Professional Documents
Culture Documents
ASSIGNMENT
Course Title: Principles of Management
Group 1
Class: K24CLC-KTA
2
TABLE OF CONTENT
CONCLUSION 23
REFERENCES 24
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INTRODUCTION
A talented leader is someone who possesses in-depth knowledge, has a strong ability
to inspire deeply others, and has an effective strategic vision. Jack Ma, leader of the world's
largest e-commerce businesses, has set a good example for not only other leaders, managers,
and company heads to learn from, but also everyone around the world.
In this essay, our group has an extensive analysis of Jack Ma and Alibaba, a detailed
study of leadership art, compares the leadership styles of different leaders, and makes
assessments about Jack Ma's leadership style, thereby proposing solutions and drawing
lessons.
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I. Brief introduction to the topic
Alibaba flourished under Jack Ma's direction, becoming a major force in technology.
Alibaba's many platforms, encompassing Alibaba.com, Taobao, Tmall, and Alipay, have
evolved into essential components of the worldwide e-commerce network. The corporation
established itself as a major player in the global tech industry with one of the biggest initial
public offerings (IPOs) in history on the New York Stock Exchange in 2014.
2. Research objectives:
The research was conducted to understand Jack Ma's leadership style. Specific goals
identified include:
● Build a theoretical framework on leadership style.
● Analyze Jack Ma's leadership style based on his six essential qualities.
● Offer suggestions to help improve Jack Ma's leadership art at Alibaba.
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II. Theoretical Basis of Leadership Style
1. Basic concepts:
A leader may hold a formal position of authority, such as a manager or CEO, but
leadership can also be demonstrated at any level of an organization or within various social
contexts.
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It's important to note that while autocratic leadership can be effective in certain
situations, it can also lead to decreased motivation, limited creativity, and a lack of ownership
among team members. Therefore, it is generally recommended to balance autocratic decision-
making with opportunities for participation and collaboration to foster a more inclusive and
engaged work environment.
However, it's important to note that democratic leadership may not be appropriate in
all situations. In urgent or crisis situations, where quick and decisive action is required, a
more autocratic or directive leadership style may be more effective. Additionally, the success
of democratic leadership relies on effective communication, trust, and a culture that values
open dialogue and participation.
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An example of transformational leadership can be seen in the business world.
Consider a CEO who leads a company through a period of significant change or
transformation. The CEO communicates a compelling vision for the future, inspiring
employees to embrace new strategies and adapt to market shifts. They create a sense of
urgency and excitement around the company's goals, motivating employees to go above and
beyond in their work. The CEO also provides support and development opportunities,
encouraging employees to enhance their skills and pursue personal growth. By fostering a
culture of innovation and continuous improvement, the leader inspires employees to generate
new ideas and solutions, contributing to the overall success of the organization.
Transactional leadership is effective in situations where specific tasks and goals need
to be accomplished efficiently and where compliance and clarity are essential. It provides a
structured approach to leadership and can be useful in maintaining standards and ensuring
accountability. However, it may not be as effective in fostering creativity, innovation, and
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long-term employee engagement, as it primarily relies on external rewards and punishments
rather than intrinsic motivation.
Choosing the right leadership model is a critical decision for leaders, impacting their
effectiveness and organizational success. Factors such as organizational context, team
dynamics, personal leadership style and values, organizational culture, desired outcomes and
goals, and staying informed about research and best practices should be considered. The
chosen model should align with organizational goals and values, support collaboration and
productivity, and reflect the leader's authenticity. Additionally, it should be capable of driving
desired outcomes, whether incremental improvements or transformative change. By making
an informed choice, leaders can enhance their effectiveness, foster a positive work
environment, and achieve organizational goals.
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III. Jack Ma and Alibaba
Alibaba was founded by a group of 18 people, led by Jack Ma in April 1999. This
group of founders took Jack Ma's apartment in Hangzhou city, Zhejiang province, China as
the company's headquarters. Since its founding, Alibaba has oriented itself to operate as an
international company, not a domestic company.
In January 2000, SoftBank invested 20 million USD in Alibaba. That meeting only
lasted 10 minutes. SoftBank CEO “Son” said: Of all the businessmen he met in China in
2000, Jack Ma was the only one who did not convince Son to invest money or have a
complete business plan. However, he has a "fierce fighting spirit", passion and belief that the
Internet can change China. The next year, Alibaba created the mission, vision, and values that
still drive the company today. Alibaba’s mission is to make it easy to do business anywhere.
They do this by giving suppliers the tools necessary to reach a global audience for their
products, and by helping buyers find products and suppliers quickly and efficiently.
Regarding vision, Alibaba announced that they aspire to be a good company that will last for
102 years. They envision that their customers will meet, work, and live at Alibaba. Finally,
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the value that Alibaba aims for is “Customers first, employees second, and shareholders
third”; “Trust makes everything simple”; “Change is the only constant; today's best
performance is tomorrow's baseline”; “If not now, when? If not me, who?” and “Live
seriously, work happily”. For the first time, in 2002 Aibaba's cash flow was no longer
negative, and it achieved a profit of 500,000 yuan. It is a joy and encouragement to get
Alibaba to where it is today.
In March 2003, Alibaba employees had to work from home, in a quarantine area
when the SARS pandemic broke out in China. Even during this challenging time, Alibaba
was still able to launch Taobao. Taobao operates on a C2C model that supports customer-to-
customer retailing. As of February 2018, Taobao has over 580 million monthly users. With
more than 1 billion products listed, in 2016 Taobao was one of the 10 most visited e-
commerce websites. In 2017, the total merchandise volume on the platforms of Taobao and
Tmall exceeded 3 trillion yuan, more than the total amount of US retail and internet
businesses combined. Moving to the following year, Alipay was launched in December. This
is one of the two largest electronic payment platforms in China. It allows users to pay on both
e-commerce platforms and brick-and-mortar stores. system.Alipay was introduced to build
trust between buyers and sellers. From 2005 to 2007, Alibaba continued to expand C2C and
B2C shopping channels. C2C is a business model where consumers can transact online with
each other through a third party, such as a website that acts as an intermediary participating in
an online auction or dropshipping. Furthermore, B2C is a business model, transactions
between businesses and consumers. This is the process of selling products and services
directly between consumers who ultimately buy and use the business's services. Noticeably,
in 2005, American technology company Yahoo poured $1 billion into Alibaba, becoming the
company's largest shareholder with a 40% stake. As part of this deal, Alibaba takes control of
Yahoo's operations in China. In addition, in November of 2007, Alibaba launched its initial
public offering (IPO) in Hong Kong in 2007. This IPO brought Alibaba $13.1 billion.
In 2008, Alibaba launched the Taobao Mall platform and later changed its name to
Tmall. Tmall is positioned as an online platform including luxury fashion brands, electronics
brands from international brands that want to sell in China.
After that year, Alibaba entered a new field called cloud computing in September of
2009. Cloud computing is currently Alibaba's second largest revenue contributor and is the
company's fastest growing segment. This year was also the first year that 11/11 global
shopping day was held. Singles' Day (November 11) is the biggest shopping festival of the
year in China. This is the initiative of Alibaba CEO Daniel Zhang. In the next three years,
Alibaba's e-commerce market continued to grow with annual GMV surpassing one trillion
yuan. Just 5 years after the IPO, in June 2012, Alibaba.com delisted from the Hong Kong
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stock exchange, they have spent $2.45 billion to buy back 27% of shares held by private
investors. Later in September of that year, Alibaba bought back 40% of shares from Yahoo
for $7.6 billion. In 2014, Tmall Global launched allowing international brands to supply
products directly to consumers in China. Alibaba has officially launched its initial public
offering (IPO) on the US stock market in this year. After some controversy surrounding
Alipay, Ant Financial was founded in 2014 with the goal of not only providing a payment
platform but also financial services. The establishment of Ant Financial shows Alibaba's
ambitions in the field of financial technology.
Since its founding 20 years ago, Alibaba has mainly focused on the domestic
market, helping domestic and international brands sell in China. But in April 2016, this
company invested abroad with the acquisition of a controlling stake in Singapore's e-
commerce company Lazada - a platform covering several markets in Southeast Asia. This
deal marks Alibaba's first major step in overseas e-commerce.
On the 20th anniversary of its founding in the year 2019. Alibaba dominates the e-
commerce market, as well as payments, cloud computing, real estate, and entertainment. But
the first launching pad is still e-commerce. Looking at the development history, we can see
that the period from 2010 to now is the period of strongest development.
Besides, Alibaba has realized that the most effective way to shape the corporate culture is
from top to bottom. This means, the senior management should take the lead in the
implementation of organizational culture, and lead employees to implement and abide by the
company's organizational culture. Furthermore, the hierarchy at Alibaba is also very special.
Criticism of senior management is encouraged at this corporation, thus creating conditions to
promote transparency in leadership decisions. Besides, employees has the right to access
customers's information which is typically only accessible to senior leaders.
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The corporate culture at Alibaba nurtures an entrepreneurial ecosystem, encouraging
employees to think like entrepreneurs within the company. This corporation encourages
employees to freely seek new ideas, and when these ideas are recognized they are praised. This
has led to the creation of numerous subsidiaries, innovative business units, and ventures,
expanding Alibaba's business scope and diversifying its revenue streams. With constant
innovation and change, Alibaba has established itself as an e-commerce corporation with great
influence in the Chinese market - the most populous market in the world. In 2021, Alibaba has
stepped up investment in expanding its e-commerce platforms in areas such as discounted goods
and live streaming, in the context of competitors such as Pinduoduo and a number of popular short
video sharing platforms. changes are threatening the company's market leading position. Always
learning and keeping up with trends, making Alibaba not lag behind rival businesses.
Alibaba's organizational culture has contributed significantly to shaping its brand image as
an innovative, customer-centric, and forward-thinking company. This positive reputation has
bolstered its business development efforts, attracting partners, investors, and customers. With a
unique corporate culture derived from the culture of a family company, Alibaba has left a strong
mark on its name in Silicon Valley. Researchers believe that the corporate culture of this group is
a converging culture of East and West, which is also an important factor in creating the Alibaba
empire.
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that I am valued by the company, especially Ali Day. Alibaba makes me think that I am a
member of Alibaba's big family, and this idea not only makes me feel recognized, but also
my family members have this idea. Explaining this statement, this person shared that
employees are allowed to invite family members to visit Alibaba's headquarters. Joe Tsai,
Executive Vice Chairman of Alibaba Group, noted when attended the signing ceremony
between Alibaba and Pac-12 on September 10: “As you scale your business, you should be
spending more time on people,”.In addition, on Alibaba officially listed on the New York
Stock Exchange on September 22, Jack Ma said: "Customers come first, employees second,
and shareholders third." This perspective has helped this corporation spread its organizational
culture to its. employees, which is what characterizes this corporation. Besides, Alibaba is
among few companies that do not fire their employees because of some mistakes. Jack Ma
indicates that mistakes are parts of learning. Even though they don't tolerate careless
mistakes. Another unique thing about Alibaba's employee layoff mechanism is that they don't
lose their talented employees just because they put them in the wrong position. If an
employee does not do the assigned job well or feels that their current position is not suitable
for their abilities, Jack Ma is willing to transfer them to a more suitable position, exploiting
their abilities. Not all companies do this, they usually have fixed positions and will fire
employees if they don't do well. Therefore, one of Alibaba's core values that everyone always
remembers is "openness to change".
Alibaba's organizational culture is to consider credit for the entire team. Because the
meaning of organizational existence is to take the strengths of one person, compensate for the
weaknesses of the other, and synthesize them into a whole with higher working efficiency. As
a company with employees from many countries, Jack Ma believes that each person has a
different personality, and their way of thinking and working style are even more different.
Respecting differences in personality means respecting your own differences with the group,
finding common points and promoting your own strengths, being open in communication will
successfully connect within the organization. This will help employees recognize their own
strengths and have the opportunity to promote and contribute to the organization.
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Central to Jack Ma's leadership style is his demonstration of empathy, the ability to
understand and share the feelings of others. This is evident in his focus on employee well-
being and customer needs. By adopting a customer-centric perspective, Ma ensures that he
sees technology through the eyes of his customers, fostering a deep connection between the
company and its user base. This approach contributes to the establishment of a healthy work
atmosphere and solid internal relationships.
Jack Ma is often described as a visionary leader with a strong sense of mission. His
commitment to Alibaba's mission of making it easy to do business anywhere reflects a clear
sense of purpose. A mission-driven leader can inspire and align the team toward common
goals, fostering a sense of shared purpose. For example, Ma has said that his ultimate goal is
to create a company that "will make it easy to do business anywhere." He has also been a
vocal advocate for the use of technology to solve social problems.
Jack Ma's leadership style emphasizes unity, bringing people together for a common
cause. Whether engaging with employees, customers, or partners, Ma underscores the
importance of collaboration and working together. A unifying leader like Ma plays a pivotal
role in creating a cohesive and harmonious organizational culture, fostering an environment
where diverse talents collaborate seamlessly.
Jack Ma is a relentless and determined leader. He has never given up on his dreams,
even in the face of adversity. This tenacity has been essential to his success, especially in the
fast-paced and competitive world of technology and e-commerce. For example, Ma has been
rejected from numerous jobs and entrepreneurial ventures before finally succeeding with
Alibaba. He has also faced numerous challenges, such as the SARS outbreak and the global
financial crisis, but he has always emerged stronger.
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1.1. Transformational Leadership:
Jack Ma is widely recognized as an exemplar of transformational leadership, a style
centered on not only inspiring and motivating followers but also propelling them to surpass
self-imposed limits and achieve their fullest potential. His visionary prowess and knack for
instilling a shared vision set him apart as a quintessential transformational leader. Ma's
impact extends beyond Alibaba's success; his visionary direction has revolutionized business
operations in China, becoming a beacon that has inspired millions globally to actively pursue
and realize their dreams.
1.2.Servant Leadership:
Servant leadership emphasizes the leader's focus on serving the needs of their
followers, even puts the needs of others above their own. Jack Ma's emphasis on customer
satisfaction, employee empowerment, and creating value for stakeholders aligns with aspects
of servant leadership. In addition, he is a humble leader who does not seek attention or
recognition for himself. Moreover, he is always focused on the needs of his customers and is
constantly looking for ways to improve their experience which has been shown in his
qualities . Therefore, it could be said that Ma is a strong advocate for servant leadership, and
he has embedded this philosophy into the culture of Alibaba.
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Concerning Ma’s leadership style disadvantage, with a people-oriented leadership
style, which is a soft gentle style, Jack Ma is quite close and connected to employees, so he is
easily emotional and friendly, sometimes causing challenges when it is necessary to be strict
in working with members of the company.
In short, Jack Ma's leadership style had a positive influence rather than a negative one
on Alibaba and with the enterprise's outstanding success, there is no doubt that his leadership
style has become a role model for many businessmen and managers all over the world.
Given the ingenious leadership of billionaire Jeff Bezos, Amazon has become the
world's largest shopping e-commerce site with net revenue reaching nearly 514 billion USD
worldwide by 2022. On account of its well-known and influential position and brand, this “e-
commerce giant” has become one of the most valuable companies in the world with a market
cap (net worth) of $1.48 trillion.
3.1. Similarities
First of all, Jack Ma and Jeff Bezos employed transformational leadership.
Indeed, they have brought a new era to the e-commerce industry. They accepted the risks,
evaluated the challenges and had constant desires to innovate. After leaving a successful
career at the D.E. Shaw Company, Jeff Bezos took risks to found Amazon, an online
bookstore and expand to various other items, especially "Amazon Go” - the world's first
supermarket model without sellers, marking the major turning point in the convenience store
revolution. Likewise, the pair of aircraft Boeing 747-400 sold on Taobao, an Alibaba-owned
auction site for $48 million, the highest-value sale ever for an e-commerce platform, bringing
this e-commerce site to a "new level".
Second, servant leadership is applied by both leaders to manage their businesses.
The spectacular growth of Amazon and Alibaba is thanks to delegating autonomy for
workforces at work. This means that employees will handle the entire tasks they undertake to
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promote their potential and discover hidden strengths. Additionally, during the working
process, these two businessmen are prepared to help, support, and mentor them to complete
their work most effectively and productively.
Third, as an executive of a world-leading company in e-commerce, putting
themself in customers' shoes is undoubtedly a key leadership skill of Jack Ma and Jeff Bezos.
An interesting fact is that Bezos always places an empty chair in every meeting to symbolize
the customer, reminding employees to always understand customers to solve all their needs
and problems. Therefore, Amazon always has tools to closely monitor merchandise,
preventing situations where there are defective goods, out of stock, slow delivery and so on.
Similarly, with the viewpoint “Customers are the most important, followed by employees and
shareholders”, Jack Ma consistently focuses on researching customer data to develop the best
goods and services to meet their requirements.
Moreover, the two billionaires have in common in encouraging the spirit at work
of employees. Particularly, outstanding high-level Alibaba workers get company shares in
addition to their salaries because Jack Ma wants to share "his wealth" with devoted staff
rather than keeping the majority of the shares for himself. From this, employees feel
appreciated and recognized, boosting their motivation to be more productive to achieve
common goal. Also, Jeff Bezos promotes employees' innovative ideas through the “2-pizza
rule”, which means dividing into small groups so that two pizzas are enough to feed them.
Smaller teams allow employees to be free to experiment, create their own ideas, give lots of
feedback, focus on different tasks and problems, collaborate more effectively and implement
ideas quickly without fear of being shy or getting distracted by too many members.
3.2. Differences
Jack Ma is more focused on his people and empowering them to be innovative and
creative. Jeff Bezos, on the other hand, is more focused on results and driving his team to
achieve high standards. Besides, Jack Ma is also more charismatic and empowering, while
Jeff Bezos is more demanding and data-driven.
It is important to note that both leadership styles have their own strengths and
weaknesses. Ma's people-oriented approach can help to create a more positive and supportive
work environment. However, being overly friendly and emotional can make it difficult to be
stern and make tough choices. Bezos's results-oriented approach can help to drive innovation
and achieve high standards. However, it can also create a demanding and stressful work
environment.
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Focus People-oriented Results-oriented
Leadership Demanding, data-driven, long-term
Charismatic, visionary, empowering
style thinking
Fosters innovation and creativity,
Strengths Sets high standards, drives results
builds strong teams
Too friendly and emotional, can
sometimes be negative in terms of Can be seen as demanding, may create
Weaknesses
being strict and making strict a culture of fear.
decisions.
In brief, each leader has their own plus and minus points, and its application depends
upon their individual personality as well as the unique circumstances, environment, and
attributes of each organization. Under the outstanding leadership of Jack Ma and Jeff Bezos,
Alibaba, and Amazon are both best-in-class global brands.
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1.3. Foster a culture of accountability and constructive feedback
Jack Ma's confidence in his employees is admirable, but it's important to balance trust
with accountability. Establishing clear performance metrics and providing regular,
constructive feedback can help ensure that employees are consistently working towards their
goals and meeting expectations.
By implementing these strategies, Jack Ma can further refine his leadership style,
addressing the potential drawbacks of his overly friendly and emotional approach while still
retaining the positive aspects that have contributed to Alibaba's success. This balanced and
dynamic leadership style will foster a more structured, accountable, and learning-oriented
environment, ultimately propelling Alibaba to even greater heights.
As Alibaba's success grew, Ma also stood out as a visionary leader. His unique
business approach, emphasizing customer centricity and continuous innovation, has resonated
deeply with consumers and businesses alike. Under Ma's astute leadership, Alibaba's scope of
operations has expanded into many different areas, including e-commerce, cloud computing,
digital payments and logistics.
Ma's impact goes far beyond the business world. He has emerged as a global
ambassador for Chinese business, passionately championing innovation, collaboration and
the exchange of ideas. Jack Ma’s legacy is not merely about building a successful business
empire; it is about igniting a spark of inspiration in generations to come, encouraging
individuals to dream big, challenge the status quo, and leave an indelible mark on the world.
His story is an enduring testament to the limitless potential of human ingenuity and the
transformative power of each individual's vision.
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on his dreams, no matter how many times people told him he would never succeed.This is
extremely important to his success.
2.3. Customer-centric.
Jack Ma always puts customers first. He believes that the key to success is creating
products and services that meet customer needs. He also believes it is important to listen to
customers and respect their feedback.He has said that "the customer is not always right, but
the customer is always the boss." Prioritizing customers first has earned him their trust, which
is a huge advantage when competing with other competitors.
These are just a few of the many valuable life lessons we can take from Jack Ma. His
journey highlights the significance of dreams, persistence, and maintaining a positive
mindset. By embracing his example, we can all accomplish remarkable feats. Jack Ma serves
as an inspiration to millions globally, and his legacy is sure to inspire generations to come.
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CONCLUSION
Jack Ma's leadership style is a unique blend of characteristics that have contributed
significantly to his success and the success of Alibaba. He is a visionary leader with a clear
understanding of the potential of technology to transform the world. He is also a charismatic
and inspiring leader who is able to motivate and empower his employees. Ma's leadership
style is also characterized by his humility, empathy, and commitment to making a positive
impact on the world. These qualities have made him one of the most respected and admired
leaders in the world. Ma's leadership style revolves around a visionary approach, as he often
paints a grand picture of the future and encourages his team to think big and embrace change.
He promotes an open, transparent, and empowering environment that fosters creativity and
entrepreneurial spirit among his employees. Another key aspect of Jack Ma's leadership is his
ability to inspire and connect with people. His charismatic persona and ability to
communicate effectively have played a significant role in rallying support for his ambitious
visions. He is renowned for his motivational speeches and his knack for storytelling, often
sharing personal anecdotes and experiences to convey his messages.Ma's leadership style is
also characterized by an acceptance of failure and a willingness to take risks. He often
highlights the importance of learning from mistakes and setbacks, viewing them as valuable
opportunities for growth and improvement.However, it's important to note that while Jack
Ma's leadership style has been influential and successful in many ways, it has also faced
criticism. Some have pointed out that his approach can be overly assertive and autocratic at
times, potentially hindering collaboration and innovation.In conclusion, Jack Ma's leadership
style is a blend of vision, charisma, risk-taking, and a commitment to empowering young
talent. While it has been instrumental in the success of Alibaba and has inspired many, it also
comes with its share of strengths and weaknesses, like any other leadership approach. By
embracing Ma's qualities of vision, passion, empowerment, perseverance, and social
responsibility, leaders can create thriving organizations that make a positive impact on the
world.
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37. Gia Đình Mới (2022) Lý giải thành công của tỷ phú Jack Ma qua cách đối xử với
nhân viên và triết lý dùng người retrieved on October 24, 2022 from
https://fpub.fsb.edu.vn/ly-giai-thanh-cong-cua-ty-phu-jack-ma-qua-cach-doi-xu-voi-nhan-
vien-va-triet-ly-dung-nguoi/
38. Jack Ma & Hef Bezos: Đông – Tây khác biệt published on 2 Feb, 2015 from
https://doanhnhansaigon.vn/jack-ma-jeff-bezos-dong-tay-khac-biet-251508.html
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