Introduction

The case study is about creating a strategy and linking it to performance at the Gap
Inc. Before we started the case study, let we know the summary about Gap Inc. This
company nature of business is about providing clothing, accessories and personal care for all
gender and generation. Gap Inc. got cooperation like Gap, Old Navy, Banana Republic ,
Piperlime and Athleta brand. About the store, this company got global store at United Stated,
Canada, China and United Kingdom. Then the company employed around 134 000
employees and got 3000 store around the world. Mean that this company is not the ordinary
company because of their achievements.
But there are got problem that facing Gap Inc. related to revenue receive. In the
certain year, revenue at store open fall and it making worse that the company expected. Mean
that there got something problem there that make Gap Inc. loose their revenue.
Then Gap Inc. loses their customer because customer demands and fashion trend make Gap
Inc. hard to find the solution. They also lose to attract the customer to belief about their
product. As we know, fashion is fickle and change very fast. Then it can make hard if the
company that their nature of business about fashion because them need to follow up every
demand in fashion trend and what customer want.
Then after loses the customer, Gap Inc. make the turnover strategies where this
company is about to eliminated the employee. Why this happen of courses related to
customer, selling, company income and cost incurred. Here we can see the example of the
second part of Gap’s turnaround strategy; cutting costs by simplifying and streamlining
operations, Gap eliminated about 2,200 positions in one year. That includes 550 jobs lost at
its now-closed Forth & Towne chain.
Then focus on third strategy in this case study where the Gap Inc. want to managing
the performance of existing employees, especially those who must use a lot of creativity and
innovation in their jobs. Here we can assume that talented employee is part of organization
assets because they can contribute more unexpected information.
Then here I as performance management consultant we discuss about why Board of Director
should consider strategy planning, what are organization should do in 5 years and how this
strategy planning influence individual performance.
1. In this context, explain the factors that the Board of Directors of Gap will need to consider
in developing a strategic plan.

First factor is the companies have been at a loss as they have lost a lot of customers in
a very long time. As we know a company will thrive when the company can increase the sale
of their goods to the customer. The problem faced by gap Inc. is that retailers are unable to
adapt when Gap Inc. introduces the fashion trend because Gap Inc. operates on a large scale.
Here we can see that Gap Inc. have more than 3,000 stores, the brands owned by the global
corporation are Gap (including Gap, Gap Kids, baby Gap and Gap Body), Banana Republic,
Old Navy, Piperlime, and Athleta. Mean that organization should consider why this company
have many stores but still implement the turnover second strategy like cutting costs by
simplifying and streamlining operations. Mean that we assume that company have got more
cost incurred rather than receive the revenue. So we provide the concept like if the company
got many store or branch open, doesn’t mean the company should receive the more revenue.

Second factor is the Gap Inc. has employed the employee more than 134 000. Mean
that the Board of director should consider who talented employee is should be retaining
because to dismiss someone is hard decision making. It related if the company wrong turn
over the employee, it will be that part of company cost because talented employee can save
cost like training cost for example. Here we can see the example where Gap Inc. eliminated
about 2200 position in one year and include 550 job lost at its now closed Forth and Towne
chain. Mean that Board of Director should consider which position is playing the major role
in the company. Effective strategic planning involves considering options that challenge the
way has been done up to this point. It may be that decision-making in some areas will be
handed to others, or that processes which have worked well in the past will no longer fit with
future plans.
2. Provide a detailed discussion of what the organization will need to do to create a strategic
plan for the next 5 years.

For next 5 year, strategic plan need to be considered is try come out the vision and
mission for this company because it is very important to see clearly the objective want to
archive and long term strategy to plan. So we try to propose the mission like Gap Inc. desire
nothing less than to satisfy the fashion desires of their customer by providing quality yet
affordable clothing. Then for the vision is to be the consumer’s first choice in family retail
clothing while capitalizing on customer satisfaction and shareholder value. Why this
important because these attribute allow this company to be set apart from their competitor.
This company also can desire to sustain a strong brand image by improving their presences
through the use of technology to build and maintain brand awareness.

Second, we proposed to this company to make clear and precise market segmentation
because fashion is fickle and change very fast. So this company should know their best target
market. This company also can come out the product like attract the old generation who
interest to wear up. The focus group also can be put at the country which has four seasons
like the cloth can be made up the cotton to absorb the heat during winter season.

Third we can see that have doing turnover in their organization may be because this
company have a lot cost incurred. As we know there are so many outlets or branch around
3000 stores. So why not we suggest closing the branch which only give loose the company
because if the store that not operate in good condition still running, the company still need to
pay the worker wage. They also need to pay the utility bill and rent of the shop if the store
still continues running. Meaning that, there are got more expenses cost incurred than the
revenue. Then this company should focus the store that give profitable because there are must
the reason why the stores are doing profit.

Then Gap Inc. should changes strategies to maintain a good market. We suggest the company
should maintain the customer loyalty in the brand. Brand recognition is important because the
company can follow the trend that customer preference. The target market should be suitable
based on demographic factor. For example the cloth must fit with the teen, adult and old
generation. Next the customer also can sustain if they feel valued when they make purchasing
like giving discount card.
 Next, in order to maintain growth, the company should focus in penetrated market in
the domestic because domestic market strengthens and able to control. As we know Gap
stores open in US was losses. So we consider to the company to arrange the good strategy to
wide range customer base to brand line like it must come out the promotion, introducing and
expand the market to make people aware and give attention to the company.

Next, we provide Gap Inc. the opportunist to enhance the sale. As we know this
company are very popular but also acquiring many competitors with buy the share in the
stock. So the company might be used this opportunist to giving the license to make franchise
business because it might give chance the company raise their revenues from making
franchising. All the fee and regulation will give money back to main company.

Next we provide gap the suggestion like avoid threat when want to continuously
market their product to other country because it may happen counterfeit which the other
country may copyright their pattern especially China known as country copy made. We
consider this company to refer the Intellectual Property laws in the country. Then after they
refer it, they must research carefully whether the country tariffs, exportation and laws can be
obeyed by this company. If the restriction will cause the problem, better the company go to
another country.

Last but not least, we suggest the company to how to marketing strategy. The
marketing strategy must be aggressively implanted to attract people. The launching must be
do it separately between teenager, old and baby clothing to focus on trendy and acceptable of
people. They also can use like hire celebrities to promote the product. Then advertising,
promotion and sale should be doing frequently to attract customer to come to the company.
The company also can make cooperate social marketing to make people know about this
company. The marketing network also part of company assets because it can provide strong
relationship between suppliers. The concept is simple when company doing well in 5 years,
they can maintain their business with stakeholder and the profit will follow through them.
3. Critically evaluate how the strategic plan will relate to individual performance.

Third strategies that the company want are managing the performance of existing
employees, especially those who must use a lot of creativity and innovation in their jobs.
When strategic plan is developing, we can use Development Dimension International‘s (DDI)
six checkpoints for implement
First is about outcome. We must know what the result we looking for in the individual
performance. Mission and vision provide a basis for assessing actual versus desired
individual performance. In many ways, such goals and objectives provide a natural feedback
loop that helps managers see when and how they are succeeding and where they might need
to take corrective action to a person. This is one reason goals and objectives should ideally be
specific and measurable.
Second is benefit. Why talented employee should be retain because them a part of
assets in organization. Mean that, employee who have talented in knowledge, skill, attribute
and other ability about Gap Inc. management must be retain. Benefits and perks because it
plays a large role in keeping employees happy, engaged and healthy. But benefits can go far
beyond healthcare coverage and paid sick leave.
Third is barrier. Imaging without proper strategic plan, if the company make a
mistake like doesn’t care about their employee feeling; of course them will go to competitor
and work with them. Mean that the employee who already knows how Gap Inc. works will
provide the information to the competitor and then this will give opportunities to the
competitor and may be threaten to the Gap Inc.
Forth is support. We must know what resource we have to support the individual
performance. Top management must support the talented employee who being creative to the
company because there are parts of asset and company growth.
Fifth is approach. We must clear the mission and vision about the organization to
employee because it part of employee reference. Mean that individual who work with mission
and vision of course it guide them to make their performance related to the organization goals
Last is evaluation. This last checkpoint in implementation is very important for
organization to constantly evaluate the strategies plan. Some ways y can do is through focus
groups, employee surveys, or interviewing management. Then here we can know that
strategic planning is working or not toward individual performance
Conclusion

As conclusion, Board of director should consider why they need a new strategy planning
because strategic planning is the process of documenting and establishing a direction of the
business by assessing both where the organization are and where organization is going. The
strategic plan gives organization a place to record mission, vision, and values, as well as
long-term goals and the action plans will use to reach. A well-written strategic plan can play
a pivotal role in business’s growth and success because it tells organization and employees
how best to respond to opportunities and challenges. Then why strategy plan important for
organization because it allows organizations to be proactive rather than reactive, sets up a
sense of direction, increases operational efficiency, helps to increase market share and
profitability and can make a business more durable. Last but not least Development
Dimension International‘s (DDI) six checkpoints is very useful to determine the strategy plan
related to individual performance because it increasing critical tool to success for business.