In the world in which business models are evolving quickly and new competitors can come almost overnight, tactical thinking -especially at the very top of the company -is more significant than ever to the survival of a firm. As with other leadership functions, the one played by the board changes with the business's culture and the norms and legal requirements of its own home country, in addition to the standards of the business. More to the point, the board must play a function that matches the company's strategic needs as well as the state of its sector.
The board of a business that is youthful, for instance, usually has to wrestle in relation to the board of a long-recognized company with tactical dilemmas that are different. In the authors'view, three dimensions shape the contributions of the board to strategy: 1. A Definition of Strategy Companies define strategy in various ways, determined by the character of their industry and their place within their business. Often boards fail on which to focus, just because the company haven't defined the right measures of contest or the appropriate challenges. 2. The board's role in the strategy may vary from that of advisers who administer the strategy to complete coauthors of the entity’s game plan. 3. The involvement of the board in strategy also depends on the context or environment in which the company excels.The Context of the Company- The board's participation in strategy also depends on environment or the circumstance where the firm competes. In case the company operates in a market that has a fairly simple and secure competitive dynamic, the board might be well advised to stay distant and mainly hands off on strategy questions. In a more disorderly circumstance, however, a board may elect to take a stronger, hands-on approach to strategy development. These three variants, and the interaction among the company, make determining the duties of a board for strategy a complicated decision. But, the authors indicate, analyzing the authors indicate, assessing the three variables in detail can help clarify how a board that is given can best contribute to the strategy of a company's.
PUBLICATION DATE: October 01, 2014 PRODUCT #: SMR503-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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