Gap Case Study Essay Sample free essay sample

Gap Inc. is a big retail company having several trade names such as Gap. ( including Gap Kids. Gap Baby. Gap Body ) Banana Republic. Old Navy Piperlime and Athleta. The company is an American vesture and accoutrements retailer based in San Francisco. and was founded in 1969 by Donald and Doris Fisher. They strive to sell quality vesture. largely the rudimentss. for good monetary values. They are a taking company in the dress retail market with 3. 085 shops. Through the five trade names that Gap Inc. owns. they are able to make several different monetary value points. which each attract a different client. Gap’s mark market age section includes work forces and adult females from 17-30. This includes individual adolescents. immature grownups. and immature married twosomes. They besides try to aim minorities such as Hispanics. African Americans. and Asians. The client is by and large middle-upper category and lives in urban and suburban countries. We will write a custom essay sample on Gap Case Study Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Most of them tend to be career- oriented and household oriented. They want to purchase quality made rudimentss with edification at low-cost monetary values. They besides offer babe and children’s vesture. which entreaties to mas who shop at Gap that will purchase dressing for their childs as good. Gap offers a broad mixture of basic vesture. and work vesture. They sell denim. t-shirts jumpers. tops and accoutrements for work forces adult females and kids. They besides offer personal attention merchandises. Gap places itself to be â€Å"Iconic. American. Imaginative. † They want the consumer to see them as a retail merchant that offers American manners that are stylish and alone. They strive to be purveyors of mundane manner. The trade name is founded on the end to give clients fashionable insouciant vesture for the right monetary value. SWOT analysis:Strengths:-Strong trade name image: Gap is recognized globally as and American manner. pop civilization and emotional affinity -loyal clients ( Baby Boomers and Generation Y ) . and a big mark market -many retail shops around the state and internationally. They have 3. 095 shops worldwide in the US. France. Japan. United Kingdom. Canada and Ireland. They besides have franchises in Turkey and United Arab Emirates. -strong president and CEO Glenn Murphy. who has turned the company about since 2007 -quality-made. lasting merchandises -Gap corsets true to its nucleus principals and values of offering consumers the best quality at the best monetary values.-Multiple trade names and trade name extensions help them make a broad scope of sections. Gap has 5 distinguishable trade names such as Gap. Old Navy. Banana Republic. Piperlime and Athleta. They besides have trade name extensions such as GapKids. babyGap. gapbody and GapMaternity. Failings:-Gap’s vesture line doesn’t offer voguish vesture to clients. which puts them behind their rivals.-Nearly all of their ware relies on 3rd party sellers outside the US. Third party sellers can do deficits. transportation holds. and increased costs.-Uncontrollable production procedure-Declining runing hard currency flows-They are losing touch with their nucleus client. and confounding the consumer as they try to spread out their mark market.-Weak public presentation of Gap- gross revenues have declined in the last few old ages-Competitors may offer lower monetary values-Recently. merchandises aren’t vibrating with the client Opportunities:-To enter the planetary market in Europe and China- they plan to open shops in Italy and China -Grow into new markets and sections of the population. They can aim Latino Americas. who are the fastest turning minority in the US. -Expanding into new merchandises such as places. pocketbooks. accoutrements. etc. -Become a trendsetter -Utilize e-commerce to bring forth increased sales- Gap has introduced a web-based shop Menaces:-Economic downswing and recession consequences in reduced gross revenues. and decreased client disbursement -The Global forte dress retail industry is extremely competitory. Rivals include: J Crew. Abercrombie and Fitch. American Eagle Outfitters. etc. -Discounters who offer quality vesture at a better value -Competitors who offer mass market. fast manner. voguish vesture are turning. such as: Everlastingly 21. H A ; M. Anthropology Urban Outfitters. -Fashion tendencies are altering quickly and Gap is falling behind -Production costs continue to lift. even abroad -The market for premier retail is competitory. and location of shops straight impacts gross revenues. -Rising monetary values of cotton due to endure leads to increases costs and retail monetary values -Designer Patrick Robinson leaves the company ( loss of cardinal staff ) Harmonizing to the article. Gap is confronting a hard state of affairs as their caput interior decorator. Patrick Robinson. leaves the company. Retail analysts believe that the company needs to be downsized by shuting unproductive shops. they need to do direction alterations. and they need improved merchandises that are consistent with the selling schemes. The basic job is that Gap’s image has declined and people are get downing to tie in them as â€Å"tired. commoditized. driven by monetary value. † Gap needs to be repositioned. and they need person who understands the client. that will turn the trade name about. Gap’s scheme is to shut all shops that are underachieving in order to cut costs. They will besides pass more money on advertisement and selling to a younger market and to minorities such as Hispanics. Asians. and African-Americans. By making so. they hope to get greater market portion. They will besides utilize new engineering that will turn up merchand ises on-line and in shops. In my sentiment. I think that Gap’s image has decidedly started to worsen. Today. most clients are merely looking for the best manner at the best monetary value. They aren’t as trade name loyal as they one time were because now there are so many trade names offering the same merchandises. Gap needs to maintain up with tendencies if they want to remain in front of their rivals. It’s clip for them to spread out their merchandises into new classs such as footwear. pocketbooks and accoutrements. Particularly when the economic system is down. people turn to inexpensive and fun accoutrements to update their expression. alternatively of new apparels. This can be a new chance for Gap to convey in more clients. By presenting tendencies they will besides appeal to a younger market. whose shoppers are by and large interested in the last tendencies and colourss. Gap should take to shift their company as a manner frontward. cutting border trade name alternatively of a trade name â€Å"that offers great monetary values and quality. † There are many trade names that do that. nevertheless at the terminal of the twenty-four hours people are traveling to purchase the merchandises that they like the best. and happen to be the most fashionable. Gap offers the same basic manners twelvemonth after twelvemonth. but it is clip to give it some more depth. The designs must stay consistent to the selling program. Gap’s biggest failing is merchandise betterment and design. and now that Patrick Robinson left. they need to engage an advanced interior decorator who will understand what the consumer wants.

An explanation for the failure of Justin to manage the Asian Pacific Division of Compcorp

An explanation for the failure of Justin to manage the Asian Pacific Division of Compcorp Managing business in the international business environment is quite daunting. The explanation for this observation is that there is a variation in factors of management in diverse business environments.Advertising We will write a custom case study sample on An explanation for the failure of Justin to manage the Asian Pacific Division of Compcorp specifically for you for only $16.05 $11/page Learn More Different business environments have diverse business cultures that must be mastered and adhered to by any manager who wants to manage a business successfully in the environment (Luthans, Doh Hodgetts, 2012). Several points can be attributed to the failure of Justin to sustain the performance of the company in the Asian Pacific region, in spite of having successfully steered the performance of the company in the United States. One thing that comes out is that Justin has worked in the United States in his entire carrier and his appointment as the vice presiden t of one of the divisions of the company in the Asian Pacific region was one of his international tasks in business management. This task involved managing in a different business culture from the business culture that he was used to. It should be noted that the United States business culture in which Justin came from is quite different from the business culture in the Asia Pacific region where Justin was posted. Heading a new business venture in a new business environment is a comprehensive task. It entails the study and understanding of the models and attributes of management that are embraced in the new environment (Steers, SaÃŒ nchez-Runde Nardon, 2010). As soon as he entered the region, Justin implemented radical measures to turn around the performance of the company’s division in the region, just as he had done with the company’s division in the United States. This was a radical action that only paid off in the short run as the company recorded an improvement i n its performance in the first and second quarters under his tenure. The radical changes that were implemented by Justin did not match with the culture of management in the Asian Pacific region as it is later manifested in the dissatisfaction and demotivation of the employees of the company, resulting in an increased rate of employee turnover in the company. The changes, which imply new strategies of management, can be termed as unsustainable due to their incompatibility with the managerial culture of the Asian Pacific region. Justin did not take time to learn and adjust to the new culture of management after he was appointed as the new vice president in charge of Compcorp’s division in the Asian Pacific region (Luthans, Doh Hodgetts, 2012). The changes in the management strategy, which implied the change in the culture and attributes of management in the new environment, could only work for a limited period of time. However, the employees later fell out with the strategy of management later after learning the difference in the style of leadership that was introduced by Justin and what they were used to.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This explains why the top managers in the organization’s division in the Asian Pacific region left, thereby creating a managerial vacuum in the company. The performance of the company could not be sustained. What Compcorp ought to have done to enhance prospects for Justin’s successful performance The failure of Justin in managing the company’s division can be partly blamed on the management of the mother company in the United States. The realization of the fact that managing in the international environment is complex warrants the attention of executives who seek to use expatriates in managing business. Companies are, thus, required to establish and enhance training programs on international management prior to the discharge of expatriates for foreign assignments (Luthans, Doh Hodgetts, 2012). The case of Justin and his appointment to head the company’s division in the Asian Pacific region is an example of the mistakes that are done by executives, which make it quite daunting for companies to thrive in foreign business environments. The management of the company was well aware that Justin had no experience of managing in a foreign business culture, despite having excelled in managing one of the company’s divisions in the United States. Marx (2001) observed that most companies launch expatriate programs as part of the initiatives of dealing with the problem of cross-cultural management. Cross-cultural programs entail offering training and guiding employees or expatriates on how to approach and deal with the variations in the attributes of management in a foreign business culture. Multi-cultural programs have become a common feature of manage ment in multinational companies, most of which choose the hybrid system of management, just as was with Compcorp. Therefore, training was a critical element that could have been embraced by the management of Compcorp as part of embracing Justin’s knowledge on managing in the foreign business environment. The other strategy that could have been used by the company is the embrace of indirect learning and adaptability by letting Justin to enter the Asian Pacific region on a lower rank so that he could learn the culture of management in the region before being promoted to the position of the vice president (Menipaz Menipaz, 2011). Managerial initiatives in international management Prospects of management in a foreign business culture have to be captured by any person who wants to succeed in enhancing the performance of a company in a foreign business environment. The foreign business can present challenges, as well opportunities on which the management can rely on in enhancing t he performance of a subsidiary firm in such an environment.Advertising We will write a custom case study sample on An explanation for the failure of Justin to manage the Asian Pacific Division of Compcorp specifically for you for only $16.05 $11/page Learn More However, detecting and understanding the nature of challenges, as well as the opportunities that prevail in the foreign business environment requires deeper insight into the given business environment. Learning the trends of management and the culture that is embraced in the foreign business environment ought to be the first thing that should be given priority by an expatriate manager. Expatriate managers have to establish workable relationships with the local staffs, who act as key resource persons in helping them learn about the desirable attributes of management in the foreign business environment (Marx, 2001). As it comes out in the case, Justin also stands to be blamed for his failure to succeed in managing the Compcorp division in the Asian Pacific region. According to Menipaz and Menipaz (2011), expatriate managers under the hybrid strategy of managing in a foreign environment must learn from both the superior employees, as well as employees in the lower rank. What is depicted in the case is that the employees of the company become dissatisfied with the style of management that was used by Justin. If Justin had taken time to consult from the managers on how to go about the managerial practices in the company, then he could not probably have faced the kind of problem that was witnessed in the organization. References Luthans, F., Doh, J. P., Hodgetts, R. M. (2012). International management: Culture, strategy, and behavior. New York, NY: McGraw-Hill. Marx, E. (2001). Breaking through culture shock: What you need to succeed in international business. London: Nicholas Brealey. Menipaz, E., Menipaz, A. (2011). International business: Theory and Practice. London: SAGE.Advert ising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Steers, R. M., SaÃŒ nchez-Runde, C., Nardon, L. (2010). Management across cultures: Challenges and strategies. Cambridge: Cambridge University Press.