Old Navy In The International Business Market

The company we chose to do our project on is Old Navy. Old Navy's mission is to be the Provider, Partner, and Employer of Choice. Their values, which were decided upon by 600 leaders of the Company, are:

Service Excellence: Serving others - our reason for existing. We continually seek to understand the needs of all those who depend on us (our patient, doctors, and our fellow teammates) and then to exceed all their expectations.

Integrity: We say what we believe, and we do what we say. We are trusted because we are trustworthy. Our personal, team, and organizational values are aligned with everything that we say and everything that we do.

Team: One for all and all for one. Working together to be the provider of choice.

Continuous Improvement: We never stand still; we are never satisfied. All of us -- individually and as teams -- constantly look at everything we do, and we ask, "How can we do this better? We then use a systematic approach to take action.

Accountability: We never say, "It's not my fault" or "I couldn't help it" or "It's not my job." Every one of us takes responsibility for meeting our commitments- our personal ones as well as those of the entire organization. And we take ownership of the results.

Fulfillment: We make a difference. We feel rewarded - personally and as a team - because what we do in our jobs, as well as away from work, is consistent with our lives' goals and dreams.

Fun: Come see for yourself!

According to Gap Inc., they operate 3,143 stores, which includes the Old Navy brand. Old Navy first opened its doors in 1994, in Colma, California. Less than four years after opening, in 1997, Old Navy's annual sales reached a record $1 billion. In 2000, Oldnavy.com was launched. Old Navy made its debut outside the United States, in 2001, opening 12 stores in Canada (www.retailingtoday.com). For fiscal, 2007, Gap expects to open 230 store locations weighted toward Old Navy.

In 2004, Gap had a supplier base of 1,000, with 3,000 factories in more the 50 countries (www.proquest.umi.com). Products are made in the Americas, Europe, Africa/Middle East, East Asia and Southeast Asia. Gap Inc. has garment factories around the world - from Sri Lanka to Lesotho; from the United States to El Salvador (www.gapinc.com/public/social responsibility).

The areas with the most factories are Greater China, with 247; India, with 297 and Southeast Asia, with 382 factories. The actual number of factories utilized is 1,340. Fabrics are subjected to fabric mill selection and regional testing

(www.gapinc.com/public/social responsibility).

For the Fall of 2007, Old Navy products were advertized on the four major TV networks plus the CW, during shows such as Ugly Betty; CSI and The Office. Spots were also run on Cable TV stations such as BET, MTV, Fox Family. In Canada, where Old Navy has stores in the Greater Toronta area and seven more in Quebec, advertizing in Canada is on national networks including CTV and local Canadian channels (ww.gapinc.com/public/documents).

A recent press release introduces a new collection for the winter, Old Navy Women's Plus, available exclusively online. The online store provides an expanded selection of fashion apparel. The site also provides flat $5 shipping on all orders and free returns on any Women's Plus clothes.

Old Navy's production facilities are centralized. Centralized is when decision making is centralized at a high level in one location, such as headquarters. This fact is important for companies that operate in multiple lines of business or in many international markets. It is also important when one subsidiary's output's is another's input.

In such situations, coordinating operations from a single, high-level vantage point is more efficient. Purchasing is often centralized if all subsidiaries us the same inputs in production. Example a company that manufactures steel filing cabinets and desks will need a great deal of sheet steel. Some companies maintain strong central control over financial resources by channeling all subsidiary profits back to the parent for redistribution to subsidiaries based on their needs.

A company centrally design policies, procedures, and standards in order to stimulate a single global organizational culture it is also beneficial when companies transfer managers from one location to another if policies are uniform, the transition proceeds more smoothly for both managers and subordinates.

Decentralize decision making is beneficial when fast-changing national business environments put a premium on local responsiveness. Local managers are more likely to perceive environmental changes that managers at headquarters would not notice.

Even if central managers did perceive such changes, they are likely to get a secondhand account of local events. Delayed response and misinterpreted events can result in lost orders, stalled production, and weakened competitiveness.

Decentralized can save money because informed decisions can be made without flying executives around the world on fact-finding missions. Decentralized can also help to foster participative management practices when delegated to subsidiaries, decisions related to national strategy--including production, promotion, distribution, and pricing decisions can generate greater commitment from both managers and workers.

Decentralization often improves personal accountability for business decisions. The morale of the employees is likely to be higher. When local managers are rewarded (or punished) for their decisions, they are likely to invest more effort in making and executing them. The results are often better decisions and improved performed.

Old Navy products include men's, women's, and children's (even dogs') apparel and accessories. Founded in 1994, Old Navy is a division of the ailing king of casual apparel Gap Inc. and is known for advertising that plays up the kitsch factor of various celebrities. Old Navy, which has suffered from steep sales declines in recent years, has extended its brand to include maternity and women's plus-size apparel, as well as accessories and personal care products.

Old Navy informally bills