Use the information in the business model (prepared for question 9) and on the web site for The Gap, Inc., as a basis for identifying the company's strategic objectives and then perform an external risk analysis that addresses key threats to meeting those objectives (use Figure 5-10 as a guide).

Figure 5-10

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Magnitude of Potential Risk High SR2 Moderate Low SR1 SR4 SR3 SR5 Low Moderate High Likelihood of Potential Risk Legend: SR1: Better warranties from competitors SR2: Escalating executive salary demands SR3: Shortage of raw materials SR4: Industry recession SR5: Changes in consumer tastes