Strategic management, which includes strategy formulation, performance, performance evaluation, and control, allows you to study and evaluate opportunities and threats in the business environment, taking into account your own capabilities and weaknesses.
Based on the definition and characteristics of strategic management, it can be concluded that this is a concept that ensures the company is appropriate in a face of changes in the business environment.
Strategic management consists of a series of steps, namely these:
- Conducting environmental and business analysis
- Establishing company guidelines
- Formulating the company strategy
- Implementing the strategy
- Monitoring the implementation to adapt to the changes that are made within the strategic control process
Steps 1, 2, and 3 fall into the formulation stage, and steps 4 and 5 fall into the implementation stage.
The strategic management steps are cyclically repetitive—which means that decisions are made based on a...