What aspects does strategic management encompass?

Strategic management encompasses the process of defining an organization's direction and making decisions on allocating its resources to pursue this direction. It includes setting specific targets, developing a roadmap for achieving these goals, and determining the means by which the organization will operate to fulfill its strategic vision. This comprehensive approach ensures that all parts of the organization are aligned towards common objectives, facilitating long-term success and adaptability in a changing environment.

While customer relationships, sales forecasting, and market research are vital for operational and tactical purposes, they do not capture the broad and overarching framework of strategic management. The chosen answer highlights the essential components of strategy formulation and implementation, which are crucial for guiding an organization’s overall efforts and decision-making processes.