What does a Gap Analysis identify?

A Gap Analysis is a strategic tool used to assess the difference between the current state of a business or process and its desired future state. The primary purpose of conducting a Gap Analysis is to identify areas for improvement and to highlight the changes needed to bridge the gap between these two states. This involves understanding what is currently being done, what the goals are, and what specific steps or measures are required to move from the current situation to achieving those goals.

In the context of business analysis, this methodology is instrumental in helping organizations identify deficiencies, areas of risk, and opportunities for growth or improvement. By clearly defining the gaps, stakeholders can prioritize actions and allocate resources efficiently to achieve the desired outcomes.

The other options focus on aspects like financial costs, resource allocation, and stakeholder identification, which are relevant in various contexts but do not specifically capture the essence of what a Gap Analysis aims to achieve. Thus, identifying the difference between current and desired future states is the core function of a Gap Analysis, making it the correct answer.