1. BMGT 495- Strategic Management Christian Snuggs (Team Captain)
Strategic Team Four
BMGT 495- Strategic Management
Doctor vernon swinton
4 may, 2014
Christian Snuggs (Team Captain)
Disheka Butler
Rachel Kenlon
Clemente Moreno
Matthew Ulichney
Good Morning Gap Executives! This meeting has been assembled to present Gap Incorporated with an out-brief presentation of Strategic Team Four’s findings and recommendations from an in-depth strategic analysis study which was conducted upon GAP Inc. this past quarter. The overall purpose of Strategic Team Four’s analysis was to analyze Gap’s present operations—corporate, business, and functional level—and create a new strategic plan for Gap Incorporated.

2. Agenda Vision and Mission Alternative Strategy Generation
1st HALF (8: )
2ND HALF (9:15–10:15)
Vision and Mission
Background Organization
Industry Analysis
Competitive Analysis
Financial Analysis
Technique Analysis
Alternative Strategy Generation
SWOT Analysis
Strategy & Prioritization Selection
Action Plan
Evaluative Plan
Here is a breakdown of topics and areas of which ST4 conducted strategic analysis upon in order to successful analyze GAP Incorporated. This is also the order of which today’s presentation briefing will follow.

3. Vision and Mission
Current Vision & Mission Statement = NONEXISTENT
Proposed Vision Statement:
“World’s leader in Casual, Classical, and Stylish apparel… at accessible prices”
Proposed Mission Statement:
“Provide exceptional services and clothing apparel to customers as well as providing a responsible ethical work environment for employees”
First off, currently Gap does not possess a clear or written Vision and Mission Statement (David, 2013, p. C-55). Without a vision or mission statement, strategic direction of the corporation, along with strategic plans and guidelines, can not be successfully established. After analysis, here are the proposed vision and mission statements of which ST4 created for Gap Inc.
In regards to the proposed vision statement, not only would Gap be striving to become the world’s leader in specialty clothing, but Gap would also be pursuing and providing great financial values for its customers; along with providing simple, yet specialty, family clothing for all members of all families.
When focusing upon the proposed mission statement, Gap is a corporation which has always done righteous, ethically correct decisions and implementations. Gap will continue to pursue and apply existing codes of ethics which have provided a proper working atmosphere comfortable for employees, and a shopping atmosphere that is relaxing for consumers. The proposed mission statement will ensure the such proper core values will be carried on within the Gap corporation….. Making Gap, “the World’s leader in Casual, Classical, and Stylish apparel… at accessible prices”.
References: (David, 2013, pp. C-55)

4. Background Organization
1969 – Doris and Dan Fisher opened first Gap
1970s – 1980s:
2000s:
First public offering 1.2 million shares
Purchased PiperLime and Athleta Inc.
Focused on private label
Opened stores in China and Italy
Purchased Banana Republic
Currently:
Introduced GapKids
Stores in 24 countries
Opened stores in England and Canada
3,500 stores
136,000 employees
Sales reaching $1billion
Six brand names
1990s:
Opened stores in France, Tokyo
Introduced Old Navy
In 1969, married couple Doris and Dan Fisher, established the first Gap in San Francisco (David, 2013, p. C-54). Throughout the 1970s and 1980s Gap focused on adapting to their new market. In 1976, the company initiated its first public offering of 1.2 million shares of stock on the New York and Pacific Stock Exchange (David, 2013, p. C-54). By 1980, Gap dropped other brand names to focus on their own private label (David, 2013, p. C-55). During this time of change, Gap began procuring other franchises and expanding their store locations and product line. Between the late 1980s and early 2000s, Gap acquired Banana Republic, introduced two kids line called GapKids and babyGap, introduced Old Navy, acquired apparel and accessory lines PiperLime and Athleta, and opened stores in England, Canada, France, Tokyo, China and Italy (David, 2013, p. C-55). During this time, sales reached $1 billion and Gap had become the second largest apparel brand in the world (David, 2013, p. C-55). Gap is one of the largest retailers in the United States and operates throughout the world. They currently have Gap stores in 24 countries, including newly opened stores in China and Italy, more than 3,500 stores, 136,000 employees and six brand names (Gap, 2014).
References: (David, 2013, pp ); (Gap, 2014)

5. Industry Analysis Economic Forces
Disposable Income
Unemployment Trends
Political, Governmental, and Legal Forces
World Oil, Currency, and Labor Markets
Social, Cultural, Demographic and Environmental Forces
Population Changes by Race, Age, Sex, and Level of Affluence.
Technological Forces
Communication
Marketing
Competitive Forces
Industry Overview: To analyze the industry we evaluate “key external forces that can be divided into five broad categories: (1) economic forces; (2) social, cultural, demographic, and natural environment forces; (3) political, governmental, and legal forces; (4) technological forces; and (5) competitive forces” (David, 2013).
Economic Forces: Recent economic pressure from the global recession has motivated companies to rethink how and where they make their innovation investments. Brand and private label manufacturers and retailers like Gap Inc. have dramatically streamlined their operations in recent years to squeeze every last bit of margin out of sales (Gap, 2014). The focus can be on simplifying and unifying the apparel in the industry, footwear and accessory development process by integrating specifications, calendars, cost information and line plans across the industry.
Disposable Income: Disposable income is covered in the next slide with a table.
Unemployment Trends: The teen market age 15 to 19 is a powerful purchasing group for Gap and its closest competitors (David, 2013). Unemployment rates of teenagers can be analyzed and compare them to sales on teen apparel. The Bureau of Labor Statistics provides information that can be used to capitalize on opportunities and remedy threats. While the 16 to 19 year olds in 2013 were at 22.9% unemployed, 24% in 2012, 24.4% in 2011 and 29.1% in 2010, formulating a counteractive strategy to unpredictable unemployment trends in this situation is essential (Bureau of Labor Statistics, 2014).
SCD&EF: The majority of trends that affect the apparel retail industry are driven by demand from the various demographic groups and their consumer preferences.
Population Change: By 2075, the U.S. will have no racial or ethnic majority” (David, 2013). Social, cultural, demographic, and environmental trends are changing the styles of American trends. Embracing diversity can benefit the apparel industry as well as benefit Gap Inc.
Political: As long as there is quantitative easing by the Fed to stimulate the economy and while governments overseas deal with civil unrest, variables like world oil and currency markets face risk for dramatic fluctuation prices. Rising oil prices can naturally impact transportation cost and can raise natural gas prices in turn affect the cost of producing pulp, that is used in the production of plastics and packaging. Coming up with different packaging can be part of a strategy to attract new customers.
Technological: Staying up to date with technology today is probably more important than ever before. It is something that should be continuously worked on in order to improve custom productions, mass customization, and Internet-based communications networks linking manufacturers to suppliers, which will allow “retailers to better tailor their products to the needs of the shopper” (David, 2013).
References: (David, 2013, pp ); (Gap, 2014); (Bureau of Labor Statistics, 2014)

6. Industry Analysis (Cont’d)
Real Disposable Personal Income: Per capita
DATE
Chained 2009 Dollars
Percent Change
35870
36082
35600
35705
36294
36759
1.2812
36773
#N/A
Source:
U.S. Department of Commerce: Bureau of Economic Analysis
Disposable Income: This table represents the amount of disposable income and percentage change over annual periods. Disposable personal income has an effect on sales and it is a key economic variable that ST4 monitors. The aging baby boomers are making decisions to spend less of their disposal personal income on clothes and more in other priorities. As the largest amount of members in a generational group, the baby boomers impact all industries. This slide provides numbers retrieved from the Federal Reserve Bank of St. Louis where Real Disposable Personal Income: Per capita is provided from recent years and its percentage change for dates ranging from to (FRED, 2014). The slide illustrates how disposable income and disposable income percentages impact the industry.
References: (FRED, 2014)

7. Competitive Analysis Competitive Forces Key Questions
Knowing Your Competitors
The TJX, Companies, Inc.
American Eagle Outfitters, Inc.
Abercrombie & Fitch Co.
Nordstrom Inc.
Porter’s 5 Forces
Rivalry among competing firms
Potential entry of new competitors
Potential development of substitute products
Bargaining power of suppliers
Bargaining power of consumers
Part of a competitive analysis is identifying rival firms and determining their strengths, weaknesses, capabilities, opportunities, threats, objectives, and strategies (David, 2013). Bottom line, the more known about competitors the better; for example, are competitors responding to economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive trends which may affect Gap’s industry (David, 2013)? In other words, what sources are being utilized by competitors to achieve better performance or better financial standings? Also, knowing how vulnerable major competitors are to Gap’s strategies can be something beneficial when it is necessary to capitalize on opportunities, or visa-versa knowing how vulnerable Gap’s strategies are to successful counterattack competitors (David, 2013).
Key Questions: When gathering data upon competitive analysis, sometimes asking strategic simple questions will do the trick. For example:
1. How are Gap products or services positioned relative to major competitors?
2. To what extent are new firms entering and old firms leaving the industry?
3. What key factors have resulted in Gap’s present competitive position?
4. How have sales and profits of major competitors changed over recent years?
Answers to some of these questions can really help formulate a strategy. For example,
; that is where and how Gap will really know competitors.
For Gap in the apparel industry we know that The TJX, Companies, Inc. is the top competitor with 1,079 T.J. Maxx, 942 Marshalls, 450 HomeGoods, and 4 Sierra Trading Post stores in the United States; 227 Winners, 91 HomeSense, and 27 Marshalls stores in Canada; and 371 T.K. Maxx and 28 HomeSense stores in Europe (Yahoo Finance c, 2014).
Followed by Nordstrom Inc. with 267 stores, including 117 full-line stores, 147 Nordstrom Racks, 2 Jeffrey boutiques, and 1 clearance store in 36 states (Yahoo Finance d, 2014).
Also Abercrombie and Fitch Co. currently operate 1,006 stores, including 843 stores in the United States and 163 stores internationally (Yahoo Finance e, 2014).
And American Eagle Outfitter, Inc. currently operates 893 American Eagle Outfitters stores and 151 aerie stand-alone stores, as well as 49 franchised stores in 13 countries. The company also sells through ae.com and aerie.com to 81 countries worldwide (Yahoo Finance f, 2014).
So taking advantage of public information to develop strategies is fair game for anybody in the industry.
So one way to determine if the industry you are in is easy to get into or to determine where power lies one can conduct an analysis with Porter’s 5 Forces matrix. The evaluation of how strong and important each element is for the firm is determined in order to strategize for it.
Here we see that the the competitive forces are; 1) Rivalry among competing firms, 2) Potential entry of new competitors, 3) Potential development of substitute products, 4) Bargaining power of suppliers, and 5) Bargaining power of consumers (David, 2013).
References: (David, 2013); (Yahoo Finance e, 2014); (Yahoo Finance f, 2014)

8. Competitive Analysis (Cont’d)
GAP’s Competitors – 2013 (in thousands)
Family Clothing Retail Competitors
Company
Revenues
Profit Margin
Net Income
PE Ratio
TJX Companies
27,422,696
7.79%
2,137,396
19.88
Gap Inc.
16,148,000
7.93%
1,280,000
14.51
Nordstrom
12,540,000
5.85%
734,000
16.76
Abercrombie & Fitch
4,116,897
1.33%
54,628
53.41
American Eagle Outfitters
3,305,802
2.51%
82,983
26.72
As illustrated, Gap faces strong competition from Abercrombie & Fitch Co., American Eagle, Nordstrom’s ,and TJX Companies (e.g., Marshalls and TK Maxx) (Gap, 2014). Within this slide, major competitors and relevant financial data reflects that TJX is possessing a greater market share. Perhaps taking a closer, longer look at TJX’s business and financial reports may uncover competitive intelligence upon the rival.
References: (Gap, 2014); (Yahoo Finance a, 2014); (Yahoo Finance b, 2014); (Yahoo Finance c, 2014), (Yahoo Finance d, 2014); (Yahoo Finance e, 2014); (Yahoo Finance f, 2014)

9. Financial Analysis Financial Statements Ratio Analysis
Financial Position
Profitability
Cash Position
Ratio Analysis
Liquidity Ratios
Leverage/Financial Ratios
Turnover/Activity Ratios
Profitability/Performance Ratios
“Financial condition is often considered the single best measure of a firm’s competitive position and overall attractiveness to investors” (David, 2013).
To determine an organization’s financial strengths and weaknesses to effectively formulate strategies, financial statements—just as a creditor or investor would utilize—are analyzed to determine Gap’s strengths and weaknesses. For example:
Determining a firm’s liquidity, leverage, working capital, profitability, asset utilization, cash flow, and equity can eliminate some strategies as being feasible alternatives (David, 2013).
Balance sheet segments—assets, liabilities and shareholders' equity—can give investors or analysts calculated figures as to what the company owns, owes, and amount invested by the shareholders.
Income statement is used to determine a firm’s profitability. The income statement that deals with operating items is interesting to investors and analysts because this section discloses information about revenues and expenses, which are a direct result of regular business operations.
Cash position comes from the cash flow statement and it can be attributed to a specific strategic project, or to a business as a whole. It is used as an indication of a company's financial strength.
Financial ratios are, undoubtedly, extremely useful in measuring numerous aspects of a business and are vital tools in conducting financial analysis. Financial ratios help in comparing differences between companies and industries, differences between selected time spans, and differences between company industry averages. Financial ratios can be categorized as the following:
Liquidity ratios: Helpful in quantifying availability of cash in a business to pay back debts.
Leverage/Financial ratios: These debt ratios are useful in assessing the ability of a firm to pay back long-term debts.
Turnover/Activity ratios: Important in quantifying time taken by a firm to convert non-cash assets into cash-assets.
Profitability ratios: Strategic in quantifying usage of a firm’s assets and control over expenses thereby producing a desirable return rate.
References: (David, 2013)

10. Technique Analysis Competitive Position Market Growth
2nd in revenues compared to competition
Global presences and expansion
Multiple business entities
Annual growth in sales .3%
Market Growth
Shift in consumer priorities
Opportunity to pursue age groups
Industry is growing
A popular, effective tool to measure Gap’s technique is the Grand Strategy Matrix. In a Grand Strategy Matrix, a firm is positioned in one of the four strategy quadrants (David, 2013, p. 175). The Grand Strategy Matrix is based on two dimensions: competitive position and market (industry) growth (David, 2013, p. 189). On The Grand Strategy Matrix, competitive position represents the x-axis or horizontal line of the matrix, while the y-axis or vertical line is represented by market growth. Before placing Gap into one of the four quadrants (as illustrated in the next slide), these two dimensions must be defined.
Gap does have a strong competitive position. Their strengths contribute to their strong competitive position; including a strong global presence and expansion, and their ability to run multiple business entities both in-store and online. Gap is also able to reach several different market segments. Gap is able to appeal to baby boomers, teens and young adults through each of their six brands (David, 2013, p. C-57). This gives Gap the edge over competition. Gap is also able to price each line differently and market them based on which age group is targeted. Alternatively, Gap has not been able to maintain steady growth and sales within the last three years. The annual sales growth for the past three years has only been .3%. This is not a strong growth rate. This puts Gap closer to the weak competitive position axis.
There has been a shift in consumer priorities from retail to educational costs, health care, housing and leisure activities (David, 2013, p. C-57). This shift has decreased demand for retail, weakening Gap’s industry growth. Contributing to a rapid industry growth, Gap has the opportunity to pursue all of these age groups because of their multiple brands. Gap must also consider that in 2011, the expected retail industry growth was 4% (Grannis, 2011). An industry that exceeds 5% is considered to have rapid growth (David, 2013, p. 189). This puts Gap closer to the rapid market growth axis.
References: (David, 2013, pp ); (Grannis, 2011)

11. Technique Analysis (Cont’d)
The Grand Strategy Matrix
RAPID MARKET GROWTH
Quadrant I
Market development
Market penetration
Production development
Forward integration
Backward integration
Horizontal integration
Related diversification
Quadrant II
Market development
Market penetration
Production development
Horizontal integration
Divestiture
Liquidation
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
GAP
Quadrant III
Retrenchment
Related diversification
Unrelated diversification
Divestiture
Liquidation
Quadrant IV
Related diversification
Unrelated diversification
Joint ventures
Overall, this places Gap in Quadrant II. This means that Gap needs to evaluate their present approach in the marketplace (David, 2013, p. 190). Although, their industry is growing, Gap is unable to maintain steady sales, which compromises their competitive position. Gap needs to determine why their current approach is ineffective and how they can improve their sales and ultimately their competitiveness (David, 2013, p. 190).
Gap should consider market development, market penetration and product development. Gap should create objectives to appeal to more of the market through products. Baby boomers represent 77 million in retail sales (David, 2013, p. C-55). Baby boomers are a large group that has recently shifted their priorities, Gap should form strategies to appeal their products back to the baby boomers. This potentially will increase sales and Gap’s competitive because they would be able to reach more consumers.
Another strategy that falls in Quadrant II is horizontal integration. Horizontal integration is the acquisition of additional business activities that are similar to the purchasing business (Horizontal, 2014). Gap has been successful at acquiring other businesses such as PiperLime and Athleta. Gap could form strategies to purchase other businesses that would help them reach more of the market. This would increase industry growth and competitive position.
SLOW MARKET GROWTH
References: (David, 2013, pp ); (Horizontal, 2014)

12. Alternative Strategy Generation
Steps toward Alternative Strategy Development
1. Identify potential disruptive events
2. Spot Strategic trigger points
3. Evaluate possible effects of potential disruptive events
4. Create Alternate Strategy
5. Evaluate counter action(s) of alternate strategy
6. Establish warning signs
7. Develop/Establish implementation “time-phase indicator(s)”
Alternative Strategy Generation: First, it is important for GAP to come up with comprehensive strategy plan; Nonetheless, “nothing ever goes according to plan”. With that said, alternative strategies—or contingency strategies—should exist in the event of unforeseen circumstances (David, 2013, p. 173). List here are 7 steps which Gap could implement to ensure corporation readiness is “standing-by” if needed (David, 2013, p. 173).
References: (David, 2013)

13. Alternative Strategy Generation (Cont’d)
Potential Disruptive Events to consider
Major Competitor change
Dramatic changes in Sales/Profits
Supply/Demand changes
Disaster/Crisis/Opportunity occurrence
ST4 developed some areas of concern in regards to creating alternate strategies to potential “disruptive” events (David, 20130, p. 173). For example, shifts in major competitor changes should be consisted, evaluated, and incorporated into Gap’s final strategic plan. Dramatic changes in sales and/or profits is another area to address and to have prepared responsive plans for possible implementation. Sudden supply and demand changes is a strategic area which requiring back-up contingency plans. Finally, disaster, crisis response, and opportunity possible apprehension should have strategic procedures establishment.
References: (David, 2013)

14. SWOT Analysis Strengths: Weaknesses: Global Presence
Global Business Expansion
Internet / On-line websites
Multiple Business Entities
“Casual, American Style, Classical Apparel at accessible prices”
Weaknesses:
Unclear Current Vision/Mission Statement
Focused mainly upon “private-label” merchandise only
Complete lack of Contingency plans and planning
SWOT Analysis, or better known as Strengths, Weaknesses, Opportunities, and Threats. There are multiple strengths which Gap possesses. For example, Gap is a global business enterprise reaching 24 different countries (Gap, 2014). Business Expansion is on the horizon, resulting in the creation of 15 more stores by 2015 (Gap, 2014). On-line websites and shopping platforms provides access to Gap merchandise 24/7, 365 days a year, and in areas which don’t possess a brick-and-motor Gap establishment. Speaking of establishment, Gap utilizes multiple business entities (e.g., Banana Republic, Old Navy, Piperlime, Athleta, and Intermix) which carry, stock, and sell a mixture of clothing variety; essentially focusing upon multiple demographic and geographic groups (Gap, 2014). Lastly, Gap’s prestige strength is its established name and character which is known by many as, “Casual, American Style, Classical Apparel at accessible prices”.
As for Gap weaknesses, Gap lacks a clear vision and mission statement. Currently there is no listing or printing of a vision-mission statement; as mentioned earlier in this presentation. Due to such, development of strategic strategies and corporation direction may be hindered or confusing. Focus upon “private-label” merchandise only at Gap merchandise stores. Although Piperlime and Athleta carry and sell many name brand merchandise other than private-label, Piperlime and Athleta conduct sales primarily on-line only (Gap, 2014). Such private-label handling only and multiple name brand merchandise available via on-line only is a weakness for Gap. Lastly, Gap lacks contingency and emergency action plans. In the event of an unexpected event (e.g., disaster or positive business opportunity), Gap Inc currently does not possess reaction plans and guidance to strategically respond and recovery from any form of contingency environment (Gap, 2014). Ladies and Gentlemen, those are Gap internal Strengths and Weaknesses.
References: (David, 2013); (Gap, 2014), (Kotler, 2012)

15. SWOT Analysis (Cont’d)
Opportunities:
Pursue age group
Remember “Baby Boomer” age group
Enhance On-line websites
“Green” Production Operations
Threats:
Global Economy
Competition / Competitors
Rising prices of resources, materials, transportation
Retaining Key employees
Security of data
Unexpected disasters / events
“What-If” sales fall
When it comes to opportunities and threats, there are a few areas of concern which Gap should be analyzing. For example, the 15 to 19 age group is a strategic opportunity to focus upon. This is the age group which averages 7.1 percent of all clothing retail (Gap, 2014). Next, the “Baby Boomers” age group; although the Baby Boomers are getting older, the group still holds the largest number of consumers (David, 2013, p. C-57). Enhance and development of current o-line websites and shopping platforms. Bottom line, on-line retail is the wave of the future, possessing and implementing the latest technological traits of on-line marketing is key to success. Finally, green products and green production. With the pursue of environmental friendly products and production, savings for both Gap and the consumer will be the end result (e.g., savings past on to consumers via energy conservation and manufacturing processes) (Gap, 2014).
Threats unfortunately are present in every world of business management and existence. For example, global economy is a huge threat which no one business or management personnel could precisely predict or forecast. Competition from competitors is always going to be a threat which must be analyzed and followed regularly in order to stay afloat. Rising prices of natural resources, raw materials, and transportation expense it a continuous growing concern, dilemma, threat. Retaining key employees which drive the organization towards success and motivate the team to achieve desired goals is an issue in today’s ever-fast moving—and competitive—world. Security of strategic data and strategic operations is threat which mustn’t be overlooked. As previously mentioned, unexpected disasters and events pose a threat—hint, the need for contingency plans. Last, “What-if” future product sales fall below anticipated, forecasted financial percentages? All-in-all, the threats toward GAP are really and must be addressed in order for Gap to remain competitive in the market of clothing apparel.
References: (David, 2013); (Gap, 2014), (Kotler, 2012)

16. Strategy & Prioritization Selection
#1: Employment of Technology
#2: Product Differentiation
#3: Expansion
#4: Strategic Distribution
#5: People Differentiation
Strategy and Prioritization Selection. As mentioned in slide 11, Alternative Strategy Generation, here is the listing of potential strategies and ranked prioritization implementation. First off, employment of technology. Technology of course is forever changing and altering the way business is conduct. If Gap Inc. wishes to stay on top of the business game of clothing retail, the action of employing the latest technology is a must. Second, product differentiation. If Gap implements product differentiation, then Gap could differ competitors in the form of providing difference on features, style, and design of clothing apparel, resulting in Gap maintaining the motto, “World’s favorite for American Style (Gap, 2014) (Kotler, 2012, p. 211). Third, business expansion of course is already on the mind of Gap Inc. (Gap, Main concern to remember and apply to business expansion is the topics of additionally supplies and manning personnel. Fourth strategy priority, strategic distribution. As just mentioned with expansion, distribution measures, avenues, and operations will need a reorganization to ensure such new expansion facilities are being supplied successfully. Due to such business expansions, expansions in the form of strategic warehouse relocation and warehouse establishment may have to commence. Finally, people make the business. Bottom line, no business could survive without its people. At Gap, the strategy of people differentiation from that of competitors must take on the form of better training, higher wages, and more customer-contact interactions (Gap, 2014). Such development and differentiation in Gap team members will result in a more enthusiastic, more dedicated, and more aggressive-competitive workforce then competitive rivals (Gap, 2014).
References: (David, 2013); (Gap, 2014), (Kotler, 2012)

17. Action Plan Implement ST4’s proposed Vision-Mission statement
Consider/Remember Gap’s historic background:
“Continue Gap’s Legacy!”, “Build upon it!”
Conduct/Continue Competitive, Financial, & Technique Analysis
Generate/Possess Alternative Strategies
Capture/Address current industry events
Establish Contingency Plans
SWOT
Build upon Gap’s Strengths
Address/Correct Weaknesses (if able/if applicable)
Take Advantage of Opportunities
“Watch/Avoid” Threats
Employ/Engage Strategy Prioritization Selections
Here is a breakdown of Gap’s new strategic plan provided via ST4 incorporated:
Proposed Vision-Mission statement: ST4 provided a recommended Vision-Mission Statement for Gap Inc. Whether implementation of ST4’s vision-mission statement or a different/alternate vision-mission statement,,, Gap needs to implement a vision-mission statement immediately.
Gap’s History: Gap possesses a superb historical background legacy. Bottom line, build upon it and utilize it to motivate Gap’s workforce and attract customers.
Competitive Analysis operations: Competitors are out there and the business market is growing more competitive every day. Gap needs detailed, strategic, correct, and up-to-date analysis data upon all competitors and competitive atmospheres. Whether establishing an internal analysis division or employing an external agency, Gap must stay aware of competition/competitors via analysis implementation.
Alternative Strategies: Unfortunately, situations change. Gap needs to possess alternate strategies and contingency plans in the event of unexpected events. Without such instruments available and in reserve, Gap has limited flexibility to adjust to unforeseen circumstances/events.
Strategy Prioritization: ST4 presented prioritization of proposed strategies of recommendation. It is now up to GAP incorporated to apply, alter, and/or take action upon those prioritization strategy recommendations.
SWOT: Bottom line,,,, Build upon, address, correct, take advantage, and watch-out for Gap’s SWOT topics and evaluations which ST4 identified. SWOT analysis is another strategic area of concern which must be addressed routinely.

18. Evaluation Plan Review Bases of Strategy
Revise IFE (strengths/weaknesses) and EFE Matrix (opportunities/threats)
Compare to existing IFE and EFE Matrix
Measure Organizational Performance
Compare planned objectives to actual objectives
Forecast future trends
Take Corrective Actions
Reposition
Create formal mission and vision
Revaluate
An evaluation plan should initiate managerial questioning of expectations and assumptions, trigger a review of objectives and values, and stimulate creativity in generating alternatives (David, 2013, p. 290). The first step in the evaluation plan is to review the underlying bases of an organization’s strategy (David, 2013, p. 291). After establishing and implementing new strategies, Gap needs to evaluate effectiveness of those implemented strategies. Gap should revise their internal strengths and weaknesses by revising their IFE Matrix. They should also revise their external opportunities and threats by revising their EFE Matrix. Gap should then compare the planned (original) matrix to the actual (new) matrix. This comparison should show improvement. On the new matrix, Gap should have been able to turn their weaknesses into strengths and their threats into opportunities.
The second step in the evaluation plan is measuring organizational performance. This includes investigating deviations from plans, evaluating individual performance, and examining progress being made (David, 2013, p. 292). Gap needs to forecast and predict future trends. If forecasted trends are poor, Gap needs to evaluate and implement new strategies to avoid negative trends. To forecast trends Gap should compare their performance over different time periods, to their competitors, and to industry averages (David, 2013, p. 294). Corrective actions need to be taken to avoid these negative trends.
Corrective actions is the last the step in evaluating strategies. When strategies are proving unsuccessful then actions must be taken to reposition Gap. Many corrective actions can take place including altering an organization’s structure, replacing one or more key individuals, selling a division, revising a business mission, revising objectives, and devising new policies (David, 2013, p. 295). Currently, Gap has no formal mission or vision statement. This is a corrective action Gap could implement to help make their objectives more clear. Gap could also review and evaluate their current structure. If problems relate to one department or person, Gap may want to consider replacing that team or individual.
References: (David, 2013)

19. QUESTIONS?
Contact Information:
Strategic Team 4 box:
ST4: Providing Strategic Business Guidance since 2014
This concludes Strategic Team Four’s analysis findings and results upon GAP Incorporated. Are there any questions?
(Note to Briefer): After Questions and Answers remember to thank GAP Inc. Executives for allowing Strategic Team 4 to conduct a detailed analysis upon GAP Inc. Restate to please contact ST4 via contact information if any additional questions should arise.

20. References
Bureau of Labor Statistics.(2014). CPS Tables. Retrieved April 25, 2014, from BLS.gov: Labor Force Statistics from the Current Population Survey
David, F. (2013). Strategic Management Concepts and Cases: A Competitive Advantage Approach. (14th ed). New Jersey. Pearson Education Inc.
FRED. (2014). Real Disposable Personal Income: Per capita. Retrieved April 26, 2014, from FRED Economic Data:
Gap (2014) Annual Report. Retrieved from Gap Inc.com:
Grannis, K. (2011). NRF forecasts 4.0% increase in retail sales for Retrieved on April 29, 2014 from National Retail Federation. Website:
Horizontal Integration (2014). Retrieved on April 29, 2014 from Investopedia;
Kotler, P., Armstrong, G. (2012). Principles of Marketing. (14th ed). New Jersey. Pearson Education Inc.
Yahoo Finance a. (2014). The Gap Inc. (GPS). Retrieved April 27, 2014, from Yahoo Finance:
Yahoo Finance b. (2014). GPS Competitors. Retrieved April 26, 2014, from Yahoo Finance:
Yahoo Finance c. (2014). The TJX Companies, Inc. (TJX). Retrieved April 26, 2014, from Yahoo Finance:
Yahoo Finance d. (2014). Nordstrom Inc. (JWN). Retrieved April 26, 2014, from Yahoo Finance:
Yahoo Finance e. (2014). Abercrombie & Fitch Co. (ANF). Retrieved April 26, 2014, from Yahoo Finance:
Yahoo Finance f. (2014). American Eagle Outfitters. (AEO). Retrieved April 26, 2014, from Yahoo Finance: