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Gap Inc Case Study

Case study for Gap Inc for Susan Thompson's Business 101 class

Amit Weshler

on 13 March 2013

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Transcript of Gap Inc Case Study

Amit Weshler
Adelaide Burnett
James Arias
Miguel Floresca-Cravens
Rache Strand
Siena Eyrich Business 101: Case Study Gap Inc. Gap Products How Gap produces their products:

Factories across the globe
84. 38% of Gap's 1255 factories are in Asia
 Distribution Centers
 Physical Stores and Online Shopping Company Lines Advice for Gap 1. Continue publicizing their accomplishments with workers obtaining satisfactory working environments in all their locations.
2. Focus on improving factories who's actions did not meet the Code of Vendor Conduct efficiently enough. Industry Background World Wide Power The Competition Industry Issues Company History Yahoo Finance company of the year
P.A.C.E Program
Social Responsibility Turning it all around Company Management When Gap published its social responsibility report I n 2007, it was found guilty of issues
Needed to make many changes to better itself and its brand
Began to make larger management changes in 2011 after their new 2010 social responsibility report Gap Management Issues

The President of Gap Adult North America, Pam Wallack, became the head of Gap’s new Global Creative Center
Art Peck, leader responsible for Gap’s Outlet success became new Gap North America President February 2011 Effective November 5th, 2012, Gap instilled an all new global brand structure to improve the company and its long-term growth be a single global executive in charge of the North America, International, Online, Outlet and Franchise divisions for Gap, Banana Republic, and Old Navy
New Innovation and Digital Strategy Team

http://gapinc.com/content/gapinc/html/aboutus/gapincexectives.html October 16th, 2012 Case Questions 1. Are you impressed with the effort that Gap has made to respond to the need to have more worker friendly suppliers? Would such information lead you to buy more goods from the Gap or are things like price and quality and value more important?

Gap made major changes in order to correct and improve their relationships with suppliers
Gap became aware that their suppliers were not upholding ethical practices for their workers
As a result they removed their business from 136 factories
Sacrificing cost for ethical business
Socio-cultural forces: respecting other cultures Case Questions 2. The Gap explored wage, health, and safety issues in its plants. What other issues might the company explore if it wants to assure the best working conditions possible?

Gap became aware that several places where their products were being made were in unethical working environments.
Gap has made a moral decision to keep suppliers fair and safe for workers.
Gap has promised to uphold there values over profit.
Gap has wanted to mainly focus on overseas factories In the early 1990’s many clothing and shoe retailers were being unraveled do to unhealthy working conditions. Gap was one of the companies pinned for bad working environment.
Gap has a whole with Banana republic and Old Navy decided to take a closer look to make a change to be a more“ Social- responsibility” company.
So Instead of glossing over the problem Gap decided to file a “warts- and-all” profile report The report found persistent wage, health and safety violations in China, Africa, India, Central and South America.
Gap had then turned down its business from 136 factories to under 100, due to infractions ranged from failure to provide proper protective equipment to physical abuse.
Gap retailer committed to making sweeping changes in the clothing industry. By rethinking garment- industry practices.
Since the change and advancements to Gaps decision other companies have been pressured to change. 3. If you were a stockholder in the Gap, would you be as impressed with its efforts to satisfy the needs of its workers? Would you be more interested in revenues and profits than good wages and working conditions? What concerns might a Gap employee working in one of its stores have because of its social stance?

Since Gap is a socially responsible company.
Stockholders for Gap stand by there need to focus more on the workers with keeping good wages and healthy working conditions. Rather than focus on revenues and profit.
Gap believes if you take care of the world and your employees, then your customers and stockholders will be happy and the company will thrive. Gap
Old Navy
Banana Republic
Athleta Gap Inc. Brands Gap, Old Navy, Banana Republic, Piperline, and Athelta
Each provide a different style
Some lines provide for specific audiences
Athleta is women’s athletic wear
Banana Republic provides for the “Modern” man and woman
Full transcript