Purpose of the Strategic Management Process

by Jennifer VanBaren; Updated September 26, 2017

Strategic management is a process used by many companies to reach objectives through the careful planning of the steps needed to achieve their goals.

Description

Strategic management focuses on developing strategies to reach goals, typically long-term objectives to improve the overall company’s performance and competitiveness in the market.

Purpose

By planning the steps to the goals, employees are given a clear direction of what is expected and the reasons why. This allows employees to accomplish their jobs more efficiently and ultimately helps companies achieve their long-term objectives.

Details

To determine goals and achieve them, companies using strategic management perform a analysis of their strengths, weaknesses, opportunities and threats (SWOT). This analysis helps companies understand conditions in their current environment. The purpose is to turn weaknesses into strengths and threats into opportunities.

About the Author

Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.