Chapter6 - CG Chapter 6 The Functions of the Board Board...

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CG Chapter 6 The Functions of the Board Board functions working through management (Figure 6.2 – page 121) Strategy Formulation - Is the process of generating and reviewing alternative longer term directions for the firm that lead towards the achievement of its purpose - May involve senior management, consultants, board members - Provide company’s purpose, aims, direction Different Approaches - Long range planning - SWOT - Porters Five Forces (competition, suppliers, customers, substitutes, barriers to entry) - PEST (political, economic, social, and technological context) - Recourse based View - Thinking strategically (“Think with the mind of the Enemy” – it’s all about competitors) Policy Making - Put strategy into practice - To make strategies operational, companies need policies, procedures, plans, projects - They provide criteria against the board can subsequently monitor management performance and fulfill their duty to supervise - Policies can be thought of as the rules, systems, procedures that are laid down by the board to guide and constrain executive mngt (mngt may play a large part in
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Chapter6 - CG Chapter 6 The Functions of the Board Board...

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