GAP SUPPLY CHAIN ETHIC -- ‘Sourcing ethics and the global market: The case of the UK retail clothing sector’ Evelyn Huang g Amanda Shivi Evelyn Huang g Amanda Shivi

GAP INSIDE

Start form 1969 summer, Doris and Don Fisher One of the world's largest specialty retailers 3,100 stores Fiscal 2009 revenues of $14.2 billion GAP, BANANA REPUBLIC, OLD NAVY, PIPERLIME AND ATHLETA. BACKGROUD

SWOT Internal Strengths and Weaknesses – Brand recognition – Its product mix was perfect for a specific market segment – Segmented markets – Create a trendier line, lose core market – Concentrate more on growth than meet customer specific needs

SWOT External Opportunities and Threats – Easy to expand with high brand recognition – Taken advantage of the internet – Advertising campaign with hot celebrities – Following the customer’s expectation – Competitors form all over the world – Grow to fast, can not keep up – Meet the needs of market segments, not meet the necessary needs of any of them.

Sourcing & Logistic practice Gap selects many different factories and processes – The factories only response one part – Factories can response the whole sourcing and logistic

Sourcing & Logistic practice Retek‘s supply chain management software – Clients include Tesco – Work with Gap during the implementation process – Cut Gap's supply-chain costs – Strengthen its operating efficiencies – Continuously improve customer service.

GAP ETHIC SOURCING

Ethic Problem in Sourcing Child labour – 43% of the respondents – India, China, Thailand and Bangladesh – Change the real age of children Dangerous working conditions, health and safety issues – 43% of the respondents – Workers failing to use safety equipment – Use and storage of hazardous chemical – Fire regulations are inadequate

Ethic Problem in Sourcing Bribery and corruption. – 31% of the respondents – More problematic is the tradition – GUANXI in China Exploitation of the workforce – 25% of the respondents – Conclude child labour,health and safety – Also cover low wages and excessive overtime