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Strategic management involves the systematic analysis of a company’s major goals and initiatives, as well as the consideration of resources and factors associated with customers and competitors, to provide an effective basis for maintaining optimum management practices within an organization. It is a business approach that is utilized to make the most efficient use of available resources in the process of operating an organization. The purpose of strategic management is to streamline corporate policies and strategic priorities, by providing overall direction to corporate enterprises and specifying organizational objectives.
Through evaluation of current organizational operation status, and the individual components at work therein, strategic management identifies whether an organization’s processes operate as smoothly as possible, and strive to keep costs of raw materials and other resources in balance with returns generated by business profits.
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