Changes relating to the relationship of a firm to its environment have more impact on the organization's effectiveness, and changes involving the organization's internal operations have a greater effect on the efficiency of the firm. In general, the long-run success of a firm is more dependent on the organization's effectiveness rather than its efficiency. Concentrating on change involving the organization's internal operations and being extremely efficient will not always insure a firm's long-run success. Strategic Management Strategic management is a continuous process that works to fit an organization into its changing environment. Strategic management is a broader concept than strategic planning.
Strategic management consists of strategic decision making and strategic planning.
Thus, strategic management focuses on any strategic decision that must be made, regardless of its time frame and the planning necessary to complement that decision. Strategic management should not be thought of only in a long-term time frame. Many times, changing a firm's strategies does take a long time to become operational, but sometimes threats or opportunities emerge that must be acted upon immediateix'. Strategic management should also not be confused with operating management. These decisions are aimed at improving the efficiency of the firm.