In strategic management, who is typically involved in the formulation of strategies?

The formulation of strategies in strategic management typically involves managers from various organizational levels because strategy development requires insights, expertise, and input from different perspectives within the organization. This collaborative approach allows for a comprehensive understanding of both internal capabilities and external market conditions.

Managers at different levels contribute diverse experiences and knowledge, which helps create well-rounded strategies that consider the company's operational realities as well as its long-term vision. Involving various levels of management ensures that strategic plans are realistic, actionable, and aligned with the objectives of the entire organization. It also fosters a sense of ownership and commitment among employees, as they are more likely to support initiatives they were involved in creating.

In contrast, while top-level executives play a crucial role in providing direction and making final decisions, relying solely on them may result in a narrow view unrepresentative of the entire organization's dynamics. External stakeholders and departments like finance may offer valuable perspectives, but they are not typically the primary drivers of strategy formulation within the organization.