Which of the following best illustrates the role of strategic management?

The role of strategic management is fundamentally about setting long-term goals and determining the best strategies to achieve those goals. Developing a long-term vision for the organization is essential because it provides a guiding framework that helps to align all activities, resources, and employees towards a common objective. This vision not only informs immediate business decisions but also shapes the future trajectory of the organization in a competitive environment.

In the context of strategic management, a long-term vision encompasses understanding market trends, competitive dynamics, and the capabilities of the organization. This strategic foresight is critical for navigating changes and uncertainties while ensuring that the organization remains relevant and competitive over time.

While maintaining employee relations, creating policies, and maximizing efficiency of operations are important aspects of organizational management, they typically fall under tactical or operational management rather than strategic management. These activities support the organization in the short term and are not necessarily centered around developing the overarching vision that defines the strategic direction. Here, the emphasis is on the proactive stance that strategic management takes in shaping the future rather than merely managing current operations.