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ACCA Strategic Professional · Strategic Business Leader · The board of directors

Marlowe Foods is losing market share and the board is split on a risky new product line championed by the executive directors. The non-executive directors have limited knowledge of the food industry and rely entirely on papers prepared by the executives. Which action would best strengthen the non-executives' ability to fulfil their strategic role?

The board should give non-executives independent information, access to external advice and induction including site visits. This reduces their reliance on executive-prepared papers and equips them to challenge strategy effectively. Making them managers or linking their pay to sales would compromise their independence and oversight role.

  1. AGive them access to independent information and external advice, and an induction and site visits to build their understandingCorrect
  2. BRemove them from strategy discussions and limit their role to attending the AGM
  3. CMake them responsible for managing the new product launch
  4. DPay them bonuses linked to the new product's sales

Explanation

Non-executives need good information and understanding to challenge strategy. Independent information sources, external advice and induction reduce dependence on executive papers. Removing them from strategy or making them managers or sales-linked bonus holders would undermine independence and the oversight role.

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