Definition of Strategic management

Definition of Strategic management

Strategic management is a set of management involves in achieving the set goals and objectives of an organization.

Strategic management involves the standard following five set of steps:

  1. Setting goals
  2. Analysis
  3. Strategy Formulation
  4. Strategy Management
  5. Evaluation and Control

Brief Explanation of Strategic management

SETTING GOALS: This set of strategic management involves setting goals of the company and steps to achieve them.

–  The objective of goal settings is to set the vision and mission of the company

–  Goals can be short term and long term.

–  Also identify the processes and steps to achieve them.



  • Analysis can be external and internal both.
  • Doing Market research, gathering data and information to achieve the mission.
  • Understanding the need of industry, business and market.
  • Check the issues which may affect the business goals and objectives.



After the goals are defined and analysis is done the next step is to formulate a strategy to achieve them.

  • This involves required resources both external and internal.
  • Prioritize the goals according to their importance.



When the goals are defined, analysis are done and plan is form, it is now time to implement that plan.

  • It includes assigning responsibilities, resources, guiding and training etc.


EVALUATION AND CONTROL: When strategy is implemented the results finally are out.

This is now time to evaluate the results, compare with the set standards and check the variances, also their reasons.

  • When reasons are identified control should be implemented and analyzed next time.



  • Clarifying goals and objective and hence whole picture of what jobs to perform.
  • Continuous analysis reduces the defects and errors.
  • Cost reduction in long term.
  • Market sustainability and competition  
  • Empowering every level of employees in the company and hence giving them importance and sense of responsibility.
  • Innovation and development.
  • Allocation of budget in effective manner and less wastage of money.
  • Company goal liaising.
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