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Strategic management determines an organization's long-term direction, objectives, policies, and resource allocations.
Strategic management is the process of formulating and implementing an organization's major goals and initiatives by considering its resources and internal and external environments. It provides overall direction by defining objectives, developing policies and action plans, allocating resources, and establishing methods for monitoring progress. Because organizational environments and competitive conditions change, strategic management is dynamic and often uses feedback to refine future decisions. Its purpose is to connect an organization's mission and vision with practical execution and competitive success. The process generally includes strategy formulation—analyzing the external environment, industry, and internal capabilities to set goals—and strategy implementation—aligning people, processes, technology, leadership, communication, incentives, and monitoring systems with those goals. Strategic management differs from operational management, which focuses mainly on efficiency and cost control within the direction established by strategy.
Strategic management determines an organization's long-term direction, objectives, policies, and resource allocations.
It requires analysis of the external environment, industry competition, opportunities and threats, and internal strengths and weaknesses.
The two major processes are strategy formulation and strategy implementation; in practice, they are iterative and influence one another.
Strategic management helps an organization answer what business it should be in, how it should compete, and how it can create value for customers and stakeholders.
Strategy should create a unique and valuable position, involve deliberate trade-offs, and align organizational activities to support the chosen direction.
The formulation and implementation of major organizational goals and initiatives based on resource assessment and analysis of internal and external environments.
The process of analyzing organizational conditions and making decisions about goals, competitive direction, and courses of action.
The process of aligning and mobilizing organizational resources, structures, leadership, communication, incentives, and monitoring systems to achieve strategic objectives.
A formal, analytical process that produces data, plans, and control mechanisms to support strategy development and execution.
An organization's ability to perform activities or provide value in a way that distinguishes it from competitors.
A framework for evaluating an organization's internal strengths and weaknesses alongside external opportunities and threats.
Management focused primarily on improving efficiency and controlling costs within the boundaries established by organizational strategy.
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