How does corporate governance impact a companys strategic ma

How does corporate governance impact a company’s strategic management plan?

Solution

Strategic management is nothing but the process by which the organization define its strategy and allocate its resources appropriately to proceed with the strategy. Strategic planning is done based on the following:-

Corporate governance is important part of business in order to meet the goals and objectives. Corporate governance is nothing but the combination of control, policies and guidelines that helps the business to meet its goal and also fulfill the stakeholders needs.

Corporate governance is used to monitor and control the top-level manager\'s decision because:-

Corporate governance impact a company’s strategic management plan because it focus on aligning the people to corporate culture and its goals and make sure that people take accountability. Corporate governance help in decision making process and ensure that the stakeholder, shareholders and the board are committed towards their roles and responsibilities. This will make the people accountable towards their work and make decisions effectively. Corporate governance focus on building relationship among the stakeholders which in turn helps in improving the performance of the organization. Thus, corporate governance create conditions that allows top executive to develop a competitive advantage and focus on long-term performance.