MGT302 – Strategic Management Assignment 1 Details in addition to requirements given in Subject Outline.
ASSESSMENT 1 – Case Study - The GAP please download from Textbook (David & David).
XXXXXXXXXX%-word Report
Weight 20% marks
DUE FRIDAY Week 6 - 5:00pm through Moodle – word.doc or .docx
Contents of your report
1.0 Introduction –
ief description of the company and the industry of which it is part and the main challenge(s) being faced- i.e., why are you being asked to analyse the case - 100
2.0 Macro environmental analysis – (PESTEL) factors which are changing or impacting on the company and/or the industry– include some discussion as to what they mean for the company - 300
3.0 Industry analysis (for each industry if more than one) -
· 3.1 Brief description of the life cycle stage of the industry - 150
· 3.2 Porter’s 5 forces analysis – conclusion regarding attractiveness – THE INDUSTRY - 350
4.0 Company analysis: resources and capabilities – core competencies – include some discussion of which ones are/will be most effective in achieving strategies and objectives or are most important to identified environmental factors – macro and/or industry. 200
5.0 BCG or VRIO Framework analyse The GAP - 200
6.0 Competitor analysis: draw conclusions about main competitive threats (if any) (link back to five forces analysis) - 200
7.0 Strategy analysis - 400
· 7.1 Identify strategies - Corporate Level and/or Business level if possible
· 7.2 Analyse if working or not – why / why not
· 7.3 Suggestions for improving cu
ent strategies or suggestions for new strategies – link back to analysis and explain why you think they will work
8.0 Conclusion – summary, recommendations, prediction for future of the company/industry - 100
9.0 References
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Use your referenced sources and theory to support your analysis and recommendations.
Presentation: Title page, executive summary, table of contents, body of report containing suitable headings and subheadings, reference list (Harvard-Anglia style), single spaced, font Times New Roman 12pt, Cali
i 11pt or Arial 10pt.
Min of eight suitable reliable cu
ent acceptable sources
See course outline for marking scale.
someTitle
366 STRATEGIC-MANAGEMENT CASE ANALYSIS
The Gap Inc.—2018
www.gapinc.com, GPS
The Gap Inc. (Gap) is a popular retailer providing clothing, accessories, and personal-care
products for men, women, children, and babies under Gap, Old Navy, Banana Republic, Intermix,
Weddington Way, Piperlime, and Athleta
ands. Stores are located in the United States, Canada,
China, the U.K., France, Ireland, Italy, Taiwan, Mexico, and Japan. Franchise agreements expand
operations into Asia, Australia, Europe, Latin America, Africa, and the Middle East. Gap employs
about 135,000 full and part-time people at 3,200 company-owned store locations that are almost
all under a lease agreement. Customers can shop online at gap.com, oldnavy.com, bananarepublic
.com, and athleta.com. Other Gap-owned retail outlets include GapBody, GapKids, and BabyGap.
Weddington Way does not have a material impact on Gap’s financial statements.
Gap provides a wide range of family clothing products, including denim, khakis, T-shirts,
fashion apparel, shoes, accessories, intimate apparel, and personal care products. All Gap cloth-
ing is private-label merchandise made specifically for the company. From the design board to
store displays, Gap controls all aspects of its trademark casual look.
As indicated in the following numbers, the company needs a clear strategic plan going for-
ward. Fiscal year 2017 company’s sales were up 3 percent compared with a decline of 2 percent
the prior year. Sales by
and for fiscal year 2017 were as follows:
• Old Navy Global: up 6 percent versus down 1 percent the prior yea
• Gap Global: down 1 percent versus down 3 percent the prior yea
• Banana Republic Global: down 2 percent versus down 7 percent the prior yea
Copyright by Fred David Books LLC; written by Forest R. David.
History
In 1969, Doris and Don Fisher entered the clothing retail business with the vision of creating a
unique shopping experience that offered a wide selection of styles. The idea behind the first Gap
store, founded in San Francisco, was to provide fresh, casual, American style clothes. By 1970,
sales reached $2 million and the company opened its second store in San Jose, California. Six
years later, in 1976, the company underwent major changes and initiated its first public offering
of 1.2 million shares of stock on the New York and Pacific Stock Exchange.
The 1980s was a period of major growth and expansion. In 1980, Gap dropped Levis and
other
ands and began focusing on its own private label. In 1983, Gap expanded horizontally by
acquiring Banana Republic, as well as expanding its product line and introducing GapKids with
the opening of its first store in San Mateo, California. A year later, Gap burst into the interna-
tional market and established its presence in London, England, and Vancouver, British Colombia.
The same year, Gap entered the European market and Gap’s annual sales reached $1 billion.
In 2005, Gap revamped its online stores by offering more convenience and interactive shop-
ping. The following year, Gap added PiperLime to its online
ands. In 2008, the company acquired
Athleta Inc., a women’s sports and active apparel company based in Petaluma, California, for $148
million. Gap opened its first stores in Se
ia and Ukraine in 2011,
oadening the clothing chain’s
each into Eastern Europe. Gap stores opened early 2018 in Belgrade and Kiev. Stephen Sunnucks,
Gap’s international president, said in a statement that Ukraine is the fastest-growing retail market in
Eastern Europe, while Se
ia has many young customers who enjoy shopping.
Vision/Mission
Gap provides extensive literature and discussion on their corporate website regarding its efforts
to enhance sustainability and take care of employees. Gap does not, however, report a written vi-
sion or mission statement. However, from reviewing cu
ent and past Annual Reports, a possible
mission could look something like the following:
David, Fred R., et al. Strategic Management : A Competitive Advantage Approach, Concepts and Cases, Pearson Education, 2019. ProQuest Ebook Central,
XXXXXXXXXXhttp:
ebookcentral.proquest.com/li
kingsowninst-ebooks/detail.action?docID=6195333.
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CASE 2 • THE GAP INC.— XXXXXXXXXX
EXHIBIT 1 Gap Inc.’s Top Executives and Organizational Chart
Source: Based on company documents.
1. Art Peck, President and CEO
2. Brent Hyder, EVP, Global Talent and Sustainability
3. Julie Gruber, EVP, Global General Counsel, Corporate
Secretary and Chief Compliance Office
4. Paul Chapman, EVP and Chief Information Office
5. Sebastian Digrande, EVP Strategy and Chief Customer Office
6. Michael Yee, EVP Global Supply Chain: Sourcing and Production
7. Shawn Cu
an, EVP Global Supply Chain and Operations
1
XXXXXXXXXX XXXXXXXXXX
8. Christophe Roussel, EVP Global Sourcing and Product Operations
9. Teri List-Stoll, EVP and Chief Financial Office
10. Jeff Kirwan, President and CEO Gap
11. Sonia Syngal, President and CEO Old Navy
12. Nancy Green, President and CEO Athleta
13. Mark Breit
ad, President and CEO Banana Republic
14. Abinta Malik, EVP and General Manager, Greater China
15. Jyothi Rao, President and General Manager, Intermix
Gap strives to be a leader in the specialty family clothing industry offering excellent value
to consumers by providing quality products at a fair price throughout North America,
Asia, and Europe. Gap strives to minimize its environmental impact on raw materials
with special consideration for both Gap employees and persons employed all along its
supply chain. Gap is committed to producing lasting and positive relationships in all com-
munities it impacts.
Internal Issues
Organizational Structure
Gap’s organizational structure is provided in Exhibit 1. Of the 15 people listed, 6 are women. It
appears the firm operates under a divisional-by-product structure, but there are duplicate titles of
President and CEO for numerous positions, and there is no COO. Apparently every top execu-
tive reports to Art Peck.
Sustainability
Gap’s sustainability strategy is aligned with the United Nations Global Sustainable Development
Agenda that focuses on human rights, and the Paris Agreement that focuses on climate, and other
sustainability programs. Gap is committed to ensuring its 135,000 employees and millions of peo-
ple within its supply chain are paid fairly and work in safe conditions, as outlined in the company’s
five focus areas on core sustainability. Also included among the five key areas are water steward-
ship, product sustainability, and operational eco-efficiency. All areas are geared toward taking care
of employees, and ensuring a small environmental footprint on all Gap products produced.
Segment Data
Gap primarily operates under Gap, Old Navy, Banana Republic, Athleta, and Intermix
ands
focusing primarily on clothing in all business segments. The company controls store layouts,
marketing,
and development, and virtually all other vital factors for its full line of stores.
Gap specializes in offering trendy but casual American style clothing focusing on denim,
T-shirts, button-downs, khakis, and other casual styles of clothing and focusing on providing
an affordable product though moderate price points. GapKids, GapBody, GapFit, babyGap,
GapMaternity are common marketing names utilized by Gap. Customers can shop Gap at retail
stores, outlet and factory stores, and on Gap’s website. Gap stores account for 41 percent of all
The Gap Inc. stores.
The company provides revenues by both geographic region and by store
and on their
Annual Report. Exhibit 2 reveals the number of store locations by geographic region and store
and. Note there are nearly 25 percent more Old Navy stores in North America than Gap stores,
ut only 2 percent of international stores are Old Navy with 88 percent of international stores
eing Gap. Also, around 12.5 percent of all company stores are franchised owned, primarily all
David, Fred R., et al. Strategic Management : A Competitive Advantage Approach, Concepts and Cases, Pearson Education, 2019. ProQuest Ebook Central,
XXXXXXXXXXhttp:
ebookcentral.proquest.com/li
kingsowninst-ebooks/detail