Strategic Audit of the Gap, Inc. Essay

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Strategic Audit of The Gap, Inc.

Submitted by: Chris Bess, Teddy Ormsbee, Tiffany Sayers, and Jeremey Williams

Submitted to: Professor Ditmore

13 April 2010

Table of Contents I. Current Situation: The Gap in 2002 3 A. Past Corporate Performance 3 B. Strategic Posture 4 II. Corporate Governance 5 A. Board of Directors 6 B. Top Management 7 III. External Environment: Opportunities and Threats 8 A.) Societal Environment 8 B.) Task Environment 10 IV. Internal Environment: Strengths and Weaknesses 11 A. Corporate Structure 11 B. Corporate Culture 12 C. Corporate Resources (Value Chain Analysis) 12 V. Analysis of Strategic Factors 15 A. Key Internal and External Strategic Factors 15 B. Review
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Gap Inc.’s mission statement captures its dedication to its customers and unparalleled product quality. Gap’s current objectives and policies include ethical sourcing, better employment practices, and community involvement. These objectives and policies are captured by the following statement:
Our purpose? Simply, to make it easier for you to express your personal style throughout your life. We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers. Across our company and embedded in our culture our key values that guide our success: integrity, respect, open-mindedness, quality and balance. Everyday, we honor these values and exemplify our belief in doing our business in a socially responsible way (
This show that Gap’s top priority is to be socially responsible as it meets its customers’ needs. Gap’s main strategy is that of broad differentiation, which offers a multitude of products and appeals to many demographics. The company has grown through the addition of new product lines and expansion into foreign markets. Overall, the brand is known for quality and products are sold at initial prices that are slightly above average. The company has also grown through acquisitions. They create synergy with the acquired company’s by using them to target market segments not satisfied by the Gap brands. For example, Banana Republic
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