DEVELOP MANAGERS EFFECTIVELY

CHAPTER 5 : THE INTERNAL COMPLEXITY CONTAINS LARGE HIDDEN COSTS.

CHAPTER 1 : THE BIG VISION OF THE TIME

The legacy of the bubble and the strategy appeared weak

In 2008, after the world economic crisis occurred, Ma Van could proudly declare that he had already smelled the smell of the crisis. At that time, during a conversation between us, he said that he was now an experienced captain, able to base on the direction of the wind blowing on the sea surface and judge the dangers that were approaching. sensitive way.

The reason he can say that is because after all, he has experienced a global economic crisis, and this is an economic crisis that directly affects Alibaba. He pulled his company through that dark period, and gradually became stronger. Like Nietzsche once said, everything that doesn't kill you will only make you stronger.

Of course, we have no way to assume that, if the internet bubble in Silicon Valley had not burst, what the situation would have been: Ma Van continued to apply the dizzying scale-up method to develop Alibaba, when CFO Thai Sung Tin points out that the remaining capital can only be maintained for another half a year, Alibaba will again try to attract new capital in the market to support its expansion. . The end result may be positive, Ma Van will soon achieve its goal of becoming the largest e-commerce company in the world, or it may fail, Alibaba will ultimately find it difficult to achieve this status. balance between expansion rate and capital, and the tragic end will come.

In less than 2 years, the company has had to go through such a crisis, and the valuable lessons it brings are also very clear. It can make company drivers feel more appreciative of the market, and begin to pay attention to economic fluctuation cycles; It also helps business leaders grasp the pace of the company's development; and of course, it also urges them to start thinking about the profit problem.

Having overcome this crisis, it can be said that Ma Van has proven all his abilities to the media.

In early 2000, thanks to $25 million after attracting capital twice, Ma Van thought he could begin to realize his ambition. He decided to proactively strike out: setting the goal of becoming the largest e-commerce company in the world, along with establishing a research center in Silicon Valley, joint venture companies in many places, and moving its headquarters to Hong Kong, these steps have demonstrated Ma Van's ambition to become a global company. His ambitions and initiatives naturally also attracted the attention of the media.

In July of the same year, Ma Van appeared on the cover of the global edition of Forbes magazine. This is also the first time a mainland Chinese businessman has had his photo published in this world-famous business magazine. Forbes' choice shocked the Chinese media. At that time, China's corporate media still looked to international media publications such as Fortune, Forbes, The Wall Street Journal, and the Financial Times as their role models. These leading international publications have an unusually high reputation among mainland media. Most media people like me look at these international media publications with admiration.

In October of that year, we also saw Ma Van selected by the World Economic Forum as one of the 100 future global leaders.

Of course, not everyone in the media applauded. When the prosperous development of the internet in Silicon Valley was criticized as a bubble that could burst at any time, Ma Van also received criticism. In interviews with CNBC and CNN, the host repeatedly asked what Alibaba would rely on to earn profits.

This is the legacy of the bubble. During the bubble, Alibaba's ambition and crazy expansion helped Ma Van expand his international influence. And reports from reputable media units around the world, including the honor of being recognized by the World Economic Forum as a future economic leader, will on the one hand help Ma Van's image. continues to gain points in the eyes of the Western world, on the other hand, it also exerts an influence on the domestic media. The fact that Ma Van became the first mainland Chinese businessman in the past 50 years to be featured on the cover of Forbes magazine has caused the domestic media to waste a lot of ink and paper. (Of course, that year, Ma Van also successfully organized the Tay Ho discussion event, establishing his position in China's internet industry).

The economic crisis even helped Ma Van's image gain points in the eyes of the media. Because Ma Van later intelligently mentioned his process of overcoming the crisis in the mass media. And so, Alibaba's downsizing and layoffs will not be seen as a company on the way to decline. On the contrary, public opinion will praise Ma Van's leadership ability for the whole team, for making decisive decisions when faced with a crisis, admitting his mistakes, and narrow the front line to survive. This is the tactic of appearing weak.

MILLIONAIRE - 09

September 2000: Tay Ho discussion, building corporate culture

What is arrogant laughter? 'Laugh' means to laugh, and to laugh, you must have vision and ambition to laugh; As for 'arrogance', you have to be arrogant to be arrogant, and the internet is the gangster. The Internet is extremely depressed. In recent years, I have heard a lot of people criticize that Alibaba doesn't make any money, and can't do anything, but still tries to build a thick skin to show off. . In 1995 when I started working on the internet, people thought I was a scammer; In 1997, when I launched China Yellow Pages, people thought I was crazy; Now they think I'm crazy. So, don't pay attention to what others say, if you think you're right, keep doing it. Injustice and misunderstanding are very normal things on the internet. And I feel like my skin really gets thicker the more I practice it.

CREATE A POSITION

West Lake Luan Sword is a marketing activity to promote the image of Alibaba Group. During the initial stages when Alibaba was first established, not many people knew about Alibaba. Ma Van once recalled: In 1999, 2000 and 2001, very few people had heard of the name Alibaba in the Chinese market. Our main activities were held in Europe and the US, I conducted a lot of Lectured many times in Europe and America. I still remember the most disastrous lecture in 2000 in Germany, with more than 1,500 seats but only 3 people showed up. I also felt very embarrassed, but I had no other choice but to explain it to myself alone. Surname. Therefore, to enhance Alibaba's influence, Ma Van decided to conduct an activity to expand the appeal of the Alibaba brand in the market.

For a person who has loved martial arts novels since childhood, especially Kim Dung's martial arts novels like Ma Van, in the marketplace he always carries Kim Dung's martial arts breath, even in battle. strategy, tactics or management. In 1999, when leaving Beijing to Hangzhou to found Alibaba, Ma Van was inspired by the character Xu Truc who solved the Pearl Lung Chess in the work Thien Long Bat Bo - when he fell into a dead end. , had to use all his strength to escape. He even referred to the company's value system as The Lonely Nine Sword and The Six Veins Divine Sword respectively. The nine swords of solitude refers to: Promoting the strength of the collective, learning together and passing on experiences to each other, quality, simplicity, openness, creativity, concentration, service and respect. And Six veins divine sword means: Customers are gods, collective cooperation, dreaming of innovation, prestige, enthusiasm and dedication.

Therefore, Ma Van suddenly realized and thought of the need to call the leaders of the internet sector to Hangzhou, simulate the Huashan sword discussion in the martial arts novel, and organize a West Lake competition. Luan Kiem, which means inviting all famous figures of the IT world to come to Tay Tu Lake and discuss the overall development situation together. But at that time, Alibaba was just a small company that was not famous enough. In order to strengthen its appeal, Ma Van invited Kim Dung to chair this Tay Ho debate. Kim Dung is an extremely famous martial arts author, his summoning power of course cannot be underestimated. As a fan of Kim Dung, Ma Van has loved his martial arts novels since he was young. Alibaba's offices are all named after martial arts places in martial arts novels: Quang Minh Peak , Dat Ma Vien, Dao Hoa Island, Arhat Palace, Tu Hien Trang, Ban Son Dinh, Hiep Khach Island... Even the bathroom is called Thinh Vu Hien. The meeting room called Quang Minh peak of Ma Van has Kim Dung's words hanging on it: Diving deep to catch fish, it's better to return to make a net.

On July 29, 2000, Ma Van finally met his childhood idol. At the time of parting, Kim Dung personally wrote to Ma Van the words: God's relationship lasts forever, every view is like a friend (20). A few weeks later, Ma Van called Porter, who was in charge of Alibaba's PR, to talk about his plan to organize a wandering discussion. After that, Kim Dung happily accepted the invitation to participate.

In September 2000, the first Sword of the West Lake was held in Hangzhou, with the Hot guise card Kim Dung, The Sword of the West Lake planned by Ma Van immediately caused a stir. loud noise. Ma Van called to invite Vuong Juntao, Chairman of the Board of Directors of Beijing Chau Phong Times Technology Company Limited (My8848), Vuong Juntao agreed to participate; CEO of Netease - Dinh Loi is also a fan of Kim Dung. After hearing the news, he immediately agreed to attend the conference; Even someone who doesn't know much about Kim Dung's reputation like Truong Trieu Duong also found a reason to attend the conference: Let's go, we definitely have to go. Maybe we can take this opportunity to learn more about Kim Dung. Vo Lam Truyen Ky game."

On September 10, Kim Dung (then 74 years old) went to Tay Tu Lake (21), and in attendance were Vuong Chi Dong of Sina, Truong Trieu Duong of Sohu, Dinh Loi of Netease, Vuong Tuan Dao of the company. ty My8848, Canadian ambassador to China, British consul general and delegates of more than 50 multinational companies in China.That day was not only the first anniversary of Alibaba's founding, but also a special day for the Chinese internet industry, thousands of netizens from all over the country gathered at Shangri-La restaurant, the The most excited people were more than a hundred media journalists from home and abroad, some from the most distant place, Wall Street in the US. The eyes of netizens and media lenses simultaneously converged on this congress. In the history of the internet industry, perhaps this is the first time.

Ma Van's statements in this period of Tay Ho Essay are also extremely unique: "I always admire the spirit emanating from Kim Dung's works. I have bought 4-5 sets of Kim Dung's books, and also bought pirated copies. Last time when dining in Hong Kong, I asked for Kim Dung's autograph. When I took the book out and looked closely, I discovered that it was pirated books, feel very embarrassed. Because I actually read quite a lot, and every time I finish reading it, I forget it, forget it, then watch it again. Recently, when I vacationed in the Maldives for the first time, I slept there for 3 days. When I woke up, I read The Smiling Wanderer again. I seriously read this work for 3 days straight.

What is arrogant laughter? Laugh means to laugh, and to laugh, you must have vision and ambition to laugh; As for arrogance, you have to be arrogant to be arrogant, and the internet is the gangster. The Internet is extremely depressed. In recent years, I have heard a lot of people criticize that Alibaba doesn't make any money, and can't do anything, but still tries to build a thick skin to show off. . In 1995 when I started working on the internet, people thought I was a scammer; In 1997, when I launched China Yellow Pages, people thought I was crazy; Now they think I'm crazy. So, don't pay attention to what others say, if you think you're right, keep doing it. Injustice and misunderstanding are very normal things on the internet. And I feel like my skin really gets thicker the more I practice it.

How is iron and steel tempered? We are on the internet, different investors all have their own views, there are also employees who have their views towards us, and there are also commentators. Especially internet commentators, the number of internet commentators in China exceeds that of any other country in the world, and their positive attitude is also higher than anywhere else. We see many different comments from netizens, there are more and more commentators, they say this model is good, that model is bad, hundreds of people have thousands of opinions. The current changes in the internet are extremely fast. Half a year ago B2B was just emerging, but just 3 months later suddenly said B2B was no longer good; After completing B2B, while still not delving into B2B research, I switched to infrastructure; People flocked to work as ASP(22); Nowadays, if ASP is not thoroughly researched, it is outdated. This is proof that the internet is constantly changing, if in the process of changing, you pay too much attention to other people's comments, then it is very likely that you will not be able to accomplish anything."

The successful organization of the first West Lake Sword conference not only helped Ma Yun establish his influence in the Chinese media, but also brought a huge effect to the opening process. Alibaba's brand extension. Since the first congress of West Lake Luan Sword, this conference has gradually become an influential community event in the internet industry. The second West Lake Commentary conference opened the following year, Ma Van had a new harvest: Hangzhou city government officially named this forum in the list of trade fairs of the year. West Lake.

The fifth West Lake Luan Sword congress was held in 2005, right at the time the internet industry was embracing its second cycle of rapid development, as Sina General Director Mr. Uong Dien once said. said: The internet industry is welcoming a second spring, a truly radiant spring. After the grand and comprehensive lecture of US President Bill Clinton, Tay Ho Luan Kiem created a period of Xuan Kiem with real and substantial meaning. Peking University scholar Truong Duy Nghenh chaired the dialogue round table and invited guests CEO Wang Yan, CEO Truong Trieu Duong, CEO of Tengxun - Ma Hoa Dang and CEO of Netease - Dinh Loi to the podium. expression to discuss, seek and preach. And Alibaba's CEO, Ma Van, sat down below, sitting on the mountain and fighting tigers. At this time, Tai Ho Luan Kien has truly become a banquet of wits among internet billionaires around the world, its discussion and reference content, whether in the field of internet, or development. of the internet industry worldwide, also has reference meaning for all insiders. Ma Van once said that West Lake Essay should be held irregularly 30 times, the specific format will be based on the development of the internet in that year or the year before.

In addition, in 2001, when Alibaba conducted a large-scale expansion overseas, there was a time when Ma Van valued international talents too much. At that time, Ma Van believed that to become one of the 10 largest websites in the world, one must employ the world's top talents. Ma Van once said frankly to the members of his startup team: You can do middle-level jobs well, but you will not be able to complete high-level management jobs. Therefore, Ma Van once issued a regulation: Any employee who wants to hold a position from management or higher, is required to have received an overseas education system like England and America from 3 to 5 years old. years, or have worked for 5-10 years. Ma Van recruited a large number of MBA talents from Harvard, Stanford and other top universities, creating an extremely bright team. In this elite team, except for Ly Ky who later took on the position of Senior Deputy General Director of Alibaba, the remaining people were all in line with Ma Van's policy of recruiting veteran soldiers from overseas.

But the actual work process of these high-level talents who enjoy outstanding remuneration does not make Ma Van satisfied. There was once a Deputy General Director in charge of marketing who came to discuss the project with Ma Van. This Deputy General Director showed him the next year's marketing budget. After seeing Ma Van, he was startled and surprised. He asked the Deputy General Director: What? Does it take 12 million dollars? I only have $5 million. But the Deputy General Director still continued to discuss strategies and plans to convince Ma Van without considering other current issues.

Some time later, Ma Van realized the problems of this group of overseas elites, saying: I hope those who hold an MBA in their other hand can adjust their level of expectations. of themselves, they consider themselves to be in the elite class, but so many elites in one place cannot accomplish anything. When I sat with them, I discovered they could spend a whole year discussing who would be CEO, without knowing who would go to work. So, Ma Van took turns seeing off the talented MBA recruits at the beginning, leaving only less than 5% to continue working at Alibaba. The reason for firing these elite employees, as explained by Ma Van, is: The job management level of those managers is really very high, like the navigation system of an airplane, but Is a navigation system with such high features suitable for a tractor? The words of these masters are all moral. When they say it, it's all right, but when they do it, it's all wrong! For the sake of the company's development, I cannot tolerate these people.

The sudden departure of this international elite team makes Ma Van unable to help but reconsider his own internationalization talent policy. Ma Van discovered that, in the process of starting a career, relying only on the elite team from abroad is not enough, but it is also necessary to train local talents. Ma Van said: I am a normal person. If I can manage an internationalized company like this, then why can't they? When they started their business with me, they were only 20 years old. I invited so many high-ranking foreign managers. They just died in battle! Finally looking back, only these indigenous brothers were still holding large swords and rushing forward. Each of them has gone through a lot of hardships, but thanks to that, they have grown up. My greatest joy is watching others grow.

After experiencing a period of torment, Ma Van began to focus on focusing his efforts on cultivating internal talents, and began to focus on the self-growth process of the company's talented team, right away. Even the promotion of senior management staff relies heavily on internal training. Ma Van said: Others call Alibaba a Huangpu military school, it is true that we are doing this, but not trying to achieve it at all costs. As a result, we have nurtured and produced a large number of excellent talents for the internet industry and China's new economy. Ten years from now, my assessment criteria will be: How many of the CEOs of Chinese businesses in the top 500 largest businesses in the world come from Alibaba. After training these people, their influence on China's economy will be much greater. At that time, it is possible that a situation will form where talented people can absorb the globalization strategies of the US, have a serious management style of Japan, and be able to integrate the extreme characteristics of China. Quoc, then the voice of the Chinese army in the world will no longer be so small!

Along with the development of