What is Strategic Gap? Explain the meaning, causes and significance of strategic gap in strategic management theory.

Answer 2A(i) Meaning of Strategic Gap A strategic gap refers to the difference between the desired future performance of an organisation and its expected current performance level, if no new strategies are implemented. It highlights the gap between where a firm is currently situated where it should be situated for sustainable, long-term growth. The strategic gap arises when existing strategies are insufficient to achieve organisational goals. The gap can be identified through tools like forecasting, budgeting, and environmental analysis. It signals the need for strategic change or intervention. Causes of Strategic Gap The strategic gap may be occurred due to : change in external environment (competition, technology, regulation) inefficient internal resources or capabilities over- ambitious goals or poor planning. Significance of Strategic Gaps The significance of strategic gap inter-alia includes the following: It helps management in early identification of performance shortfall. It encourages formulation of new strategies (expansion, diversification, cost reduction, etc.) It aids in better resource allocation and planning. It improves long-term sustainability and competitiveness. Thus, strategic gap acts as a critical diagnostic tool in strategic management, enabling organisations to take proactive steps to align their current performance with future objectives.