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)

Venmo: harnessing social network for online payments
Tina Tan
Last modified on December 10, 2015 at 12:01 am
Venmo leverages the social network effect and aligns their business and operational model to create a new "social" payment
Bose: A Better Business, Through Research
James
Last modified on December 9, 2015 at 8:53 pm
A company whose research-driven operating model has helped it build one of the most respected names in electronics.
Everlane Takes A New Fashion Lane
CAiello
Last modified on December 9, 2015 at 6:09 pm
Everlane can be summed up in their 9-word mission: “Know your factories. Know your costs. Always ask why.” This transparency is the key driver of both their business model and operating model.
Spirit Airlines: flying high on excessive fees and terrible customer service
lynncwang
Posted on December 9, 2015 at 4:29 pm
Spirit's ultra low cost operations and crappy customer service yield surprising financial dividends
Kickstarter: Help bring creative projects to life
Shali
Last modified on December 7, 2015 at 11:19 pm
Supporting art, passion, talent, and incredible story of inspirations to life – one project at a time
Delta Airlines
Charlie
Posted on December 8, 2015 at 9:45 pm
Delta has outperformed its competition and is now the best airline for both passengers and investors.
Stitch Fix: Personalized Retail at Scale
Ravneet Uberoi
Last modified on December 9, 2015 at 10:03 pm
“Stitch Fix is squarely at the intersection of both online and offline (so hot right now) and human and algorithm (even hotter)” - WSJ
From Rock to Ring – De Beers’ Diamond Cartel Shifts from Managing Supply to Driving Demand
Jbogoss
Posted on December 8, 2015 at 3:56 pm
De Beers, historical leader in the diamond global oligopoly, had to shift from managing supply to stimulating demand in order to continue to win in the last two decades.
The Rise and Fall of Sears
James Light
Posted on December 9, 2015 at 11:29 pm
How the alignment and eventual misalignment of a classic American business fueled its rise and brought its fall
Volkswagen: how to destroy 30 billion dollars in a week
Simon Edmonds
Last modified on December 6, 2015 at 9:06 am
This post explores how misalignment between Volkswagen’s business model and operating model may have influenced the emissions scandal that is currently gripping the company.
Moleskine: the “de-commoditization” of the notebook
AndreaBrazzelli
Posted on December 8, 2015 at 10:40 pm
How to create a unique market place through innovation
Ecolab: A Nexus of Innovation and High Quality Service
Adam Demuyakor
Last modified on December 9, 2015 at 10:56 pm
Overview With over $14Bn in Sales worldwide, (2014A) Ecolab is the global leader in water, hygiene and energy technologies and services. They are the largest dominant global provider of cleaning, sanitizing and water treatment solutions to 1MM businesses in over [...]
L.L.Bean: 100% Satisfaction Guaranteed
BC
Posted on December 9, 2015 at 8:17 pm
L.L.Bean has thrived for over 100 years thanks to two core values that have effectively aligned the company’s business and operating models.
EasyJet: Making Travel Easy and Affordable
Alberto
Last modified on December 9, 2015 at 11:27 pm
EasyJet's mission is to deliver market leading returns to its shareholders through maintaining a leading European network at primary airports, with a clear focus on making travel easy and affordable for its customers.
The Value Creating Strategy of Starbucks
May Alkhaldi
Posted on December 8, 2015 at 6:19 pm
How the company continued its rapid growth while maintaining its competitive advantage
Yemeksepeti: Operational Excellence in Online Food Ordering
Ercu
Last modified on December 7, 2015 at 11:03 pm
Providing its customers with a simple, rich and well-working online food ordering portal, Yemeksepeti has been a global case study for successful investments in the field of online food delivery.
Goodwill: Doing Good While Doing Well
Jennie N.
Last modified on December 9, 2015 at 10:37 pm
How Goodwill, one of the nation's largest charities, has designed its operations to support a healthy triple bottom line.
NET-A-PORTER: Selling Prêt-à-porter in A Digital World
KLagerfeld
Last modified on December 9, 2015 at 6:45 pm
Connecting fashion content to e-commerce, NET-A-PORTER introduced a new space of luxury fashion online.
SolarCity: Where Sunshine Meets Innovation
-MP
Last modified on December 3, 2015 at 5:01 pm
SolarCity brings clean energy to the masses through an innovative, customer first approach.
Planet Fitness: Fitness for Everyone
dturenshine
Last modified on November 29, 2015 at 1:31 pm
How Planet Fitness revitalized the gym concept to appeal to the mass market
Whole Foods: Creating An Organic Experience
Vicky V
Last modified on December 9, 2015 at 11:35 pm
How "America's Healthiest Grocery Store" leverages its operations to deliver on quality
From Passive to Active Road Traffic Management
Ahmed Eldemerdash
Posted on December 6, 2015 at 7:56 pm
How most of the current traffic control systems are far away from achieving what they are made for and some potential solutions
Barrick Gold Corporation
Z
Last modified on December 4, 2015 at 7:36 pm
Barrick Gold Corporation is the largest gold producer in the world. Its stock price has suffered from gold price slump and high debt on its balance sheet. Is it an effective company or not?
Yara International: Adapting to a shifting industry
mrossetto
Last modified on December 9, 2015 at 11:22 pm
Yara has re-organized its operations to address increased global pressure on crop yields
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