Contemporary business is characterized by extremely rapid changes in the business environment, which arise as a result of globalization, digitalization and technological changes, i.e. technological revolutions. These changes also cause changes in the market, therefore the survival and success of companies in the market largely depends on their ability and speed of adaptation to changes in the environment. In order to adapt to changes in the environment as efficiently and quickly as possible, it is needed to follow and analyze the company's internal and external environment, which means the opportunities and threats, weaknesses and strengths of the company, and based on this, define the goals and strategies that will lead to their realization. Assessment of the state of the environment, competition, market needs and target consumer groups form the basis for further strategic planning and strategic management. Strategic management activities aim to achieve competitive advantage and profitability of the company. This paper explains the term and concept of strategic management, as well as the process of strategic management, which includes the analysis of the current situation in which the company operates, defining the vision and mission, goals and strategy of the organization, and the implementation and control of the strategy. The paper also describes the process of analyzing the internal and external environment, as well as the method of formulating the company's strategy, as well as the implementation and control of the strategy. The process of strategic management is shown on the concrete example of the company Gavrilović d.o.o., which is one of the longest-standing companies in the Republic of Croatia.