Which of the following reflects how management makes strategic decisions?

Management makes strategic decisions primarily by analyzing financial data because this data provides valuable insights into the organization's performance, financial health, and potential areas for growth or improvement. Financial data encompasses metrics such as revenue, costs, profitability, cash flow, and return on investment, which are essential for evaluating current operations and making informed future plans. By understanding these figures, management can assess which strategies are effective, identify trends, and forecast future performance, allowing for data-driven decisions that align with the organization's goals.

While comparing industry standards, performing employee reviews, and conducting exit interviews can enhance understanding of the business environment and internal culture, they do not provide the same level of immediate quantitative insights that financial data does. Industry comparisons may help in benchmarking, but they are typically secondary to the direct impacts seen in financial performance. Employee reviews and exit interviews are more focused on human resources and organizational behavior, providing qualitative information rather than the quantitative analysis required for strategic decision-making. Thus, the reliance on financial data is crucial for informed and effective strategic management.