Final answer:
The CEO and the board of directors are engaged in strategic planning, which is focused on establishing long-term and short-term goals to guide the company toward future success and ensure operations align with the interests of shareholders. Option b) is correct.
Step-by-step explanation:
The CEO and the board of directors at a large multinational company who meet quarterly to review long-term and short-term goals are engaged in strategic planning. Strategic planning involves setting priorities, focusing energy and resources, strengthening operations, and ensuring that employees and other stakeholders are working toward common goals. It involves establishing the direction and actions needed to improve and sustain a company's success over time. While tactical planning focuses on the short term actions to achieve parts of a strategy, strategic planning looks at the whole picture and positions the company for future growth and success.
Understanding the role of the board of directors is crucial. They work to ensure that the company operates in the shareholders' interests, maintaining a delicate balance between the executives' influence and the shareholders' rights. The board's strategic decisions can have significant impacts on the firm's stakeholders and shape the path of the business in the global market.