Dear Members of the Board,
I am writing on behalf of Faiba Inc., an Audit and Analysis firm, based in California, in the U.S. The focus of this communique is to inform you of our position regarding the operational performance of your organization and the steps that can be made to improve its viability in the business environment. These days, many organizations engage in business activities to mitigate a given problem affecting the lifestyles of individuals in the business environment. Currently, your organization is Alibaba’s closest competitor in terms of revenue generation and alleviation of issues affecting consumers in the business environment. On March 2018, your corporation had over 301 million users who accessed and purchased various products from the platform. Over the years, the company has undergone a significant transformation that continues to improve the overall experience of individuals in their immediate environment. Your business strategy has seen the incorporation on numerous innovations such as Artificial Intelligence (AI) and drones to deliver different products to consumers within a monitored and limited location, a move that is likely to disrupt the way of doing business in the modern world.
Jing Dong’s Corporate Social Responsibility
Jing Dong’s decision to partner with various organizations such as Google, Walmart, and the UN was inspired by the need to overcome problems affecting individuals in the contemporary business environment. In this regard, the move enabled the corporation to diversify its operations to accommodate the different needs held by individuals (Junwei, 2019). Importantly, there is a need to understand the issues revolving around the partnerships and their impact on the outcomes of events in the market. For instance, JD.com’s partnership with Tencent was a symbiotic relationship that allowed the two companies to benefit from the significant consumer base held by each corporation.
An Analysis of JD.com’s Current CSR Strategy
In 2004, the SARS disaster struck China and affected the brick and mortar traditional forms of business, compelling the corporation to engage in a series of events, which aimed at developing a viable solution that could be used to overcome challenges in the market (Zhang, 2018). From this observation, it is evident that eCommerce realized its breakthrough from the need to transact without physical encounters. However, after the SARS problem was resolved, JD.com had to make a decision that would define its performance in the business environment. The introduction of the online business wing exposed the corporation to numerous opportunities that enabled the corporation to accomplish its objectives in the business environment. Three years down the line, the introduction of a logistics corporation equipped the organization with a competitive advantage over other industry players because of its ability to reduce the cost of operation by exposing the company to numerous opportunities in the market.
Between 2007 and 2015, the corporation underwent through significant transformations that exposed it to significant milestones regarding the outcomes of events in their business environment. Closing the offline retail stores in 2005 appears to be the riskiest decision that JD.com’s top leadership has ever made because of its ability to contribute more than 90% of the company’s revenue. Building the logistics system in 2007 based in Beijing enabled the organization to address the changing needs of consumers in the business environment. On delivery, consumers were given the option to pay through the POS machine, creating an enabling environment that demonstrated the company’s understanding of the individual needs. From this realization, it is imperative to note that JD’s move paved way for the emergence of eCommerce in China and beyond. It is this decision that captured the attention of other organizations around the world, willing to partner with JD in its operations (Long, 2019). It is imperative for the organization to understand the changing needs of individuals and develop viable solutions that can be used to overcome the issues in the modern world.
In 2014, JD was compelled to resuscitate its offline stores to capitalize on the profit margins that would be achieved by focusing on the conservative population groups in China and beyond. Firstly, the company established a County Service Center and JD Help Service Shop in the grassroots. Growing its presence in the outskirts enabled the corporation to dominate the market and counter competition from other established eCommerce agencies such as Alibaba. In many rural areas, it is impossible for individuals to utilize fully the concept of eCommerce because of various restrictions such as road network and way of life. However, the store enables individuals to access various products and services on demand while exposing them to concepts that they can use to embrace eCommerce. In these stores, the company hires local sales representatives who are conversant with the rural areas, a move that promotes employment and wealth creation in the region. In so doing, it is possible for the public to understand the various approaches used by the corporation to accomplish its objectives in the competitive business environment.
JD’s decision to introduce consumers to JD select enabled them to experience products and services before purchasing them, a move that was received positively by individuals in China and beyond. Unlike the County Service Center, JD select serves as a showroom where prospective clients can interact with different products. If they are satisfied, they can scan the QR code of their preferred item before placing an order online. JD.com ensures that upon the placement of an order, the products are delivered within a day to promote its culture in the business environment. Importantly, engaging in such thoughtful activities promotes the ability of individuals to overcome challenges that take place in the modern environment. When this takes place, it is possible for individuals to associate with organizations that fulfill their expectations in the business environment. In 2015, JD.com purchased 10% shares of Yonghui Superstores, a corporation that focuses on the production of fresh food among other processed products. From this partnership, JD.com benefited immensely because of the impact of diversification that allowed many individuals to place orders from Yonghui using the JD.com eCommerce platform. Thus, there is a need to observe the impact of measures introduced by the organization to overcome various issues that affect the lifestyles of individuals in their immediate environment.
The introduction of SDGs in the modern world enables corporations to identify approaches that can be used to overcome problems associated with people’s lifestyles. In many occasions, organizations develop specific objectives that can grow their influence in the business environment. However, the introduction of SDGs has compelled corporations to play a critical role in helping consumers while still generating profit through their innovations (EY Global, 2017). Engaging in strategic partnerships enables companies to understand the issues affecting individuals in the community before developing viable solutions that are meant to improve their focus towards life. Evidently, JD’s decision to purchase 10% shares of Yonghui culminated to increased revenue that was generated from its association with the fresh produce corporation. In this regard, corporations should focus on creating quality products and services that can be used by people to accomplish their objectives in the modern world. Aligning its objectives with the UN SDGs enabled JD.com to create an enabling environment that would be explored by individuals in their immediate environment. Hence, the decision by JD.com to partner with the UN enables the two corporations to create a framework that focuses on creating a better tomorrow for the people.
I believe Jing Dong should align its objectives with the expectations of the public to avoid instances that interfere with their ability to improve the lifestyles of individuals in their immediate environment. Currently, Jing Dong has introduced various innovations that address several SDG goals that include SDG-1, SDG-12, SDG-13, and SDG-8. From this observation, it is evident that the company is committed to develop viable solutions that can be used by the populace to enhance their lifestyles. Recently, Jing Dong was awarded with the prestigious seal award for its commitment to develop products that are sustainable and friendly to the environment. In this regard, the corporation has demonstrated its impact on the outcomes of events by developing innovative concepts to protect the environment and the livelihoods of individuals in their surroundings (JD.com, 2018). Mainly, the corporation should engage in activities that improve the lifestyles of their prospective consumers because of the need to understand issues that take place in the modern world. While maintaining the competitive advantage it currently enjoys, the organization should develop viable solutions that can be applied in the Chinese market. Given its size and reputation over the years, JD.com should be the pioneer of change and other desired aspects in the country and beyond. From this realization, it is evident that there is a need for modern organizations to analyze the problems affecting the lifestyles of individuals and develop an effective solution that can be used to overcome the problems.
JD’s capabilities as an eCommerce corporation are beyond imagination because of their impact on the lifestyles of individuals in China and beyond. Through its innovation, the corporation has embarked on the provision of quality products and services that meet the customer’s expectations. For example, launching the JD Select center enabled individuals to experience the different products and services on offer before purchasing them online (DX2 Capital, 2017). While this feature is only available in the offline stores, it is imperative to note that JD.com utilized its influence in the market to understand the issues affecting individuals in their immediate environment. Using this concept, JD.com should invest heavily in Research and Development (R&D) to understand the changing needs of individuals in their immediate environment. Aligning its objectives with the UN SDGs was an excellent decision that will enable the corporation to anticipate problems that will affect its operations in the near future. Disruptions in the business environment expose organizations to difficult situations that compel them to compromise on their reputation in the market. Hence, there is a need to understand the various aspects that have been put in place by the management to cushion the organization from future crisis.
The vision 2030that is currently being pursued by the UN aims at creating an enabling environment for individuals to overcome issues that affect their lifestyles. Mainly, the concept enables individuals to understand the issues that affect different population groups and how they can be handled to prevent situations from spreading. By 2030, the UN anticipates creating an enabling environment for individuals to accomplish their objectives regardless of their social status (Junwei, 2019). The humanitarian organization hopes that people will be bold to pursue its objectives and engage in activities that will improve their lifestyle. By partnering with organizations such as JD.com, the UN aims at compelling private organizations to engage in certain activities that aim at improving their livelihoods and perspectives towards life. When the populace realizes that JD.com is not only committed to availing quality products but also changing their lives, the corporation will benefit from this strategy by equipping it with a competitive edge over other industry players in the market.
Partnering with organizations might expose JD.com to a wide range of problems caused by its association with other corporations. For instance, if Yonghui fails to observe the relevant measures that should be embraced in the food industry, JD.com will also encounter problems because of its investment in the business venture. From this realization, JD.com should identify a certain approach that protects it from mistakes made by its partners in the business environment. Given the nature of individuals, it is important to observe the issues that take place when consumers are dissatisfied with the input of certain corporations. Thus, JD.com should put in place measures that allow the corporation to overcome issues that may take place in the market.
It should be noted that aligning the company objectives with the UN SDGs may create a difficult situation that may affect the outcomes of events in the contemporary environment. In this case, there is a need to realize the issues that affect the outcomes of events in the business environment because of the approaches used by organizations to overcome different situations. Mainly, JD.com may spend more on the implementation of the SDGs because of the unanticipated problems that may occur when handling people’s needs and expectations.
One of the most prolific aspects of Jing Dong’s business strategy is its ability to engage in activities that improve the lifestyles of individuals in the modern world. Over the years, the focus of business organizations has shifted from the marketing strategies to the needs of consumers because of their dynamic nature that affects the individual reaction. In many occasions, consumers may be interested in a company’s list of products because of their ability to meet his or her expectations. However, when corporations invest heavily to accomplish the SDGs, it is possible to state that the corporation may fulfill its business objectives through the creation of wealth.