What might a company evaluate during a strategic audit?

A strategic audit involves a comprehensive evaluation of both the internal and external environments of a company. This includes assessing internal resources, capabilities, processes, and strategies, as well as external factors such as market trends, competitive dynamics, regulatory frameworks, and socio-economic changes. By analyzing both internal and external elements, a company can gain a holistic understanding of its current position and identify opportunities for improvement and strategic direction.

The correct answer highlights the importance of examining a range of influential factors that affect a company's operations and strategic planning. This thorough analysis enables organizations to align their strategic goals with the realities of the market and their operational capabilities, ultimately enhancing decision-making and fostering sustainability efforts. By focusing solely on either marketing strategies or environmental regulations, a company risks overlooking critical insights that arise from a more integrated and comprehensive approach to strategy and sustainability. Engaging with various unrelated business operations lacks the focus and structure necessary to yield meaningful insights into the overall strategic posture of the organization.