Top executives and members of a corporation’s board of directors have different roles and responsibilities. Traditionally, executives have been responsible for determining the firm’s strategic direction and implementing strategies to achieve it, whereas the board of directors has been responsible for monitoring and controlling managerial decisions and actions. Some argue that boards should become more involved with the formulation of a firm’s strategies.
How would the board’s increased involvement in the selection of strategies affect a firm’s strategic competitiveness?
What evidence would you offer to support their position?
Be sure to respond to at least one of your classmates’ posts. Please respond to the post below also.
Joycelyn Hubbard
RE: Week 8 Discussion
Hello Professor and classmates,
Corporate strategy is becoming more difficult for today’s leaders. As business settings become increasingly diverse, firms must actively pick strategic methods tailored to their unique circumstances. External variables like political demands, social expectations, and economic conditions have a more significant impact, increasing the strategy’s complexity. Moreover, given the rapid pace of change, strategic assumptions must be re-evaluated regularly. A competitive strategy is also necessary to ensure that the organization stays true to its vision and mission. Developing a new competitor strategy to outperform competitors or their products by rebranding or redesigning them can help a company increase earnings and establish a fresh image in the market. (Eisenstein & Eisenstein, 2019)
Directors can assist management while playing a more significant role in governance, ensuring that the strategy is implemented correctly. Board members offer oversight in all situations to ensure that the company works ethically and efficiently, as unethical business practices can result in costly regulatory and legal fines, and inefficient operations can cut into earnings.
Sources
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management.Mason: Cengage Learning.
Eisenstein, W. by L., & Eisenstein, L. (2019, December 19). The role of the Board of Directors in strategic management. BoardEffect. Retrieved November 23, 2021, from https://www.boardeffect.com/blog/role-board-directors-strategic-management/.
0 comments