Finding the Right Corporate Legal Strategy Harvard Case Solution & Analysis

Organizations today are strategically observing that legal capabilities getting typical gradually for modern corporate success, and they could understand how essential collaborating with legal counsel is. However, the executive class still takes law as constraint managerial decisions, primarily understanding it an issue of cost compliance department. Now this confined perception of the law is not enough to meet modern requirements such as Qualcomm and the Walt Disney Co., have managed to sharp their legal department so that they can rise safer long-term competitive advantage. According to this case research, the authors have explored a pattern that may assist executives describe various ways in which legal strategies could be utilized in order to achieve different corporate goals, including the identifying skills of value-creating opportunities. The pattern consisting of five different legal dimensions, those have been described giving examples like Qualcomm, Microsoft, United Parcel Service and Xerox. For getting least to greatest strategic impact, the five legal pathways are (1) avoidance, (2) compliance, (3) prevention, (4) value and (5) transformation. Managers often find law as a setback to achieve their business goals. Companies working under avoidance pathway will face lax internal controls or fail to perform due diligence, and this initiative may bump to destroy. On the other hand, companies with compliance pathway, identify that the law is a mandatory constraint, and they perceive compliance a minimized cost to be done. Managers take a more proactive approach in the businesses under prevention pathway, for future business-related risks through utilizing the law to preempt. The value pathway lead to a fundamental shift in mindset, from risk management to value creation; craft strategies are used by managers that expand ROI in ways that can be directly linked to a profit-and-loss statement. The companies that are run under transformation pathway, executives have integrated their legal strategy not only with the value chains of important external partners but also within the organization’s various value-chain activities. Considering of the overall business model is not enough to find a right legal pathway for a company. Some other factors are necessary to go with like managers’ attitudes towards the law and their level of legal knowledge, the refinement of legal counsel and, specifically, the legal department’s capability to work with managers to get strategic business goals. Using the author’s framework as a guideline, executives can carve best legal strategy that merge their specific business requirements.

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