Gap Analysis
Gap analysis involves the comparison of actual performance with potential or
desired performance. If an organization does not make the best use of current
resources, or forgoes investment in capital or technology, it may produce or
perform below an idealized potential.
Gap analysis or strategic gap analysis is a process of comparing the
performance (Actual performance) with potential performance or desired
performance i.e, current or present state to future state of the organization.
In other words Gap Analysis is simple method of comparing the present state
of something to a desired state and then determines the steps that must be
undertaken to improve that present state of the organization.
Gap analysis is a formal study of what a company is doing currently and where
it wants to go in the future.
Where are wenow?
What Dowe need to Do to
Get there?
Basic Process for GAP Analysis
Current
State
Gap
Analysis
How Dowedo that ?
Desired
State
WhereDowewant togo?
 It is a Technique for determining the steps to be taken in
moving from current
state to desired future state.
 Gap Analysis is formal study of what business is doing
currently and where it wants to go in the future?
 Gaps can be found in any process, Department,Approach of
an orgainsation.
 GAP Analysis is one of best procedures to help a company to
not only improve their processes, but recognise which
processes are in need of improvement
Definition GAP Analysis
1. Measuring the Actual or present or current performance of
the organization
2. Compare the actual performance with expected or desired
performance
3. Understanding the gap between the actual and expected
performance
4. Gap analysis can be used in any areas of the business or
organization such as, Sales, Financial, HRM, Productivity,
Quality Assurance, Cost related aspects, Employees
satisfaction, Energy Conservation, Market competitiveness
etc
5. Steps to be taken to fill up the gap existed between actual
performances with desired performance of the organization.
Steps in GAP Analysis
Many businesses fail to plan strategically; they have the
resources and competencies to achieve their basic business
targets but fail to realize their full potential. A strategic gap
analysis could help such a business bridge the gap between their
current and potential performance levels.
Conclusion

Gap analysis in strategic Management

  • 2.
    Gap Analysis Gap analysisinvolves the comparison of actual performance with potential or desired performance. If an organization does not make the best use of current resources, or forgoes investment in capital or technology, it may produce or perform below an idealized potential. Gap analysis or strategic gap analysis is a process of comparing the performance (Actual performance) with potential performance or desired performance i.e, current or present state to future state of the organization. In other words Gap Analysis is simple method of comparing the present state of something to a desired state and then determines the steps that must be undertaken to improve that present state of the organization. Gap analysis is a formal study of what a company is doing currently and where it wants to go in the future.
  • 3.
    Where are wenow? WhatDowe need to Do to Get there? Basic Process for GAP Analysis Current State Gap Analysis How Dowedo that ? Desired State WhereDowewant togo?
  • 4.
     It isa Technique for determining the steps to be taken in moving from current state to desired future state.  Gap Analysis is formal study of what business is doing currently and where it wants to go in the future?  Gaps can be found in any process, Department,Approach of an orgainsation.  GAP Analysis is one of best procedures to help a company to not only improve their processes, but recognise which processes are in need of improvement Definition GAP Analysis
  • 5.
    1. Measuring theActual or present or current performance of the organization 2. Compare the actual performance with expected or desired performance 3. Understanding the gap between the actual and expected performance 4. Gap analysis can be used in any areas of the business or organization such as, Sales, Financial, HRM, Productivity, Quality Assurance, Cost related aspects, Employees satisfaction, Energy Conservation, Market competitiveness etc 5. Steps to be taken to fill up the gap existed between actual performances with desired performance of the organization. Steps in GAP Analysis
  • 6.
    Many businesses failto plan strategically; they have the resources and competencies to achieve their basic business targets but fail to realize their full potential. A strategic gap analysis could help such a business bridge the gap between their current and potential performance levels. Conclusion