How is the legal department (legal concerns) important to the four phases of strategic management?

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Karyth Cara eNotes educator| Certified Educator

The four phases of strategic management cover, as put by Harvard Business School, meeting the budget, predicting the future, thinking strategically, and creating the future. Other terminology is:

  • evaluating the environment
  • formulating strategy
  • implementing the strategy
  • evaluating the implementation of strategy

Legal teams are critical in strategic management phases because there are laws governing financial allocations (e.g., tax laws); there are laws governing business interface with the environment (e.g., toxic waste laws, environmental impact laws); there are laws regulating land use (e.g., nature sanctuaries); there are laws governing ethical and credible international business interactions (e.g., fair trade laws).