What is the first step in the strategic management process?

The first step in the strategic management process is defining the mission. This crucial step involves articulating the organization’s purpose, core values, and the overall direction it intends to pursue. By establishing a clear mission statement, an organization can align its goals and strategies to serve as a guiding star for decision-making and strategic planning.

Defining the mission is important because it lays the foundation for subsequent steps in the strategic management process, such as setting objectives, evaluating the situation, formulating plans, and implementing strategies. A well-defined mission helps ensure that all stakeholders understand the organization's objectives and motivates employees by giving them a sense of purpose. It also serves to communicate the organization's intentions to external stakeholders like customers, investors, and partners.

In contrast, evaluating the situation, formulating plans, and implementing plans follow after the mission is established, making them critical parts of the process but not the initial step. Without a clear mission to guide these activities, organizations may struggle to develop coherent strategies or make effective decisions.