Final answer:
The purpose of the performance audit and gap analysis stage of strategic planning is to evaluate operational efficiency. This stage involves assessing the organization's current performance and identifying the gaps between the desired state and the current state. By conducting a performance audit and gap analysis, organizations can identify areas for improvement and create strategies to bridge those gaps.
Step-by-step explanation:
The purpose of the performance audit and gap analysis stage of strategic planning is to evaluate operational efficiency. This stage involves assessing the organization's current performance and identifying the gaps between the desired state and the current state. By conducting a performance audit and gap analysis, organizations can identify areas for improvement and create strategies to bridge those gaps.
For example, a retail company may conduct a performance audit and gap analysis to assess its operational efficiency in terms of inventory management.
They may identify a gap between their desired target of maintaining optimal inventory levels and the current state of excess inventory, leading to higher carrying costs. After analyzing this gap, the company can implement strategies to improve inventory turnover and reduce carrying costs.
It's important to note that while assessing financial risks, identifying market trends, and analyzing competitors' performance are important aspects of strategic planning, they are not the primary purpose of the performance audit and gap analysis stage.
Therefore the correct answer is b) Evaluating operational efficiency.