How to show commercial awareness

Demonstrating commercial awareness is essential to securing a competitive role. To bag that dream job, you need to show commercial awareness in every stage of the recruitment process. Want to know how? We’ll explain how to show commercial awareness during these key moments:

• Job applications
• Interviews
• Assessment centres
• Networking

We’ll also run through commercial awareness practice questions to help you prepare answers that will impress recruiters.

A job application is your first chance to impress. You need to make it clear that you’ve got what it takes from the get-go.

Follow our top tips and you’ll soon know how to show commercial awareness in a cover letter, on your CV and through any application form.

Before you interact with the company you’re applying for, do your research.

Commercial awareness involves understanding how industries and businesses work and the external factors that might affect them (eg. trends or the economy). You can only show you fully understand the wider market if you know where the organisation you’re applying for fits in the bigger picture. Is the company an emerging disruptor? Or is it the market leader?

When researching, go beyond the company’s website. Look at any recent news articles talking about the business. Going above and beyond with your research will make it easier to craft an application that’s relevant to the business’s current goals and challenges.

When it comes to your job application, recruiters want to know about you, not their business. So, don’t list everything you’ve learnt about the firm in your cover letter. Instead, be creative with how you show them that you’ve done your research.

Try subtly referencing the things you’ve read and relating them to your skills.

For example:

“As a volunteer for a sustainable fashion charity, I’ve learnt about the environmental impacts of the textile industry and am passionate about identifying ways to move clothing production towards more environmentally friendly solutions. I’ve read about how you’re striving to create net zero denim and value your commitment to this. I think I’d be an asset to this project due to the knowledge I’ve gained through volunteering.”

Show that you understand the skills required for the role and sector by tailoring your CV and cover letter. Every job application you submit should be unique. While you can have a core template, you need to make tweaks for each job.

For example, perhaps you’re interested in a career in operations but going for roles in different sectors. If you’re applying for a start-up, you need to show that you’re aware that this type of company is usually fast-paced. In this instance, play up your adaptability, multitasking and resilience. If you’re applying for an ops role in the arts, show that you understand what the industry involves through relevant experience and your interests. Have you planned an event for your drama society? Are you a regular reader of theatre publications? Even if you haven’t yet had the chance to gain experience in the sector you’re applying for, use your application to call out any relevant societies, hobbies and courses that demonstrate your industry interest (and therefore awareness).

Your application has done its job and now you’re through to the interview stage. Congratulations! Now’s your time to expand on the points raised in your application and show your commercial awareness in more detail.

To smash the interview stage, you need to:

Commercial awareness questions give you a chance to share your views on the latest news impacting your sector. Although your opinion is important, you need to recognise that other people have different takes.

Some interviewers may expect you to respond with a debate-style answer. To respond in this way, state what you think but then share what the alternative view is – making it clear you’ve based your opinion on research, not instinct. Be prepared for your interviewer to counter your responses. They might want to challenge your way of thinking. It doesn’t mean what you’ve said is wrong; they might just want a more in-depth justification.

Once again, you’ll need to do your research to succeed here. Before your interview, look up the strengths, weaknesses, threats and opportunities within the sector in which the business operates. Immersing yourself in industry news will give you the knowledge you need to form well-rounded responses.

One of the ways interviewers gauge your commercial awareness is by asking questions that require you to respond with industry examples. An example question is “Tell me about a business story you’ve read recently that interests you and why”. If you’ve dived into industry press as part of your preparation, you’ll have plenty of answers. However, it’s tricky to answer if you don’t keep up with the news. So, always research some stories before the big day.

To show more advanced commercial awareness, relate the story to the role you’re applying for. For example, discuss how the news could impact the business you’re hoping to work for. Giving a thoughtful answer here tells the interviewer that you’re not just reading the articles, you’re thinking about them. Showing you’ve thought about the wider impact of an industry update is a great way of demonstrating commercial awareness.

While you can never predict exactly what an interviewer will ask you, you’ll be in a better position if you practise. You’ll get to know how to adjust your responses to make sure your commercial awareness shines through.

Ready for some practice now? Skip ahead to our commercial awareness practice questions.

Some graduate recruitment processes include an assessment centre (also called an assessment day). Assessment centres feature activities that help employers figure out which candidates will suit the available roles. Expect tasks like presentations, role-playing, case study interviews and psychometric tests – all opportunities to show your commercial awareness.

Delving deep when carrying out your research will help you stand out to recruiters at assessment centres.

Get familiar with the assessment centre host’s biggest competitors. That way, you can discuss how the companies concern each other during certain assessment centre activities. Having broader knowledge will also make it easier to understand the reasons why the business does certain things and the behaviour of its customers.

Make sure you head into the assessment centre knowing the latest goings-on. However, don’t leave all your research until the last minute. Commercial awareness isn’t about cramming facts; it’s a skill you grow over time.

While it’s great to know that day’s headlines, employers want to see that you’re aware of the previous news that may still impact the company. So, check the news as part of your assessment centre prep while holding your head high knowing that you already possess commercial awareness.

Of course, commercial awareness is just one thing employers want to see. Learn more about what employers are looking for at an assessment centre.

You don’t have to be in a formal recruitment process to show potential employers you know your stuff. Networking will help you meet future colleagues while demonstrating your commercial awareness.

To maximise your potential when networking:

Having commercial awareness isn’t about how many news stories you can recite. It’s about how you apply knowledge and form opinions based on what you know about the business environment.

If you’re talking to a professional in your sector, have a flowing two-way conversation. Getting into the nitty gritty of a recent story will be great for both of you. With something interesting as a talking point, you’ll have a genuine conversation. You’ll be able to learn from their expert view. Chances are, they’ll want to hear your opinion too. If they like what they hear, they might keep you in mind for future opportunities.

You won’t know everyone you meet at a career fair or networking event, but that’s the point.

Get to know people, make connections and talk about topics that interest both of you. If you don’t know much about the industry they work in, ask them.

Networking also gives you a chance to grow your commercial awareness, as well as show it. Meeting people from different industries and hearing a range of perspectives is super valuable. By talking to people in several sectors, you’ll learn new things.

For more networking tips and tricks, visit our ultimate guide to networking.

Whether in an application form, interview or an assessment day, you’ll face questions that test your commercial awareness.

Here are some example questions that provide a perfect opportunity to wow the employer. Run through our example questions and think of how you’d respond. It’s great practice.

Sometimes, an interviewer will ask you to talk about something you’ve read or heard about. Your news research will come in particularly handy if you’re asked questions like:

• Tell me about a recent business (or financial) story you’ve been following.
• Can you explain how a story you’ve been following will impact the sector, including our business?

Many interviewers will expect you to be able to clearly explain how world events or market changes would directly impact their company or industry.

Here are some questions to think about:

• What are the biggest issues facing the industry today?
• What do you think will be the biggest challenges facing the sector in the next ten years?

Recruiters also want to assess your understanding of the individual business, so get ready for questions like:

• Can you explain how we generate revenue as a business?
• Who are our clients and what products or services do we offer them?
• Who are our competitors?
• What’s our USP?

Some interviewers will want to hear about how you've upskilled yourself and developed commercial awareness. If they do, they might outright ask:

• How have you developed your commercial awareness?

Sometimes, they’ll evaluate your top-level knowledge by asking:

• How would you define the term commercial awareness?

Broad questions test your ability to understand wide-reaching issues which may cause change.

Examples of general questions are:

• Are interest rates likely to rise or fall? How will a change affect the UK economy?
• Is the FTSE 100 going up or down? What impact is that having on the economy?

Commercial awareness is all about knowing what’s going on in an industry and understanding how other news events can change things.

To build your commercial awareness, you need to research your chosen field. If you pick a sector that you’re passionate about, it’ll come naturally. After all, if you love finance then you’ll already be checking up on the stock market.

As with every ability, it isn’t enough to have commercial awareness – you need to show it. If you demonstrate you understand your chosen sector in your job applications, talk about the bigger picture in job interviews and go to assessment centres equipped with competitor knowledge, you’ll go far. Even if you aren’t in the recruitment process, you can still show your commercial awareness when networking. Plus, meeting new people is a great way of growing your knowledge as well as your contact list.

If you’re looking for a job, brush up on our practice questions and you’ll be ready to show you’ve got the commercial awareness businesses are looking for.