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CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management

Which of the following is a recognised benefit of strategic management for an organisation?

Strategic management helps align an organisation's resources and activities with its changing environment and provides a common sense of direction to all functions. It does not eliminate competition or budgets, and environmental scanning remains necessary because conditions keep changing.

  1. AIt guarantees that the firm will never face competition
  2. BIt removes the need for functional budgets
  3. CIt helps align the organisation's resources and activities with a changing environment and gives a common sense of directionCorrect
  4. DIt makes environmental scanning unnecessary once the strategy is written

Explanation

Strategic management gives direction, coordinates functions and helps the firm adapt to environmental change. It cannot guarantee freedom from competition, it does not replace budgets, and scanning must continue because the environment keeps changing.

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