Case Study for Gap

Gap – 2008

Forest David: Francis Marion University

A. Case Abstract

Gap Corporation (www.gapinc.com) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end February 2007 financial statements, competitor information and more. The case time setting is the year 2008. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in San Francisco, California, Gap’s common stock is publicly-traded on the New York Stock Exchange under the ticker symbol GPS.

Gap sells fine clothing in the United States, Canada, UK, France, Ireland, and Japan in over 3,000 stores. The company operates under the brand names Gap, Old Navy, Banana Republic, and Forth & Towne. Gap has over 150,000 employees and is led by CEO Marka Hansen. The firm’s major competitors are American Eagle and Abercrombie & Fitch.

B. Vision Statement (proposed)

Our vision is to become the number one specialty clothing retailer in the world.

C. Mission Statement (proposed)

Our mission is to provide customers with the most up-to-date, high quality fashion at an affordable price. (1, 2) Gap will provide products and services in numerous markets so our customers can have easier access to our products, which creates top of the mind awareness. (3) Using the most advanced inventory logistics and procurement technology, we will control costs and offer products at the most competitive price in the retail industry. (4) We will achieve sustained growth and financial soundness and maximize shareholder wealth. We carefully will formulate strategic management plans to assure a bright future direction of the company. (5) Valuing our employees’ well-being over profits, we strive to create a blissful and business-casual work environment that is stress-free and creative. Gap stores offer a relaxing atmosphere...