3.

Environmental Analysis (PESTO Analysis)

Table 1: PESTO Analysis

Factor Description
Political Concerning the current political context, NATO's operational approaches are
at the mercy of most prevailing turbulences. As stated by (Khan et al., 2020)
the principle of keeping diplomatic ties with member states and other
external bodies is of great importance for an alliance maintaining stability
and being successful. The advent of internal changes in the members of the
alliance can mean political decisions made inside the country, as well as
shifts in leadership or foreign policy, which may affect the alliance's
strategic direction. The exact effectiveness of collective security moves
adopted by NATO and the international community depends, however, on
the way political disputes are resolved within NATO and internationally
(Pishgooie et al., 2019). When faced with geopolitical threats requiring a
collective response, the ability to navigate political intricacies is essential for
preserving unity and cohesion among NATO members.

Economical NATO's ability to have good defense depends a lot on how much money it
has. The amount of money a country spends on defense and helps with
collective security depends on how well off they are economically. The
power of NATO could be impacted by changes in military spending during
tough economic times or instability (Rabiul & Yean et al., 2021). Working
together on defense projects can be good and bad because the countries
involved are linked economically. Peacekeeping operations and the
development of new technologies also consume resources, which are
considered economic issues. We need to grasp the actual composition of
NATO's economy to comprehend how the alliance deals with financial
issues and adjusts to various security scenarios (Berraies & Zine El Abidine
et al., 2019).
Social NATO's social components—cultural, demographic, and sociological—
influence member nations' military policy and collaboration. (Ohunakin et
al.,2019) considered public opinion on defense spending, society's
perspectives on foreign interventions, and social trends on military
recruitment. According to (Asgari et al.,2020), societal variables influence
member country people's views on NATO and their support or opposition.
Studying social components illuminates NATO operations' human side,
enhancing public trust and solidarity amid complicated geopolitical
problems.

Technologica Advancements in technology can significantly influence a country's

l capabilities and strategies. To ensure the alliance remains competitive in the
current security market, it must be able to adapt to emerging technologies
swiftly. Regarding technology, focusing on enhancing cyberwarfare,
artificial intelligence, and military equipment is crucial. NATO must utilize
the latest technology to address emerging challenges effectively (Purwanto
et al., 2020). When nations' military technologies are compatible, it
enhances the efficiency of their collaborative missions. With technology
becoming more important today, NATO needs to keep up with new
advancements to stay safe. The alliance can strengthen its defense by
working together and using compatible systems.

Operational All parts of NATO military operations, both strategic and tactical, are
considered operational variables. According to (Hansen and Pihl-Thingvad
et al.,2019), these elements are vital in deciding how well the alliance can
carry out tasks and adapt to changing security threats. Joint military
operations' overall efficiency, logistical capabilities, and methods for
deploying forces are all operational factors. The operational preparedness of
NATO is shown by its capacity to plan and execute missions smoothly
across multiple theatres and circumstances. To evaluate these aspects, one
must look at the alliance's responsiveness, logistical strength, and ability to
 adjust to different operational settings (Kelly & Hearld et al., 2020). To
maximize its military capabilities and maintain a strong stance in response
to ever-changing geopolitical threats, NATO must thoroughly grasp
operational elements.

4. Issue Identification and Analysis

4.1 Recognizing Key Challenges

Successfully navigating NATO's strategic terrain requires thoughtful deliberation on many
complex issues. The partnership is confronted with three significant difficulties that highlight the
complexity:

1. Geopolitical Uncertainty: Maintaining strategic cohesion within NATO is very difficult,

considering the dynamic nature of the global political scene. Geopolitical tensions have
flared up again, and new global power centers have emerged. Therefore, alliance
objectives must be readjusted (Guterresa et al., 2020). Striking a balance between
multiple member states’ needs and wants requires of diplomatic capability and strategic
insight in these circumstances.
2. Resource Allocation Dilemmas: Following the appearance of the new security risks,
NATO tries to manage to use its resources both wisely and effectively. Different
capabilities in defense, as well as varied scopes of perception regarding the threats to be
fought, make sharing the resources time-consuming (Donkor et al., 2021). It is
challenging to discover a compromise that makes the states' interests supplement each
other and the group's collective security concerns. The role of the aforementioned parties
is multifaceted; they have to be engaged in a conversation and come to terms with each
other.
3. Adapting to Hybrid Threats: Hybrid threats are in actual existence, in the current
security surroundings, as conventional military methods concurrently use cyber,
 informational, and unconventional ones. To demonstrate its desire to implement
necessary solutions, NATO should exchange its strategy and organisation format (Lee et
al., 2019). To tackle the said issue and to improve the alliance's ability to adjust to a
dynamic security environment, cybersecurity platforms, information sharing, and
innovation are the possible solutions.

4.2 Explaining the Root Causes

Identifying and fixing the root causes of NATO's most significant difficulties is critical if the
alliance wants to keep winning.

1. Geopolitical Shifts and Power Dynamics

Uncertainty in geopolitics stems from the dynamic nature of global power. Fresh partnerships
emerge, regional power structures change, and new international players feel their presence,
reshaping the geopolitical landscape. Originating in the post-war era, NATO faces the challenge
of adapting to a world where geopolitical risks stem from the constantly shifting dynamics of
global diplomacy (Saputra & Mahaputra et al., 2020). To truly grasp this issue, it is essential to
analyse historical patterns and emerging forces thoroughly.

2. Disparities in Defense Capabilities and Resource Commitments

The problem with how resources are shared within NATO comes from differences in how much
each country can defend itself and how much money it can spend on defense. These differences
happen because different countries have plans, different ideas about the dangers, and other
histories. To understand everything, we need to know a lot about what happened in the past, the
current dangers to safety, and how rich the countries are (Novak et al., 2020). To ensure that
resources are shared fairly, we all need to consider why some people have more resources than
others.
 3. Evolution of Hybrid Threats

There is a direct correlation between the revolutionary character of modern warfare and the need
to adjust to hybrid threats. According to (Rehman et al.,2019), the nature of battles has changed
due to the fast development of technology, including cyber security and information warfare. It is
essential to delve into the goals of hybrid threats, such as state-sponsored cyberattacks and
unconventional warfare, to pinpoint where they are developed. Understanding the evolution of
military doctrines and technical advancements is crucial for developing adaptive strategies.

A comprehensive strategy considering historical, geopolitical, and technical factors is required to

understand these underlying reasons (Akparep et al., 2019). Suppose NATO wants to be more
resilient and agile in the face of a constantly shifting global security scene. In that case, it must
address the fundamental issues that are leading to significant problems.

4.3 Relating Issues to Leadership Concepts

To successfully navigate complex geopolitical landscapes and foster unity within the alliance,
NATO needs strong leadership. This involves carefully analyzing the challenges the alliance
encounters from a leadership perspective.

4.3.1 Transformational Leadership in Geopolitical Shifts

Strong leadership in NATO is very important because the world is changing. Transformational
leaders are important when the world changes quickly. They encourage countries to change and
do well even when things are unsure.

 Charismatic Visionary Leadership: Transformative leaders in NATO must convey a

compelling vision with charm. According to Hajiali et al. (2022), leaders have the power
to bring member states together by communicating a common vision. Energizing and
inspiring NATO members to face global changes head-on, charismatic leadership is a
crucial component.
 Inspiring Adaptability and Innovation: Changes in geopolitics need novel approaches
and flexible action plans. Leaders with transformational skills inspire NATO member
 states to welcome change and find innovative solutions to new problems by creating an
open environment for new ideas and methods. Leaders can support their teams by
offering motivation, which can help them develop a growth mindset and adjust to
evolving geopolitical circumstances (Syakur et al., 2020).
 Building Trust and Collaboration: When the world's political landscape is unpredictable,
trust becomes paramount. Trust among NATO members is a top priority for
transformational leaders, who work to foster it via open dialogue and group decision-
making. Leaders can make the alliance more resilient and respond more unitedly to
geopolitical crises if they create an atmosphere of trust (Jaroliya & Gyanchandani et al.,
2021). Under transformational leadership, collaboration is paramount, as leaders enable
member states to use their distinct assets to pursue common objectives.
 Empowering and Developing Leadership Across Levels: Transformational leaders at
every level of NATO recognize the importance of leadership. Important people working
together can make positive changes when leaders give power to individuals at different
levels (Purwanto et al., 2019). Ensuring everyone in the alliance can respond well to
world events means developing strong leaders in the group. The NATO leadership team
has improved because leaders have been working to help build and support future leaders.
 Adapting Communication Strategies: In geopolitics, effective communication is crucial.
Adapting their approaches, transformational leaders effectively communicate in various
political and cultural settings. By changing its approach, the alliance can ensure its
messages are relatable, engaging, and transparent. Leaders can enhance communication
and boost NATO's effectiveness by promoting open dialogue and fostering mutual
understanding.

4.3.2 Distributive Leadership for Resource Allocation:

Efficient resource allocation within NATO is greatly aided by distributive leadership in the
dynamic geopolitical threat environment. Different stakeholders are given a voice in distributing
resources via a decentralised decision-making process, emphasising responsiveness and
flexibility.
  Decentralized Decision-Making

Centralizing decision-making powers within the NATO structure may not fully utilize the
knowledge and experience of NATO member states. Therefore, the role of the member states can
be decentralized. Delegating the weight and responsibility to other countries typically involves
providing them with an opportunity to air their opinions and proposals, thereby giving way to
more detailed and comprehension-demanding decisions about budget and resource allocation.
The emphasis on inner strengths will unite member countries, necessitating the collective
initiative of the alliance that, in this way, will be stronger in countering new issues.

 Optimizing Specialized Expertise

The councils of NATO are the tile in which NATO members present combined skills and
knowledge. To realize distributive leadership, the aim of making everyone on the team add
maximum value to it, using resources science has provided strategy. Consequently, NATO, as an
institution, receives higher support from the public and elites (Boukis et al., 2020).

 Enhancing Flexibility and Responsiveness

They should be sufficiently clever and fast-moving to adapt smoothly to these changing political
geographies. Improving the setup, eliminating bureaucratic problems, and using distributive
leadership could lead to quick responses from NATO. As emphasized by the likes of (Milhem et
al.,2019), this statement depicts the flexibility with which the Alliance is capable of reallocating
its assets to accommodate new political crises of the future. NATO must give importance to the
current changes in global politics, and the adaptability to remain in touch with these changes has
to be quicker in adopting.

 Building Collaborative Resource Strategies

The member states act in concert at a distributive level to establish rules for distributing technical
and financial resources. Consulting all the parties involved in making the decisions is critical if
the result is to be the distribution of scarce resources in a way that aligns with the agreed
objectives (Azizaha et al., 2020). Working individually or jointly to address specific external
threats would enhance the solidarity between NATO member-states, and every participant would
feel obliged and committed.

 Ensuring Transparency and Accountability

Fair distribution of resources is the first presupposition in distributive leadership, where the
issues are solved based on transparency and accountability, and the objectives are the goals.
Being able to see where the money is going helps countries trust each other (Sunarsi et al., 2020).
Transparent accountability rules help NATO look more credible and ensure resources are
distributed fairly.

4.3.3 Adaptive Leadership in Hybrid Threat Environments

Dealing with hybrid threats within the framework of NATO's evolving challenges requires
adaptable leadership. Leadership in the face of hybrid threats—those that use both traditional and
nontraditional tactics—calls for flexibility, resiliency, and vision (Stone & Patterson et al., 2023).
Leaders must remain adaptable as hybrid threats can manifest in unexpected and constantly
evolving forms. (Ibrahim and Daniel et al.,2019) suggest that adaptive leadership within NATO
involves continuously reassessing strategies and approaches to stay ahead of evolving
challenges. Being able to think quickly and make decisions decisively are crucial qualities for
effective leadership, along with the skill to outsmart opponents with creative strategies.

The leadership of NATO must be resilient in the face of uncertainty brought forth by hybrid
threats. Members of the alliance who are adept at adapting must show that they can handle
uncertainty well, as the nature of the dangers they confront is ever-changing. This strength
ensures that NATO will fulfil its commitment to safeguarding the world, regardless of the
unusual or intricate threats it may face (Nurani et al., 2021).
Effective managerial skills are more than just responding to threats as they emerge. That means

seeing possible problems down the line and acting immediately to prevent them (Hughes et al.,

2022). To effectively reduce risk, NATO leaders must anticipate potential hybrid threats and

improve preparedness to stay ahead of the competition.

(Suprapti et al., 2020). By strategically planning, NATO is more equipped to address hybrid

threats.

Due to the overlap between military and civilian sectors, leaders must integrate civil-military
collaboration to address hybrid concerns. Adaptive leadership requires relationships with NGOs,
intelligence agencies, and others (Kanat-Maymon et al., 2020). Leveraging military and civilian
resources provides a complete hybrid threat response.

NATO promotes an environment where individuals are constantly learning and developing new
ideas. To do this, it relies on leaders who can change course in the face of adversity. For
businesses to stay ahead, leaders must create a work environment that encourages and supports new
ideas (Decuypere & Schaufeli et al., 2020). Organizations that are flexible and open to trying new
things will be better able to handle future challenges. (Hughes et al., 2022).