Strategic management is a continuous process that centers on the analysis, decisions, and actions an organization performs in order to create and sustain competitive advantages. It deals primarily with making and implementing decisions about the future direction of an organization and creating a strategic plan to achieve their goals. It incorporates various functional areas of an organization to ensure these areas are synchronized to efficiently achieve the common objectives.
The purpose of strategic management is to mobilize the resources and energies of the organization to achieve the future which the leaders have envisioned.
The strategic management process involves delineating, implementing and evaluating the organization’s strategy so that the organization will be able to best achieve their performance goals and attain a competitive advantage. This continuous process begins by assessing the business/industries in which the organization is involved as well as its competitors. After which, the organization establishes objectives to meet all the present and future goals, and then formulates the best course of action for accomplishing those objectives. The implementation stage that follows includes designing the organization’s structure, allocating resources, and managing people. Finally, the organization evaluates the results and reassesses the overall strategy.