FREE online courses on Introduction to Strategic Management - Introduction to Strategic Management - Definition

 

Therefore we can define strategic management as the development of an all-encompassing definition would take up more than two pages and would still not do a very good job of the same. “The process of identifying, choosing and implementing activities that will enhance the long term performance of an company by setting direction and by creating ongoing compatibility between the internal skills and resources of an company and the changing external environment within which it operates.”

 

Key parts of this definition of strategic management are

 

1. strategic management should help an company reach its goals;
2. strategic management involves decisions and actions;
3. strategic management is not a single, simple action but a series of related decisions and actions; and
4. the strategic management should "match" the organisational strengths and weaknesses with the environmental opportunities and threats.

 

In simple terms we can say that strategic management involves a series of steps in which organisational members analyse the current situation, decide on strategies, put those strategies into action, and evaluate/ modify/ change strategies as needed.