Persuasive Essay This writing assignment involves writing yo.docx

Persuasive Essay
This writing assignment involves writing your persuasive essay.
Once you draft your essay and
revise, you may submit it for feedback. The feedback will help
you write the final draft; your
final draft will be graded.
Option #1: Fallacies in the Media’s Spotlight
Identify and research a person in the media's spotlight who has
used a specific logical fallacy.
Please be sure the thesis statement includes the logical fallacy
you discuss in your paper, the
person who used it, and a brief look at the examples from your
paper showing how the fallacy
was used. Use a persuasive tone throughout to encourage your
chosen audience to accept your
thesis statement. Detailing the fallacy examples and explaining
how they relate to your chosen
fallacy is a strong persuasive method for the body paragraphs.
Strive to provide at least three
examples (one for each body paragraph) where the person used
the fallacy.

Sample Thesis Statement: “Kim Kardashian used the Post Hoc
Fallacy when (add example 1),
(add example 2), and (add example 3).”
Option #2: Dear Editor:
Select a problem in your community or your school that you
feel passionately about (students
talking on cell phones in the classroom, the need for more
recreational centers in your city,
etc.) and write a letter to the editor of your local newspaper.
(For tips on writing a strong
opinion letter, visit http://www.ccmc.org/node/16090)
You do not need to format this assignment like a formal
business letter, but do start your letter
with the phrase “Dear Editor:”
In the body of your letter, explain the problem (suggested for
body paragraph 1), express your
views on it such as the potentially negative effects (suggested
for body paragraph 2), and then
offer a solution to it (suggested for body paragraph 3). In order

to effectively persuade your
audience—the newspaper’s readers—to agree with you and to
act on your solution, you will
need to fully understand the problem and understand your
audience. In addition, you will need
to be able to describe the problem detail, to clearly explain your
position on it using a
persuasive tone, and to provide strong, concrete examples to
back up your claims.
Sample Thesis Statement: “Valley Community College has (add
problem), which (add your
stance/potentially negative impacts); therefore, (add solution).”
Formatting requirements are on the next page.
Header: Include a header in the upper left-hand corner of your
writing assignment with the
following information:
• Your first and last name
• Course Title (Composition I)
• Assignment name (Persuasive Essay)

• Current Date
Length: This assignment should be at least 750 words.
Format:
• Double-spacing throughout
• Title, centered after heading
• Standard 12-point font (Arial, TimesNewRoman, Calibri)
• 1” margins on all sides
• Save the file using one of the following extensions: .docx,
.doc, .rtf, or .txt
Underline your thesis statement.
BMGT 495- Strategic Management
Doctor vernon swinton
4 may, 2014
Christian Snuggs (Team Captain)

Disheka Butler
Rachel Kenlon
Clemente Moreno
Matthew Ulichney
1
Strategic
Team Four
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.
1
Agenda
2
Alternative Strategy Generation
SWOT Analysis
Strategy & Prioritization Selection
Action Plan
Evaluative Plan
Vision and Mission
Background Organization
Industry Analysis
Competitive Analysis
Financial Analysis
Technique Analysis
1st HALF (8:00-0900)
2ND HALF (9:15–10:15)

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.
2
Vision and Mission
3
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”
References: (David, 2013, pp. C-55)

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”.
3
Background Organization
4
1970s – 1980s:
First public offering 1.2 million shares
Focused on private label
Purchased Banana Republic
Introduced GapKids
Opened stores in England and Canada

Sales reaching $1billion
1990s:
Opened stores in France, Tokyo
Introduced Old Navy
2000s:
Purchased PiperLime and Athleta Inc.
Opened stores in China and Italy
Currently:
Stores in 24 countries
3,500 stores
136,000 employees
Six brand names
1969 – Doris and Dan Fisher opened first Gap
References: (David, 2013, pp. 54-65); (Gap, 2014)
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).
4
Industry Analysis
5
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
References: (David, 2013, pp. 54-65); (Gap, 2014); (Bureau of
Labor Statistics, 2014)

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).
5
6Real Disposable Personal Income: Per capitaDATEChained
2009 DollarsPercent Change2007-01-01358701.153382008-01-
01360820.591022009-01-0135600-1.335852010-01-
01357050.294942011-01-01362941.649632012-01-
01367591.28122013-01-01367730.038092014-01-
01#N/A#N/ASource:U.S. Department of Commerce: Bureau of

Economic Analysis
Industry Analysis (Cont’d)
References: (FRED, 2014)
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
2007-01-01 to 2014-02-01(FRED, 2014). The slide illustrates
how disposable income and disposable income percentages
impact the industry.
6
Competitive Analysis
7
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
References: (David, 2013); (Yahoo Finance e, 2014); (Yahoo
Finance f, 2014)
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).
7
8GAP’s Competitors – 2013 (in thousands)Family Clothing
Retail CompetitorsCompanyRevenuesProfit MarginNet
IncomePE RatioTJX
Companies27,422,6967.79%2,137,39619.88Gap
Inc.16,148,0007.93%1,280,00014.51Nordstrom12,540,0005.85%
734,000 16.76Abercrombie &
Fitch4,116,8971.33%54,62853.41American Eagle
Outfitters3,305,8022.51%82,98326.72
Competitive Analysis (Cont’d)
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)
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.
8
Financial Analysis
9
Financial Statements
Financial Position
Profitability
Cash Position
Ratio Analysis
Liquidity Ratios

Leverage/Financial Ratios
Turnover/Activity Ratios
Profitability/Performance Ratios
References: (David, 2013)
“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.
9
Technique Analysis
10

Competitive Position
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
References: (David, 2013, pp. 54-65); (Grannis, 2011)
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.
10
Technique Analysis (Cont’d)
11
The Grand Strategy Matrix
GAP
Quadrant II
Market development
Market penetration

Production development
Horizontal integration
Divestiture
Liquidation
Quadrant I
Market development
Market penetration
Production development
Forward integration
Backward integration
Horizontal integration
Related diversification
STRONG
COMPETITIVE
POSITION
WEAK
COMPETITIVE
POSITION
SLOW MARKET GROWTH
Quadrant IV
Unrelated diversification
Joint ventures
Quadrant III
Retrenchment
Unrelated diversification
Divestiture
Liquidation
RAPID MARKET GROWTH
References: (David, 2013, pp. 54-65); (Horizontal, 2014)

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.
11

Alternative Strategy Generation
12
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).
12

Alternative Strategy Generation (Cont’d)
13
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.
13

SWOT Analysis
14
Strengths:
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
References: (David, 2013); (Gap, 2014), (Kotler, 2012)
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.
14
SWOT Analysis (Cont’d)
15
Opportunities:
Pursue 15-19 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.
15
Strategy & Prioritization Selection
16
#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, 20134. 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).

16
Action Plan
17
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.
17
Evaluation Plan

18
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.
18
19
QUESTIONS?

Contact Information:
Strategic Team 4 email box: [email protected]
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 email contact information if any additional
questions should arise.
19
References
20

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:
http://research.stlouisfed.org/fred2/series/A229RX0/downl
oaddata
Gap (2014). 2013 Annual Report. Retrieved from Gap Inc.com:
http://www.gapinc.com/content/attachments/gapinc/GPS_AR12.
pdf
Grannis, K. (2011). NRF forecasts 4.0% increase in retail sales
for 2011. Retrieved on April 29, 2014 from National Retail
Federation. Website:
https:///www.nrf.com/modules.php?name=News&op=viewlive&
sp_id=1083
Horizontal Integration (2014). Retrieved on April 29, 2014 from
Investopedia;
http://www.investopedia.com/terms/h/horizontalintegration.asp
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:
http://finance.yahoo.com/q?s=GPS
Yahoo Finance b. (2014). GPS Competitors. Retrieved April 26,
2014, from Yahoo Finance:
http://finance.yahoo.com/q/co?s=GPS+Competitors
Yahoo Finance c. (2014). The TJX Companies, Inc. (TJX).

Retrieved April 26, 2014, from Yahoo Finance:
http://finance.yahoo.com/q?s=TJX
Yahoo Finance d. (2014). Nordstrom Inc. (JWN). Retrieved
April 26, 2014, from Yahoo Finance:
http://finance.yahoo.com/q?s=JWN
Yahoo Finance e. (2014). Abercrombie & Fitch Co. (ANF).
http://finance.yahoo.com/q?s=ANF
Yahoo Finance f. (2014). American Eagle Outfitters. (AEO).
http://finance.yahoo.com/q?s=AEO
Strategic Analysis For Gap Inc.
Strategic Team IV
Christian Snuggs,
Disheka Butler, Rachel Kenlon,
Clemente Moreno, & Matthew Ulichney
May 11, 2014
BMGT 495 Strategic Management
Professor: Vernon Swinton

Vision & Mission
Currently, Gap does not possess an official vision or mission
statement (David, 2013, p. C-55). Both a vision and mission
statement are required in order for the corporation to clearly
display the strategic direction it is moving in. A vision
statement clearly exhibits what Gap wants to become, and a
mission statement clearly exhibits what Gap’s reason for
existing is. Vision and mission statements go hand-in-hand with
the corporation’s strategic plans and are a guide as those goals
are achieved. Without a vision and mission, the corporation is
in limbo and everything following it is unclear.
After closely analyzing Gap Inc., ST4 has devised a vision and
mission statement from the corporation’s philosophy and ethics
statements. The proposed vision statement would not only speak
of Gap striving to become the world’s leader in specialty
clothing, but would also speak to Gap pursuing and providing
excellent financial values for its customers. Gap would also
provide simple, specialty clothing for every member of the
family. Gap Inc.’s official Vision Statement would be: “World’s
leader in Casual, Classical, and Stylish apparel… at accessible
prices.”
The proposed mission statement should be one that would
incorporate Gap’s continuous implementation of righteous and
good ethical decision-making. Gap in committed to pursuing
and practicing its existing codes of ethics, which have provided
employees with a comfortable working atmosphere. The code of
ethics has also provided customers with a relaxing shopping
environment. The mission statement ST4 has proposed would
ensure that the proper core values are exhibited throughout

Gap’s entire corporation. Gap Inc.’s official Mission Statement
would be: “Provide exceptional services and clothing apparel to
customers as well as providing a responsible ethical work
environment for employees.”
The proposed visions and mission statements will provide Gap
with not just philosophy and ethical statements, but a clear
foundation and declaration. The vision and mission statements
will be aligned with the corporations’ strategic plans. Not only
will Gap clearly state where the corporation is going and why it
exists, but it will also provide the corporation with purpose. The
suggested vision and mission statements will greatly contribute
to Gap becoming the “World’s leader in Casual, Classical, and
Stylish apparel… at accessible prices.”
GAP History
In 1969, married couple Doris and Dan Fisher, opened its
first Gap store or “The Gap” in San Francisco (David, 2013, p.
C-54). The original concept was to provide a fresh, casual,
American style focused on creating a unique shopping
experience with a wide selection of styles (David, 2013, p. C-
54). Throughout the 1970s and 1980s Gap found major success
and began changing to adapt to the 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. Gap acquired
Banana Republic and introduced a kids line called GapKids
(David, 2013, p. C-55). At the same time, Gap opened its first
stores on the international market in England and Canada, with
sales ultimately reaching $1 billion (David, 2013, p. C-55).
Gap continued this expansion throughout the 1990s. Gap
introduced a new product line, babyGap and continued to open
GapKids stores nationwide (David, 2013, p. C-55). They also
entered the French and Asian market opening Gaps in France

and Tokyo while introducing and opening Old Navy stores
nationally (David, 2013, p. C-55). By 1998, Gap’s success
seemed unstoppable. They had become the second largest
apparel brand in the world and continued to open stores both
nationally and internationally. By 2005, Gap unsuccessfully
introduced a new store, Forth & Towne, in Chicago and New
York, which ultimately closed all 19 stores by 2007 (David,
2013, p. C-55). Gap also acquired PiperLime and Athleta Inc. in
the early 2000s (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 Inc.)
Technique Analysis
A technique analysis will measure and discuss how
effective the Gap’s current strategies are at meeting their
objectives. It will also discuss what changes may need to be
made to accommodate the inaccuracies or inefficiencies within
the firm. There are three stages to successfully analyze a firm’s
technique. Stage 1 is the input stage. The input stage is derived
from the External Factor Evaluation Matrix (EFE Matrix) and
Internal Factor Evaluation Matrix (IFE Matrix) (David, 2013, p.
175). These matrices develop a firm’s threats and opportunities,
and strengths and weaknesses, respectively. Gap must make
decisions regarding the importance of external and internal
factors and rank and weight each one (David, 2013, p. 175).
After each matrix is complete, it is time to move on to stage 2,
the matching stage.
Stage 2 is where the majority of technique analysis is done.
There are several ways to measure how successful Gap is at
meeting their current objectives with their current strategies
such as a SWOT Matrix, the SPACE Matrix, the BCG Matrix,
the IE Matrix, and the Grand Strategy Matrix (David, 2013, p.
175). 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;
these two dimensions must be defined.
Based on the IFE Matrix or strengths and weaknesses analysis,
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 able
to reach over 90 countries online (David, 2013, p. C-64). 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 them
the edge over the competition. They are able to price each line
differently and market them based on which age group they are
trying to appeal to. Alternatively, Gap has not been able to
maintain steady growth and sales within the last three years.
The annual sales growth for the last three years has only been
.3%. This is not a strong growth rate. This is due to fluctuations
in sales. Sales dropped from $14,526,000 to $14,197,000 from
2009 to 2010 and then increased to $14,664,000 in 2011 (David,
2013, p. C-64). This puts Gap closer to the weak competitive
position axis.
A factor contributing to a weak industry growth is based on the
EFE Matrix or the opportunities and threats analysis. 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.
The conflicting competitive position and market growth 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 would 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.
The final stage is the decision stage. This stage is the basis for
making strategy-formulation decisions (David, 2013, p. 190).
The matching techniques, including The Grand Strategy Matrix,
is an important tool to help formulate future strategies.
Strengths, Weaknesses, Opportunities, and Threats (S.W.O.T.)
I. Strengths: There are multiple strengths of which Gap
possesses. For example, Gap is a global business enterprise,
which currently operates 375 store locations in 41 different
countries (Gap, 2013). Along with its large global presence,

Gap is pursuing global business expansion with the development
of additional stores in China, Philippines, and Taiwan; end
result is 400 stores globally by 2015 (Gap, 2013). Gap also has
incorporated the digital age and technology advancements in the
form of online shopping avenues and social media electronic
sites (Gap, 2013). The results of such electronic era pursue has
resulted in Gap possessing an edge on speed, flexibility, and
scalability via on-lie shopping capability (Gap, 2013).
Furthermore, Gap possesses an advantage over competitors in
the form of multiple business establishments (e.g., Banana
Republic, Old Navy, Piperlime, Athleta, and Intermix (Gap,
2013). Finally—and possibly the strongest strength—Gap has
the established name and character which has for years been
known for casual, American style, classical apparel at
accessible prices (Gap 2013).
II. Weaknesses: No corporation is complete without some type
of weaknesses; Gap is of no exemption. For instance, currently
Gap lacks the development of a clear vision, clear mission
statement. Another weakness for Gap is that the corporation
focuses upon private-label merchandise made exclusively for
the company (David, 2013, p. 60). Although Piperlime,
Athleata, and Intermix (Gap’s additional retail stores) offer
customers with an array of other leading brands of merchandise,
Gap inclusive retail stores only carry private-label merchandise
(David, 2013, p. 60). One last weakness which Gap displays is
the lack of contingency plans and programs in the event of
unexpected dilemma. Overall, Gap’s weaknesses are minimal
and easily correctable.
III. Opportunities: When it comes to opportunities, Gap has a
few areas of opportunity which the organization may choose to
pursue. First, the area of demographics consisting of the 15-19
age group; this age group averages 7.1 percent of the retail
market for clothing apparel (David, 2013, p. 57). Second,
continuously focusing and addressing the needs and wants of
the baby boomer age group. Although the purchasing priorities
have shifted for the baby boomers--focusing now upon

retirement expense and health care--nonetheless, the age group
still holds the largest group of consumers (David, 2013, p. 57).
Third, on-line retail is evolving daily; the opportunity to
manage intangible issues has never been greater. Although
consumers are unable to feel, touch, or dress within the clothing
article before purchasing on-line, consumers will still continue
to conduct purchase operations via on-line as long as customer
service and item return simplicity exists (Gap, 2013). Lastly,
the opportunity to pursue environmental friendly products and
services is a cost-saving option for all. With Gap pursuing the
latest technology in energy conservation and manufacturing of
"Green Products", the corporation could save billions on costly
energy bills and pass such savings onto the customers,
shareholders, and the corporation. IV. Threats: When analyzing
threats upon Gap, there are an abundance of threats. For
example, world economy has been unstable for many years;
many businesses have felt the financial strain due to economic
actions and situations. Competition and competitor threats are
always going to exist in any arena of business marketing and
retail. Rising prices on natural resources, raw materials, and
transportation means is a growing concern and threating avenue.
Failure to retain key Gap employees and personnel is another
threating issue. Security of data and breach of strategic--secret-
-operations must be considered. Contingency response to natural
disasters and unexpected events cannot be overlooked or
forgotten. Global trade and retail presents the potential of
increased trade restrictions, stricter custom regulations, and
global governmental concerns (Gap, 2013). Lastly, what if
merchandise, products, and clothing goods are unsuccessful at
gaining customer appeal? Overall, Gap is of no exception to the
threats that encircle global commerce.
Strategy and Prioritization Selection
There are alternative strategies of which Gap could, and is,
implementing to enhance corporation efficiency and
effectiveness. Alternative strategies are listed below and

prioritized based on potential benefits.
· Employment of Technology
· Product Differentiation (Brand Building)
· Expansion
· Strategic Distribution
· People Differentiation
Technology of course is forever changing and enhancing the
way business is conduct. In the environment of Gap,
technology has already been implemented in the area of
communicating better with consumers, mainly via network
groups like Facebook and on-line Gap homepages, shopping
platforms (Gap, 2013). The means of advanced technological
communication has resulted in speed, flexibility, and scalability
so that Gap could better meet the needs and wants of consumers.
Just last year alone—2013—Gap’s on-line communication
avenues produced a 21% increase in sales (Gap, 2013). All-in-
all, the employment of technology is a must strategic priority
for Gap to stay competitive.
Product Differentiation is a second strategy that Gap should
incorporate. Through product differentiation, Gap can differ on
features, style, and design of clothing apparel than other
competitor’s products (Gap, 2013) (Kotler, 2012, p. 211).
Additionally, with advancements in product differentiation Gap
could provide even more benefits and selections to
demographic-geographic groups, potentially resulting in
fulfilling consumer preferences and offering amazing products
at the same time (Gap, 2013).
Business expansion and growth has already been evaluated
and decided upon within Gap. Through expansion, Gap will
reach out and physically touch those consumers that may never
before stepped foot into a Gap business establishment. With the
concept and strategy of expansion of course comes the
consideration of additional supplies and personnel, financial
figures and revenue returns. All-in-all, business expansion is a
strategic strategy direction; Gap will need to monitor this

strategy closely for complete success.
Strategic distribution is a strategy, which could make, or
break, a business corporation. Bottom line, if consumers cannot
receive purchased goods in a desirable amount of time, then
consumers will take business elsewhere. In the event of
business expansion for Gap, the strategy of strategically placing
merchandise throughout the world will be mission essential. In
this strategy, GAP Inc. will have to analyze potential locations
that best present distribution avenues, alternatives, and
possibilities of which the corporation could utilize in the event
of increased sales, increased shipments, and increased demands.
People Differentiation may be the most important strategy
that any business could incorporate. Bottom line, what is an
organization without its employees, its management, its people?
Gap’s strategic strategy to address people differentiation—
differentiation in the contrasts of better, more enthusiastic, and
more dedicated then rivals—comes in the form of education and
increased wages (Gap, 2013). Gap’s strategy is to better train its
employees to handle and address more effectively customer-
contact interactions (Gap, 2013). Along with better training
comes better pay and incentives, resulting in efficient,
productive, and dedicated personnel wanting to join the Gap
team and remain with the corporation rather than pursue
competitor employment positions (Kotler, 2012, p. 211).
Overall, the strategy of people differentiation is a must strategy
for Gap.
Evaluation Plan
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 how effective they are. 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. If
there is no improvement then Gap needs to form and implement
new strategies. Internally, ineffective strategies may have been
chosen or implementation may have been poor (David, 2013, p.
292). Externally, actions by competitor, changes in demand,
changes in technology, demographic shifts, economic changes
and governmental actions may have caused strategies to fail
(David, 2013, p. 292).
The second step in the evaluation plan is measuring
organizational performance. This included 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 these 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
clearer. 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.

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