Strategic management is the process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy. In this definition, an appropriate strategy is the one best suited to the needs of an organization at a particular time.

The strategic management process is generally thought to consist of five sequential and continuing steps:⁸

1. Environmental analysis

2. Establishment of an organizational direction

3. Strategy formulation

4. Strategy implementation

5. Strategic control

The relationships among these steps are illustrated in Figure 7.1.