What is the purpose of a resource audit?

• A. Identifies the core competencies or highlights lack of competencies that may undermine competitive advantage
• B. Forecasts demand
• C. Measures marketing performance
• D. Evaluates supplier performance

Answer: (B)

The purpose of a resource audit is to map and evaluate the organization’s resources and capabilities to determine which can deliver a competitive advantage and where gaps threaten it. By identifying what the firm can do well and where essential strengths are missing, it guides decisions on investing in, developing, or acquiring skills and assets to sustain differentiation. It isn’t about predicting customer demand, measuring marketing results, or assessing supplier performance, which are separate activities focused on demand planning, marketing effectiveness, and procurement performance, respectively.