Value for Information: IT Assets and Resource-Based View for Gap Organization

This report discusses the identification of various IT assets and their business returns in Gap organization, the extent of Gap's IT portfolio, and a list of capabilities and resources using resource-based view. It also analyzes the value and rarity of resources for Gap.

Running head: VALUE FOR INFORMATION
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Name of the Student
Name of the University
Authors Note:

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Table of Contents
Introduction..........................................................................................................................2
Discussion............................................................................................................................2
Task 1...............................................................................................................................2
Identification of various kinds of IT assets and their business returns in Gap
organization by making use of IT portfolio theory..................................................................2
To what extent does Gap have IT portfolio which provides a balance view of value,
risk and return..........................................................................................................................5
Task 2...............................................................................................................................6
Making use of Resource based view, a list of capabilities and resources...................6
Resources and capabilities value and rarity for Gap...................................................7
Conclusion...........................................................................................................................9
References..........................................................................................................................10

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Introduction
Gap incorporation was founded in the year of 1969 by Donald fishers. Gap organization
is more focused on creation of retailers and is much focused on creation of private level goods
(Lin and Wu, 2014, pp-409). Gap incorporation have managed five brands namely Gap, Banana
republic, old navy, athlete and intermix and has been considered to be maintaining of American
casual style. Gap brand is more focused in providing casual to both male and female which is
generally inclusive of comfortable basic like jeans, khakis, bottom down shirts and various kinds
of pockets tees (Bromiley and Rau, 2016, pp-98). Later on, in the year of 1983 Gap incorporation
acquired banana republic and moved to higher price and quality of things. In every seasons Gap
produced hundreds of unique kinds of products which are offered in variety of color and size.
In the coming pages of the report various kinds of IT assets and their business value
returns has been discussed with respect to Gap organization. The report also discusses the extent
of Gap have proper kind of portfolio for providing balance view value, risk and various kinds of
returns. After that in Task 2 a list of resources and capabilities have been developed by making
use of resource-based view of the firm.
Discussion
Task 1
Identification of various kinds of IT assets and their business returns in Gap organization
by making use of IT portfolio theory
Asset IT portfolio Asset class Business Value
HR system- Gap is focusing
to implement HR system as it
Resource asset HR system will provide a list
of benefits like

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will help in managing the
details of employee by the
help of database (Somsuk and
Laosirihongthong, 2014, pp-
205). With the payroll system
it will help in integration of
employee data along with
payroll data.
It comes up with employee
self-service which will help
them in making necessary
amount of changes regarding
their information.
Performance management is
mainly done making use of
HR system.
 Efficiency of
administration
 Reduction of cost
 Provides easy access
to required
information.
 Analysis of data and
more informed kind of
decision
 Improved kind of
communication.
 It also overcomes
various kinds of risk.
 It also provides
security and recovery
in disaster cases.
Payroll system- Gap is
planning to implement
payroll system so that it can
track various kinds of
transaction made to
employees like salary and
many other things.
Transaction asset Payroll system can easily
provide a lot of benefits like
 Easy calculation
 Forecasting of things
in much easier way.
 Saving of time
 Backup of things in

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more efficient way.
 It is considered to be
cost effective.
Product inventory system:
Gap organization is focusing
to digitize the entire product
inventory system and along
with introduction of various
kinds of retails services (Kull,
Mena and Korschun, 2016,
pp-5555).
Transaction assets Product inventory system will
provide large number of
benefits like:
 Improvisation of
accuracy which is
based on inventory
orders.
 It will help in
organization of
warehouse.
 It will ultimately save
large amount of time
and money
 It will increase the
efficiency and
productivity of Gap
organization.
 A better kind of
inventory will help in
attracting large

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number of customers.
To what extent does Gap have IT portfolio which provides a balance view of value, risk and
return.
Gap organization have best kind of IT portfolio for providing a balance view between
value, risk and returns. It has implemented a range of system for increasing the overall efficiency
of the organization (Pee and Kankanhalli, 2016, pp-190). The organization have made use of
diversification, investment time frame and reviewing of plan for balancing between value, risk
and benefit for an organization. Diversification has help gap in spreading of their investment
across a variety of assets. Positive kind of return from any organization can easily help in
offsetting of a kind of negative return. Investment time frame can easily provide significant
impact on large number of decisions and the amount which is generally taken by this Gap
organization. The organization makes use of review of plan on a regular basis for the various
kinds of investment strategy. Risk in domain of business is nothing but a chance which will
provide actual kind of return than what is expected. Risk generally relates to the fact of loosing
of some kind of value in a business (İmrohoroğlu and Tüzel, 2014, pp-2073). Low level of
uncertainty of risk are generally associated with low potential of returns while high level of
uncertainty of risk is mainly associated with high value of potential. Gap has made use of risk/
return tradeoff for providing proper kinds of balance between desire for lowest value of risk and
highest value of return. Investment risk in Gap can be easily divided into kinds of categories
namely that is systematic and unsystematic. Gap organization follows “Modern Portfolio
Theory”. There are mainly two kinds of concepts in Modern portfolio theory that is

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 Any kind of investment made by Gap organization will ultimately led to maximization of
return for any level of risk which is associated with it.
 Risk can be easily reduced by creation of diversification portfolio for large number of
unrelated assets.
Task 2
Making use of Resource based view, a list of capabilities and resources
Resource based view model (RBV) is nothing but a model which is based on fact that
resources makes use of superior performance of firm (Ghysels, Plazzi and Valkanov, 2016, pp-
156). If a resource has VRIO attributes, then it can easily provide firm to have sustain
competitive advantage. The resource models explain RBV along with large number of key
points.
Fig 1: Resource Based View
(Source: Ghysels, Plazzi and Valkanov, 2016, pp-156)

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As per RBV model land, buildings, equipment’s, machinery are considered to be tangible kind of
assets. Intangible assets are nothing but everything which have no kind of physical presence but
are used by large number of organization (Theodossiou and Savva, 2015, pp-1604). It generally
comes up with brand reputation, trade mark and intellectual property for large number of assets.
Heterogeneous are nothing but skills capabilities which are generally owned by an organization
and which differs from other organization (Gong et al, 2017). The second assumption which is
made in the above model is that various kinds of resources of an organization are not easily
mobile and it does not move from one organization to another.
Various kinds of resources which are needed to be accessed by this organization which
are tangible and intangible in nature are
Tangible In tangible
Visible and physical attributes Invisible, No physical attributes
Labor, capital Culture, knowledge
Land, Building Brand equity, Reputation
Plant, Equipment Intellectual property like patents, copyright
Supplies Trademarks, Trade secrets of GAP.
Various capabilities of Gap organization
The various capabilities of this Gap organization are:
 Strategy
 Rewards
 People

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 Leadership
 Structure
 Process
Resources and capabilities value and rarity for Gap
Various kinds of resources which are generally identified above generally creates value
and rarity for an organization. Human resource is considered to be one of the important aspect
for this Gap organization. Human resources provide a large number of benefits like:
Strategic management: HR focus on improvisation of bottom line for this Gap
organization (Geltner, and van de Minne, 2017). Leaders along with expertise of knowledge of
human capital generally affects the success of Gap.
Wages and salaries: HR compensation focus on development of compensation structure
for this Gap organization. They focus on providing extensive wages and salaries for maintenance
of compensation cost.
Analyzation of benefits: Benefits specialist can easily reduce the cost of this Gap
organization. Resource managers have certain number of skills for establishment of negotiation
with various kinds of packages within an organization.
Safety and risk management: Employers round the globe have the power to easily
negotiate with for safety of workplace. It is also considered to be engaging large number of
employees for development of program which ultimately reduces injuries and fatalities.
Liability issues: HR employee relation focus on minimization of exposure of Gap for
exposure and various kinds of liability related to unfair number of employee practices. They
mainly work in identification, investigation and resolving of large number of issues.

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Training and development: HR training and development focus on creation of large
number of employee orientation. It also provides large number of employee details which
ultimately provides training and support to this organization that is Gap.
Employee satisfaction: Employee relations to specialist aims in providing high level of
performance for this Gap organization (Vogel et al. 2017). They generally address the opinion of
large number of employees.
Hiring process: This kind of professional focus on working with large number of
professionals. They generally aim to provide guidance for this Gap organization.
Conclusion
From the above discussion it can be easily concluded that this report is all about Gap
organization. In the above pages of the report various IT assets of Gap organization have been
identified. Their business value return for Gap organization have been identified easily. After
that extent have been calculated which easily provides a proper kind of balance view between
value, risk and return. In the task two of the report a list of resources and capabilities have been
identified which the Gap needs to access. The list of resources has been identified by making use
of resource-based view (RBV) for Gap organization. After that an analysis has been done on the
fact that how those resource can easily add value and rarity for Gap organization. A table has
been created which mainly consist of tangible and in tangible resources for this Gap
organization.

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References
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management, 41, pp.95-106.
Geltner, D. and van de Minne, A., 2017. Do Different Price Points Exhibit Different Investment
Risk and Return Commercial Real Estate.
Ghysels, E., Plazzi, A. and Valkanov, R.I., 2016. The risk-return relationship and financial
crises.
Gong, X., Wen, F., Xia, X.H., Huang, J. and Pan, B., 2017. Investigating the risk-return trade-off
for crude oil futures using high-frequency data. Applied energy, 196, pp.152-161.
İmrohoroğlu, A. and Tüzel, Ş., 2014. Firm-level productivity, risk, and return. Management
Science, 60(8), pp.2073-2090.
Kull, A.J., Mena, J.A. and Korschun, D., 2016. A resource-based view of stakeholder
marketing. Journal of Business Research, 69(12), pp.5553-5560.
Lin, Y. and Wu, L.Y., 2014. Exploring the role of dynamic capabilities in firm performance
under the resource-based view framework. Journal of business research, 67(3), pp.407-413.
Pee, L.G. and Kankanhalli, A., 2016. Interactions among factors influencing knowledge
management in public-sector organizations: A resource-based view. Government Information
Quarterly, 33(1), pp.188-199.
Somsuk, N. and Laosirihongthong, T., 2014. A fuzzy AHP to prioritize enabling factors for
strategic management of university business incubators: Resource-based view. Technological
forecasting and social change, 85, pp.198-210.

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Theodossiou, P. and Savva, C.S., 2015. Skewness and the relation between risk and
return. Management Science, 62(6), pp.1598-1609.
Vogel, R.M., Castellarin, A.T.T.I.L.I.O. and Singh, V.P., 2017. Risk, reliability, return periods,
and hydrologic design. Handbook of applied hydrology.