Board of Directors’ Role in Strategic Management

Apple Inc. has consistently dominated Fortune’s ranking of the most admired companies, owing to its focused board of directors led by CEO Tim Cook and board chairman Arthur D. Levinson. According to Fortune (2020), Apple boasts the top-most US and global ranking for several consecutive years, beating other tech giants like Amazon and Microsoft through its innovative organizational structure and leadership flexibility. Since its early days, Apple Inc. has always exhibited strong leadership qualities inherited from Steve Jobs, and the succession to Tim Cook, the CEO of Apple Inc., seemed to exert heavy pressure on the current management counsel. However, the results in ranking and financial returns under the current management have confirmed his suitability for the position. Chairman Arthur Levinson and the board are focused on quality leadership and management at all organizational levels in the company.

It is the board’s role to plan and execute strategic actions that will promote long-term sustainability at any organization. The board also oversees and guides the CEO and other senior counsel on proper decisions that align with Apple’s corporate interest. Apple’s senior management is popular for its flexibility in decision-making, introduced by Cook, to ensure that changes are rapidly implemented without reliance on his capacity to approve amendments. The company utilizes a unique communication strategy that ensures that all stakeholders are informed of amendments and relay timely feedback so that decisions are quick and inclusive.

The board’s understanding of their expectations in a focused approach and standard-setting using proactive strategies has led to the achievement of stakeholders’ interests. The satisfaction has led to stock growth and expansion of stakeholders’ base since more people are confident about decisions being taken by the board of directors and Tim Cook’s senior management. The prioritization of ethics and competency among board members has led to long-term collaboration and development of market edges as seen in the various computer operating system innovation, iOS generations, that adapt to global changes and demand.

Reference

Fortune (2020). World’s Most Admired Companies. Web.

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StudyCorgi. 2022. "Board of Directors’ Role in Strategic Management." March 16, 2022. https://studycorgi.com/board-of-directors-role-in-strategic-management/.

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