Alibaba Group Holding Ltd recently announced its plans to split the business into six independently run and governed units. This move has caused many people to question whether enterprise size matters in today’s digital age.
The answer is yes, it does matter. By splitting up its business, Alibaba will be able to focus on specific areas that need improvement or development rather than trying to manage a large conglomerate of businesses all at once. Each unit can have its team dedicated solely to finding new ways for growth and innovation within their respective sector of the company which could lead them down paths they may not have explored before as one big entity.
Additionally, by having smaller teams focused on individual tasks, there is less risk associated with any mistakes made since each group’s performance won’t affect the entire organization if something goes wrong with just one part of it. It also allows each unit more freedom when making decisions since they don’t need approval from higher-ups who might not understand what needs are unique for that particular area of the company’s operations better than those working directly in it do every day already anyway.
Overall, while enterprise size doesn’t necessarily determine success or failure in this digital era we live in today; how an organization chooses to structure itself certainly can play a major role when aiming towards achieving goals set forth by leadership teams within companies like Alibaba Group Holding Ltd who decided that breaking apart was ultimately necessary for future growth and success moving forward.
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