The TOM Challenge: TOM Winners and Losers Assignment

December 09, 2015

Read The Full Prompt

The basic thesis of the TOM course is that company performance is driven by the alignment between the company’s business model and operating model. As defined in the “Introduction to the RC TOM Course” note, a business model is defined as how the firm creates and captures value, and an operating model refers to the processes that transform a firm’s assets (e.g., capital, labor, intellectual property, equipment, etc.) into valuable actions.

Please identify one organization in the global economy that you think is highly effective (or one that is highly ineffective) at driving alignment between its operating and business models

  1. Did you choose the company as an example of effectiveness or ineffectiveness? Why?
  2. Describe the company’s business and operating models. What is interesting about them?
  3. Do the models align and support each other?  How?  What specific features of the operating model are designed to create and sustain competitive advantage?  What features of the business model leverage unique capabilities of its operating model?  What are the implications for performance?

Submitted (929)

Grocery Outlet: Christmas cereal in July
rdenious
Last modified on December 9, 2015 at 5:25 pm
Smell the milk before you drink it.
Herbalife – The Upside Down Funnel
Dan Deal
Last modified on December 3, 2015 at 5:42 pm
Overview Herbalife is a global nutrition company that sells weight management, targeted nutrition, energy, sports & fitness, and other nutrition products.  Unlike a traditional consumer product company, Herbalife distributes its products through a global network of four million “members”. (1) [...]
AmenZone – Training for Life
ABenas
Posted on December 8, 2015 at 8:56 pm
Why doing more with less is hurting AmenZone and its growth through franchise strategy.
Nike: Lapping The Competition
A2017
Last modified on December 1, 2015 at 6:44 pm
Nike aligns operating and business model to drive performance and lap its competition.
Trader Joe’s – using operations to support a distinct value proposition
Steve Robins
Posted on December 6, 2015 at 7:35 pm
Trader Joe’s pays new staff members $10-12/hour, a new assistant store manager makes $40-75K and store managers make six figures [1][2] and has a labor-intensive operating model [3]. Even with high labor costs, it has grown to over 440 stores [...]
Pomona and the winning model of elite liberal arts colleges
Lacy
Posted on December 9, 2015 at 12:42 pm
A high-touch, high-cost model of higher ed.. but is it sustainable?
Costco: An Ingenious Alternative Retail Model
Abenson
Last modified on December 8, 2015 at 5:44 pm
By shifting away from the classic mark-up retail model, Costco provides unmatched consumer value.
Why “Demolition Man”, Fab.com’s former CEO should have studied TOM (at GSB) before running his company into the ground
Iulia
Last modified on December 9, 2015 at 10:58 pm
Fab.com's failure due to operational inefficiency and too high growth targets.
Rocket Internet: it’s all about risk mitigation
JM W
Last modified on December 8, 2015 at 10:26 pm
Rocket Internet's business and operating models are perfectly aligned: both aim at mitigating the risks of starting a venture in a new market.
Evyap – Reaching operational excellence to become a truly international player
Yonca
Posted on December 8, 2015 at 6:36 pm
How a local FMCG player with regional footprint managed to become an international company
Shake Shack: Serving Up More Than Just Burgers
William S.
Last modified on December 7, 2015 at 4:28 pm
Caring Customer Service Comes From the Top Down
On Time, On Budget, Onshape
MPM
Last modified on December 9, 2015 at 12:39 pm
Solidworks meets google docs while Onshape provides a platform for users to engage with CAD, engineering, and design support.
GrubHub: Bringing Order to the Takeout Experience
Curtis Roby
Posted on December 9, 2015 at 4:43 pm
"Everything great about eating, combined with everything great about not talking to people"
Chick-Fil-A: The Top-Performing Fast-Food Chain
Tyler
Last modified on December 9, 2015 at 7:13 pm
Chick-Fil-A has been the envy of the Fast Food Industry, achieving the highest average sales per store of any fast-food chain. What is the secret recipe?
IndiGo Airlines – Ready for takeoff!
MRI
Last modified on December 4, 2015 at 11:49 pm
How does IndiGo tie in "low cost does not mean cheap" and "on time is a wonderful thing" to financial success - the mantra that allows them to fly high!
Cameron Hughes Wine: fine wine for everyone
juancd56
Posted on December 5, 2015 at 12:36 pm
Premium wine at a not-so-premium price makes for a happy customer
Airbnb and The Sharing Economy: Creating Value for Everyone
Michael
Last modified on December 9, 2015 at 10:46 pm
In just seven years, Airbnb has disrupted the 1300-year-old hotel industry by creating a “collaborative travel revolution” where everyone finds great value.
Aldi: delivering what and only what the customer values
Meili
Last modified on December 9, 2015 at 8:18 pm
Aldi’s business model is formulated with a very specific customer in mind: someone who evaluates groceries from a utilitarian perspective. Aldi’s customer wants low prices in a quick shopping environment and is willing to make sacrifices on choice and service. To [...]
Employees and Community at Shake Shack
pstamati
Posted on December 9, 2015 at 8:23 pm
Shake Shack Business Model   Shake Shack has revolutionized the fast casual space with the simple business model of becoming “the best burger company in the world”[1]. Its CEO, Randy Garutti elaborates that his team focuses on the simple tasks [...]
Bonobos: Making Fit Happen
Jean-Claude Biver
Posted on December 8, 2015 at 6:36 pm
Between 2010 and 2015, men’s clothing was the fastest growing e-commerce category, outpacing electronics, groceries, cosmetics, and health products [1]. Founded in 2007 to eliminate “khaki diaper butt”, Bonobos [2] has been at the forefront of the shift to the [...]
Trader Joe’s: “great food + great prices = Value”
clavidas
Last modified on December 9, 2015 at 8:36 pm
Trader Joe's is the perfect example of how a company with a simple business model leveraging on an aligned and well-executed operating model can win big, even in an otherwise troubled industry
BaubleBar: Redefining How Women Shop for Fashion Jewelry
Stephanie Chan
Last modified on December 9, 2015 at 5:12 pm
A “fast-fashion” jewelry startup shaking up traditional retail
Microsoft: How Satya Nadella is Teaching an Old Software Company New Tricks
AClay
Last modified on December 9, 2015 at 11:44 pm
Since taking over the helm in February of 2014, Satya Nadella has been steering Microsoft back towards evolution and innovation.
Net-a-Porter: Bringing Luxury Online and Around the World
Ashley M
Posted on December 9, 2015 at 6:59 pm
Not many Internet companies can claim that they’ve been around since 2000, let alone e-commerce businesses (did we even know what e-commerce was in 2000?).  Natalie Massanet, magazine editor turned Internet entrepreneur, founded Net-a-Porter in 2000 in London with little [...]
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