http://www.economist.com/news/business-and-finance/21619213-chinas-big-e-commerce-site-dominates-its-american-peers-how-alibaba-measures-up

Alibaba went on public on September 19th GMT. Its market capitalisation for starting trade on New York’s Stock Exchange is $168 billion, which has the largest IPO in the Unite States. (IPO, is the abbreviation of Initial Public Offering, which means the first sale of stock by a private company to the public.) It is bigger than Ebay, Amazon and Paypal put together. Apart from that, according to Jay Ritter, a finance professor at the University of Florida, who suggests that at average, the bigger the company is, the better in its long-run stock performance. Alibaba seems already succeeded in the beginning.

I think Alibaba has the true potential for long-run growth. First reason is that Alibaba occupies 80% online retail market in China, a country with enormous population, therefore the number of potential customers is huge.  Secondly, the ways of online shopping is very convenient and cost-saving. Since the suppliers do not need to pay for the fixed cost like rent, they can charge the products’ price a little lower with same profit. One PoD of Alibaba compare to other online commerce is Alibaba’s delivery service is better with less time.

Alibaba is a hot topic now and I do believe it can has a long-run performance.

In a business, ethic issues always interact with profit-maxmising behaviour. As my opinion, I think they are equally important and the stakeholders should pay attention to sustainable development instead of immediately boom for further business growth. However some companies take business ethics as obstacles of company running and expansion. They ignore business ethics like environmental issues and consumer respects to eliminate higher costs in order to earn more profit. This behaviour is not acceptable in business running.

One example of ethic-ignoring business is San Lu Group Co, Ltd which was a state-owned Chinese dairy products company. It was the most popular brand for infant milk power but bankrupted on December 2008 because it involved in an adulterated milk powder scandal, affecting nearly 300,000 Chinese infants and killing 6. Their product was include melamine, which would cause kidney stones and other problems.

This milk incident shocked every person. What this company do was totally immoral. Enterprise has responsibility to its costumers for their safety and health, especially for this company that their products were targeting to infants. With adding melamine, San Lu company could definitely make more profit since this chemical substance could increase protein in milk power with less cost. However this action is totally unforgivable and unethical, which make this company bankrupt at the end and their boss were sent into prison.