Vector sold exotic sports cars and was the only US based manufacturer. Their major competition, Ferrari and Lamborghini, took up 75% of the market share. Gerry’s idea was to make a car based off of aerospace technology. They created the V8 twin turbo which was highly advanced and priced. After selling a total of 13 cars, 45 people were employed. Vector built two other models to increase sell volume and decrease losses. Vector’s Board of Directors composed of 3 individuals, Berry with a background in real estate; John, a financial consultant, and Vector’s CFO; and Gerry, the president of Vector. Berry and John grew to disagree with Gerry more often; therefore, Gerry…show more content… A board of directors must meet periodically and organize goals, strategic plans, responsibilities, financial planning, code of code of conduct, board operations and rules, and any other plans that are related to the company and its employees. They must make sure that these guidelines are appropriate for the company, and is periodically updated.
To help the board implement the company’s rules and procedures the board is responsible for selecting the Chief Executive Officer/President and their salary. The board cannot be active in the daily affairs of the company; therefore, choosing a responsible representative to be CEO is critical in the operation of the company in accordance to the board’s rules. The board should monitor the CEO and the company through both internal and external reports, and provide feedback to the top executives. When providing feedback the board must be weary to only comment on policy and direction, not items such as staffing. Yes, the functions of the board are a little different than the usual. They did meet quarterly, chose Gerry to be the President of Vector, oversee management decisions, and determine budgets, but they did not form Vector’s strategy. This is a major role of the board of directors, and I am curious to know who did establish the strategy. Plus, if the board did not create it then was it ever analyzed to be updated? Another
