What is the primary purpose of strategic management?

The primary purpose of strategic management is to formulate and implement strategies that enable an organization to achieve its goals. This involves analyzing the competitive environment, assessing internal resources, and aligning organizational actions to capitalize on opportunities while managing risks.

Strategic management is essential because it provides a structured approach for organizations to set long-term objectives and determine how to achieve them in a coherent and systematic manner. By formulating viable strategies, an organization can create a competitive advantage, enhance growth, and respond effectively to market changes and challenges.

The other options represent important aspects of an organization but do not capture the overarching aim of strategic management. For example, while increasing employee satisfaction is beneficial for an organization, it is not the primary focus of strategic management. Similarly, streamlining daily operations contributes to efficiency and effectiveness but is more of a tactical aspect than a strategic one. Lastly, focusing solely on financial performance is only one measure of success and does not encompass the broader objectives of strategic management, which integrates various elements such as market positioning, resource allocation, and overall organizational health.