Jocelyn TordoyaProfessor Best

Critical Issues in BusinessDecember 3,2009

•1969- Donald and Doris Fisher open the first Gap in San Francisco, California•Over the next five years it would grow to become a $97 million business•1970’s- Financial issues•1983- Millard "Mickey" Drexler becomes president of the company-New era at Gap- Banana Republic & GapKids- World-wide expansion•1990- babyGap is born•1994- Old Navy is born•2006-Piperlime- first online-only store for Gap•2008- Go-Ga! And Athleta Brand Names for Old Navy and Gap (respectively)

PERIOD ENDING 31-Jan-09 2-Feb-08 3-Feb-07

Total Revenue 14,526,000 15,763,000 15,943,000

Cost of Revenue 9,079,000 10,071,000 10,294,000

Gross Profit 5,447,000 5,692,000 5,649,000

(all numbers in thousands)

PERIOD ENDING 31-Jan-09 2-Feb-08 3-Feb-07

Net Income 967,000 833,000 778,000

Revenues

Net Income

Source; Yahoo Finance

Market Share• Apparel Industry

• Services Sector

• $2696.8 billion market

• Gap holds $15.3 billion of that market

CompetitorsDirect Competitors:

• Abercrombie & Fitch Co.,

• American Eagle Outfitters, Inc.,

• J. Crew Group, Inc.

#1 amongst these competitors!!!!!

Also competes with:

• Nordstrom, Inc.,

• Limited Brands, Inc.,

• Guess?, Inc

*Gap currently

employs 134,000 people in 3,149 stores world-wide!

Gap: A Good Corporate Citizen• Over the years has had many scandals

involving sweat shops and improper pay to workers

• Gap Foundation – Established 1977• 2004- First Social Responsibility Report• Over the last 3 years- Gap GiveNGet

“We're working around the world to improve factory conditions and help women advance. We're designing more sustainable stores and products, and getting creative about protecting natural resources. We're continuing to make Gap Inc. a company where people are proud to work and able to reach their career goals. We're investing in communities by applying business innovation to social challenges.”

- GapInc.comhttp://www.gapinc.com/socialresponsibility/