Do you want to know How to Develop Commercial Awareness?
I think yes, so let’s start this article where you come to know all about related to How to develop Commercial Awareness.
So, to understand the term, I share a story where you easily understand. assume that you are a junior manager of a company, one day in your company there was an open recruiting process is going on for the post of a senior manager.
As the process is open for everyone, so lots of outsiders are also joined the recruiting process. After understanding the situation, you come to know one thing is that the competition is cut through and everyone eager to want the post of a senior manager.
Everyone is called for an interview, and also your turn come s, you go to the chamber and rock in the interview process, you answer all the question confidently.
You tell all the aspects of the post, and also how to take care of responsibility and how to handle the pressure in that position, your explaining style is loved by everyone.
But there was one thing which is the most important aspects which you tell the interviewer.
This is how to analyse the market strength, who is direct as well as indirect competitor, what’s the strength and weakness of the company, and also what are the things we should do to challenge competitor.
After all this, you are selected as a senior manager.
But what is the actual reason for that? The actual reason is commercial awareness, as you know all the insights of the company and also know all details regarding a competitor.
So, it all shows how actively you do your work done, and also you are a commercial awareness person.
here the story ends, but I want to tell you one thing is commercial awareness is the reason for selection but why it is so important. So, let’s start to understand in detail.
WHAT’S IN IT
- What Is Commercial Awareness?
- What are the Benefits and Uses of commercial awareness?
- How to Develop Commercial Awareness?
What Is Commercial Awareness?
Commercial awareness is the term which means how to understand your company well and also what are the needs is required to make the company profitable, successful, and also provide customer satisfaction. In this, you are also come to know who is your competitor, stakeholders, and what are the current business challenges going on.
After identifying all you are also in a position to know your strength and weakness. After knowing all these things, you are now in a position to take a perfect decision.
What are the Benefits and Uses of commercial awareness?
In this current scenario, everyone tells that commercial awareness is an important aspect in terms of recruitments. Peoples who have lots of knowledge in company profitability, also the industry well, and also know the key areas of their competitor.
Those are the actual who have a high level of motivation to do work, always have a great focus, and always eager to know more about the company and their competitor are the best people to recruit.
Commercial awareness is also good for those who are in their current role.
If you know how to industry works, what they want, and who’s is your competitor, then at that time you are able to get good decisions, also manage risks effectively, get good value for money from suppliers, always try to strengthen your reputation as an expert, and always increase your chances of promotion.
Also, you are more able to clear clients need and give them support.
Whatever the role you have in the industry, try to be add on the skills of commercial awareness which I very much needed.
The governmental and non-profit organisation are taking part in a commercial organisation. And at last, it is a personal advantage that you need to take care of irrespective of sectors.
How to Develop Commercial Awareness
Now it is a very important question arise which is How to develops commercial awareness? Look this is a skill and also a long process. Here it is not be built by one night or say any frame of time.
It takes time, in that time you are going to know the industry, know your competitor and all, and after updating day and night, you are now available to tell you that you are commercial awareness.
But here are also some steps which we have to take during those long process. So, let’s each step briefly-
Always try to Understand the Organization- Commercial Awareness
These are the first steps. here your only focus is your own organization. Try to gain knowledge as much as you can.
Try to understand how its works, what is the vision and mission, how they earn.
Also looks for what are the key resources you have, which makes you different from others. After knowing these basic things, you are now doing some analysis on your own. How to do that let’s discuss step by step?
Firstly, try to get your company annual reports from the finance department. After that sit in a quiet place and analyse and everything. During the analysis, you have to take care of where our business makes profit and loss, which investment is good for the company and so on.
Now after analyzing your annual report, try to focus on your company vision and mission, and what are their goals. After knowing this, we are going to be in-depth about the organization, and also try to analyze where you lack.
After all this, you have to perform a PEST analysis. PEST means political, economic, socio-cultural, and technological factors that affect the organization.it is very important to know the organization surroundings better. Also, look at how your organization contributes to all of this area.
After knowing all this try to make a note of how to add more valuable customers to the organization.
Always try to Understand organization Resources and Suppliers- Commercial Awareness
We know that every organisation is run through its resources and suppliers.
So, it is also important to get the services and goods at the best market price. So that the organization not facing any loss. How to do that let’s discuss step by step?
First try to do a VRIO analysis, which stands for value, rarity, imitability, organization.
This analysis is doing by the company to make some long-term vision and also strategy,
and also the implementation process all take care in this analysis.
After VRIO analysis tries to look for the cost spend on resources, right or wrong. Try to know whether it is in the best market price.
At last, try to know that what all the services was taken care of by suppliers is fulfilling or not.
Always try to Understand Customers and Competitors- Commercial Awareness
We know if you want to understand the organisation, always try to focus on customers and competitors. How to do here also we have step by step approach.
First, try to make a list of all of your competitors and also make a note of their strengths and weakness.
After that try to use SWOT analysis, which stands for strength, weakness, opportunities, the threat of a company. Look is there any weakness of your company that was challenged by your competitor?
And in the last steps try to understand your target market, where should your company focus on customers.
Stay Up-to-Date on Industry Developments
Gaining knowledge from time to time is the best thing to do for commercial awareness. So here also some steps to look at.
Always try to read news and also important things from financial websites, blogs, journals, Twitter etc.
Always read some business developments things through a particular website or any business publication.
Try to make networks using LinkedIn with the same professionals.
Always try to Evaluate and Prioritize your Projects
In this part of developing commercial awareness, we are going to know how learning is important, and also how to evaluate and prioritize projects.
After understanding this you are in a position to know your ideas before try.
It is always important that your priorities projects should always be aligned with the company vision and mission. make any priority which a hurry, always try to understand and apply it.
And at last, if you want to know that this project will give us the company financially profit, you can use an analysis called cost-benefit analysis.
And also, if you want to decide whether to invest in projects or not try net present value and internal rates of return.
After following all these steps, I hope you are now in a position to tell yourself a commercial awareness person.
It is very important to understand your company deeply in order to take it further. Be in term of profits or sales, every aspect would require you to have a deep understanding of your company. This is what commercial awareness does. It helps you develop an understanding about the company.
Also Read: Everything you need to know about Transformational Leadership