9 of 10 international companies said geopolitics affected their bottom line in 2023.
Yet, for many executives, geopolitics is impractical, and watching global news is a distraction from their core business duties.
Here are three options to use geopolitics in practical ways for your business:
1- Tie geopolitical analyses to your operations by including a risk mapping within your medium strategic review process:
??Once or twice a year (depending on you), when reviewing your business's medium term goals and setting new ones for the period ahead, map political and macro risks related to your operations in your key markets.
??Risks may be threats (social unrest, for example) or opportunities (new free trade agreement) and should be prioritized according to their estimated probability and impact.
2- Use scenarios when brainstorming for your longer-term strategy:
??Your goal is not to predict what will happen but to imagine various plausible directions, preferably with sensible differences.
??Test the scenarios against your business's long-term strategy and goals. Are they compatible? Under which scenarios are your chances of success higher? What can you do if the adverse scenario materializes?
3- Talk to diplomats when you visit your clients, prospects, or suppliers abroad.
?? It is a free and easy way to get insights into the relations between your home country and your partner's.
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