Which of the Following Is a Definition of Strategic Management

question 33

Multiple Choice

Which of the following is a definition of strategic management?

• A) Strategic management refers to those aspects of management that are the responsibility of an organisation's most senior managers.
• B) Strategic management refers to those activities and processes through which an organisation determines its mission and/or objectives and the plans, policies and actions to achieve them.
• C) Strategic management refers to an approach to business planning based on the objectives of the various stakeholder groups affected by the organisation's activities.
• D) Strategic management is concerned with the annual planning processes by which an organisation determines its annual targets and budget allocations.

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Definitions:

Long Run

A period sufficient for all inputs in production to be adjusted, including physical capital and labor.

Allocative Efficiency

Allocative Efficiency occurs when resources are distributed in a way that maximizes the net benefit to society, ensuring that the right goods are produced to meet consumer preferences.

Productive Efficiency

A situation where an economy or a production process is operating in such a way that it could not produce more of one good without producing less of another.

Profit-Maximizing

This is the process by which a company adjusts its production levels and pricing strategies to achieve the highest possible profit.