Executive Summary
Gap is world class reputable retail company which sales clothing and related accessories of all kind. It sells men, women and kids clothes. The company is well established all over the world, operating more than 3100 stores world wide. These are established in most centers with high demand for their products. These include North America United States, Canada and many more developed countries of the Europeans countries. Although the company has an online system, which makes it possible to access the market costs across the geographical boundaries, the company recorded decrease in revenues since the previous two consecutive years. Revenue dropped by 1.5 % from the 2005 figures in the last two years. This was in correspondence with the drop of the years’ profits.
Company’s Purpose and Values
The company connects with the customers around the world by having inspiring product design, unique store experience and compelling market. The main purpose of the company is to make it easy it easy for the customers to express their personal style throughout their life. The company is guided by values such as integrity, respect, open- mindedness, quality and balance.
Stakeholders
The stakeholders are the shareholders who are withdrawn from the entire world countries. They are not the managing groups but they are well informed in the annual reports and the reports from mid year audits on the operations of the company.
Internal Analysis and SWOT of Gap INC.
SWOT analysis
Strengths: The Company has a dedicated management team that has enabled to prosper to great heights. Headed by a chairman, the board of directors controls operations of the company. The CEO acts as the president of the company and controls the day to day activity of the company. Strength of the company is in its chain store. With more than 3,191 stores all over the word, the company is able to reach its customers and expand its market base. The company also has a very efficient production system. This has enabled it to go to higher heights since it delivers quality products on time.
Opportunities: There is a growing market for the fashion industry in the world that the company can exploit. The growing number of fashion shows in the world can be used by the company to market its companies clothing wear.
Weaknesses: The Company has weaknesses in coordinating its sales due to its large operation structure. Threats: The competition in the market is a big threat to the company since more and more players are coming in the industry.
The gap inc. company lost revenue and market shares during the plissé’s tenure because of several factors which affected the company’s business operations and management. This includes the following: The Company had poor strategies in marketing of their products. The company had unethical investment of its finances. This investment came from the company’s shares. This compelled the company to close down some of the newly established company investments / stores. Also the market was susceptible to market swings.
Recommendations
This company is concerned with production of the clothing that are required by specific people and it has to ensure that it covers that population so that it makes high sales that are required so that the company does not have to face financial problems. The company is situated in convenient places where these people can be able to reach the product without delays and at the appropriate time. The main products that are supplied by this company are the clothing for ladies of twenties and early thirties as well those of young children. Many of the employees have no relevant experience in carrying out their duties. (Carwrite, 1999)
The company has not established meaning and long lasting impacts on the external environments. The company should be involved with many activities which are supported by the communities’ in their scope of market centers. It should get in touch with those working in global and international fields to promote its goods. It should establish a team of individuals at the different major stores to ensure that the working conditions for worker are in accordance to the international labor standards. The company needs to develop trainers on economic and social issues.. (Pearce, 1997)
Conlusions
The company is well established all over the world, operating more than 3100 stores world wide. Strength of the company is in its chain store. The company also has a very efficient production system. The growing number of fashion shows in the world can be used by the company to market its companies clothing wear. The gap inc. company lost revenue and market shares during the plesslér’s tenure because of several factors which affected the company’s business operations and management.
This includes the following: The Company had poor strategies in marketing of their products. The company had unethical investment of its finances. This investment came from the company’s shares. This compelled the company to close down some of the newly established company investments / stores.
Reference
Carwrite, J. (1999): cultural transformation: nine factors for continuous business improvement. London.
Kotler, P. (1997): marketing management: analysis, planning, implementation and control. New Jersey.
Pearce, J. (1997): strategic management: formulation, implementation and control. Illinois.