With these things in mind, should Gap hire a fashion head to focus on the products in its stores, or should it hire someone who will focus on controlling the organization’s costs, schedules, and operations? Gap should hire someone who would handle the organization’s creative side to keep up with the latest trends and fashion. Moreover, someone should also be hired to head a group that would handle the the financial side of the organization’s operations. It is imperative to monitor and manage the cost and expenses of the company in order to achieve financial stability and liquidity.
2. What companies should Gap benchmark in order to turn around its operations and return to its former lead position? Gap should use the benchmark of Abercrombie and Fitch which focuses on transparency, reliability and control in its global supply chain with emphasis on management dynamics to return to its former lead position. As mentioned, fashion is a difficult business, therefore, a balance should be established between the company’s controls and creativity. 3. How much control and what types of controls should be in place?
Ideally, Gap should be lenient and firm in enforcing organizational control to ensure the stability and success of the company. To establish the financial stability of the company, financial and budget controls should be strictly implemented. Profitability, liquidity, debt and activity ratios must be closely monitored. Financial controls should be complimented by budget controls to set the limitations of the company’s operations in terms of cost and expenses. Moreover, marketing controls must also be enforced to ensure that marketing expenses are effectively managed.
4. How do you achieve balance between control and creativity? A balance between creativity and control can be achieve through proper coordination of both aspects. A company should set its corporate goals, missions and visions and policies should be implemented based on these aspects. If the company aims to enforce management controls and maintain its creativity, these controls must be formulated with creativity and stability in mind. Limitations must be set in accordance with corporate activities involving creativity, research and development.
5. What techniques might help you to achieve this balance? To achieve the balance between creativity and control, financial, budget and marketing control techniques must be formulated and implemented. The financial and budget control techniques would set the limitations and restrictions in terms of expenses and costs involved in achieving creativity for the company. Creativity activities normally fall in marketing and research and development departments. Hence, controls and restrictions must be formulated and implemented in both areas. 6.
If you are in charge of Gap, what would you do? If I am in charge of Gap, I would hire a well-rounded chief executive officer who can balance the creativity and financial issues of the company. However, if I cannot find the most qualified person to do such, I would need to hire two persons who would handle the financial controls and creativity aspects of the company. Both employees must coordinate with each other effectively to ensure that both sides of the company’s operations are managed in accordance with the policies and corporate goals.
Courtney from Study Moose
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