Given the recent global events, there is a need for a new approach to business strategy. Directors must strategies to manage the complexities influenced by geopolitical shifts, economic interdependence, and technological advancements. Understanding how geopolitics and globalisation interact is crucial for developing successful long-term strategies.

In recent times there have been significant geopolitical shifts. The rising profile of China as a global power, the diplomatic brawl between the United States and Russia, and the ongoing conflicts in the Middle East have reshaped international relations. These developments have impacted global markets, regulatory environments, and supply chains. For businesses, understanding these dynamics is essential to mitigate risks and capitalise on opportunities.

Globalisation gains are evident in the increased access to markets, resources, and talent. Companies can expand their customer base, optimise production costs, and innovate through diverse perspectives. However, globalisation also brings challenges. The global economy is susceptible to disruptions from geopolitical tensions, trade wars, and regulatory changes; leading to many countries opting for protectionist policies. Moreover, cultural differences and varying consumer preferences require businesses to adapt their strategies accordingly.

The relationship between geopolitics and globalization is complex and often symbiotic. Geopolitical events can significantly impact globalisation trends, while the interconnected nature of the global economy can influence geopolitical decisions. For instance, trade policies and tariffs are tools used by nations to assert geopolitical power, which in turn affect global supply chains and market access.

The trade war between the United States and China exemplifies this interplay. Tariffs and trade restrictions imposed by both countries have disrupted supply chains, increased costs for businesses, and led to shifts in manufacturing locations. Companies must stay attuned to such geopolitical developments to adjust their strategies and minimize adverse effects.

To wade through the complexities of geopolitics and globalization, boardroom strategies must be adaptive, resilient, and forward-looking. Understanding and mitigating geopolitical risks is paramount. Companies should invest in geopolitical intelligence to monitor developments that could impact their operations. Scenario planning and stress testing can help in this regard to assess the potential effects of geopolitical events on the business. Diversifying supply chains and markets can reduce dependency on any single region, enhancing resilience.

Embracing technological innovation is another important strategy. Technology plays a crucial role in globalisation, enabling businesses to operate seamlessly across borders. Investing in digital transformation can enhance efficiency, improve customer experiences, and provide a competitive edge. Additionally, adopting advanced analytics and artificial intelligence can aid in predicting and responding to geopolitical risks.

Paying attention to sustainable and ethical practices. Sustainability and ethical considerations are increasingly important in the globalised world. Consumers and stakeholders demand transparency and responsibility from businesses. Implementing sustainable practices enhances brand reputation and ensures compliance with evolving regulations. Ethical sourcing of raw materials, reducing carbon footprints, and fostering Corporate Social Responsibility are essential components of a winning strategy.

Strong relationships with governments, industry partners, and local communities are vital. Engaging in public-private partnerships can facilitate smoother operations and influence favorable regulatory environments. Additionally, understanding local cultures and building trust with stakeholders can help in managing geopolitical challenges and seize opportunities in diverse markets.

Make agility and adaptability the fulcrum of response to both internal and external shocks. With increasing dynamism in the business environment, agility and adaptability are critical for survival. Companies must be prepared to retool their strategies in response to geopolitical shifts and market disruptions. This requires a culture of innovation, continuous learning, and flexibility. Decentralised decision-making and empowering local teams can enhance responsiveness to regional dynamics.

Globalisation has made an easily available talent pool, offering access to diverse skills and perspectives. Tapping into it will help in building a global brand that can withstand geopolitics and globalisation. However, managing a global workforce requires understanding cultural differences and fostering an inclusive environment. Providing opportunities for professional development and ensuring equitable treatment across regions are essential for attracting and retaining top talent.

Lessons can be learned from Nigerian companies that exemplify the successful integration of geopolitical and globalization strategies. For example, Dangote Cements' approach to supply chain management involves diversifying its manufacturing across multiple countries in Africa, reducing reliance on any single region. This strategy has helped mitigate risks from geopolitical tensions and trade disputes.

Another example is Jumia leveraging digital globalisation to expand its e-commerce platform across African countries. By embracing digital transformation and investing in cybersecurity, Jumia has successfully managed the complexities of international markets.

With growing geopolitical uncertainty and rapid trade fragmentation, winning boardroom strategies requires a nuanced understanding of the global events dynamics. Managing geopolitical risks, embracing technological innovation, committing to sustainability, building strong relationships, fostering agility, and managing talent effectively, will help businesses mitigate the challenges and seize opportunities. The interplay of geopolitics and globalisation is complex, but with strategic foresight and adaptability, companies can achieve sustained success in a dynamic world.

Research & Advocacy Department,