To share powers between the business owner and company CEO in an expert and knowledgeable way is of crucial importance. It is vital for listed companies operating internationally in multiple jurisdictions. Let’s try to dig deeper into the issue and discover the differences between the 2 to determine whether it is CEO or the company owner who shall be in charge of company management and/or business operation.
The article below investigates essential aspects of business management and sharing authority between CEO and the business owner that can potentially fuel company development and profit growth.
Company owners and their responsibilities to protect and expand business
Although not a college major, business ownership remains a full-time career and a life-long calling. A business owner enjoys established rights and has direct obligations and job responsibilities. To duly set the company’s goals and shape its common ideology is a paramount business owner’s duty.
A company is set up to earn money, which is natural and stands to reason. Another oftentimes disregarded aspect is that all major businesses undercutting the competition that have become firmly established on the market, boast individual goals let alone concepts.
Internationally acclaimed as MacDonalds founder, Raymond Kroc dreamt of selling hamburgers at 15 cents so that any consumer could buy one. Being a true aesthete and comfort lover, the Apple company founder hankered for supplying users with the most efficient computer software, equipment, and technologies. Netflix CEO and chairman worked to make finding and watching their fave movies possible for every movie fan.
The above example list can go on yet the truth remains unchanged. A booming company has much deeper and more comprehensive goals than profit making.
For a business to launch and not perish ingloriously in the proximate future, a company owner shall be proficient with responsibility sharing. Company development and staying ahead of competition will be challenging if not impossible otherwise.
The main objectives a business owner shall pursue are listed below:
- Shaping innovative ideas, coming with brand-new goals, and keeping them atop the hierarchy pyramid while simultaneously promoting the said ideas and goals among the company employees.
- Monitoring marketing strategies the business employs. It is the task of the company owner to oversee that a product stays best-selling and demanded.
- Improving existing unique trade offers and coming with new UTOs. With state-of-the-art technology advances and market changes, it is of utmost importance.
- Securing and monitoring financial and tangible asset turnover in a rational and efficient way.
- Planning the company’s activities and managing them together with the company CEO as well as amending company development goals to stay in line with the current market situation.
To boost company profits and remain its full-fledged boss, the company or business owner shall efficiently exercise the above functions. It would be ideal if a business owner appointed themselves as company CEO or carefully monitored activities of the latter together with company operations. This is essential for the business not to dwindle to nothing in future.
Company CEO a.k.a. director general and their responsibilities within company
A general director is typically treated as the company’s sole management body. CEO is considered to hold the top executive and management position in the company. CEO is a manager directly in charge of the company and its employees.
Yet, how efficient CEO is, depends on how clearly their responsibilities are defined by the business owner. In Great Britain, appointing a new CEO for the company is a special procedure that comes with its own terms and requirements. Difficulties may arise where the company or business owner does not pay much attention thereto and fails to duly assign responsibilities within the company.
In a thriving company, the general director or CEO has well-defined competences:
- Executing strategic decisions made by the business owner. CEO shall adjust or change them on an as-needed basis, if the said adjustments or changes are approved by the company owner.
- Coordinating and monitoring activities and operations in company departments.
- Routinely monitoring company operations and activities.
- Preventing and resolving any commercial or business issues the company may face where department managers fail to.
- Monitoring company profitability and making corresponding reports, developing and expanding the company and business activities thereof to keep the company and its business high-achieving.
Company owners should keep in mind that it is them who are responsible for setting company rules and standards. CEO acts within the set limits monitoring approved procedures and seeing to it that desired results are achieved.
