This is an educational video, an animation of two people interested in business and law talking about commercial awareness. All characters appearing in this work are fictitious. Any resemblance to real persons, living or dead, is purely coincidental. Note that they are not promoting any product, service or cause.
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Transcript:
Frank
Hi Bill. Good to see you again. What are you doing here in Rugby? What have you been upto?
Bill
Hi Frank. I thought Rugby wold make a nice change from Ipswich. I know you set up that e-learning business some time ago, as you fancied a change from being a mini-cab driver. Look, I know full well you’ve always wanted to study law and to becme a corporate lawyer one day. I admire you for that. Honest I do. Instead, I’ve been pottering around in management of a local shop. I’m launching a new range of pottery. Don’t forget, I’m quite a bit older than you, and I’ve been around the block a bit.
Frank
Bill, as a business professional with your company, what do you do to keep up your commercial knowledge of the rest of the world?
Bill
Frank, that’s not too difficult to answer. I have a lot of extra-curricular interests these days like reading, going to art galleries and the theatre. But for commercial awareness, I think it’s useful to read the financial headlines. I tend to get my information from the regular broadsheets, and the trusted sources of news on the TV and internet. Often, I also look at the textbooks from my University course many years ago! Luckily I can pop into a good local academic bookshop.
Frank
Bill, first thing’s first, what do you think that “commercial awareness” actually is?
Bill
Commercial awareness can be simply defined as staying updated on daily happenings and developments in the business and commercial world, I reckon. It’s probably fair to say that a significant portion of law today revolves around business and commerce, in the marketplace, between cities and regions and on a larger scale across entire cultures and countries. It can be fun to have an understanding of different cultures and countries in my opinion as I love travelling. Hence, commercial awareness is one of the key requirements a good and competent solicitor needs to master apparently.
Frank
How do you obtain commercial awareness, Frank?
Bill
We’ll this can’t happen overnight, but can be built over a period of time, starting early during your basic education and then honing up your expertise as you grow into starting a career and climb the ladder. It is critical to know of the overall framework within which law operates though in my opinion.
Some of the methods by which you can familiarize yourself with the idea of commercial awareness can be categorized as follows:
Number 1. Kearning and research – this is the most basic and easiest way to gain commercial knowledge. Reading newspapers, business publications such as magazines, company newsletters or watching or reading business-oriented programmes and discussions through various media.
Number 2. ??It also means staying updated on the latest deals, transactions, legislative changes and other relevant developments over a significant period of time, such that you are able to understand and appreciate both the big picture as well as contemplate micro-level analysis. ??Putting such developments into perspective with the way the economy and society are currently progressing will help you understand the implications of change and how it might affect you or the environment around you or different industries and business segments.??
Frank
Why is it important for you? I get the impression that commerce and law definitely go together. In your opinion, is business important to lawyers?
Bill
Look I’ve never been a lawyer, but commercial awareness is a key competency for all city job applications for lawyers I’m told. Frank, to be blunt, I wouldn’t know about commercial law really as I work in a small pottery business. There’s not a shred of doubt that you should aim to know the business of your client inside out, if you wish to be a successful lawyer.
For all those individuals who are aspiring to becoming lawyers, commercial awareness is an important capability which can make the difference between becoming or not becoming a good lawyer. ??Clients expect their lawyers to know in-depth details on how a business is run, what are the key factors for profitability and growth and how best to make optimal use of resources at hand.
Frank
Can you give me an example of commercial awareness?
Bill
Commercial awareness in general is comprised of knowledge of current deals and transactions and issues faced in the business world. For example, the ‘Credit Crunch’ is an issue that businesses are now facing. We found things tough in the pottery industry. People viewed our mugs as luxury. People will expect you to know about the credit crunch, and know what implications it has for your clients and their business. ??You must have an understanding of the business environment and the operational grid under which business is conducted on a daily basis.
Frank
Should you develop commercial awareness sooner rather than later?
Bill
Frank, it is best to start early on the road to commercial awareness. You’re just a youngster really. The first phase where this requirement will crop up is when you begin applying for your training contract. Most application forms have sections that are devoted to gathering information on how tuned-in to the business atmosphere you are as a prospective solicitor. ??This does not mean that you should be a business and economic guru; at this stage firms are only interested in checking that you have some basic understanding and an aptitude for the concept.
Frank
How do you prove your commercial awareness if you’re applying for a job?
Bill
For a prospective person working in the City, apparently, displaying a keen sense of commercial awareness will constitute a major portion of the application and recruitment process. You can begin with the details you provide in your application forms, continue with gathering data on the kind of business and practice the law firm you are applying to is involved in, and provide final proof of your proficiency during the interview process where quite a bit of time will be spent on measuring your commercial awareness.
Frank
Can you give me examples of such questions in an interview?
Bill
A friend of mine went for an interview at a law firm. He’s a corporate lawyer in fact. Typical commercial awareness questions include:
1. Describe a company you think is doing well/badly and explain why you think this is so.
2. What do you think are key qualities for a company to have to be successful?
3. What significant factors have affected this industry in recent years?
Frank
Thanks Bill
Bill
Pleasure Frank
