Background

Consilio supported a large Swedish multinational company in applying a geopolitical dimension on its business strategy. The company performs operations worldwide in a highly competitive market, which are under significant impact by tensions between various geopolitical power centers.

While formulating its new strategy, the company realized the need for an increased understanding of how the new multipolar world will affect the organization. The company is compelled to handle the major geopolitical players’ battle for influence, in present markets as well as in developing markets with significant potential.

Approach

In order to increase its awareness of geopolitical risks and opportunities, Consilio participated during a day of the company's global strategy summit, gathering 250 of the company’s top managers. 

The morning session aimed to set the scene and provide a zoomed-out perspective on the current geopolitical context. Leading experts on China, Russia and Africa held speeches and shared a global outlook on the current situation in the world. 

The afternoon included extensive group work in 25 mixed groups with managers from the entire company. The groups worked with the interlinkages between geopolitical themes and the company's strategy, manufacturing footprint, and product development in various designated geographical areas. The mix of participants from different states, tiers, backgrounds, etc., provided a fruitful climate for discussions on effects of geopolitical changes on the company. It also enabled the groups to identify new business opportunities. 

Staff from Consilio had the overall responsibility for the day. This included workshops, project management, creation of geopolitical scenarios stretching over a 10-year period, development of material as well as presentations on how the company could be affected by these scenarios. The company was given an executive summary of the discussions after the event. 

Results

Consilio's contribution resulted in the following positive outcomes for the client:

• The company gained an increased understanding of how geopolitical changes may affect their business and is therefore better prepared to handle a changing geopolitical environment.
• An initial implementation of a strategy more suited to handle geopolitical changes.
• An increased understanding of the company’s critical flows, both external and internal, as well as of how access to critical components and raw materials may affect the company.
• A combined cross functional bottom-up analysis, in which the company made use of the competence through people in the organization, and consequently identified company-specific risks as well as business opportunities.