The strategic management can be considered as a combination of the following seven managerial processes interrelated between each other. Interrelations of the given elements are presented below.
1. Competitive analysis includes evaluationof:
- external factors (economical and political situation, legislation and regulation, resources, ecological problems, technological innovations and scientific state-of-the-art, infrastructure, general culture of society, etc.)
- internal factors (design and research, productive capacities, finance, marketing, human resources, organization, etc.)
- competitive forces (competing sellers and suppliers, customer demand, substitute products).
2. Developing a strategic vision and business mission. The main task of a company at this phase of strategic planning is answering the question: "What is our business now and what it will be in the future?" Developing a mission serves to define which are our possible business scenarios and what we must do to create necessary image of our company. In a brief form, mission describes why the given company exists.
3. Setting objectives. This process transforms company's global tasks in long-term and short-term strategic objectives. Setting objectives helps to create positive climate in the company and understand if the company's plans were implemented and executed well.
