What is the importance of an organization’s functional areas to the strategic management process?

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Karyth Cara eNotes educator| Certified Educator

Functional areas are the departments, teams, or divisions that are devoted to particular functions of a business enterprise. Common functions are accounting, research and development, marketing, and international business.

The strategic management process is a four step process that analyzes the business environment for internal and external factors that might effect business plans, then develops and implements a strategic plan for advancing business goals and finally evaluates the implemented plan for effectiveness and revision.

Functional areas must be incorporated in the analysis of factors, the development of a plan for meeting objectives, the implementation of the plan and the evaluation of it as it relates to the overall business and the individual functional areas.