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Strategic management for a business is about creating a plan to ensure success across the entire company. This includes planning as well as monitoring and implementing strategies and encouraging employees to prioritize their work which support the strategic objectives. It also includes looking for opportunities and analyzing challenges and risks in the business context. This type of management can be carried out by top management, but the most innovative ideas could come from any employee. Companies employ prescriptive and descriptive strategies to manage methods based on renowned managerial theories to help them make decisions, allocate resources, and meet their goals.

The first step of strategic management is to assess the present situation of the company. This requires examining internal structure as well as capabilities, resources, as well as evaluating current plans for strategic planning. Businesses can also utilize tools such as SWOT analysis to pinpoint the strengths, weaknesses and opportunities in the market.

After the initial assessment businesses should draft a vision statement, or amend it to reflect the broad strategic goals of the company. These goals can include increasing revenue or cutting costs. Typically they will have an objective that is achievable over time.

But formulating the strategy on its own will not be enough to ensure its success. The final stage of strategic management is to implement the plan, which requires effective communication and coordination between departments and management levels. It is important to choose and follow a framework for strategy management, such as the Balanced scorecard, Theory of Change (TOC) or Objectives and key results (OKR), in order to manage and organize the various aspects of the strategic plan.