final study for exam, how does Gap apply to the exam articles Flashcards
Gap & Chandler “Logic of Industrial Success”
separation of top and middle managers by electing CEO who did not pose managerial knowledge for the clothing industry
To try to turn things around, it turned to new CEO Glenn Murphy in 2007, who came from a drugstore chain”
it is live a reverse of unrelated diversification, but still a pretty stupid fucking idea
Gap & Greiner “Growth: Phases of Evolution and Revolution”
like article said, management practices that work well in one phase may not work in next phase of growth
cause issue leading to crisis and ultimate removal of management in revolution phase
“Gap fired its chief executive officer late Thursday after his turnaround efforts failed to reignite sales growth”
Company went through Greiner phase of Direction
implementing vertical hierarchy, supply-chain efficiencys, new organizational structure
top management presenting lack of knowledge in industry hints at impending autonomy crisis
can only be solved through delegation.
Gap & Barney “Looking Inside”
organization cannot simply just grow from external competitive environment (discounts)
gaps ressources and capabilities are not VRIO, they be whack truly
“There’s work to be done on the core product.”
Gap & Mintzberg “Managers Job”
CEO has decisional role of allocator when divesting and investing money elsewhere in company
“He closed a slew of U.S. stores, while expanding overseas and invested in the supply chain”
CEO Art Peck has decisional role of entrepreneur by choosing to make changes
“ He’s tried to position the Athleta chain – a Lululemon competitor – as the bright spot within the portfolio…”
CEO Art Peck has informational role of spokesperson by speaking at an event for analysts
planned spinoff and their vision for the companies’ future
Gap & Norton Score Card
Financial Perspective #1:
Goal: Increase Net Sales generated by companies assets.
Measure: Asset turnover ratio.
Target: + 50 %. By when: within a year.
Financial Perspective # 2:
Goal: Increase net income generated by company assets.
Measure: Return on Assers (ROA).
Goal: 30% increase.
For when: within a year
Consumer Perspective #1: Goal: Increase customer equity of Gap.
Measure: % of customers par.
Target: 50% increase.
For when: within a year
Customer Perspective # 2
Goal: Increase quantity of Gap products purchased by customers.
Measure: Amount of Inventory Purchased/ Customer Sale.
Target: 50% increase.
For when: within a year.
Internal Persepctive # 1.
Goal: increase quality of products.
Measure: Amount of Refunds from returns to net sales ratio.
Target: 30% decrease.
For when: within a year.
Internal Perspective #2 Goal:
Enhance Sales achieved through sales reps in store.
Measure: Average amount of sales earned through sales associate to net sales ratio.
Target: 30% increase.
For when: within a year.
Innovation & Learning perspective # 1:
Increase expenditure on new product development.
Measure: R&D expenses to total expenses
Innovation & Learning perspective #2
Increase consumer purchase focus to newly launched products.
Measure: Sales revenue on newly released products to net sales ratio.
Target increase by 50%.
For when: Within a year.
Gap & Handy “Sigmoid Curve”
Company can’t keep doing same thing to maintain success
“There comes a point and time when you can’t sit and do the same thing over and over again.”
they be beyond point B
Point A was their dominance in American malls
