The word strategy has entered the field of management more recently.

At first, the word was

used in terms of Military Science to mean what a manager does to offset actual or potential
actions of competitors. The word is still being used in the same sense, though by few only.
Originally, the word strategy has been derived from Greek ‘Strategos’, which means generalship.
The word strategy, therefore, means the art of the general. When the term strategy is used in
military sense, it refers to action that can be taken in the light of action taken by opposite party.

Strategic management is the process of systematically analyzing various opportunities and

threats vis-à-vis organisational
strengths and weaknesses, formulating, and arriving at strategic choices through critical
evaluation of alternatives and implementing them to meet the set objectives of the organisation.

Strategic planning is an organization's process of defining its strategy, or direction, and making
decisions on allocating its resources to pursue this strategy. It may also extend to control
mechanisms for guiding the implementation of the strategy. Strategic planning became
prominent in corporations during the 1960s and remains an important aspect of strategic
management.
Strategic planning is a process and thus has inputs, activities, outputs and outcomes. This
process, like all processes, has constraints. It may be formal or informal and is typically iterative,
with feedback loops throughout the process. Some elements of the process may be continuous
and others may be executed as discrete projects with a definitive start and end during a period.
Strategic planning provides inputs for strategic thinking, which guides the actual strategy
formation. The end result is the organization's strategy, including a diagnosis of the environment
and competitive situation, a guiding policy on what the organization intends to accomplish, and
key initiatives or action plans for achieving the guiding policy.
Strategic Management Process
From the above figure you will see the dynamic, interrelated nature of the elements of the
strategic management process and provides an outline of where the different elements of the
process are covered is given below:
Feedback linkages among the three primary elements indicate the dynamic nature of the strategic
management process: Situation Analysis, Strategy Formulation and Strategy Implementation.
• Situation Analysis: in the form of information gained by scrutinizing the internal environment
and scanning the external environment, is used to develop the company’s strategic intent and
strategic mission.
• Strategy Formulation: is guided by the company’s strategic intent and strategic mission, and
is represented by strategies that are formulated or developed and subsequently implemented or
put into action.
• Strategy Implementation: strategic competitiveness and above average returns result when a
company is able to successfully formulate and implement value- creating strategies that others
are unable to duplicate.
• Strategy Evaluation & Control: links the elements of the strategic management process
together and helps companies continuously adjust or revise strategic inputs and strategic actions
in order to achieve desired strategic outcome.