Gap Inc. Organizational Research

Gap Inc. is a leading international clothing retailerGap's competitors for apparel, accessories, and
offering attire, accessories and personal care productspersonal care products are such famous American
for men, women, children and babies. They producebrands as Abercrombie & Fitch, American Eagle
under brands such as Gap, Banana Republic and OldOutfitters, DKNY, Polo Ralph Lauren, and Tommy
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 different
headquarters in the San Francisco Bay Area, thecustomer market. Gap however has to take a lot of
product development offices are located in New Yorkeffort to stay aloof among them with pricing policies,
City, while distribution operations and offices dealingquality and design in order to retain their customers
with sourcing activities can be found around the globe.and try to gain new ones. The external threat from the
Gap Inc. has created a "Code of business conduct" innew entries is a minor one because of number of
which essential issues of conducting a business,reasons. The clothing/accessories market is quite
employees' behaviors and corporate culture aredifficult to enter, and it takes time to establish a brand
outlined. It contains the letter to employees whichname and gain customer loyalty and trust, so in this
states the main principles that operate in Gap Inc. Theinstance Gap is almost safe at least for some time.
company was originally founded and to this day isGap Inc. has stores around the globe and naturally
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. Theintermediaries in making its product, designating much
company claims that their reputation depends on thepower and responsibilities to the factories and
integrity and excellence in everything they do. Clearlysuppliers. It purchases from more than 1,000 vendors in
such statements shape company's overall vision of3,600 factories in more than 50 countries and
how they operate and what they expect from theirapproximately 13 percent of its products is sourced
employees. This code was designed to promote anfrom China alone. The company also has a
ethical work environment, with all the necessary issuescomprehensive and publicly available Code of Vendor
descried in it such as reporting the violations,Conduct and has instituted excellent internal monitoring
responsibilities, laws that apply to different countries inprograms with vendor compliance officers. Gap
which the company operates.company was the first U.S. apparel manufacturer that
Gap Inc. was founded in 1969 by Donald and Dorisdeveloped an independent monitoring program by
Fisher in San Francisco, California. When they startedagreeing 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. Theyinitiatives through its supplier education programs and a
are producing and selling clothes to men, women, kidsnumber of other projects and is a participant in the UN
and babies all over the world. Such brands as Gap andGlobal Compact. Social responsibility for Gap Inc. is a
Banana Republic are aimed at customers with higherbig concern and it engages in many practices to help
incomes who are willing to buy high quality clothes,solve environmental problems. It has number of helpful
although it is not priced too high. Old Navy brand wasenvironmental projects, including a unique,
created to fit the niche of customers such as familiesenvironmentally efficient designed building at its
willing to have good looking and quality attire, but payheadquarters. Their programs incorporate recycling
less for it. Many people shopping at Gap areinitiatives for stores, use of wood from
customers in Old Navy as well, because thecertified-sustainable forests for the flooring at its
company's signature in making clothes can be easilystores, as well as energy efficiency in lighting.
traced. In recent years the company has beganCompany's considerations with environmental issues
production of colognes and other toiletries which areare also addressed in store design and construction;
suitable for different seasonal collections and can beGap Inc. also does not conduct or endorse animal
matched with certain clothes. Thus Gap stores, offer atesting on its products.
full range of products from underwear and perfumesCompany's internal policies are accordingly well
to sports apparel and winter clothes.designed and suited to meet their employees'
As already was mentioned the Gap Inc. customersexpectations. It offers paid volunteer time for
are successful people who are looking for high qualityheadquarters employees, and ensures full medical and
and reasonable prices. With Old Navy brand it is moredental benefits for domestic partners, as well as a
of a younger audience with less income to spend, Gapvarious family-oriented benefits. Throughout the
itself aims at middle class buyers wanting a stylish lookcompany women hold a considerable number of
and excellent customer service treatment. Bananamanagement positions, including the two women who
Republic brand is the most expensive and the mostare among the company's top eight executives; there
chic one out of all presented by Gap Inc. Peopleare also four women on the 15-member board of
shopping at Banana Republic are looking for latestdirectors. Among programs supported by Gap are
styles, comfort and still reasonable prices for thethose focusing on helping unappreciated youth, with an
quality they receive. Generally company's customersemphasis on academic achievement. Health and
are young and middle aged people eager to tryhuman services, including HIV/AIDS prevention and
something new every season, enthusiastic about coloreducation, community services and the arts are areas
and inspirational design.of company's interest and sponsorship.