Answer to Question 1
Answer: Strategic management is what managers do to develop the organization's strategies. It is an important task involving all the basic management functions planning, organizing, leading, and controlling.
There are three reasons as to why strategic management is important.
The most significant one is that it can make a difference in how well an organization performs. Generally, there is a positive relationship between strategic planning and performance. Generally, organizations that use strategic management have higher levels of performance.
Another reason it is important has to do with the fact that managers in organizations of all types and sizes face continually changing situations. They cope with this uncertainty by using the strategic management process to examine relevant factors and decide what actions to take.
Finally, strategic management is important because organizations are complex and diverse. Each part needs to work together toward achieving the organization's goals; strategic management helps do this.
Today, strategic management has become so important that both business organizations and not-for-profit organizations use it.
Answer to Question 2
Answer: B
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