How Organizations Modified Operations to Adapt to the Pandemic Needs

How Organizations Modified Operations to Adapt to the Pandemic Needs: A Case of Gap Inc. Student’s Name The University of Arizona Global Campus Course Name and Number Instructor’s Name Due Date 1. Introduction The COVID-19 outbreak was a global disruption influencing various industries. The pandemic was uncertain, new, and beyond the control of domestic businesses. According to Craven et al. (2022), the pandemic was considered the ‘end of the world’ for most businesses. Businesses struggled for inclusive growth due to the inaccessibility of physical assets and capital spending. Statistically, $130 trillion investments were made in projects to combat the COVID-19 outbreak and uncertainties for sustainable growth. Small-medium enterprises (SMEs) and large-scale companies (LSCs) embraced the constraints led by the COVID-19 outbreak. Most businesses transformed business models to comply with shifts in regulatory frameworks and self-protection from widespread viruses (Bayramov et al., 2023). Furthermore, Jabeen et al. (2023) argued that the COVID-19 outbreak fostered open innovation in business models. Companies encourage people to participate through ideas, voluntary engagement, and social contributions to facilitate stakeholders with direct and indirect influence on the business. Internal leaders in SMEs and LSC motivated stakeholders through emotional support, compassion, and cognitive facilitation to remain resilient and combat the constraints led by the COVID-19 outbreak. Mancuso et al. (2023) argued that businesses were unaware of the longevity of the pandemic and its influences on internal resources. However, progressive leaders continued supporting people’s psychological and physiological needs as a social demonstration to overcome the challenge as a team. This paper will discuss the modifications of operations in business models to comply with pandemic needs. The discussion will focus on evaluating the pre- and post-pandemic business models of ‘Gap Inc (Gap),’ a leading fashion brand in the United States of America (US). The paper will further evaluate the significance of leadership style, change model application, and emotional intelligence to human service professionals when combatting apathy caused by the COVID-19 outbreak. Progressive leadership style and emotional intelligence in organizations were the core tools to mitigate the uncertain effects of the pandemic. 2. Discussion 2.1 Gap Inc: Pre-Pandemic Business Model Evaluation Gap is the third largest fashion retail brand after Inditex and Hennes & Mauritz (H&M). The company manufactures apparel, accessories, and personal care products for men, women, and children. Gap segregates its business model into four subsidiary brands: Gap Global, Banana Republic, Old Navy, and Athleta. Each subsidiary specializes in fabric, style, and customer segment. For instance, Athleta manufactures athleisure for women (Gap, 2024). Gap also operates supplementary brands like Gap Maternity, Gap Kids, Baby Gap, and Gap Body. The brands focus on the specific fashion and personal care needs of adults and children worldwide. The company was founded in 1969 by Donald Fisher and Doris Fisher, headquartered in San Francisco, California. Gap ranks 291 positions as the ‘Best Brand for Social Impact’ and 465 as the ‘Best Employers for Diversity’ in Forbes’ global list (Forbes, 2024). Before the COVID-19 outbreak, Gap differentiated its fashion brand through accessibility and affordability for people. Gap emphasized the robust availability of fashion jeans for people regardless of size, color, fit, and other aesthetics. Gap created convenience for customers by building chains of stores led by subsidiary brands and focused on the specialized needs of each gender. Gap’s business model believed in robust expansion and customer reach without price complexities. As a result, Gap acquired competitors to reduce saturation and increase retail stores worldwide to make products available for customers in the long run. The business model strategy made Gap a global success in fashion, making it the third-largest brand by market share (Alonso, 2023). Nonetheless, Danziger (2024) argued that Gap turned around its global presence before the pandemic through inspired leadership. Gap’s corporate culture attracted leaders with people orientation and cultural relevance. For instance, Richard Dickson, Gap’s President and Chief Executive Officer (CEO), generated $15 billion in sales in the first fiscal period after joining the company. Dickson used his leadership to segregate Gap’s subsidiary brands and focused on specialized needs through cultural relevance. The strategy diversified Gap’s business model, making it robust and environmentally responsive before the COVID-19 outbreak (Gap, 2024a). However, the business model was altered during the pandemic to remain resilient and responsive to the external business environment. 2.2 Alterations in Services During the Pandemic Gap is a success story during the COVID-19 outbreak due to necessary changes made in the business model. First, Gap revamped its product portfolio focus by adding COVID-19 masks for customers. According to Di Maria et al. (2023), most fashion labels introduced trendy mask designs for customers to trigger impulse buying behavior. Customers were offered masks with protected layers, breathable fabrics, and fashion fit. The strategy ensured sales continuity for fashion labels like Gap regardless of external constraints imposed by the government (Di Maria et al., 2023). Gap continued social engagement with customers under distant conditions by introducing fashion masks and sustaining sales momentum during the pandemic. Secondly, Gap made technological infrastructure robust for the customers, suppliers, and stakeholders worldwide to continue business model functions. Traditionally, Gap established a brand reputation through a strong retail network and physical stores, making fashion jeans accessible and affordable for customers. However, the COVID-19 outbreak introduced global lockdowns and social distancing, reducing footfall inside retail stores (Masters & Rajesh, 2023). As a result, Gap invested in websites and smartphone applications to sustain the shopping experience for customers regardless of the external challenges. The integration of financial technology (FinTech) facilitated Gap in generating e-commerce sales for the company during the COVID-19 outbreak, protecting the industrial leadership position under lockdowns (Masters & Rajesh, 2023). Investments in technological solutions and shifting business models to the digital landscape prevented Gap from falling during the pandemic. Nonetheless, Gap continued altering its business model at microlevels to align with the COVID-19 constraints in the long run. According to Uddin et al. (2023), fashion labels revised policies to strengthen supply chain accountabilities and worker’s health and safety (H&S) rights during the pandemic. Leading fashion labels introduced people-friendly policies to continue sustainable relationships with internal and external stakeholders, combatting the uncertainties as a team. Gap managed the supply chain functions by closing specialty stores in the United Kingdom (UK), the US, and other leading markets to focus on its ecommerce division. The suppliers received continuous inventory orders from Gap to manufacture apparel, accessories, and footwear to fulfill online deliveries for customers. Employees were provided safety kits to manage deliveries. Most employees adopted ‘work from home (WFH)’ conditions to practice social distancing and continue operations during the pandemic (Forrest, 2022). The strategy made Gap a progressive and people-oriented brand due to business model relevance and sustainability. 2.3 Leadership Style to Foster Change in Gap Change is inevitable for organizations before, during, and after the COVID-19 outbreak. Progressive companies embrace changes through sustainable leadership practices and effective resource allocation (Harrist, 2020). Most companies embraced transformational leadership during the pandemic to promote workplace engagement, teamwork, and productivity robustness for sustainable growth (Santoso et al., 2022). However, Gap made significant leadership changes in the business model to integrate alterations and sustain profitability during the pandemic. According to Thomas (2022), leadership was absent during the early pandemic phases since Sonia Syngal resigned from the CEO position. Gap only found a replacement after hiring Dickson. Dickson took charge as the company’s CEO to revamp the retail landscape and overcome the COVID-19 effects as a team. Dickson demonstrated a participatory leadership style to foster change in the company and mitigate uncertainties for the internal and external stakeholders. According to Strubel et al. (2023), participatory leaders socialize with internal and external stakeholders to centralize the problem and redirect resource focus. Participatory leaders create forums for open communication, engage with team members to facilitate functions, and accomplish results through collective efforts. Leaders eliminate power distance and foster open innovation in a workplace environment to find a robust solution during uncertainties (Strubel et al., 2023). Dickson demonstrated participatory leadership to combat the COVID-19 effects and revamp Gap’s performance in the global fashion industry. Primarily, Dickson embraced that Gap requires a budget-friendly solution for adults and children during the COVID-19 outbreak to accomplish inclusive success. As a result, Dickson revamped the brand positioning for Old Navy and built cultural relevance for the customers. Dickson interacted with employees about the supply chain constraints and operational challenges to reposition Old Navy (Thomas, 2022). Dickson’s participatory...