Strategic Management

Strategic management is the most involved management type in business because it focuses on providing a business with direction and strategic planning. A strategic manager develops plans, policies, and objectives for a business while guiding it to reach each of these objectives. The two functional areas of business that are of greatest interest to me are strategic planning and finance as a strategic manager. This paper is designed to explain each function from this perspective and develop an understanding of how a strategic manager would exist within the functions. Strategic planning is the process an organization takes to reach its goals, develop a strategy, decides how goals will be reached, and different techniques that will be implemented. Included in strategic planning is S.W.O.T analysis which involves the strengths, weaknesses, opportunities, and threats involved with an organization. Proper analysis of these tools provides the organization with an overview of its wealth, a collection of resources, and defense against threats. Strategic planning is also used to focus on risk involved with the organization and its competitors and how to overcome risk if it should arise. There are multiple potential benefits that arise from risk management because risk management is not in place to avoid risk, but to minimize the after effects of the risk touching down. Risk management is the identification, assessment, and prioritization of potential risks. After this step it is important to coordinate each section of the business with the hope of reducing stress, tension, failure, liabilities, and other events caused by this issue. One of the main benefits of risk management is that it supports strategic and business planning and supports the effective use of resources that the business has developed over the years. Risk management allows business owners to watch every aspect of their business very closely so that the business is properly prepared to handle any

References: Strange, R., Filatotchev, Igor., & Buck, T.,Wright Mike (2009, September). Corporate Governance and International Business. Management International Review, 49(4), 395-407. Income Statement Definition. (2013). Retrieved from http://www.investopedia.com/terms/i/incomestatement.asp