THE GAP INCORPORATED
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THE GAP INCORPORATED Leann Bustamante Jeffrey Bertinetti Mary Cassidy
description
THE GAP INCORPORATED. Leann Bustamante Jeffrey Bertinetti Mary Cassidy. GAP. Gap Incorporated. Leading international specialty retailer Founded 1969 More than 3,800 stores worldwide May 19, 1976 initial public offering $18 per share Began trading on the NYSE 1976 Ticker symbol GPS - PowerPoint PPT Presentation
Transcript of THE GAP INCORPORATED
THE GAP INCORPORATED
Leann BustamanteJeffrey BertinettiMary Cassidy
GAP
Gap Incorporated Leading international specialty retailer Founded 1969 More than 3,800 stores worldwide May 19, 1976 initial public offering $18 per
share Began trading on the NYSE 1976 Ticker symbol GPS Also listed on the Pacific Exchange
Provides customers with: Clothing Accessories Underwear Loungewear Personal care items
For women, men, children, and infants
Under the Gap (GapKids, babyGap, GapBody)
Banana Republic Old Navy
Why they lost market share: Increasing competition in the retail
industryNot keeping up to date with current
trends and fashionDecreasing economy due to September
11th events
Interview 20 Gap Customers 10 females, 10 males How long have you been shopping at Gap? Are you satisfied with the quality of Gap’s
clothing? Do you feel it’s consistent with the modern
trends? Do you feel it is adequately priced? Have you noticed any decrease in overall
satisfaction in the recent years?
Results:Customers of over 5 years Decrease in overall satisfactionPrices increasedNo quality increaseHave stayed with modern trendsBut competitors doing a better job
THE GAP INCORPORATED
AHP ANALYSIS
AHP Analysis Strategy A:
Marketing Brands Strategy B:
Design and Merchandise Products
Strategy C:Shopping Environment
AHP Analysis Three criterion:
1. Cost Control2. Quality3. Service
AHP Analysis
Model Name: Gap
Priorities with respect to: Goal: Selecting an Alternative Ma...
Controlling Cost .413Service .260Quality .327 Inconsistency = 0.21 with 0 missing judgments.
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AHP Analysis
Performance Sensitivity for nodes below: Goal: Selecting an AlternativeMarketing Direction
.00
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.70Crit% Alt%
Strategy C
Strategy BStrategy A
Controlling Service Quality OVERALL
Objectives Names
Controlling Controlling CostService ServiceQuality Quality
Alternatives Names
Strategy A Strategy AStrategy B Strategy BStrategy C Strategy C
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THE GAP INCORPORATED
Future Sales Predictions
Quarterly Sales(Observe Seasonality)
Gap Inc. Quartely Sales
0
500
1000
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2000
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Quarter
Sale
s(in
mill
ions
)
Series1
Gap Inc. Annual Sales(1991-2000)
Gap Inc. Annual Sales
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2000
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100 00
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140 00
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1 2 3 4 5 6 7 8 9 10
Year(b e gin ni ng in 1991 )
Sal
es
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Serie s1Serie s2
Gap Inc. Annual Sales
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2000
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1 2 3 4 5 6 7 8 9 10
Year(beginning in 1991)
Sale
s (in
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Series1Series2
Linear RegressionA linear model can be used because the
data shows a clear trendHigh R Squared variable shows strong
relationship between annual sales and year
Linear Regression AnalysisY = -333.44 + 1206.95XPredicted Sales(all sales in millions)
2001 = $12943.02 2002 = $14149.97 2003 = $15356.92
MATERIALS MATERIALS REQUIREMENTS PLANNINGREQUIREMENTS PLANNING
New MRPNew MRPSAFETY STOCK
20% of sales should be kept on reserve for unexpected situations
LEAD TIME Should be shortened to get them to
customers when needed IMPROVES CUSTOMER
SATISFACTION!!
NEW MRPNEW MRP
Lot-Sizing-Rule
Minimum Order Size
Lowest amount of inventory possible means NO EXTRA COST!
TOTAL QUALITY TOTAL QUALITY MANAGEMENTMANAGEMENT
CODE OF VENDOR CONDUCT
Clearly laid out set of rules which must be followed
Enforcers of the Code: Vendor Compliance Officers (VCO’s) Inspect sewing machines for safety guards Review Payroll Records Interview Employees
PROBLEMS WITH GAP INC.’S TQM
Workers see the VCO’s as “watchdogs”Workers may hide mistakesWorkers may pass blame onto their
peers
LEADS TO TOO MANY CONFLICTS!!
THE NEW TQMTHE NEW TQM Incorporate Deming’s 14 point program
Break down barriers between departments Eliminate numerical goals/quotas Remove barriers that hinder the hourly
worker
This Leads to More FREEDOM!!
THE NEW TQMTHE NEW TQM Quality Circles
Groups of workers meet regularly/share information about the company
House of Quality Finds out the attributes that a customer
likes Benchmarking
Compares Gap Inc.’s products with the competitors (J. Crew, Abercrombie)
