What is GAP analysis and why is it important for strategy formulation?
GAP analysis is a valuable tool used in strategy formulation to identify the discrepancy or "gap" between the current state of a company or organization and its desired future state. It involves comparing the present performance or condition against the desired goals or benchmarks set by the management. By conducting a GAP analysis, businesses can highlight areas of improvement, identify opportunities for growth, and define the steps needed to bridge the gap between their current position and where they aspire to be. This analysis plays a pivotal role in strategy formulation as it provides insights into the organization's strengths, weaknesses, opportunities, and threats. It enables decision-makers to set realistic and measurable goals, allocate resources effectively, and develop strategies that align with the company's vision and objectives. In essence, GAP analysis serves as a roadmap for organizations to analyze their current situation and make informed strategic decisions for sustainable growth and success.
GAP Analysis Strategy Formulation Importance Performance Evaluation Business Improvement
This mind map was published on 19 November 2023 and has been viewed 8 times.