By Adrian Moors
The ability to navigate complex markets is essential to ensuring long-term success for any business operating across different markets. So, how can leaders effectively steer their businesses through uncertain waters? Here are a few things I’ve learned through my own experiences.
One of the most significant challenges businesses face when operating in diverse and sometimes unstable regions is understanding the local market. Often, business leaders default to the lessons learned at business schools, applying Western models without appreciating the local context.
What many fail to realise is that success in a new region requires a humble and open-minded approach.
Understanding the intricacies of the local market, its culture, and its people is crucial. Approaching the local landscape with humility, rather than arrogance, will make all the difference in establishing a successful and sustainable operation. And it’s not just about understanding the market—it’s about integrating and respecting its dynamics.
A key lesson for leaders is the importance of diversity—not only in the broader workforce but also within leadership teams. It is easy to make the mistake of bringing in so-called "experts" from outside, who may have valuable knowledge but lack an understanding of local nuances. Experts from a Western or European context may struggle to navigate the local market successfully.
Instead, investing in local talent and diversity within your team can provide invaluable insights and perspectives that will help shape your strategy. Tapping into local expertise ensures that your approach is grounded in real-world experience and is better aligned with the market. Through this process the “foreign” experts may also enhance their own skills. Knowledge sharing is mutually beneficial and best practices are often found in the most surprising places.
Effective communication is one of the most powerful tools a leader can wield, especially when navigating a foreign market. While learning a new language may seem daunting, even a basic understanding can go a long way in building trust and rapport with local employees and customers.
When I worked in China, I made a concerted effort to learn Mandarin. While I never mastered it to the point of delivering presentations, my attempts to communicate in the local language were appreciated by the staff and customers. Even if I didn't understand every response, my effort to break the language barrier made me more relatable and helped foster positive relationships. Doing so, also showed respect and a willingness to engage, which is crucial in establishing meaningful connections.
When it comes to balancing a global business strategy with the local) required, the key is execution. A strategy is only as strong as its execution. The most brilliant strategy will fail if the most basic team member—be it a sales representative in a rural area or a customer service staff member—doesn’t have the tools or the understanding to implement it effectively.
Leaders need to ensure that their teams have the right resources, whether that’s elements such as uniforms, transport, or simply clear and articulate instructions. Once the foundational elements are in place, the strategy can be prioritised and executed with precision. It's a mistake to assume that a "one-size-fits-all" approach will work across diverse markets. Prioritisation becomes crucial in ensuring that teams remain focused on what truly matters. It is also far easier to motivate teams around succinct ideas and goals than a multipage strategy document.
Economic and geopolitical instability can throw even the most well-thought-out strategies into turmoil. A few years ago, while operating in Mozambique, I witnessed the dramatic collapse of the local currency. In times like these, it’s important to remain flexible while making tough choices.
Focusing on profitable markets, cutting losses in struggling ones, and being transparent about the changes you’re making can help a company weather such storms. In these moments, leaders must be ready to adapt quickly and be transparent with their teams. This goes beyond tweaking a strategy — it’s about ensuring the company’s survival.
Risk management is at the heart of navigating any market. Every business faces its own set of risks, and these risks evolve based on both internal and external factors. Whether you’re managing risks related to finance, reputation, production, or geopolitical instability, the first step is identifying and understanding these risks clearly.
In some of the companies I’ve been involved with, we’ve developed detailed risk registers to track and assess potential risks. Regularly reviewing these risks allows leaders to respond proactively. The key is to identify your business’s appetite for such risk and then mitigate the impact of the most significant threats. For global brands, the consequences of mistakes in one market can ripple across the globe, so risk management is a non-negotiable
When entering a new market, it’s tempting to quickly form close relationships with the first people you meet. But it’s important to exercise caution, as the first person you connect with may not always be the right partner for your business (or socially). Similarly, getting too involved with specific political parties, government officials or even social causes can expose a business to unnecessary risks.
The key is patience. Understanding the local environment, including the political and social landscape, before making any major decisions is crucial. Once you have a clear picture of the lay of the land, you can navigate more effectively and avoid the common pitfall of overcommitting to political allegiances or business partners who may not serve your long-term interests.
Geopolitical instability is impacting many of the world’s largest economies. From changes in US and UK policies to shifting dynamics in Europe, leaders must be cautious in making large-scale decisions. However, this uncertainty also presents opportunities, especially in emerging markets.
In South Africa, for example, despite our many challenges, there is a growing sense of optimism and resilience. South Africa’s ability to navigate political instability and emerge stronger offers valuable lessons for businesses looking to invest in the region. The relative stability of South Africa’s political environment, coupled with a dynamic and optimistic population, presents an ideal environment for growth and opportunity.
As leaders, we must remain cautious yet forward-thinking. In complex markets, our ability to adjust quickly, listen actively, and act with empathy and understanding can be the defining factor in whether we succeed or fail. The road to success in these volatile times is not a straight one, but those who are agile, respectful, and clear in their vision will emerge stronger and more resilient on the other side.
Adrian Moors. Adrian Moors serves as a director of Gutsche Family Investments and Woodlands Dairy, one of Africa’s largest dairy enterprises along with a number of smaller businesses including Sports Management Africa, the operator of GolfChamps.
Image: Supplied.
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