Which of the following best defines strategic management?

The best definition of strategic management is associated with the comprehensive approach that encompasses planning, monitoring, analysis, and assessment of all necessary aspects for an organization. This holistic perspective emphasizes the importance of aligning an organization’s goals with its resources and capabilities while concurrently adapting to external conditions and competitive forces.

Strategic management involves long-term planning and decision-making that guides an organization towards achieving its vision while also considering market dynamics, stakeholder interests, and resource allocation. This definition reflects the complexity of managing both internal and external factors that influence an organization’s success, making it a multifaceted process rather than a singular focus.

By contrast, the other options oversimplify strategic management. Focusing solely on financial performance ignores the broader context of strategic decision-making that also includes market position, customer relationships, and operational efficiency. Addressing only internal strategies disregards the competitive landscape and external threats that must be navigated. Lastly, evaluating past performance without considering future prospects fails to incorporate the forward-looking element that is critical in strategic management, where organizations must anticipate changes and plan accordingly.