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Pest Analysis On GAP

Discuss Pest Analysis On GAP within the Principles of Management ( P.O.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Gap, Inc is an American clothing and accessories retailer based in San Francisco, California, and founded in 1969 by Donald ...



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Pest Analysis On GAP
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Pest Analysis On GAP - December 1st, 2010

Gap, Inc is an American clothing and accessories retailer based in San Francisco, California, and founded in 1969 by Donald G. Fisher and Doris F. Fisher. The company has five primary brands: the namesake Gap banner, Banana Republic, Old Navy, Piperlime and Athleta. As of September 2008, Gap, Inc. has approximately 135,000 employees and operates 3,076 stores worldwide, of which 2,551 are in the United States.[6] Gap, Inc. remains the largest specialty apparel retailer in the U.S., though it has recently been surpassed by the Spanish-based Inditex Group as the world's largest apparel retailer.[7]

Despite the company's publicly traded status, the Fisher family remains deeply involved in Gap, Inc.'s business and collectively owns a significant quantity of the company's stock.[8]

Donald Fisher served as Chairman of the Board until 2004 and remained on the board until his death on September 27, 2009. His wife and their son, Robert J. Fisher, also serve on Gap's board of directors. Robert Fisher succeeded his father as chair in 2004 and also became president and CEO on an interim basis following the resignation of Paul Pressler in 2007.

Glenn K. Murphy is the current CEO of the company. Previous Gap, Inc. CEOs include Millard Drexler and Paul Pressler.

Political Analysis

The Republic of Maldives has a parliamentary style of government with a strong executive. The country has a largely Muslim population and the laws of the country are consistent with Islamic Shari’ah law. A republic since 1968, there is a unicameral Parliament, the People's Majlis, with 50 members (42 elected by popular vote, appointed by the President). The Office of the President is the most powerful political institution. The President appoints the Cabinet and members of the judiciary and is both the Chief of State and Head of Government. The President is also Commander in Chief of the armed forces, Minister of Defence and National Security, Minister of Finance and Treasury, and Governor of the Maldivian Monetary Authority. Women have the right to vote in all elections and are eligible for candidature to elected bodies and all public positions, except that of Head of State. The present Constitution, which came into force in 1998, does not provide for an independent judiciary and therefore could be subject to executive influence. The President has the authority to review High Court decisions and through his power to appoint and dismiss judges without confirmation by the People’s Majlis, he can influence the judiciary. President Gayoom, who was first elected in 1978, is presently serving his sixth consecutive term. In June 2004, as a result of strong public demand for reform, he announced a programme of important constitutional changes which have the potential to transform the Maldives to a multi-party democracy. Since 2004, frustration with the slow pace of reform has led to internal unrest. The international community has pushed for the reforms to be adopted. In March 2006 the government made public a “road map for the reform agenda” which takes the form of an ambitious timetable of measures, broken down into the strengthening of governance system, human rights protection, independence of the judiciary, modernisation of the electoral system, enhancement of the role of the media and development of a multiparty political system. This road map contains useful measures to strengthen the democratic system. The key component is the commitment to an election under a new multi-party electoral system, to be held in 2008.

Economic Analysis

The small size of its economy, which is largely dependant on tourism and fisheries, makes the Maldives vulnerable to external shocks. The low-lying islands of which the country is composed are particularly vulnerable to natural risks, as witnessed by the economic recession following the tsunami of December 2004. The country’s lack of land-based natural and mineral resources means that virtually all economic production is highly dependent on imports, creating a heavy dependence on foreign exchange earnings. Intensive agricultural production is limited because of the hypercalcic soil. All staple foodstuffs, necessities and items for the tourism industry have to be imported.

Despite its natural disadvantages, the country has achieved sound growth over the past two decades, mainly through the development of its tourism and fishing industries. Tourism has grown significantly (from 195 000 arrivals in 1990 to 617 000 in 2004) and currently accounts for 33% of GDP, a quarter of total employment and more than 60% of the Maldives' foreign exchange receipts.

Fisheries is the main activity outside of Male’ and the tourist islands. It employs 19% of the country’s labour force but accounts for only 6% of its GDP. Fisheries exports are mostly canned and fresh tuna, which is the second largest source of foreign exchange for the country. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 15% of GDP.

Social Analysis

Poverty in the Maldives stems primarily from regional disparities in living conditions related to the remoteness of the islands and the lack of infrastructure and social services in the atolls. Women are particularly susceptible to isolation, as the culture of the country limits their ability to travel to other islands for employment or education. The island ecosystems are among the most vulnerable and environmental degradation can render an island uninhabitable, increase its vulnerability to natural disasters and impact on key economic sectors, particularly tourism and fisheries. Although the country’s current GDP per capita is one of the highest in South Asia, significant disparities exist in income distribution. Just under half the population earn less than $1.25 per day and the average income of three quarters of the population is $1.60 per day. 7 The population of the Maldives is relatively young, with 44% under 14 years of age. Primary education facilities are adequate but there is a shortage of secondary education facilities, particularly in the more remote atolls.


As a result the numbers of unemployed youths are increasing, partly because of their poor education and partly because of the limited job opportunities available. It is not surprising therefore that drug abuse has become a serious problem in the Maldives, especially among young, unemployed males who are the most vulnerable group9. Three quarters of the prison population are serving sentences for drug offences, and the authorities have yet to develop a strategy to tackle the problem. Giving the small size of the country, there is a shortage of labor, which leads employers to offer competitive pay and conditions to attract workers. In terms of workers’ rights, there is no national laws governing health and safety conditions on the workplace, and the country does not recognise the right to join trade unions, which effectively do not exist. Furthermore, the country is not a member of the International Labour Organisation

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Re: Pest Analysis On GAP - June 28th, 2015


Political – The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.

Economic – This include factors like inflation, interest rates, economic growth, the unemployment rate and policies.

Social – It is related to customer demographics, cultural limitations, lifestyle attitude, and education.

Technological – These factors include technological advancements, lifecycle of technologies, and the role of the Internet.

Legal – It deals with discrimination laws, health and safety laws, consumer protection laws, copyright and patent laws.

Environmental – It is related to changes in weather, laws regarding pollution, waste management, use green or eco friendly products.
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