What is the primary function of the board of directors in strategic management?

The primary function of the board of directors in strategic management is to provide oversight and strategic direction. This role is crucial because the board sets the overall vision and long-term strategy for the organization, ensuring that it aligns with the company's goals and objectives. The board's responsibilities include making key decisions about resource allocation, risk management, and major capital expenditures, all of which help guide the organization toward achieving its strategic priorities.

Moreover, the board ensures accountability by evaluating the performance of top management and the organization itself, aiding in maintaining corporate governance standards. In this capacity, the board acts as a bridge between shareholders and the management team, representing the interests of stakeholders while also ensuring the effectiveness and sustainability of the company's strategy. This oversight role helps to mitigate risks, align the company's activities with its mission, and adapt to changes in the market environment.

In contrast, managing day-to-day operations, interacting directly with customers, and creating marketing campaigns are activities typically handled by management and operational teams within the organization. These functions, while essential for business success, do not fall under the purview of the board of directors, emphasizing the board's focus on governance and strategic direction instead.