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