Question
Describe the primary business activity of strategic management.
Answer
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Stuart
Master · Tutor for 5 years
Answer
The primary business activity of strategic management revolves around setting the direction for a company and navigating it to position favorably in its environment by using its resources most efficiently and effectively. It involves long-term planning, organization, the determination of policy & procedure, controlling and ultimately maximizing the company's growth or success rate potential.
Explanation
Strategic management is fundamentally about establishing a strategy or direction for an organization, deciding on implementing and executing what resources will be implications in pursuing this direction. This includes considering resources such as personnel and financial assets. After setting up this strategy, adjustments may need to be made along the way as the external environment changes, characterizing the iterative nature of strategic management. Then, through processes of evaluation and control, the accuracy and adequacy of the strategic direction are assessed and steps are taken to improve or modify the company's strategic direction when it is deemed necessary. While there may be facets of activities such as procuring funds, enrolling customers, or habitually updating inventory within this process, they don't serve as the chief function of strategic management, rather auxiliary to it.