Final answer:
The goal of strategic management is for a firm to achieve competitive advantage, often preferring situations with less competition to maximize profits. This is analogous to preferring less competition in sports to increase chances of winning.
Step-by-step explanation:
The ultimate objective of the strategic management process is indeed to enable a firm to formulate and execute a strategy that secures a competitive advantage. A competitive advantage means being more successful than one's competitors in a meaningful way, which typically translates into higher profits. Firms often prefer to operate in circumstances with little competition, similar to an athlete preferring to compete without strong contenders for a gold medal.
In a perfectly competitive market, a firm's main decision revolves around the quantity of product to produce, as they are price takers. However, in a monopoly, the dynamics are different—the firm has more control over the price and consequently its profit levels. This control is the result of the lack of competition, which is why many top executives might prefer monopoly situations over perfect competition.