GAP ANALYSIS BETWEEN POTENTIAL PERFORMANCE AND ACTUAL PERFORMANCE OF UBINKAYUKU

Abstract

GAP ANALYSIS OF POTENTIAL PERFORMANCE AND ACTUAL PERFORMANCE OF UBINKAYUKU UbinKayuKu is a start-up business concentrating on the distribution business of solid wooden flooring and wooden handicrafts. During 12 months execution of the business, there are gap occurred between potential and actual performance. Potential performance refers to the information provided in business plan of the company. Actual performance refers to the financial report of the company. This research is aimed to explore and explain the reason why there is gap between actual and potential performance occurred in UbinKayuKu using gap analysis and importance-performance analysis. This research is also aimed to explore and explain how the gap can be narrowed. This qualitative-based research is using two calculations, gap analysis calculation and importance-performance analysis calculation which results are illustrated by graphs, tables and Cartesian diagrams. Gap analysis calculation indicates there are gap between potential and actual performance seen from net income and marketing expense. The gap can be caused by either error on planning or execution. Importance-performance analysis of both net income and marketing expense put most of the data into quadrant A with high gap and low actual data. Both analyses concludes that the performance of UbinKayuKu, judged from net income and marketing expense, is perceived to be less satisfying and demanded to be improved for better and satisfying performance. To narrow the gap, company’s planning and strategies must be revised towards the results of the calculation. UbinKayuKu is suggested to adopt expansion strategy to boost its performance. Marketing expense should be planned and prepared more effective. Business plan must have growing financial projection as well to give more motivation.