Page 58 - BA1 Integrated Workbook STUDENT 2018

Chapter 6

Gap analysis

2.1 What is gap analysis?

Gap analysis is the comparison between an entity’s ultimate objective and
the expected performance from projects, both planned and under way,
identifying means by which any identified difference or gap might be filled.

CIMA Official Terminology

Strategic objective (T)

Forecast after new strategic
initiatives (F2)

Earnings Forecast after efficiency
savings (F1)

Forecast from current
operations (F0)

Time

 F1–F0 = efficiency gap (filled through an efficiency drive)

 F2–F1 = expansion gap (filled through market or product development)

 T–F2 = diversification gap (filled through selling new products to new markets)

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