By Janelle M. Lewis, Attorney, Business & Legal Strategic Consultant

When it Comes to Regulations, No Business is Immune

No business is immune from the impact of regulations. Whether they relate to data protection & privacy, cybersecurity, the environment, employment or the  pandemic, no business is immune from regulatory impact because the impact of regulations directly effect business strategy. Whether the strategic focus is on business activities, business operations, the value chain or marketing & pricing strategies, regulations can throw the strategy a business develops to achieve its strategic objectives off course. They can, however, also be a source of opportunities, if one changes the way they see the impact of the regulation.

Whether the strategic focus is on business activities, business operations, the value chain or marketing & pricing strategies, regulations can throw the strategy a business develops to achieve its strategic objectives off course. They can, however, also be a source of opportunities, if one changes the way they see the impact of the regulation.

Regulations Can Introduce Opportunities to Create Value

While no business is immune from the impact of regulations, this does not mean that opportunities to create value cannot be found. If properly assessed within the framework of the entity’s business strategy, regulations can bring unforeseen opportunities to continue or enhance the competitive position of the business. Another way to look at it is that, complying with regulations does not always need to be seen as a chore. Assessing the regulatory impact on business strategy allows decision-makers to have a more robust understanding of how the proposed or existing regulation effects relevant factors that the company looks to or uses to achieve its strategic goals. 

…complying with regulations does not always need to be seen as a chore.

The Role of Strategic Frameworks

When business decision-makers can find opportunities in the challenges, they can create value. When they can look at perceived problems through a different lens, they can find new solutions and uncover new roads to strategic growth. Strategic frameworks provide the tools to overcome the perceive challenges brought forth by regulations. Using a strategic framework to assess the impact of an existing or proposed regulation on a company’s business strategy allows decision-makers to understand the exact impact of the regulation. This is done by zeroing in on specific, concrete, determinative factors of the business strategy so that a deep understanding can be achieved of how the regulation in question impacts those factors. The resulting cumulative effects of the impact of the regulation on those factors results in an assessment that can be used to inform subsequent strategic decisions in order to achieve business objectives. 

When business decision-makers can find opportunities in the challenges, they can create value. When they can look at perceived problems through a different lens, they can find new solutions and uncover new roads to strategic growth.

Bridging the Gap Between Business Strategy and the Law

All in all, assessing the impact of regulations on business strategy is another practical, productive and efficient way to bridge the gap between business strategy and the law. 

JML Business & Legal Strategic Consulting, Division of the Law Office of Janelle M. Lewis is proud to present the following strategic framework for business decision-makers, strategists, and management consultants entitled: “Assessing the Impact of Regulations on Business Strategy”

The Framework is currently being sold on Flevy.com. To access the Framework, please click here.