Dolmatzi
Stavroula
Mission Statements
Gap
Gap, an iconic retail
brand, offers
inventive American
style. Clean, classic
clothing and
accessories help
customers express
their individual sense
of style. Gap, which
opened its first store
more than 40 years
ago, continues to
build its brand
presence around the
world.
Banana Republic
Accessible luxury that
brings modern,
soulful, effortless and
versatile style for men
and women around
the world. Banana
Republic is
characterized by
elevated designs,
luxurious fabrications
and approachable
prices. Collections
include apparel,
handbags, jewelry,
fragrance and
eyewear.
Old Navy
Old Navy brings fun
fashion and value to the
whole family. From
newborns through
adults, we offer ontrend, modern clothing
and accessories, as well
as updated basics. Our
unique, dynamic stores
provide an exceptional
shopping experience.
That ensures that our
customers find great,
quality products at good
value.
Analysis
Strategic Audit Heading
(+) Factors
I. Current Situation
A. Past Corporate Performance
Indexes
B. Strategic Posture
Current Mission
Current Objectives
Current Strategies
Current Policies
In comparison to 2007, GAP has increased its ROI, profitability & market share by 3.4%
One of the leaders when it comes to International specialty clothing retailers
Each of the lines help each customer to express their individual styles.
Companys employees and directors are responsible for acting based on the Code of Business
Conduct, meaning that they must all treat each other with fairness, dignity and respect.
Code of Business Conduct: the company will always act ethically towards its employees and
customers.
As for the mission statement, the objectives, their strategies and policies, the corporation states
them clearly and in full detail.
SWOT Analysis Begins:
II. Corporate Governance
A. Board of Directors
The board is responsible for oversight of the business, affairs and integrity of the company,
determination of the company's mission, long-term strategy and objectives, and oversight of the
company's risks while evaluating and directing implementation of company controls and
procedures.
Under Glenn's leadership, the company has successfully driven bottom line earnings growth by
focusing on healthy margins and expense management.
B. Top Management
A diverse and talented executive management team focused on executing Gap Inc.'s strategy to
engage customers and maximize shareholder returns
Analysis
Strategic Audit
Heading
(+) Factors
(-) Factors
Comments
III. External Environment (EFAS): Opportunities &
Threats(SWOT)
A. Societal
Environment
Markets in Southeast Asia
Launch of Piperlime
Increased competition
Remarkably easy to
imitate
The advantage of this is that they will be provided
with local experience, knowledge and views,
something that will help them adapt to new markets
more rapidly.
B. Task Environment
Industry Analysis
Growth in online retail spending
Line extensions (accessories, baby
wear)
Shoppers switched to
rival clothing retailers
Threat of new entrants: High
Bargaining power of buyers: Medium
Threat of substitute products or services: High
Bargaining power of suppliers: Low
Rivalry among competing firms: High
IV. Internal Environment (IFAS):
Strengths and Weaknesses(SWOT)
A. Corporate
Structure
B. Corporate Culture
Organized
Board of Directors not only meet
legal requirements around the world,
but also operate responsibly and with
integrity in everything they do
Only one Global
Human Resources &
Corporate Affairs
Executive
Strategic Audit Heading
Analysis
(+) Factors
1. Marketing
SAN FRANCISCO Oct. 3, 2007 Gap is proud to introduce its latest marketing campaign for
(PRODUCT) RED, a for-benefit brand designed to help eliminate AIDS in Africa. Captured by
acclaimed photographer Annie Leibovitz and featuring a diverse cast of socially-conscious
celebrities, the new campaign underscores the idea that it is possible for an individual to change
the world.
2. Finance
Gap Inc. announces sales results through a press release on a monthly basis and announces
quarterly earnings results through a press release, a live conference call, and webcast. Specific
financial release dates are also available and can be found in reporting calendar. Gap Inc. shares
its financial information to help its investors analyze the company and make informed decisions.
(Gapinc.com)
3. Research and Development
Focused on cost cutting, consumer research, and more targeted marketing of the three bands.
Also, company-commissioned research is directing brand presidents on how they could expand
the chains into lifestyle brands.
4. Operations and Logistics
The companys logistics network and sourcing operations for both apparel and non apparel,
spanning more than 50 countries.
5. Human Resources
The Executive Vice President of Gap Inc. is also in charge of human resource operations
worldwide. Gap Inc. began its Human Resources organization in the year 2000.
6. Information Systems
Managers were ordered to rely increasingly o software that would tell them when and by how
much to mark down merchandise. (case)
External Factor Analysis Summary (EFAS)
External Factors
Weight
Rating
Weighted Score Comments
Opportunities
Growth in online retail
spending
Line extensions
(accessories, baby wear)
Markets in Southeast Asia
Launch of Piperlime
.10
.15
.20
5
3
.40
Predicted to increase online sales
.75
Gap, GapKids, BabyGap &
GapBody.
.60
Franchise agreements to generate
growth.
.10
.30
Online retail company (footwear &
handbags)
.20
.60
Shoppers chose fresher competitors
Threats
Shoppers switched to rival
clothing retailers
Increased competition
.10
.20
Competing with discount retailers
(Target & Wal-Mart)
Remarkably easy to imitate
.15
.30
Gap's khakis-and-blue shirt formula
Total Scores
3,15
Internal Factor Analysis Summary (IFAS)
Internal Factors
Strengths
Weight
Rating
Weighted
Score
Comments
Brand recognition
Appeal to broad target
market
Large network of physical
stores
.10
.40
.15
.75
.15
.75
Marketing campaigns
Cut 9-month production
cycle to 3 months &
customize deliveries
.10
.30
Founded in 1969, more than 3,000
stores
Men, women, children, babies,
accessories, e.t.c.
US, Canada, France, Japan, UK,
e.t.c.
TV ads, in store promotions, print
ads, direct mail, outdoor ads
Adapt to emerging trends more
rapidly
.10
.30
.10
.10
Decline in revenues
Overdependence on North
America
.15
.30
.05
.15
Perception problem
Revenues decrease from 2005 to
2006
Gap relies too much on the US
(83,6% of revenues)
Shut down of Forth & Towne
.10
.10
Open in 2005, closed in 2007
Weaknesses
Struggle to recapture
customers who had
abandoned it.
Total Scores
3,15
Income Statements, Balance Sheets, Cash Flows & Financial
Ratios
Financial Ratios
http://financials.mornin
gstar.com/incomestatement/is.html?t=GP
S®ion=USA&culture=
en-US
Analysis of Strategic Factors (SFAS)
Strategy Factors
Weight
Rating
Weighted
score
Short
Intermediate
Long
Comments
S01 Brand recognition
.05
.15
More than 3,000 stores
worldwide
S2 Appeal to broad target
market
.15
.60
Men, women, children
S3 Large network of
physical stores
.15
.60
US, Canada, France, Japan, UK
W3 Overdependence in
North America
.05
.10
83,6% of revenues
W2 Decline in revenues
.15
.30
O2 Line extensions
.15
.75
O1 Growth in online
retail spending
.10
.30
O3 Markets in Southeast
Asia
.10
.20
T1 Shoppers switched to
rival clothing retailers
.05
.15
T2 Increased competition
.05
.10
Total Score
1.00
3,15
X
X
Decrease from 2005 to 2006
X
Predicted to increase online sales
babyGap, GapBody
Generate growth.
X
Chose fresher competitors
Tiger, Wal-Mart, Abercrombie
Gap Inc.
Industry Information
First Gap store in San Francisco in 1969.
Gap Inc. has a number of brands containing Gap (including Gap, GapKids, BabyGap, and
GapBody), Banana Republic, Old Navy, Piperlime, and Athleta.
Outlet stores such as Gap Outlet, Gap Generation, and Banana Republic Factory Stores.
Over 3,200 stores worldwide with 3,100 company-operated stores located across the United
States, United Kingdom, Canada, China, France, Ireland, Japan, &Italy.
200 franchise stores in locations across Asia, Australia, Europe, Latin America, the Middle
East, and Africa.
They are well known around the world with over 134,000 employees.
Gap Inc. in 2011:
Gap Inc. has a number of brands containing Gap (including Gap, GapKids, BabyGap, and
GapBody), Banana Republic, Old Navy, Piperlime, and Athleta. There are over 3,200 stores
worldwide with about 3,100 company-operated stores located across the United States,
United Kingdom, Canada, China, France, Ireland, Japan, and Italy and about 200 franchise
stores in locations across Asia, Australia, Europe, Latin America, the Middle East, and Africa.
Gap Inc. also offers outlet stores such as Gap Outlet, Gap Generation, and Banana Republic
Factory Stores. They are well known around the world with over 134,000 employees.
Governance & Compliance
Corporate Governance
Gap Inc. was founded in 1969 on the principle of conducting our business in a
responsible, honest and ethical manner. For us, good corporate governance means
going beyond compliance. It means taking a leadership role in instituting and
maintaining practices that represent strong business ethics and ensuring we
communicate consistently with our shareholders, customers and neighbors around the
world.
We are committed to continually evolving and adopting appropriate corporate
governance best practices. Gap Inc.'s Corporate Governance Guidelines were most
recently updated in 2011.
Corporate Compliance
Gap Inc. was founded on the principle of doing business responsibly, honestly and
ethically. We take corporate compliance very seriously. Our comprehensive corporate
compliance program is designed to ensure that all employees and the company's Board
of Directors (directors) not only meet legal requirements around the world, but also
operate responsibly and with integrity in everything they do.
A combination of written guidelines, formal processes and management oversight
helps us ensure that "strong corporate compliance" aren't just words on paper, but a
way of doing business at Gap Inc.
