The Wallace Group is in need of a Board of
Directors for their corporation. The board of directors has
an obligation to approve all decision that might affect the
long run performance of the corporation. Harold Wallace
has acted as a one man board of director, making all final
decisions for the Wallace Group. The board of director's
responsibilities is setting corporate strategy, overall
direction, mission, or vision. Hiring and firing the CEO and
top management. Controlling, monitoring, or supervising
top management. Reviewing and approving the use of
resources and caring for shareholder interests. (Wheelen &
Hunger)
The next important problem that the Wallace Group
is facing is the fact that they have never created or
implemented a strategic management. The role of the board
of directors in strategic management is to carry out three
basic tasks. The first if to monitor, by acting through its
committees and to pay attention to developments inside and
outside the corporation and bringing these to the attention
of management.
The next would be to evaluate and
influence management proposal, decisions, and actions;
give advice and offer suggestions. The final is to initiate
and determine, a board can delineate a corporation's
mission and specific strategy.
Strategic management is a technique you can use to
create a favorable future and help your organization to
prosper. To create this favorable future, you must involve
your organization's stakeholders (anyone with a vested
interest in achieving your organization's goal) in
envisioning the most desirable future and then in working
together to make this vision a reality. The key to strategic
management is to understand that people communicating
and working together will create this future, not some
words written down on paper.
Strategic management does not replace traditional
management activities such as budgeting, planning,
monitoring, marketing, reporting, and...