What role does strategic management play in an organization?

Strategic management is crucial for any organization's success as it involves the formulation and implementation of strategies that align with the organization's goals and vision. The correct choice highlights the importance of actively involving managers in both the strategy formulation and its execution. This inclusive process ensures that a broader range of perspectives and expertise contributes to the strategy, which can lead to more comprehensive and effective planning.

By engaging managers at various levels, organizations can better grasp the operational realities they face, identify strengths and weaknesses, and respond to external opportunities and threats. Furthermore, involving different management levels fosters a sense of ownership and commitment to the strategic plans, which is essential for effective execution and adaptation.

The other options do not fully encapsulate the essence of strategic management. For example, the focus on only top executives in strategy formulation overlooks the value of diverse input and buy-in from various managerial levels. Managing daily operations or developing budget plans pertains more to tactical management than strategic management, which is focused on long-term vision and direction.