Strategic management is the process of formulating, implementing, and evaluating cross-functional decisions to enable an organization to achieve its objectives. The strategic management process consists of seven interrelated tasks: developing a vision and mission statement, analyzing the external and internal environments, establishing long-term objectives, generating and selecting strategies, implementing strategies, and evaluating and controlling the implementation. This allows an organization to determine its direction and actions needed to achieve competitive advantage.

2. Introduction
 Definition
 Strategic management is the art and science
of formulating, implementing and evaluating
cross-functional decisions that will enable an
organization to achieve its objectives.
 It involves the systematic identification of the
firm's objectives and nurturing policies to
achieve the firm's objectives

3. Strategic Management Model

4. The model in the figure represents the strategic
management process, which consist of seven
interrelated management tasks.
Major components of this model
1. Develop vision and mission statement
2. analyze external environment
3. Analyze internal environment
4. Establish long-term objective
5. Generate ,analyze and select strategies
6. Implement and chosen strategies
7. Evaluate and control implementation

5. Develop vision and mission
 1st step in Strategic Management process
Organization should have vision and mission
Vision- what it want to become ( long run)
 Mission – define company reason for its existence
Vision and mission provide guideline for setting
objectives and generating alternative strategies

6. Analyze external Environment
2nd step in management process
Involve analysis of macro-environment for accessing
opportunities and threats
Macro-environment – Political, Social,
economic, demographic, technological factors which
effect the business
Operating environment-
Suppliers, Customers, creditors, competitors etc.
Analyze industry character & competitive forces

7. Analyze Internal Environment
3rd step in Strategic Management process
Organization access the internal environment
Identifying the strength and weakness of resources
and functional areas of organization
Analyze- financial, physical, human & technical
resources – helps to build competencies and
competitive advantages

8. Establish Long term objectives
Based on internal, external and vision and mission
the firm has to set long term objectives and goals-
must be specific, measurable and achievable.
Generate Evaluate and Select
strategies
5th step in Strategic Management process
Develop a no. of strategic opinion at corporate
and business level.
Alternatives are analyzed through portfolio
analysis, industry life cycle etc..

9. Implement the chosen strategies
Implementation of strategies involves a number of
decisions and actions.
Basically involve change in management within the
organization .involves:
1.Allocation of resources
2.Functional & operational strategies
3. Formulating policies
4.Change in organization structure, climate &
leadership

10. Evaluate and control strategy
 Last step in Strategic Management process.
 Overall evaluation of the activities
 Critical examination by top authorities.
 It helps in the achievement of the organizational goals.