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

Asked on by Mizdee

1 Answer | Add Yours

karythcara's profile pic

Karyth Cara | College Teacher | (Level 1) Senior Educator

Posted on

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.


We’ve answered 319,865 questions. We can answer yours, too.

Ask a question