TechCrunch - How to survive and thrive as tariffs, AI, and politics unsettle the rules of business
The podcast features Shawn West, co-founder of Hence AAI, discussing his book "Unruly," which explores the intersection of geopolitics, law, and technology and their impact on business. West argues that traditional business rules are being disrupted by geopolitical changes, such as tariffs and political shifts, which create unpredictable environments for companies. He emphasizes the importance of agility and proactive strategies for businesses to navigate these challenges. West shares examples of how companies can leverage geopolitical changes to their advantage, such as gaining publicity or finding new market opportunities. He also highlights the role of technology, like Hence Global, in providing tailored insights to help businesses manage risks and make informed decisions. The podcast underscores the need for businesses to adopt a global perspective and consider geopolitical risks in their strategic planning.
Key Points:
- Geopolitical changes are disrupting traditional business rules, requiring companies to be agile and proactive.
- Businesses can leverage geopolitical shifts for publicity and market opportunities, as shown by the example of a cold brew coffee company.
- Technology, such as Hence Global, can provide tailored insights to help businesses manage risks and make informed decisions.
- Companies should adopt a global perspective and consider geopolitical risks in their strategic planning.
- Startups and tech companies have an advantage in agility, allowing them to adapt quickly to geopolitical changes.
Details:
1. 🎙️ Welcome to Equity Podcast
- The introduction music sets an engaging tone for the podcast, creating an inviting atmosphere for listeners.
- The podcast welcome message is concise, aiming to quickly transition into the main content, which is efficient for time-sensitive listeners.
2. 📚 Exploring the Unruly World with Shawn West
2.1. Defining the 'Unruly World'
2.2. Business Implications of the Unruly World
3. 🌐 Geopolitical Risks and Business Impacts
3.1. Understanding Geopolitical Risks
3.2. Expert Insights and Strategic Management
4. 📈 Navigating Tariffs and Economic Challenges
4.1. Impact of Tariffs on Business
4.2. Broader Economic Implications and Adaptation
4.3. Adapting to Economic Challenges
5. 🚀 Opportunities Amidst Global Challenges
5.1. Case Study: Explorer Cold Brew's Strategic Response to Tariffs
5.2. Political and Market Dynamics
6. 🌍 Globalization and Business Adaptation
- Startups and tech businesses have a significant advantage in agility over traditional manufacturers, allowing them to quickly adapt to market changes and relocate supply chains, a process that is much slower for established corporations.
- Government subsidies play a crucial role in certain sectors like clean tech, but there's debate over whether these subsidies should continue, as they may prevent true market competition.
- Startups facing subsidized competitors must be more innovative and competitive, as they cannot rely on government support to the same extent.
- Patriotism is being used strategically by companies to justify avoiding antitrust actions, by positioning themselves as essential to national interests, particularly against international competition, e.g., China.
- The narrative of patriotism can be leveraged by businesses to avoid being broken up by government actions, by emphasizing their role in maintaining national competitive edge against countries like China.
7. 🏗️ Strategy and Corporate Diplomacy
- The world is experiencing deglobalization, but companies remain global, necessitating an expansive view of geopolitical and legal risks.
- America is becoming more insular, reducing aid and turning into a 'fortress,' impacting global business engagement and talent acquisition.
- Businesses are struggling to adapt to a deglobalizing world as they are inherently global, with challenges in accessing foreign labor and markets.
- Geopolitical changes, such as reduced U.S. support for foreign countries, introduce new risks for businesses operating globally.
- The U.S.'s retreat from being a global public goods provider affects international stability and business operations, especially in Europe and developing countries.
- There is a need for businesses to adjust their strategies to account for changing geopolitical landscapes, requiring expert advice and a shift in mindset.
- Companies should consider engaging with local governments and international bodies to influence policy changes beneficial to global trade.
- Businesses can mitigate risks by diversifying their supply chains and exploring emerging markets that are less affected by U.S. policy shifts.
- Case Study: A European tech company successfully navigated U.S. trade restrictions by partnering with Asian firms, increasing their market share by 20%.
8. 🧭 Planning for Geopolitical Uncertainty
- Companies should manage their 'knowledge supply chain' like their hard goods supply chain to effectively respond to geopolitical crises, such as a sudden need to exit a region like Taiwan.
- Proactive scenario planning is essential for geopolitical shifts, learning from past events like the Crimea annexation in 2014, where companies were largely unprepared despite warnings.
- Businesses must identify assumptions that underpin their value drivers and assess exposure to geopolitical risks, particularly in volatile regions like Ukraine.
- Creating a corporate diplomacy team is crucial for developing a comprehensive global strategy, moving beyond country-specific approaches as companies expand internationally.
- Startups should incorporate corporate diplomacy by Series B to navigate political subsidies, regulatory threats, and macroeconomic factors that affect funding and market access.
- By Series C or D, companies should articulate a global corporate diplomacy strategy balancing patriotism and globalization to maintain favorable international relations.
- US companies face the challenge of aligning global image with domestic policies, requiring a nuanced approach to corporate storytelling to manage international perceptions.
- In regions like Rwanda, companies can influence local business standards by modeling exemplary organizational practices, such as offering equity to all employees.
- Sophisticated employment packages, including equity and mental health benefits, are vital for attracting and retaining talent, especially in startups with limited cash flow.
9. 🔧 Technological Tools for Risk Management
9.1. Features of Hence Global
9.2. Pricing and Accessibility
10. 📣 Conclusion and Contact Information
- Law firms and consulting firms are leveraging software to efficiently track client-related changes, enabling partners to bill $1,500 for a one-hour call, effectively covering the subscription cost.
- A significant shift towards AI is noted, with companies automating tasks such as news briefings and monitoring, specifically focusing on processes capable of AI automation.
- Client services organizations and small businesses, including tech startups, are benefiting from software that keeps them informed about industry changes.
- The software's capability to support operations across multiple countries minimizes the necessity for expensive legal monitoring, providing cost-effective solutions.
- Large corporates' threat and intelligence teams are increasingly adopting these tools to ensure they do not miss critical updates, illustrating the software's integration into essential corporate functions.
- User testimonials emphasize the software's convenience and essential nature, drawing parallels to indispensable services like Uber, highlighting its perceived value and utility.