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)

John Lewis: A better way of doing business?
Elena Chong
Posted on December 7, 2015 at 5:01 pm
The UK's leading retailer is owned not by outside shareholders but by its employees. The result? A company that maximises 'happiness' for its employees, is experiencing record levels of sales and has been voted the 'UK's favourite retailer' for the [...]
Ball and Rexam: $300M in cost synergies? CAN they do it?
Robert Graham
Last modified on December 9, 2015 at 7:06 pm
On Feb 19th, 2015 Ball Corporation entered into an agreement to purchase Rexam PLC. Ball Corporation is one of the largest metal packaging manufacturers in the world.
SpaceX – Low cost access to space
Greg
Posted on December 9, 2015 at 11:03 pm
$60 million rockets? What a bargain!
Excellence in Education: Demonstrating what’s possible when a school aligns its mission, model, and operations
Chelsea
Last modified on December 14, 2015 at 6:53 pm
Brooke Charter Schools defy the odds and achieve extraordinary results for every child. The schools are the highest performing schools in the state while serving a high need student population. How do they do it? By focusing relentlessly on teacher [...]
Spirit Airlines: The airline everyone loves to hate
MargaretFinch
Posted on December 9, 2015 at 5:44 pm
How an airline that consumers claim to hate continues to outperform competitors on profit margin and revenue growth
Spirit Airlines and the Success of the Ultra-Low Cost Carrier
SGhitis
Posted on December 8, 2015 at 2:26 pm
How is one the most hated airlines also one of the most successful? By having a tightly aligned business and operating model.
Zenefits – A Unique Business Model + Innovative Operating Model
changeme_26
Posted on December 9, 2015 at 11:40 pm
Zenefits is a new HR software system. Free to the customer, with an operating model that allows for sustainable product innovation and customer value creation.
BlackBerry: Down But Not Out?
SRW
Last modified on December 9, 2015 at 11:25 pm
The smartphone innovator is down, but is it poised for a comeback?
Allen Edmonds: An American Revolution
Bryce
Last modified on December 5, 2015 at 10:28 pm
SHOES
Amtrak: Losing Money for the Long Haul
Will Kenney
Last modified on December 9, 2015 at 9:30 pm
Why can’t Amtrak make any money? America’s national passenger rail service is a for-profit corporation, yet since its trains started rolling in 1971, Amtrak has yet to come out in the black.
Chipotle: The birth of the fast-casual concept
Luli Mello
Last modified on December 9, 2015 at 9:29 pm
Chipotle's incredible focus on its operations allowed it to carve out an entirely new segment within the already very mature food industry.
Redefining how WeWork
André Rocha
Posted on December 6, 2015 at 7:47 pm
How WeWork is creating the office space of the 21st century by leveraging design, community and technology to deliver superior value to startups.
FCB: The Healthiest Club in Europe?
dk_22
Last modified on December 10, 2015 at 4:44 pm
FC Bayern joins European football's top-earning clubs, with zero debt.
Trader Joe’s
SofiaWarner
Last modified on December 9, 2015 at 10:25 pm
How one grocery store is beating the competition at sales per square foot by selling fewer items and focusing on supplier and distributor savings
3G Capital’s playbook for success
Student
Last modified on December 3, 2015 at 1:50 pm
3G Capital is a clear winner in aligning business model and operating model. Over the past years, 3G Capital has successfully invested in and grown renowned companies, creating value and giving shareholders significant returns on investment.
Chipotle Mexican Grill – The creation of “Fast-Casual”
Jay
Posted on December 9, 2015 at 11:25 pm
Chipotle - Ownership allows control and drives efficiency, allowing for consistent delivery of a complex value proposition. Quintessentially TOM- assembly line service and holistic management of 1,800 wholly owned fast casual outlets.
Bio-Pappel: Bringing sustainability to the forefront of Mexican manufacturing
changeme_27
Posted on December 9, 2015 at 11:30 pm
Bio-Pappel, the leading producer of paper and paper-based products in Latin America, underwent a radical shift starting in 2011 to become a truly sustainable company. With 27 production plants in Mexico, United States, and Colombia, and a production process that [...]
Ginkgo Bioworks: The industrial revolution is coming to the biology lab!
Jonathan Friedlander
Last modified on December 9, 2015 at 2:59 pm
Data! Robots! Microbes! The revolution is coming!
Parts Town: A Case Study on How to Disrupt a Sleepy Market
JRC
Posted on December 9, 2015 at 10:19 pm
Distribution businesses are not often thought of as sexy. Functioning as middlemen in highly fragmented industries, these businesses often require large amounts of capital investment and generate thin margins in return. Parts Town (“PT” or “the Company”), however, has effectively [...]
Visa: Gaining the Worlds’s Trust
Shivani Aryal
Posted on December 9, 2015 at 8:02 pm
I evaluated Visa Inc.’s business and operating models and I believe that the company is a “winner” in its ability to align the two. Company Overview: Established in 1958, Visa is a global payments technology company that connects consumers, businesses, [...]
FreshDirect: Knowing when to stay in your lane
LL Cool Chea
Posted on December 6, 2015 at 1:38 pm
Learn how FreshDirect's operating model makes its business model even more compelling to customers.
GNC – Supplementation Gone Wrong
DoYouEvenLiftBro
Last modified on December 10, 2015 at 9:03 am
Specialty retailer's troubled performance this year symptomatic of an outdated and ineffective operating model
Electronic Arts – the “Evil Empire” regains its groove
Kchoo
Last modified on December 9, 2015 at 8:05 pm
After enduring a tough recession and a few missteps with its monetization model, Electronic Arts (EA) is again minting cash, striking a delicate balance as one of the world’s most popular game publishers and, at the same time, one of [...]
McMaster-Carr – Delivering Supplies and Service
Eliza
Posted on December 9, 2015 at 9:53 pm
McMaster-Carr Supply Company, an industrial supply distributor, targets specific customers and aligns all aspects of its operating model around meeting these customers' needs.
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