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Globalization
is creating numerous opportunities for sharing knowledge, technology, social
values, and behavioral norms and promoting development at different levels
including individual’s organization, and societies across different countries
and cultures. Globalization leads to increased competition. The
good side of globalization is all about the efficiencies and opportunities open
markets create. Business can communicate efficiently and effectively with their
suppliers and distribution networks. Globalization a greater impact on the
understanding of strategy. Strategies are defined by covering all aspects of
business, such as environmental socials values and market development regarding
resources availability. Is quite difficult to understand the strategy without
considering globalization effect. Globalization brings lower cost goods from abroad which leaves them
with spending power to spare and a higher standard of living.it also brings
opportunities for productive investment in higher growth investment.

Innovation
is a process of translating a new method or idea. Innovation is very crucial to
the success of a business therefore also has a greater impact on strategies. Hence
required better knowledge of innovation before getting to understand the
strategies. Due to globalization, innovation also increased and more people
attracted towards it and in creating new products and selling them globally. So
it’s a very important factor in the understanding of strategy. Strategies are
made by taking into account all such factors.

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Sustainability factors include triple bottom line approach
that considers the environment, society and profit. Sustainability has an
important impact on the understanding of strategy. Either strategy is
sustainable according to the environmental, social and customer needs.
Sustainability must-have factor for setting strategy and their respective
policies.The board of Directors is appointed to
act on behalf of the shareholders to run the day to day affairs of business.
Therefore, their first role is to protect the shareholder’s interest. This is
their legal duty. This means that they have to see that the shareholder’s value
increased and they are getting an adequate return on their investment. Board of
Directors also responsible for taking the decisions regarding business
prosperity and affairs that would affect the long-term performance of the
business. In addition to
business and financial issues, Board of Directors must deal with challenges and
issues related to corporate governance, corporate social responsibility, and
corporate ethics. Board of Directors has to oversee the top management
with the concurrence of the shareholder.

Major roles of Board of
Directors is to provide continuity for the organization. Select and appoint of
Chief Executive to whom responsibilities for the administration of the
organization is delegated including review and evaluate his performance
regularly on specific job description including executive relations with the
board and leadership in the organization. It is important that board meetings are held properly on
a periodic basis so that directors can discharge their responsibility to
control the company’s overall situation and strategy, to monitor the exercise
of any delegated authority. So that individual directors can report their
particular area of responsibility. Board of Director also responsible to
acquire sufficient resources for the organization’s operations and to finance
the programs effectively. The roles of Board of Director include is to
establish vision, mission, and values. Business vision and mission is to guide
and set the pace for its current operations and future development. To achieve
company’s vision and mission goals must be defined and directors are
responsible for setting goals and reviewing it regularly basis. Company’s
policies should be defined to achieve goals and reaching to company’s mission.Management
teams are formed by individuals in a company and are tasked to manage company’s
day to day operations. Management teams are required to implement strategies
formed by the Board of Governance. Board of Directors forms policies and
procedures to run the company and the management team is responsible for
setting up a risk maintenance system. The oversight of the management is
necessary as monitoring of controls is necessary to bring efficiency to the
system. Board does consist of independent directors, who are assigned the task
of evaluating, monitoring, reporting and then rectifying the errors and
omissions detected by the control system. In some instances, Board might hand
over some responsibilities to the senior management to successfully implement
the policies and strategies, which are to be reviewed time to time to ensure
transparency.

Management
is also responsible to develop organizational culture and to focus on applying
control systems throughout the channel. An independent audit committee is the
one which supervises the effectiveness of control culture and environment. To
avoid more reliance on management own tactical ways to apply controls, an
independent audit committee comprising of Independent Directors are responsible
to oversee the implementation of control strategies devised by the Board of
Directors. The audit committee oversees the company’s operations on ethical and
moral grounds as well. A well thought out oversight of management is necessary
for the board because there may be the breach of implementation and there is a
risk involved that senior management might misuse their powers. That breach
might not be quantified but it can create hurdles to meet company’s objectives.
Board can oversee the organizational and operational performance of the company
by overseeing its management team and possibly could prevent any future loss
arising from the breach of strategy implementation.

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