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CS Professional · Strategic Management and Corporate Finance · Introduction to Strategic Management

Which statement best describes the nature of strategic management in an organisation?

Strategic management is a long-term, organisation-wide process of setting direction, choosing strategies, implementing them and evaluating results to achieve objectives. It is not routine operational management, budgeting or mere compliance, because it concerns the whole organisation and its fit with the environment.

  1. AIt deals with routine day-to-day operational tasks of each department
  2. BIt is a long-term, organisation-wide process of setting direction, choosing strategies and implementing them to achieve objectivesCorrect
  3. CIt is limited to preparing the annual budget
  4. DIt concerns only the legal compliance of the company

Explanation

Strategic management is a continuing, organisation-wide process covering direction setting, strategy formulation, implementation and evaluation. Routine operations and budgeting are narrower activities that support, not define, it.

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