Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th Edition by Michael Hitt , R. Duane Ireland , Robert Hoskisson

Exercise 1

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 can students offer to support their position?