In what way is the functional area of finance important to the four phases of strategic management?

1 Answer

farouk23's profile pic

farouk23 | College Teacher | (Level 1) Associate Educator

Posted on

The four phases of strategic management are:

  1. Formulation
  2. Implementation
  3. Evaluation
  4. Modification

The functional area of finance tackles tasks in relations to the monetary operations of an enterprise. Operational tasks which include but are not limited to forecasting, payroll management, budgeting, and financial reporting.

All these functions or parts of them are necessary and required at certain points during the strategic management process. The formulation stage requires a deep understanding of financial forecasting, whereas the implementation stage requires budgeting skills. The entire process of strategic management would not be feasible without the strong financial element that ensures that a process or endeavor is viable.