Operations Management Report

timer Asked: Jun 19th, 2015

Question Description

Attached is a sample report provided by the professor.  A half-page project proposal with the group's names and brief description of the project is due for approval on Tuesday, July 21

Final project is due August 31


The objective of this project is to improve your understanding of and skills in operations management. Each project will consist of the preparation of a "real-world" case in managing resources in an organization or scenario of your choice. The project may be based on some of the work experience in your current or previous employment, or materials you researched online.  Alternatively, it can also be based on what you encounter in your daily life, such as studying in the library, dining in a restaurant, going on vacations, etc. You should base your analysis and decision making on one or several topics and associated methods/techniques discussed in the course including operations strategy, design of goods and services (new product/service introduction), quality management and Six Sigma, statistical process control, capacity management, supply chain management, inventory management, just-in-time and lean operations. 

Your project should address most of the following issues:  What problem do you see in managing operations and resources?  What seems to be the cause of this problem?  How would you go about addressing this problem?  What method (tool, technique) will you employ to solve the problem of managing resources and why? How would you collect and use data?  What is your quantitative and qualitative analysis of the situation? What results do you get? What recommendations would you make to improve the situation?  What are the potential benefits? Any potential difficulties?  Ideally, if you can implement some of your recommendations, then what are the actual impacts?  What have you learned?

You may work alone or in a team of no more than four students. Each student on the team will receive the same grade for the project. A half-page project proposal with the group's names and brief description of the project is due for approval on Tuesday, July 21 (week 5 of the course). You need to e-mail this proposal (one per group) to the instructor.   


The final report should have the following structure and format:

  • Title page
  • Summary-- a brief description of the case and your results (up to 1 page).
  • Introduction-- a description of the company/situation and main issue(s) that you will analyze in the case.
  • Main chapter  with detail description of the case problem(s), collection of data, their quantitative and qualitative analysis, operations method(s) used to solve the problem(s), and  received results.
  • Conclusion  -- final recommendations, remarks, statements.
  • Bibliography (an alphabetical list of references you cited in the report).
  • Appendices(supporting materials, if applied) .

The final report should have the following format: MS Word file, at least 15 pages long without appendices, double space, font is 12 Times New Roman, and page margins is 1" for all sides.


Management 3620 Dr. Zinovy Radovilsky OPERATIONS MANAGEMENT TERM PROJECT: GAP INC. Gap Inc. 2 SUMMARY Operations management refers to all activities that relate to the creation of goods and services, specifically through the value-added activities that transform inputs to outputs (Heizer & Render, 2011, p. 4). An organization seeking to produce a good or service must contend with three overreaching functions; marketing to generate demand for the product, production / operations to create the product, and finance to track performance. This paper will focus specifically on the operations function at Gap Inc. Gap has 3,270 stores in 41 countries (see Appendix A – Gap Inc.’s Global Footprint) (Gap Inc, 2012) whose brands include Gap, Banana Republic, Old Navy, Piperlime and Athleta. The first store opened in San Francisco in 1969 by Doris and Don Fisher – “because Don couldn’t find a pair of jeans that fit.” Today, denim is still Gap’s bread and butter; they have recently unveiled a new premium line boasting better fits and fabrics chosen with the help of over 1,000 focus groups (Golodryga & Strathmann, 2010). Nonetheless, you don’t become a global retail giant because your jeans look great; Gap has made smart operations decisions. This paper will investigate how Gap Inc. has made operations decisions concerning operations strategy, design of goods and services quality management and Six Sigma, statistical process control, capacity management, supply chain management, inventory management, justin-time and lean operations. Specifically, within each of these areas, this paper will address problems with managing resources, methods of analyzing those problems, and recommendations to improve them. Gap Inc. 3 SECTION 1: OPERATIONS STRATEGY Globalization and an unprecedented ability to share information has transformed today’s business environment. Since opening its doors in 1969, Gap Inc. has seen trends toward a growing global focus, social and environmental responsibility, rapidly shrinking time-to-market, mass customization, empowered employees, and lean inventory management (Heizer & Render, 2011, p. 12). Gap inc. must carefully evaluate internal and external forces to devise a business strategy that creates a competitive advantage within the changing environment. Global View of Operations According to Heizer and Render, (2011) “globalization means that domestic production and exporting may no longer be a viable business model,” and there are 6 reasons a domestic company like Gap inc. would move to an international form of operation: Cost reduction, supply chain improvement, to provide better goods and services, to better understand foreign markets, to learn to improve operations, and to attract and retain global talent. Gap inc. has indeed expanded from a small San Francisco shop to a global retail giant not only by establishing stores across the globe (see appendix A) but also by using approximately 3,000 supplier factories in China, Southeast Asia, India, Mexico, and Central America (Strasburg, 2004). Gap inc. intends to continue to emphasize global growth. At the 2011 Annual Investor’s Meeting in New York, Gap Inc. reaffirmed the goal of growing total international and online sales (outside of North America) to 30% of total revenue by the year 2013. As of 2011, Gap had increased sales outside of North America by 16%. The global expansion strategy devised by Gap Inc. International President Stephen Sunnucks is to enter major international markets (Japan, Paris, China, Hong Kong) with a flagship store to build brand enthusiasm. The flagship is to be followed by smaller stores, outlets, and on-line opportunities. In smaller markets Gap Inc. will Gap Inc. 4 use its franchise model, which is performing well: franchises in China and Italy saw 48% revenue growth in the first half of 2011 (Jenkins, 2011). Figure 1.1: International Operations Strategies As of March 2012, Gap Inc. had plans to open new locations in South Africa, Lebanon, Georgia, and Azerbaijan (Gap Inc., 2012). Global Operations Strategy Options Heizer and Render (2011) identify four global operations strategy options on a matrix of cost reduction and local responsiveness (See Figure 1.1: International Operations Strategies). An international strategy exports goods from the home country, and offers little advantage in cost or responsiveness. A Multi-domestic strategy offers better local response due to decentralized authority at each local business; however this method offers little cost savings. A global strategy uses a headquarters location to coordinate various facilities. It has a high degree of centralization that allows significant cost savings in terms of shared economies of scale among different facilities. A transnational strategy offers both cost savings from economies of scale and a high local responsiveness; there is moderate centralization that allows for cost savings but does not stifle local autonomy. Gap Inc. uses a global strategy: they are headquartered in San Francisco, with stores and manufacturers worldwide operating under centralized authority. While a transnational strategy would offer cost savings along with better local responsiveness (in this case, local fashion trends), this would not suit Gap Inc., because they strive to share Gap Inc. 5 American fashion with the world. If Gap Inc. were to choose to adapt to local fashion in each of its regions, a transnational strategy would be a better choice. SECTION 2: DESIGN OF GOODS AND SERVICES Product determination is critical to the success of any organization. According to Heizer and Render (2011), “to maximize the potential for success, top companies focus on only a few products and then concentrate on those products.” (154) When Don and Doris Fisher launched Gap Inc. in 1969, they had a vision and clear product determination: to target youth, aka the “generation gap” and sell Levi’s jeans in a multitude of sizes, styles, and colors. By creating a “jeans store”, Gap Inc. gained competitive advantage, through differentiation, low cost, and quick response to customer demand. The jeans were neatly arranged on shelves throughout the store, and beyond their vision, the “goods” attracted men and women of all ages and sizes. Product Life Cycle Throughout the ‘70s, Gap Inc. moved through the introductory phase and growth phase of the product life cycle establishing their “brand” in the market. Business grew; and by 1981, Gap Inc. had expanded to include 500 stores nationwide (gapinc.com). However, in the mid-tolate ‘80s, as Gap Inc. entered the maturity phase of the product life cycle, market changes led to a reduction in Levi’s sales. Recognizing that Gap Inc. could not maintain its competitive advantage, the organization branched out into other retail divisions; such as, Banana Republic, GapKids, Old Navy, and on the International front. Despite expansions into other markets, Gap Inc. entered into the decline phase of the product life cycle as sales continued to plummet. According to Heizer and Render (2011), “knowing how to successfully find and develop new products is a requirement” (157); however, Gap Inc. 6 it appears that Gap Inc. focused more on efficiency rather than on the principles of product development. Numerous CEO turnovers, chasing competitor markets, cutting costs, and closing stores, led to continual redirection of Gap Inc. Following interviews with former Gap Inc. executives, Clifford (2012) shared findings that one Gap executive “left the fashion side of Gap alone. When clothes didn’t sell, he focused on market-share strategies rather than on trying to rethink what Gap was about”. Another added, that Gap Inc. “rather than charting its own course, cut quality and lost touch with its customers”. Proposed Changes to Design of Goods and Services According to Heizer and Render (2011), to create an effective product strategy, organizations need to link “product decisions with cash flow, market dynamics, product life cycle, and the organization’s capabilities. Following the stages of product development, as presented in Appendix D would provide Gap Inc. with a useful tool for identifying product decisions (158). Heizer and Render (2011) present “Quality Function Deployment,” (QFD) another mechanism that would assist Gap Inc. with identifying customer needs and evolving them into product design (159). Using a QFD tool, known as the “house of quality”, Gap Inc. could develop “a planning matrix to relate customer ‘wants’ to ‘how’ the firm is going to meet those ‘wants’” (159). Regarding service design, Gap Inc. would benefit from making the customer part of the product design process. For example, preparing and providing scripting to the retail clerks to inquire about the customer’s shopping experience, product needs, etc. could provide insight into customer expectations and desires. Also, emailing satisfaction surveys to customers; again Gap Inc. 7 asking them about their recent shopping experience, product needs, etc. would be useful in gathering ideas for the product development process. SECTION 3: TOTAL QUALITY MANAGEMENT In order to ensure continuous profitability and sustainability, Gap Inc. utilizes multiple strategies to control the quality of their products and customer relationships, which is rooted in the relationship that it maintains with its workforce. Gap Inc. operates a continuous improvement infrastructure that includes specific elements of Total Quality Management strategies and Lean operation strategies. Heizer and Render (2011) identifies Total Quality Management as a “way to manage an organization based on total customer satisfaction, participation (teamwork) and continuous improvement”. Gap Inc. leverages several elements of a healthy TQM strategy including Management Commitment, Quality Training, and a System of Quality Management and Rewards. These elements have proven to be extremely effective for Gap Inc. and support the organization’s mission to “create emotional connections with customers around the world through inspiring product design, unique store experiences, and compelling marketing” (gapinc.com). Gap Inc. recently published a social responsibility report that reviewed the commitment and investment that is made within its workforce in order to produce higher levels of quality. The report indicated that in 2009, “results from more than 100,000 employees in our Employee Opinion Survey showed a 23-point increase in our ‘Belief in Company’ score to an industryleading 77 percent” (gapinc.com). This reveals the organizations commitment to the System of Quality Management and Rewards element of their TQM strategy. This element also includes Gap Inc. 8 their goal to recruit and retain talent. Gap Inc. understands the necessity to engage its employees by providing comprehensive benefits packages, transparency within the corporation’s finances and social responsibility programs, providing a rewards system to recognize employees that meet and exceed their expected duties, and to provide innovative ways to communicate internally with all of its employees. Understanding the relationship between employee satisfaction and retention, Gap Inc. has focused on reducing voluntary turnover within the organization by maintaining a turnover rate below 10 percent. In 2009 and 2010, “78 percent of employees stated via the Employee Satisfaction Survey that they were satisfied with their jobs, compared to U.S. workforce reports of 45 percent job satisfaction” (gapinc.com). Another important element of TQM that Gap Inc. is continually focused on is the element of Management Commitment. In a recent study, Gap inc. has recognized that 62 percent of its vice president and higher positions “strongly intend to stay with the company (compared with 28 percent of this group in the U.S. workforce in general)” (gapinc.com). Regarding the management positions within the organization, there is an overwhelming commitment to support the organization’s total quality management initiatives. For example, the management group developed a program called “One in a Million” to inspire its employees to participate in creative social responsibility activities in which it gave $1,000 dollars to every Old Navy store and presented a challenge to develop a way to give back to their community in a way that was unique to their specific communities. The outcome of the project was extremely positive. From providing makeovers to women of local homeless shelters to investing in local military and police groups, many customer lives were touched, which in turn empowered and engaged staff members and provided a deep connection with the management staff within the organization. Gap Inc. 9 Gap Inc. has successfully implemented a comprehensive training program for all staff members in its commitment to the Quality Training element of its total quality management strategy. This element has transformed into a foundational element within the organization by developing a “Field Apprentice Program” that seeks to promote career development within all Gap Inc. employees. Gap Inc. believes that “when employees get opportunities to pursue their passions right here at Gap Inc., the company benefits too.” The Field Apprentice Program is designed to place frontline staff members in a five week apprenticeship assignment inside the organization’s corporate headquarters in order to expose staff members that are passionate about the corporate structure to an environment in which they can exponentially expand their knowledge and experience. In addition to this program, additional training and development programs such as a “Retail Academy”, “Leading Leaders” course, and other e-learning and classroom sessions have been developed to engage and educate employees in a scenario that benefits the individual as well as the organization as a whole. SECTION 4: STATISTICAL PROCESS CONTROL Statistical Process Control (SPC) monitors standards, makes measurements, and takes corrective action as a product or service is being produced (Heizer and Render, 203). SPC is the application of statistical techniques to the control of processes that is widely used to ensure that processes meet standards (Heizer and Render, 218). The applications of statistical methods and procedures (e.g. control charts) is to analyze the inherent variability of a process or its outputs to achieve and maintain a state of statistical control, and to improve the process capability. At its full potential, the process can make as much conforming products as possible with a minimum or an elimination of waste. Acceptance sampling is utilized to fully commit to achieving acceptance Gap Inc. 10 or rejection of material evaluated by a sample. All sets or series of actions are liable to a specific degree of variability which is referred to as natural and assignable causes. The procedure of a process is claimed to be functioning in statistical control when the only source of variation is familiar (natural) causes. A process control system is intended to furnish a statistical signal when transactional causes of variation are present. Statistical Process Control Strategies The environmental footprint assessment is one of Gap Inc.’s biggest drivers of their environmental strategy which has provided key insights into where they are having an environmental impact and how they can make improvements with the best approach (Gap Inc.). The first phase focuses on the North American facilities where the operations are controlled and changes are easily made. The results from this assessment allowed Gap Inc. to concentrate on enhancing the effectiveness of the overall lighting and management in the stores. The need for specific facts on waste and disposal practices was also highlighted in this first phase. A more Gap Inc. 11 2008 - 2010 U.S. Energy consumption by operation pressing concern for Gap Inc. is the water consumption especially in water-stressed regions of the world that is being used to manufacture their products. However, they are working to develop a comprehensive water strategy to greatly reduce water usage and improve operational efficiencies to a great degree at the larger fabric mills such as their China location. 2004 - 2010 Water Quality Program Gap Inc. 12 Gap Inc. strongly presumes their environmental obligations bolster their “human rights work in their supply chain, employee programs, and the Foundation’s community investments” (Gap Inc.). In order to have the greatest impact, Gap Inc. has prioritized the active use of energy in producing a result to center their attention on the facilities they currently own and operate since those are the ones they have more control over the energy being used at those locations including the waste that is created. By doing so over the past several years, Gap Inc. have been able to get a better understanding on their environmental impact by designing strategies that are effective for driving improvements. Proposed Changes to Statistical Process Control (SPC) According to Heizer and Render (2011), “control charts are graphic presentations of data over time that show upper- and lower limits for the process needing to be controlled” (203). Although Gap Inc. is a publicly traded company, the information shared in regards to what charts are being used in order to monitor statistical process control is not given. However, in an interview with Jennifer Buckley-Nahm a manager from Gap Inc., she stated that at the corporate level and even in the retail stores, several differing control charts are used but are dictated from the corporate level to ensure all locations are using the same process. Gap Inc. 13 SECTION 5: INVENTORY MANAGEMENT Effective inventory management can reduce costs while adding flexibility to a firm’s operations and maintaining a selection for customers. In designing an inventory management system, managers must classify inventory items, and establish accurate inventory records. ABC analysis is a common method used for dividing on-hand inventory into three classes based on the Pareto principle: focus resources on the biggest annual-dollar items rather than less important inexpensive ones. Annual dollar volume is determined by multiplying the annual demand of each unit by the cost per unit. According to Pareto’s principle, Class A items will represent from 7080% of total annual dollar spending, Class B items represent about 15-25% of the total value, and Class C items represent only around 5%. Class A items will require tighter inventory control. See figure 7.1 for an example of a theoretical ABC analysis for Gap Inc (Annual Report Gap Inc, 2012). Figure 7.1 Theoretical ABC Analysis for Gap Inc, 2011 Annual Volume (in thousands of units) Unit Costs Annual Dollar Percent of Volume (in Annual Dollar thousands) Volume Denim 93,456 $ 45 $ 4,173,750 45.0% T-Shirts 327,096 $ 8 $ 2,504,250 27.0% Khakis 37,798 $ 32 $ 1,205,750 13.0% Outerwear 20,768 $ 45 $ 927,500 10.0% Sweaters 7,269 $ 32 $ 231,875 2.5% Dresses 3,634 $ 38 $ 139,125 1.5% Body 7,269 $ 9 $ 64,925 0.7% Shoes 1,090 $ 26 $ 27,825 0.3% $ 9,275,000 100.0% Total COGS in 2011 = $9,275 million according to Gap Inc. 2011 SEC filing Annual volume has been fabricated to exemplify this type of analysis Class 72% 23% A A B B C 5% C C C Gap Inc. 14 Unit costs estimated from gap.com and total COGS as percent of net sales = 63.80% according to the 2011 Gap Inc. SEC filing. Recommendations for Inventory Management As can be seen from the ABC analysis table, items have been separated such that Class A items account for 72% of Gap Inc’s total annual volume, Class B items for 23%, and Class C items for 5%. Separating product categories into classes is useful in determining the most important inventory items, and allows us to treat each class differently. To improve inventory management at Gap Inc, inventory managers should allocate more resources toward developing suppliers of Class A items than for Class C items. Class A items will necessitate tighter inventory control and more accurate forecasting. A recommendation for a cycle counting schedule and inventory record accuracy based on class follows: ● Class A: Check in-store inventory monthly, 0.2% accuracy ● Class B: Check in-store inventory quarterly, 1.0% accuracy ● Class C: Check in-store inventory annually, 5.0% accuracy Inventory management answers the questions of how much to order and when to order it. The objective of any inventory model is to minimize total inventory costs. Because Gap Inc. orders clothing from manufactures rather than produces in house, these costs will include holding costs, ordering costs, shortage costs, and purchase price. Assuming demand is independent, for example the demand for pants has no impact in the demand for outerwear or dresses, there are three inventory models Gap Inc. can chose from: the Economic Order Quantity Model, Production Order Quantity Model, and the Quantity Discount Model. Understanding that Gap Inc. outsources to produce Gap Inc. brand clothes, and assuming Gap Inc. has already exploited economies of scale, the EOQ model is the best way to determine how much of any item to order Gap Inc. 15 and when to do so. The EOQ model will help Gap Inc. determine how many of each item to order from each manufacturer and when, and will help to determine how much inventory to distribute to each store, and when. Improvements in inventory management have in fact been beneficial to Gap Inc. in the recent past. In 2008, despite a few fashion misses, declining store traffic and a sales decline of 5%, GAP was able to post an increase in net earnings thanks to tight inventory controls (Moin, 2008). Again in 2012, Gap has seen a benefit from tightening inventory controls and reducing stock outs; inventory dollars per store fell 6 percent and are projected to remain in the low single digits with sales increasing by 5.6% - the biggest hike in five years (Maheshwari, 2012). CONCLUSION In the midst of a modern supply chain management system that is riddled with economic challenges, increasing environmental responsibility pressures, and human resources development obstacles, Gap inc. has created an extremely effective strategy for overcoming common corporate challenges and has been thriving as an active and authoritative organization. Though Gap inc. strives to leverage modern management strategies, it is inevitable that unidentified inefficiencies and legacy processes still exist and can prove to be quite elusive for any organization. In addition to the commendations expressed within this report for the outstanding approach to dynamic evolution that Gap inc. has achieved, this report has also identified potential areas within Gap inc. that can be improved upon. As exponential developments in information technology as well as industry wide academic studies continue to broaden corporate communication abilities and enhance the best practices within the operations management arena, Gap inc. has proven to be an organization that will continue to identify and remedy internal Gap Inc. 16 weaknesses and progressively take bold strides in its continuous improvement of operation management strategies. BIBLIOGRAPHY “Annual Report Gap Inc.” (2012, March 26). Retrieved August 19, 2012, from Yahoo Finance: http://biz.yahoo.com/e/120326/gps10-k.html "Capacity Building." Capacity Building. N.p., n.d. Web. 24 July 2012. . Carpenter, M., Bauer, T., & Erdogan, B. (2010). ‘Principles of Management. Irvington: Flat World Knowledge. Clifford, Stephanie. "A Humbled Gap Tries a Fresh Coat of Pep." The New York Times. The New York Times, 29 Apr. 2012. Web. 31 July 2012. . "Code of Vendor Conduct." Code of Vendor Conduct. N.p., n.d. Web. 23 July 2012. . "Data." Energy Consumption. N.p., n.d. Web. 21 July 2012. . "Data." U.S. Energy Consumption by Operation. N.p., n.d. Web. 21 July 2012. . "Environmental Footprint Assessment." Environmental Footprint. N.p., n.d. Web. 10 Aug. 2012. . "From Supply Chain Digest." Supply Chain Digest. Ed. Staff. N.p., 7 Mar. 2006. Web. 13 Aug. 2012. . Funding Universe. (2005). Old Navy History. Retrieved July 29, 2012, from Funding Universe: http://www.fundinguniverse.com/company-histories/old-navy-inc-history/ Gap Inc. (2012, March 31). Gap Inc.'s Gloabl Footprint. Retrieved July 27, 2012, from Gap Inc. Investors: http://www.gapinc.com/content/attachments/gapinc/2012Q1%20Global%20Footprint.pdf Gap Inc. (2012). How We Do Business. Retrieved July 29, 2012, from Gap Inc., About Us: http://www.gapinc.com/content/gapinc/html/aboutus/ourbusiness.html Gap Inc. (n.d.). “Recognition”. Retrieved July 29, 2012, from Gap Inc., About Us: http://www.gapinc.com/content/gapinc/html/aboutus/recognition.html Gap Inc. 17 Gap Inc. (2010). "Sharing American Style" 2010 Gap Inc. Annual Report. Retrieved July 27, 2012, from Gap Inc. Annual Reports and Proxy: http://media.corporateir.net/media_files/IROL/11/111302/GPS_AR_10.pdf Gap Inc. (2009, December). Code of Business Conduct. Retrieved July 29, 2012, from Gap Inc. Social Responsibility: http://www.gapinc.com/content/dam/gapincsite/documents/COBC/Code_English.pdf Gap Inc. (2007). Code of Vendor Conduct. Retrieved July 29, 2012, from Gap Inc. Social Responsibility: http://www.gapinc.com/content/dam/csr/documents/COVC_070909.pdf Gap Inc. (2012, March 20). Gap Inc. Expands in Africa with Two Stores in South Africa. Retrieved July 28, 2012, from Gap. Inc Press Releases: http://www.gapinc.com/content/gapinc/html/media/pressrelease/2012/med_pr_Gap_Open s_Stores_in_South_Africa032012.html Gap Inc. (2010). Gap Inc. Social Responsibility. Retrieved July 29, 2012, from Report Builder: http://www.gapinc.com/content/csr/html/topnavtoolbar/report_builder.html Golodryga, B., & Strathmann, C. (2010, March 31). The Gap: Inside America's Favorite Stores. Retrieved July 27, 2012, from ABCNews.com: http://abcnews.go.com/GMA/YourMoney/gap-good-morning-america-inside-americasfavorite-stores/story?id=10240516 Google Finance. (2012, July 29). The Gap Inc. (GPS). Retrieved from Google Finance: http://www.google.com/finance?q=NYSE:GPS&fstype=ii Heizer, J., & Render, B. (2011). Principles of Operations Management, 8e. New Jersey: Prentice Hall. Jenkins, M. (2011, October 13). Gap Inc. Demonstrates strong International and Online Growth at Annual Investor Meeting. Retrieved July 28, 2012, from Gap Inc: http://www.gapinc.com/content/attachments/gapinc/GPS%202011%20Investor%20Day %20release.pdf Maheshwari, S. (2012, April 27). Gap Quarterly Profit Rises 29% to beat Analyst Estimates. Retrieved August 23, 2012, from Bloomberg News: http://www.bloomberg.com/news/2012-08-16/gap-quarterly-profit-rises-29-to-beatanalyst-estimates.html Moin, D. (2008, Feb 29). FIXING GAP INC.: CEO MURPHY STRESSES COST CONTROL, SMALLER STORES. Women's Wear Daily , 195 (45). Strasburg, J. (2004, May 13). Gap finds problems at thousands of its overseas factories. San Francisco Chronicle , p. 2. Virgin America. (2012). We Landed a New Look. Retrieved July 29, 2012, from Virgin America: http://www.virginamerica.com/vx/newuniforms "Water Quality Program." Water Quality Program. N.p., n.d. Web. 23 July 2012. . Gap Inc. 18 Wells, John R., and Elizabeth A. Raabe. "Gap Inc." Www.hbsp.harvard.edu. N.p., n.d. Web. 13 Aug. 2012. Appendix A – Gap Inc.’s Global Footprint Gap Inc. Appendix A - Gap Inc.’s Global Footprint Continued 19 Gap Inc. Appendix B – Gap Inc. Income Statement 20 Gap Inc. 21 Appendix C – Gap Inc Recognition for Social Responsibility Award Maclean's/Sustainalytics Top 50 Socially Responsible Corporations in Canada Ethisphere Magazine's World's Most Ethical Companies CRO Magazine "100 Best Corporate Citizens" Climate Leadership Awards Human Rights Campaign Corporate Equality Index Financial Times Justmeans Social Innovation Awards Forbes.com Year Description 2012 For the 4th straight year, Gap Inc. is noted as a top company and retailer in Maclean’s “50 Most Socially Responsible Corporations” list. 2012 For the sixth straight year, Gap Inc. was chosen as one of the World's Most Ethical Companies in recognition of our commitment to ethical leadership and corporate social responsibility. 2012 For the seventh straight year, Gap Inc. made Corporate Responsibility Magazine's "100 Best Corporate Citizens" list. The company's rankings included: human rights (tied for 1stoverall, and 1st in retail/apparel); corporate governance (tied for 1st overall, and 1st in retail/apparel); philanthropy (1st in retail/apparel); and employee relations (2nd in retail and apparel, 4th overall) 2012 Gap Inc. received an Excellence in Greenhouse Gas Management Goal Setting Certificate from the U.S. Environmental Protection Agency, The Climate Registry, the Center for Climate and Energy Solutions and the Association of Climate Change Officers for publicly reporting and verifying GHG inventories and setting an aggressive absolute GHG emissions reduction goal. 2011 For the seventh year in a row, Gap Inc. achieved 100 percent on The Human Rights Campaign's Corporate Equality Index -- a tool to rate major corporations on their treatment of gay, lesbian, bisexual and transgender employees, consumers and investors. 2010 Gap Inc.'s P.A.C.E. program was awarded the 2010 award for "Most Strategic Philanthropy Program." 2010 Fortune/CNNMoney.com 2010 Hong Kong Council of Social Service (HKCSS) 2010 Gap Inc.'s corporate governance scores ranked us among the 20 most responsible companies in the U.S. For the fifth straight year, Gap Inc. made Fortune/CNNMoney.com's "100 Top MBA Employers" list. The ranking is based on a Universum survey asking MBA students at top U.S. business schools where they'd most like to work. Gap Inc. was awarded the "Five Year Plus Caring Company Award" in Hong Kong, recognizing the company's demonstrated involvement, commitment and good corporate citizenship.

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