Before we proceed any further, it is essential to define strategic management. Strategic management is a field of study that involves the process through which firms define their missions, visions, goals, and objectives, as well as craft and execute strategies at various levels of the firms’ hierarchies to create and sustain a competitive advantage. It helps organizations to prioritize what is important for them and provides a holistic view of an organization. It entails two distinct phases that deal with formation and implementation of strategy within an organizational setting. Figure 1.1 shows the strategic management framework/process, which is described in more detail later in this chapter and in Chapter 5.