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Bringing legal expertise into business strategy development is the natural conclusion of the process which I have advocated of lawyers to becoming more nuanced and practical business advisors.

In fact, all three topics lie along a spectrum, beginning with practicing law better at one end, moving through those business models that deliver low-level legal services with minimal input from mainstream law firms, and arriving at a the other end of the spectrum where lawyers give high value, and value-creating, strategic advice about the direction of a business long before there are any problems to be resolved.

The keepers of the business strategy profession are largely found in the management consulting industry—firms like McKinsey, Bain, and Accenture. Some of these firms developed out of the accounting profession (moving up the value chain into high-level advisory businesses in the same way that I have suggested should apply to the legal profession), and in the world of modern management consulting the legal environment is merely part of the tableau upon which a business strategy is built.

However, there are many situations in which the legal environment is not static but variable, and wherever this is true then legal is a variable that can be managed just like any other business variable. For example, in any case where a firm is involved in litigation which is significant relative to the size of the firm (”bet-the-company” litigation), or in absolute terms, such as Microsoft’s battles with the EU Competition Tribunal, then the legal environment should be considered as part of a business’ overall strategy—how could such a firm development its strategy without talking about the elephant in the room?

Furthermore, there are many fields of law in which the legal environment is fundamental to the business environment of a company:

• Tax
• Contracts
• Intellectual Property—trade marks, patents, copyright
• Competition, including merger review (Anti-Trust in the United States)
• Securities
• Corporate Governance
• Bankruptcy and restructuring
• Consumer Protection, Privacy, and Data Protection
• Product Liability
• Sector-specific regulation—e.g. food, medical & drug, energy, telecoms, transportation, professional services
• Labour and Employment

This means that no business strategy development process can be complete without incorporating legal strategy. However, business schools generally teach very little about the law, and for reasons that we will try to explore in later articles, legal as a function in a company is mostly left out of the strategy development process; the McKinsey Quarterly for example studies neither legal as a function nor professional services as an industry, and a search for “legal strategy” reveals almost nothing.

This is a blue ocean topic that has the potential to create significant competitive advantage. In the world of business academia, it falls into the larger class of “non—market strategies”, and some business schools do now touch on legal strategy in this larger context. However there are very few references or studies available which are focused on the relationship between legal and business strategy. The only text which takes on the topic squarely is Wharton professor Richard Shell’s 2004 Make the Rules or Your Rivals Will, which is full of cases where legal strategy made an impact on business strategy, from the foundation of the Ford Motor Company to Bill Gates’ battles with American anti-trust regulators.

The books is somewhat litigation-centric and begins by roughly recasting Michael Porter’s famous Five Forces model of the competitive environment of business into a model that attempts to predict the result of major litigation by assessing (i) the merits of the case, (ii) resources of the parties, (iii) public legitimacy of the parties, (iv) access to decision makers or home turf advantage, and (v) the strategic position of the parties in the market. This is fine for what it is, and Shell then goes on and organizes a wide array of the relevant stories he has collected into classes of business strategy moves such as blocking new entrants or locking in customers.
A key goal of this Journal is to develop an analytical framework for this topic which will help to identify which fields are most likely to reveal opportunities for business strategy innovation, when and why.

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The Maine Lobster goes by several aliases including American lobster and Northern lobster.  This creature thrives in cold currents of water. Lobsters are solitary and nocturnal. They live in areas with rocks that provide them with a place to hide from predators. The lobsters have many predators including codfish, haddock, flounders and even other lobsters. Lobsters shells are usually a blend of the three primary colors, red, yellow and blue. The colors blend together, giving the impression that lobsters are a greenish color.

The blue lobster is very rare, a diamond in the rough so to speak. Research conducted by the University of Connecticut discovered a genetic defect causes the lobster to create an extreme amount of protein. This results in the blue color of such lobsters. The chances of seeing a blue lobster is 1 in 30 million.

Another rare coloration of Maine lobster are those with the colors divided on each side of the lobster shell. A fisherman who claims to have seen 3 such lobsters in 35 years caught 1 and donated it to an ocean aquarium.

Lobsters are considered a delicacy in cultures of the United States and other regions throughout the world.  The most popular methods of cooking them are boiling and steaming. They must be alive until they are cooked to avoid food poisoning. Lobsters that are several months past their last molting are called hard shells. They can survive out of water up to two days if they are kept refrigerated.  Those who have molted recently are considered soft shells. They will not survive more than a few hours out of the water. This is why you choose lobster out of tanks at many restaurants.

In addition to being delicious, lobsters are low fat. However, they are not suitable for people on low sodium diets.  The lobster tail is a popular menu selection, commonly referred to as surf and turf.  Lobster is a great source of protein. Many seafood restaurants serve lobster with lots of butter, which can be an issue for those with high cholesterol. The lobster has an organ called the tomalley. This organ performs similar to the liver and pancreas in humans.  Some restaurants serve it; while others refuse because of the potential it may contain toxins.

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Copyright © 2009 Ed Bagley

Varsity Blues – 3 Stars (Good)

Having seen a lot of sports movies that were over-hyped, over-rated and under-performed, it was a nice change of pace to watch “Varsity Blues”, a football movie that actually had a message worth watching as well as some good acting along with the usual comedic moments and turf violence.

Most sports movies are mindless to the point of being pure, often profanity-laced entertainment—they are something to watch to pass the time of day, but you will not become a better person for having seen them because there is no message, much less a meaningful message. Varsity Blues is different because this is not a typical Texas high school football story.

In Texas, football teams do not play games, they engage in serious, civilized warfare. Since massive killing and scorched Earth practices are not accepted in modern society, Texas fans and their teams seek the next best result—win EVERY bloody game, hopefully with total domination so there is no need for bragging rights.

This would be true for the West Canaan Coyotes, whose coach Bud Kilmer (Jon Voight) is seeking his 23rd division title in 35 years of coaching. Kilmer has been around long enough to coach his former players’ sons, and then some. He is so driven, focused, nasty and determined enough to win that he will sacrifice the very health of his own players to get the job done.

Jon Voight is perfect in this role. Kilmer is self-centered, self-absorbed and extremely needy for power, adulation and turf success. Football is close to religion in Kilmer’s world, and he is god. One of Kilmer’s mottos is “Never show weakness, the only pain that matters is the pain you inflict.”

When his star quarterback, Lance Harbor (Paul Walker), is injured because he was playing when he should not have even been on the field, his replacement, John Moxon (James Van Der Beek) must step into the leadership role.

Even though he is a Texas high school football player with some talent, Moxon is everything he should not be—football is not his priority, he wants to go to college to get an education rather than play football, and he gets caught reading a novel hidden in the play book he is supposed to be studying. Funny thing is, he leads the team right up to the championship game. What happens in the climatic ending to this film is the reason you should be watching.

James Van Der Beek picked up some notice as John Moxon in Varsity Blues. The film itself and the rest of the cast were ignored by virtually all award-givers everywhere. What remains is the message of Varsity Blues, which puts it head and shoulders above most mindless sports movies. You must be able to tolerate the usual foul language, crude jokes, nudity, sexual titillation, drug use and violence to appreciate what happens to the coach, the fill-in quarterback and his teammates.

Varsity Blues was written by W. Peter lliff (not a misspelling on the last name), and directed by Brian Robbins. Both deserve credit for lifting Varsity Blues up to a higher level beyond sheer, mindless entertainment.

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