The functional approach to strategic management

Abstract

Introduction. In spite of a large number of studies dedicated to various problems of strategic management, scholars differ on the content of the term «strategic management». To define it, an eclectic approach is used combining individual components of the strategy process with some functions of management, methods and important characteristics of goals and strategies. Purpose. The purpose of this paper is to try to interpret the term «strategic management» based on the need for interrelationship and interaction of the basic and specific functions of management for the implementation strategy process. Methods. The study involves the methods of scientific abstraction, structure-function analysis, morphological analysis, comparison, analogy and generalisation techniques. Results. The paper analyses the theoretical foundations of managerial functions and their relation to strategic management. It studies approaches to defining the essence of strategic management. It also establishes that functional strategies of an organisation are ensured by performance of the specific management functions. It is shown that general managerial functions are used at the highest level of the organisational structure in order to address operational, tactical and strategic tasks. The interpretation of strategic management factoring in integrated performance of the basic and auxiliary management functions at the stages of strategy process implementation was specified. Conclusion. Strategic management must ensure coherence and integration of functional and overall strategies at the stages of their formulation, adoption, execution, adaptation and revision.