Strategic management isn’t just a fancy business term. It’s basically how a company figures out where it wants to go, how it’s going to get there, and what to do if things don’t go as planned. It usually moves through a few steps—seven to be exact—but in real life, these steps often overlap.
The 7 Stages of Strategic Management
1. Setting Goals
Every company starts with goals. Without them, there’s no direction. These goals need to be clear enough so people know what they’re working toward, but also flexible because nothing in business stays the same forever.
2. Mission and Vision
Think of the mission as “who we are and what we do right now” and the vision as “where we want to be in the future.” Both give the team a bigger picture so that daily decisions aren’t random.
3. Looking Inside and Outside
This part is about checking two things:
- What resources and strengths we already have (internal side).
- What’s happening around us—competitors, policies, even unexpected things like natural disasters (external side).
It’s kind of like scanning the whole field before making the next move.
4. Making the Strategy
Once the situation is clear, strategies are laid out. These can be small business-level strategies, big corporate ones, or even global approaches. This step is basically the “blueprint.”
5. Putting It Into Action
The next stage is to implement the strategies previously laid down. Effective managerial and communication skills play a very important role at this stage. The desired goals can only be achieved if implementation takes place as planned. If implementation lacks efficiency, the best laid down strategies are going to fail.
6. Keeping an Eye on It
Just because a plan is running doesn’t mean you can forget it. Monitoring is necessary to see if things are on track. And yes, always have a backup—business rarely goes exactly as expected.
7. Adjusting When Needed
Change is part of business life. If something’s not working, fix it. If the current strategy is working, think ahead and design the next one. Staying rigid usually backfires, so flexibility is the real strength here.
Why Companies Need Strategic Management
So when exactly should a business apply strategic management? Well, almost always—but especially in these cases:
- When resources are limited – Companies need to plan carefully how to use what they have, because wasting resources in a competitive market is dangerous.
- When unexpected changes hit – Markets shift, policies change, disasters happen. A company with no strategy gets shaken easily, while one with a plan can adapt faster.
- When expanding or diversifying – Entering a new market or product line without a clear strategy is like walking blindfolded.
- When employees need motivation – A clear direction makes employees feel confident and valued. If they see the company is serious about growth, their morale improves.
- When understanding strengths and weaknesses – Strategic practices help businesses really know themselves—what they’re good at, what needs fixing, what opportunities are out there, and what threats they must prepare for.
For more on why strategy isn’t optional, check out this read: Why Strategic Management is Crucial for Business Success.
