Case 11 – Team 5

commotion Inc. Case 11 Team 5 Gap Inc. in 2010: Is the Turnaround Strategy Working? Overview In the 1990s, Gap Inc. appeared to be in perfect sync with American pop shade and tastes. The brands represented affordable style and just about everyone was clothing Gap clothing. Many people had to have the latest dyad of khakis or a cardigan from Gap. However, the companys rapid expansion during the late 1990s was accompanied by the addition of long-term debt of nearly $3 billion, the quality of its clothing dec boundaryd, and the popularity of its styling waned. Despite existence so perfectly attuned to American fashion and tastes in the 1990s, Gap began a decline in 2000 that had yet to be fully resolved by 2010. Founded as a San Francisco blue jeans retail merchant in 1969 by Doris and Don Fisher, their vision was to make it elemental to find a pair of jeans. The Fishers expanded their product line during the 1970s by adding active wear appealing to a broader range of customers. The company went public in 1976 and began a rapid expansion strategy after Millard Mickey Drexler was hired as the companys president in 1983.

Through a combination of acquisitions, new ventures, and strategies designed to produce organic growth, Drexler transform Gap from a company with annual revenues of $400 meg and 450 stores in 1983 to a retailing giant with annual revenues of $14 billion and more than 2,000 stores in 2002. As of 2010, Gaps five brands included: Gap, Old Navy, Banana Republic, Athleta, and Piperlime. The company brought in a new CEO, Paul Pressler, in 2002; he resigned in 2007 and was replaced by Glen Murphy. Both CEOs implemented turnaround strategies that produced some take of positive results. The 2002 turnaround strategy had successfully eliminated all longterm debt by 2007, while the companys turnaround strategy launched in 2007 was directed at expanding internationally and improving Gaps quality, styling, and overall image. By 2008, Gap had opened dozens of... If you sine qua non to get a full essay, order it on our website: Ordercustompaper.com

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