Final answer:
A strategist must account for competitive actions and market expectations in corporate governance, ensuring that outside investors have access to financial data to inform their investments and accordingly aligning company goals with stakeholder incentives.
Step-by-step explanation:
An implication for the strategist in the context of corporate governance and a company's success involves considering the actions of others in the competitive landscape, much like in a chess game where a player must anticipate their opponent's moves. When a firm's strategic plan is set to generate profits, corporate governance shifts away from personal management knowledge to a reliance on publicly available information about the company's financials. This broader availability of information encourages outside investors, like bondholders and shareholders, to invest, as they are able to make informed decisions without personal knowledge of the managers. Strategies must also adapt to changing expectations which can impact stock prices—strategists must identify companies that are undervalued by the market but have the potential to outperform future prospects.
Furthermore, to secure the success of a company, a strategist must increase incentives and align them with the company's goals; they must design strategies that make defection expensive and fidelity rewarding. In this way, they foster a culture of loyalty, which is a significant factor in the political aspects of corporate governance.