How are the functional areas of administration important to the four phases of strategic management?

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farouk23 | College Teacher | (Level 1) Associate Educator

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Strategic management is the process of outlining and planning an organizations operational plan. The four phases of strategic management process consist of: 

  1. Environmental scanning.
  2. Strategy formulation.
  3. Strategy implementation.
  4. Strategy evaluation. 

The functional area of a business is a department or individual which is responsible for a specific business department or function. Depending on the organization, it could be:

  1. Human resources.
  2. Finance.
  3. Sales.
  4. Research and Development.
  5. Marketing.
  6. Customer Service.
  7. Any number of departments which may be industry specific. 

The reason the functional areas or administration are important to the strategic management process is because these areas are required in every stage of the process. The strategic management process requires careful planning and coordination of multiple functional departments. Multiple skill sets and expertise spread out across different departments are necessary for task completion within the strategic management process. 


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