With all eyes on Ukraine after Russia threatened military action, MNC executives are under more pressure than ever to rise above the media noise and assess what current events mean for their business. Even though the situation is evolving by the minute, executives’ time is better spent focusing on the factors that will affect their business under any scenario, rather than trying to decipher the multiple directions in which the crisis may evolve.
In our latest podcast (client portal) on Ukraine and Russia, we highlight what executives should focus on:
- Companies need to have contingency plans for both Russia and Ukraine; any existing plans likely need to be revised in light of events during the weekend
- Under any scenario, Ukraine is in for significant economic pain in the short term. Targets and plans should reflect that. Pricing may also need to be adjusted
- Managing corporate’s perceptions of the situation is critical given the flood of media coverage on Ukraine. Executives need to control the narrative on Ukraine and Russia with HQ to ensure that their business is well-positioned to take advantage of any opportunities that the crisis may present
- 2014 Russia plans need to be revised. Russia is likely to underperform in what was already a poor economic environment. Companies should in particular make sure they have a plan in place to respond to the currency depreciation which threatens to hurt both revenues and profits this year
For a detailed discussion on these and other steps executives should take in response to tensions between Ukraine and Russia, listen to FSG’s podcast (client link) and read our report (client only) on how to protect your Ukraine business from the worst fallout from the crisis. You can download the podcast here (public) or subscribe to our Emerging Markets Podcast Series.