Brexit and whether there will deal or no deal. After the UK referendum held on 16th of June 2016 in favor of the Brexit, there has been controversial debates about the effect of Brexit on multinational business organizations.

Event Log for Assessment 2
1. What is its name?
Alibaba Group Holding Limited
2. What are/is its main service or products?
E commerce offering marketing services for retail and wholesale products
3. Where is its base country?
China
4. Name some of its overseas markets.
The United States, India, Africa, Europe, North and South America, United Arab Emirates, Australia.
(A) The specific current news event that has an impact on my chosen MNC
1. Summarise the news below in a few lines
Brexit and whether there will deal or no deal. After the UK referendum held on 16th of June 2016 in favor of the Brexit, there has been controversial debates about the effect of Brexit on multinational business organizations. Alibaba being a global MNC seeks to expand its market segments by entering the European market niche. However, Brexit is major disruption and has to be factored in, by Alibaba in its new decision. Corporations operating in china and Europe opine that Brexit is likely to create trade barriers a step that would compromise profitability. How does this news impact on my chosen MNC? List two possible impacts.
a. Impact 1
For Alibaba to successfully penetrate the European market Brexit has to be in the forefront of the company’s internationalization strategy. Apparently, Alibaba is not popular Britain and European at large and the first step would be to create brand awareness through extensive marketing strategies. With Brexit however, it is difficult to guarantee a successful market entry especially in UK. As such, Alibaba’s management team is being cautious on its move to Europe which may be a highly risky investment.
b. Impact 2
A successful Brexit implies that UK will be excluded from the European Union. As a result, EU member states are more likely going to adopt a protectionist strategy when dealing with other markets such as China. Notably, UK was the key player when brokering the deal between china and Europe. Therefore, in the absence of UK, maintaining Europe Chinese trading relationship will be a difficult affair. Ultimately, Alibaba may end up losing and forgetting the European market. If it survives the Alibaba will be less competitive.
Proposed measures to mitigate these impacts. List two measures with an explanation.
1. Measure 1
Alibaba’s management particularly the owner Jack Ma should launch serious bilateral talks with EU member states in a bid to strengthen the relationship between china and Europe. Since Brexit is politically motivated, political players in China should strike deals with the European countries as a way of advancing their ideology and also embracing the ideology of others.
2. Measure 2
Apparently, owing to the evident negative impact of Brexit, Alibaba should avoid any multinational and large deals and investments in the EU market. Alibaba should focus only on well calculated and viable investments in Europe till the market stabilizes.