Gap Inc. Organizational Research

Gap Inc. is a leading international clothing retailerGap’s competitors for apparel, accessories, and
offering attire, accessories and personal carepersonal care products are such famous American
products for men, women, children and babies. Theybrands as Abercrombie & Fitch, American Eagle
produce under brands such as Gap, Banana RepublicOutfitters, DKNY, Polo Ralph Lauren, and Tommy
and Old Navy. Also Gap brand includes Gap, GapKids,Hilfiger. Those companies are manufacturing similar
babyGap, GapBody and Gap Outlet. They have theirproducts, although they are targeting a slightly
headquarters in the San Francisco Bay Area, thedifferent customer market. Gap however has to
product development offices are located in Newtake a lot of effort to stay aloof among them with
York City, while distribution operations and officespricing policies, quality and design in order to retain
dealing with sourcing activities can be found aroundtheir customers and try to gain new ones. The
the globe.external threat from the new entries is a minor one
Gap Inc. has created a "Code of business conduct" inbecause of number of reasons. The clothing
which essential issues of conducting a business,accessories market is quite difficult to enter, and it
employees’ behaviors and corporate culture aretakes time to establish a brand name and gain
outlined. It contains the letter to employees whichcustomer loyalty and trust, so in this instance Gap is
states the main principles that operate in Gap Inc.almost safe at least for some time.
The company was originally founded and to this dayGap Inc. has stores around the globe and naturally
is maintaining the principle of conducting business in aemploys people from many foreign countries. While
responsible, honest and ethical manner. Currently Gapmanufacturing and distributing its products, Gap Inc.'s
Inc. remains committed to setting and meeting theSourcing and Logistics group, along with their buying
highest standards of business conduct, because foragents, draw up production schedules and place
them nothing less will do. They also make suchorders with approved third-party factories. This
commitments to their shareholders, neighbors,process takes place in more than 50 countries where
customers and one another not only because it is aGap products are made. Clearly Gap involves many
legal duty, but because it's the proper thing to do.intermediaries in making its product, designating much
The company claims that their reputation depends onpower and responsibilities to the factories and
the integrity and excellence in everything they do.suppliers. It purchases from more than 1,000 vendors
Clearly such statements shape company’s overallin 3,600 factories in more than 50 countries and
vision of how they operate and what they expectapproximately 13 percent of its products is sourced
from their employees. This code was designed tofrom China alone. The company also has a
promote an ethical work environment, with all thecomprehensive and publicly available Code of Vendor
necessary issues descried in it such as reporting theConduct and has instituted excellent internal
violations, responsibilities, laws that apply to differentmonitoring programs with vendor compliance officers.
countries in which the company operates.Gap company was the first U.S. apparel manufacturer
Gap Inc. was founded in 1969 by Donald and Doristhat developed an independent monitoring program
Fisher in San Francisco, California. When they startedby agreeing to let representatives of local
there was only one store and a couple of employees.nongovernmental groups monitor its supplier factories
Today, they are one of the world's largest specialtyin El Salvador. Gap also supports human rights
retailers, with fiscal 2004 revenues of $16.3 billion.initiatives through its supplier education programs and
They are producing and selling clothes to men,a number of other projects and is a participant in the
women, kids and babies all over the world. SuchUN Global Compact. Social responsibility for Gap Inc. is
brands as Gap and Banana Republic are aimed ata big concern and it engages in many practices to
customers with higher incomes who are willing to buyhelp solve environmental problems. It has number of
high quality clothes, although it is not priced too high.helpful environmental projects, including a unique,
Old Navy brand was created to fit the niche ofenvironmentally efficient designed building at its
customers such as families willing to have goodheadquarters. Their programs incorporate recycling
looking and quality attire, but pay less for it. Manyinitiatives for stores, use of wood from
people shopping at Gap are customers in Old Navy ascertified-sustainable forests for the flooring at its
well, because the company’s signature in makingstores, as well as energy efficiency in lighting.
clothes can be easily traced. In recent years theCompany’s considerations with environmental
company has began production of colognes andissues are also addressed in store design and
other toiletries which are suitable for differentconstruction; Gap Inc. also does not conduct or
seasonal collections and can be matched with certainendorse animal testing on its products.
clothes. Thus Gap stores, offer a full range ofCompany’s internal policies are accordingly well
products from underwear and perfumes to sportsdesigned and suited to meet their employees’
apparel and winter clothes.expectations. It offers paid volunteer time for
As already was mentioned the Gap Inc. customersheadquarters employees, and ensures full medical and
are successful people who are looking for high qualitydental benefits for domestic partners, as well as a
and reasonable prices. With Old Navy brand it is morevarious family-oriented benefits. Throughout the
of a younger audience with less income to spend,company women hold a considerable number of
Gap itself aims at middle class buyers wanting amanagement positions, including the two women who
stylish look and excellent customer service treatment.are among the company’s top eight executives;
Banana Republic brand is the most expensive and thethere are also four women on the 15-member board
most chic one out of all presented by Gap Inc.of directors. Among programs supported by Gap are
People shopping at Banana Republic are looking forthose focusing on helping unappreciated youth, with
latest styles, comfort and still reasonable prices foran emphasis on academic achievement. Health and
the quality they receive. Generally company’shuman services, including HIV/AIDS prevention and
customers are young and middle aged people eagereducation, community services and the arts are areas
to try something new every season, enthusiasticof company’s interest and sponsorship.
about color and inspirational design.