How does commercial awareness come up in interviews?

In this newsletter, I offer some insights into what commercial awareness means and how it comes up in interviews, including insights into what came up in my own assessment centre case studies. But first, I wanted to let you know about an opportunity to earn some ￡￡￡, plus a significant update to one of our best free resources.

If you attended an interview in 2023?and are open to writing a detailed overview of what came up, please get in touch (we're willing to pay for your time, if?you?have a UK bank account!).

Just drop me a DM or email ([email protected]) and let me know which firm(s) you have interviewed at.

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What is “commercial awareness”?

Commercial awareness is generally one of the most feared aspects of an interview process. However, this tends to be more because applicants don’t really understand what is meant by commercial awareness, which can make it very difficult to prepare.?

To broadly summarise, if a person is “commercially aware”, this means they have at least a foundational understanding of how businesses operate, as well as a general awareness of the broader economic, political and commercial factors that can affect businesses.

This could include an understanding of the types of strategies that businesses pursue (for example, an understanding of why and how businesses raise finance or engage in M&A activity) and the risks and threats that businesses face. And it can also include knowledge of current affairs, industry trends, political events and the economy, as well as a foundational understanding of how these factors can affect firms and their clients.

How does commercial awareness come up in interviews?

These days, graduate employers tend to look for commercial “interest” as much as (if not more than) commercial “awareness”. You won’t be expected to detail every single commercial, political and economic event that has happened over the past few years, but you will likely be expected to demonstrate an interest in business and the broader commercial factors that are likely to affect the firm and its clients.?

Commercial awareness may be tested in various ways during interviews.

• You may be asked to define “commercial awareness” and explain its relevance to the firm’s employees.
• You may be asked to speak about a particular news story that has interested you or be asked point blank about a specific event that has recently occurred (however this kind of question is phrased, be ready to put forward an opinion and explain how the story or event could impact the firm and its clients).
• You may also be presented with a legal or commercial case study, or fictitious client/business scenario, which will require you to demonstrate your understanding of various business, financial and (depending on the context) legal concepts.

Check out this YouTube video for more information.

What do case studies involve?

Case studies often require you to, for example, complete a written report, deliver a presentation, engage in a group discussion, or answer targeted questions from your interviewers.

As part of such case studies or scenarios, you may be provided with a broad range of information, for example:

• Information on the background of a business and its key products and services.
• Business accounts from recent years.
• Press clippings.
• Information about its employees and internal operations.
• Information about external developments relating to the industry in which the business operates.

You will then usually need to quickly digest this information, identify key points, and communicate advice or an opinion. To give some personal examples, in previous case studies I was expected to:

• Identify certain risks and suggest how these could be mitigated.
• Draw out potential strategic opportunities and suggest strategies that could be employed to capitalise on each.
• Recommend which steps a fictitious client should take.
• Compare and contrast different commercial options (e.g. different methods of financing, ways of structuring a deal, methods of valuing a business, strategies for growing a business etc.).
• Compare various acquisition or investment targets, then form an opinion on which option to pursue and justify this decision.

This content forms part of the Commercial Law Academy's Introduction to commercial awareness course, which explains the meaning of commercial awareness, how it comes up in interviews, how to develop it, what to consider when discussing current affairs, and how to structure your answers to commercial awareness questions.

Commercial Law Academy offers?seven comprehensive commercial awareness courses?specifically designed to help build your commercial awareness. This includes courses covering: how to build commercial awareness, example (real) interview case studies, current affairs and industry trends (including monthly wrap-ups of the key business stories), mergers and acquisitions (fully animated!), legal technology, the business of law firms, and how to launch and run a business.

As a reminder,?Commercial Law Academy?offers 20 in-depth courses, covering: insights into legal careers, firm profiles and interview insights, expert advice on writing applications and tackling psychometric tests, dozens of example (verified) successful cover letters and applications, resources to help you prepare for interviews and internships, example interview case studies, practical content to help you understand and confidently discuss commercial concepts and current affairs, plus tips on how to network, negotiate, deliver presentations and write professionally. Check out this?animated explainer video?for more information.