Commercial awareness is a phrase that is frequently used in recruitment material, written applications and interviews. It is undoubtedly an extremely important proficiency for any aspiring lawyer to have. But what does it actually mean?
A simple internet search will return generic definitions not too dissimilar from "an understanding of how a business and or industry operates in the marketplace for the purpose of making money". This is a reasonable starting point but, on its own, is not likely to be enough to secure a position at a commercial law firm.
Instead, being able to leverage commercial awareness to your advantage requires a greater understanding of your target law firm, their specific clients and the markets in which they operate. Of course, this means that the intricacies of required knowledge will vary from firm-to-firm.
By way of example, picture yourself working for a law firm representing a relatively small family-run business. Imagine, for a moment, that the business is planning on opening its second store in a local town. In this context, what would be required of your commercial knowledge? Well, you would almost certainly need an understanding of the business' current customer base, local high street trends and performance of other local competitors. Additionally, consider whether there are any distinctive features about the town in which the store is opening. For example, is it a historic market town? If so, you may well need to advise your client about regulations relating to the design and physical appearance of the new store and consider whether there are specific legal or regulatory issues applicable to the location which might not always be relevant in other areas.
Now, to contrast this, picture yourself working for a law firm which acts for Apple, or Meta, or Microsoft. Imagine that your client is planning on introducing a new electronic product to the global market. Of course, many of the factors listed above will still be relevant but above and beyond this, you will need a greater understanding of the operation of international logistics and trade. You will need to think about how your client intends to distribute the new product. You will also need to consider possible cultural differences relating to how electronic products are received and used in different countries. Think about how this affects the way consumers interact with the products. This is important because it will affect your client's marketing. More specifically, consider the variety of advertising laws you are likely to encounter. You may well reach the conclusion that you need to recommend taking advice from lawyers in other jurisdictions.
Of course, the two examples listed above are illustrative but the principles will always apply. So, what practical steps can you take to ensure that your commercial awareness shines throughout your application process?
I can share a personal experience of incorporating commercial awareness into my apprenticeship applications process with Osborne Clarke. I found that, when applying to the firm, my knowledge and understanding of its sector approach was invaluable. To prepare myself, I read the information on OC's website and I began to think more commercially about the opportunities, threats and challenges each sector faced – and the differences between them.
Amongst other factors, I considered questions like, (i) how heavily regulated are the varying sectors the firm covers?, (ii) what is the public perception of the sector (and how has it changed over time)?, (iii) what are the common trends relating to how the sectors are regulated?, and (iv) what are the upcoming legal and regulatory changes?
I found that, having previously considered the factors set out above, I was able to incorporate my commercial awareness into all stages of the application process - right up until the final interview.
In the interview, I was able to have an educated discussion with the interviewer about the opportunities and challenges clients faced because of the wider commercial market in which they operate. This undoubtedly enabled me to perform as well as possible throughout the application process.
This article was written by James Lister a Solicitor Apprentice in our Commercial Litigation team.
To find out more about our Solicitor Apprenticeships click here.
