What is the planning gap?

A. A concept that is used to clarify the extent of revenue or profits gap that might emerge if current strategies are left unchanged

B. The time between the strategic plan being devised and the time it is actually implemented

C. The time between the conception of a strategic plan and the formalization of it

D. Any part of a plan that has not been formalized which allows for flexibility and the introduction of any new developments that could enhance the current strategy

Answer: Option A

Solution(By Examveda Team)

The planning gap is a concept that is used to clarify the extent of revenue or profits gap that might emerge if current strategies are left unchanged. Gap analysis can identify gaps in the market. Thus, comparing forecast profits to desired profits reveals the planning gap. This represents a goal for new activities in general, and new products in particular. The planning gap can be divided into three main elements: usage gap, existing gap, and product gap.