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STRATEGIC MANAGEMENT: IMPORTANCE, MODES, & PROCESS Strategic management can be defined as a “continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment”. Strategic management constitutes a mind-set, an approach to looking at the changes in the internal and external environment. The strategic management process is a series of steps that not only formalize the process, but also give a clear path to the firm’s management as to how the process should be completed. It includes environmental analysis, establishment of organizational direction, strategy formulation, strategy implementation and strategic control. Challenges to strategic management include globalization (internationalization of markets and corporations) and electronic commerce (use of the internet to conduct business transactions). To adapt to changing environmental conditions the strategies designed must be flexible (strategic flexibility). “If you fail to plan, you are planning to fail”. By acting on this saying, strategic management gives the organization a sense of direction, identity and unity towards the overall business goal. Strategic management focuses on answering three important questions: STEPS IN STRATEGIC DECISION-MAKING: Lastly, strategic management gives a clearer sense of strategic vision for the firm, sharper focus on what is strategically important and improved understanding of a rapidly changing environment. As more industries become global, strategic management is becoming an important way to keep track of international development and position the company for long-term competitive advantage. Firms must realize that they must shift from ...