The war in Ukraine has been gradually leaving consequences on the entire world, imposing inflation and financial crisis across all industries, leaving the majority of corporate leaders in confusion about which stand to take and what their next step should be. 

Subsequently, companies are forced to create both immediate and future plans to protect their businesses and be responsive to the change. Surely, the geographic location and the business nature have a lot to do with the number of consequences being felt in different countries, having Russia and Ukraine at the forefront of it. The rest of the countries are facing the challenge of the effect of sanctions and compliance issues depending on the stance that their government takes towards Russia.

However, the biggest challenge for businesses is definitely the rising inflation and its effects on costs and continuity of supply.

Take proactive measures and prepare

The first step is to predict scenarios your business can find itself in and plan the activities accordingly. If we have learned anything from the Covid-19 crisis, it’s that good preparation is mandatory. However, there is one major difference between Covid-19 and the current crisis: the world is now suffering from supply shocks which could be later followed by demand shocks, while it was the other way around during the pandemic. 

Continuous analysis of the situation and its impact on the business

What all companies need to do is to instantly evaluate their compliance with imposed sanctions and control what affects them. Swedish Executives as individuals are usually skilled enough to address these issues and create an adequate response to the crisis, especially when it comes to high-revenue markets. However, SME owners are not as experienced in managing crises and controlling their businesses in their foreign markets. This is due to a lack of resources to analyze the situation in the early stages of the crisis. The best way to stay informed is to be in close touch with market operators or hire consultants specialized in advising in difficult markets.

Responsiveness to the change

Besides tracking the situation, creating plans to secure the value chain, and staying focused on the core business, there is not much to do in responding to this crisis. The change is inevitable and your strategies have to be aligned with the possible scenarios. What’s happening on the global level is that governments and corporations are searching for ways to increase the protection of supply chains and are investing in funding those changes, which is also one of the lessons learned from the Covid-19 pandemic.

As you could see, everything comes down to a good organization. However, it may sound simple but the way you plan and set your activities will directly affect the course your business will take. Whether you need advice, business support, or just a good cup of coffee, SEEBA Team is here to help you.