Importance Of Strategic Management In The Functional Areas Of Business

Topics: Strategic management, Management, Business Pages: 4 (650 words) Published: February 24, 2015
Strategic Management as a concept in business management has evolved over the years. It involves formulation and implementation of initiatives by management of companies operating under very many constraints to maximize returns on investments by the shareholders (Jones & Hill, 2012). The four phases of the strategic management process are: 1.     Definition of the mission, vision, and goals.

2.     Planning-Formulation of the strategies.
3.     Actioning- This entails rolling out the strategies organizations wide. 4.     Analysis and evaluation of strategies efficacy and success.  The evolution from one phase to the other is gradual. Accounting is the recording, measuring, processing and reporting financial information about business entities to concerned stakeholders and the general public as per set standards. Economics is a body of theories, principles, and models that explain how market processes work. It tries to explain creation and distribution of wealth, how people allocate scarce resources among the many alternative uses. In the four phases of strategic management, the functional areas of accounting are very important. In coming up with a mission, vision and the goals of the organization, the management will need to have an understanding of the current status of the organization. The process will be informed by the information contained in balance sheets, cash flow statements, tax reports, profit and loss statements and various other accounting reports.  Once this is done, a budget will need to be decided upon to guide the implementation and to form a benchmark tool upon which analysis and efficacy of the process can be evaluated. Further, as the strategies are implemented, and evaluation of the achievements is done, financial records will be kept, audits will need to be done and taxes will need to be remitted in accordance with the law. The management will also need to be continuously updated with the financial reports...

References: Hill, C. W. L., & Jones, G. R. (2012). Strategic Management. Cengage Learning.
Hirschey, M. (2009). Managerial economics. Mason, OH: South-Western Cengage Learning.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Functional areas of Business
  • Functional Areas of Business Essay
  • Strategic Management Essay
  • Functional Areas of Business Paper
  • Essay on Functional areas in a business
  • functional area of business paper
  • The Ethical Approach in Business Strategic Management Essay
  • Functional Areas of Business Essay

Become a StudyMode Member

Sign Up - It's Free