1. Assume you are sourcing manager for Gap Inc. How would you rank the following regarding importance...
Question:
1. Assume you are sourcing manager for Gap Inc. How would you rank the following regarding importance when determining a sourcing destination:
- Speed to market
- Sourcing cost
- Risk of non-compliance
2. Is there another factor that you would rank more highly than these? Please specify. Why would you rank these such?
3. In the 2017 fiscal year, Gap Inc. sourced its products from approximately 800 vendors in fifty countries around the world. What are the benefits of adopting such a diversified sourcing base? Is this necessary?
4. How should Gap Inc. adjust its sourcing strategy in response to the changing business environment as described in the case? Particularly, why or why not should Gap Inc. continue sourcing from China?
5. Which country or region could serve as the alternative to "Made in China" for Gap Inc. and why?
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston