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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II. Corporate Governance This strategic audit will begin with a thorough SWOT analysis to determine the strengths, weaknesses, opportunities, and threats experienced by the company. An examination of Gap’s Corporate Governance identifies the company’s ruling elite: the board of directors and top management. Corporations often require responsible people placed at various points in the company to make sure that tasks are handled properly and in accordance with the company’s mission and vision statement. Gap states that “their strong, experienced executive leadership team is focused on executing Gap’s vision and driving shareholder returns” (gapinc.com). Gap Inc. has a large executive leadership team, consisting of 14 members and an 11 member board of directors. More specifically, the executive leadership team consists of the chairman and chief executive officer, chief information officer, and chief financial officer. Also on the executive leadership team are three presidents for each brand division and three presidents of international regions and operations. The final five team members are the presidents and vice presidents of internal operations. These include the senior vice presidents of global resources, corporate counsel, and global sourcing as well as the presidents of Gap Inc. Direct and Gap Inc. Outlet. Gap states that the role of their board of directors is to oversee the company’s