Febuary 16, 2025 by Mike Manazir – (4-5 minutes)

The Brick Chronicles
Navigating Geopolitical Risk Without Losing Your Mind

Sarah Thompson, CEO of Baxter’s Bricks, sat at the head of the conference table, scrolling through the latest headlines on her tablet. Trade tensions, sanctions, supply chain disruptions—it was enough to make anyone’s head spin. She looked up at her leadership team and sighed.

“Well, folks, it’s another day in the wild world of global business.”

Rick Nelson, the COO, rubbed his temples. “Let me guess. Another international crisis is about to mess with our supply chain?”

Sarah smirked. “Bingo.”

The team had been dealing with geopolitical turbulence for years—tariffs on raw materials, unpredictable government policies, and now, a new regulatory hurdle in one of their key markets. Ignoring the problem wasn’t an option. They needed a plan.

Who Handles It Well… and Who Fumbles? – Sarah had done her homework. Companies like Apple, with its diversified manufacturing base, handled geopolitical risks masterfully, pivoting quickly when policies shifted. Then there were companies that relied too heavily on a single country for materials—leaving them vulnerable when diplomatic tensions flared.

Sarah didn’t have to look far for an example of what not to do. She pointed to Nokia, the once-dominant mobile phone giant that crumbled under geopolitical and market shifts. In the early 2000s, Nokia ruled the industry, but its failure to adapt to rising smartphone technology was only part of the problem. As tensions between the U.S. and China escalated, Nokia struggled with supply chain disruptions, regulatory hurdles, and a lack of diversified manufacturing outside Europe. 

Meanwhile, competitors like Apple and Samsung built strong global networks, allowing them to pivot quickly when trade policies shifted. By the time Nokia realized it was too dependent on a single strategy, it was too late—their market share had collapsed, and they went from industry leader to an afterthought. 

“That,” Sarah said, “is exactly why we can’t afford to be complacent. We need to be like Apple. Not like those guys who panic every time a port shuts down.”

Rick sighed. “Great. So we just become a trillion-dollar company overnight?”

Sarah rolled her eyes. “No, but we start thinking like one.”

The Plan: From Reactive to Proactive – Sarah outlined three key steps to managing geopolitical risk without constantly being in crisis mode:

• Diversify the Supply Chain – “If all your eggs are in one basket, don’t be surprised when someone drops it,” she said. The team needed to identify alternative suppliers in different regions to avoid over-reliance on a single country.

• Stay Ahead of Regulations – Governments had a habit of changing the rules overnight. Tom Jenkins (Environmental Impact Manager) and Lisa (HR Director) were tasked with keeping tabs on trade laws, labor regulations, and import/export policies.

• Scenario Planning – Instead of waiting for the next crisis, Sarah wanted the team to map out different risk scenarios and create contingency plans.

“Let’s play ‘What If?’” she suggested. “What if tariffs go up? What if a key supplier is sanctioned? What if a trade route is blocked?”

Rick groaned. “What if I just ignore all of this and hope for the best?”

“Then,” Sarah said, “you’ll be out of a job when we’re scrambling to keep the business running.”

Executing the Strategy – The team got to work.

• Supply Chain Overhaul: Tom identified three alternative suppliers for key materials, reducing reliance on a single country.

• Regulatory Monitoring: Lisa developed a dashboard tracking policy changes in real time, ensuring the company wasn’t caught off guard.

• Financial Cushion: The finance team built a buffer into the budget to absorb unexpected trade costs.

Even Rick got on board, reluctantly overseeing a new logistics strategy that included multiple shipping routes to hedge against port shutdowns.

What Changed? – Within six months, the company was more resilient. A sudden tariff increase on raw materials? No problem—they had backup suppliers. A regulatory shift in one of their key markets? Already anticipated and adjusted.

Best of all, the team no longer lived in a state of constant panic. They had a strategy. A roadmap. And, as Sarah put it, “A fighting chance against global chaos.”

Final Thought – If you’re leading a business today, geopolitical risk isn’t something you can afford to ignore. The world is unpredictable, but your response doesn’t have to be. Diversify, anticipate, and stay nimble—because in today’s global market, the companies that adapt are the ones that thrive.

“The pessimist complains about the wind. The optimist expects it to change.
The leader adjusts the sails.“

-John Maxwell

Lead from your heart. Lead to Win.

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