Strategic management is an effective tool for progressing small and large organization purposes. Organizations that used strategic management and regularly planning, always are ready to contrast environment changes. Management usage improves Small and Medium Sized Enterprises performance and help organization to integrate their resource to achieve their purposes. One of the most important strategic management tools that used in Small and Medium Sized Enterprises and also used in this research is SWOT analysis. This analysis helps organization that identifies opportunities and threats of environment and also strength and weakness points. Entrepreneurship also isn’t separable concept of Small and Medium Sized Enterprises because they usually establish and manage with Entrepreneur. They interfere in all stages of strategic decision process at origination. Both strategic management tools and entrepreneurship concept improve organization performance but when they combined together have much more effectiveness in organization performance. When environment changes occur, new threats and opportunities have visible. Firms that identify potentially valuable opportunities but are unable to exploit them to develop a competitive advantage will not create value for their customers or wealth for their owners. Firms that build competitive advantages but lose their ability to identify valuable entrepreneurial opportunities are unlikely to sustain those advantages over time. As such, they will discontinue creating wealth for their owners. Therefore, all firms, new and established, small and large, must engage in both opportunity-seeking and advantage-seeking behaviors. Both of them concentrate on adaptability of process by changing and using of opportunities. This thesis represents a conceptual assimilative frame for strategic analysis that achieved by assimilative of two concepts. Proposed assimilative frame for strategic analysis in Small and Medium Sized Enterprises has correctly specified competitiveness market. Also this frame prepares obvious strategic purpose for using opportunities of environment or contrasting with environment threats. This assimilative frame has surveyed decorative stone Small and Medium Sized Enterprises and according to it have proposed strategic ideas for condition improvement. It is difficult for new venture firms to obtain and manage resources strategically to establish and sustain a competitive advantage. They are more likely to be flexible and entrepreneurial, but less likely to have the needed resources and capabilities to build competitive advantages. Likewise, it is difficult for established firms with competitive advantages to 'continue to seek and exploit entrepreneurial opportunities. Some opportunities might delimit the value of the firm's current goods or services. It is risky to cannibalize a successful good or service in favor of an unproven one with potential. Since Small and Medium Sized Enterprises considerably differ from large enterprises in their amount of resources, it is doubtful that strategic management instruments work in the same manner in Small and Medium Sized Enterprises as in large enterprises. The instruments therefore need to be aligned with the personnel as well as the cultural, organizational, and financial conditions of the specific enterprise in order to be successful.