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)

Everlane: Building a Business on Radical Transparency
Janine
Last modified on December 9, 2015 at 10:41 pm
Will the e-commerce retailer of timeless basics succeed in disrupting the apparel industry with its no-frills luxury ethos and transparent pricing model?
Solazyme: from Biofuels to Biofacials
MikeM
Last modified on November 30, 2015 at 10:01 pm
The ongoing saga of Solazyme's troubled path towards commercialization and sustainable operations.
Volkswagen’s Emission Scandal Calls its Operating Model into Question
Carolin_Oldenbuettel
Last modified on December 9, 2015 at 7:30 pm
The recent emission scheme reveals the ineffectiveness of VW’s culture, compliance and governance and highlights the risk of an interwoven, global production network.
Fast growing high-end kindergarten chain in China-Etonkids
Susan Wang
Last modified on December 6, 2015 at 11:05 pm
How could a high-end kindergarten chain to quickly expand in China?
CVS Health: Transforming Healthcare
Shaharyar
Posted on December 8, 2015 at 7:24 pm
The company I am choosing as a model of effectiveness is CVS Health. I believe CVS demonstrates an example of effectiveness as evidenced by the sustained outperformance of its stock relative to competitors, but also the S&P500, and this performance [...]
Chipotle Mexican Grill: Food with Integrity
Abe Froman
Last modified on December 9, 2015 at 3:03 pm
Chipotle is so much more than a burrito bowl with a side of chips. Their thoughtful and calculated approach towards expansion will drive the brand well beyond a fast-casual Mexican concept.
McKinsey & Company – an operating model perfected through decades of refining
Dany El Khoury
Posted on December 9, 2015 at 9:58 pm
1. Brief description: McKinsey is a leading strategy consulting Firm 2. McKinsey creates sustainable value for clients of which it extracts fixed fee or % of monetary value 3. McKinsey's continuously evolving Operating Model is designed around its Business Model
Fast fashion? Faster distribution!
Nina Mullen
Last modified on December 8, 2015 at 10:07 pm
Inditex's focus on customer behaviors, nimble sourcing strategy, and high tech logistics allows them to bypass the traditionally long inventory timelines typically associated with the fashion industry.
LUV What You Do
Aaron K.
Last modified on December 5, 2015 at 10:01 pm
The airline industry is known to be a tough business. Capital costs are high, regulation is prolific, and competition is fierce. How then has Southwest Airlines (SWA) managed to differentiate itself as the only airline with 41 years of profitability?
TripAdvisor: Rapid product development and content generation
Akihiko Ito
Last modified on December 6, 2015 at 12:42 pm
TripAdvisor grows to be the largest travel site in the world. Why? This post explains the secret of its strategy and operation model.
Fulfillment by Amazon: leveraging automation in warehouses
Xime
Last modified on December 6, 2015 at 7:54 pm
Amazon has been successful in developing a sophisticated, high-tech network of fulfillment centers, which they make accessible to third party sellers
The cost of an education is now less than your daily coffee fix … Surely it can’t be true?
RC Tomster
Last modified on December 10, 2015 at 1:02 am
- "The Most Crucial Scaling Skill? Linking Short-Term Realities to Long-Term Dreams" - "What happens when philanthropy meets profit?"
Uber: global disruption of an old industry
Etienne
Last modified on December 6, 2015 at 8:25 am
A look at how a tech start-up disrupted a global industry and grew to a bigger valuation than Ford and GM in just 5 years
Victoria’s Secret to Success
Afaf
Posted on December 9, 2015 at 11:30 pm
Push-up Bras and Focused Operations
Clover Food Lab: Fast Food That’s Good For You
MM
Last modified on December 8, 2015 at 4:30 pm
How Clover's innovative processes enable the company to offer healthy fast food to customers
Hello Alfred: Or Should I Say, “Goodbye Alfred”
Matt Fischer
Last modified on December 9, 2015 at 11:30 pm
Hello Alfred: Butler's for everyone? Not just yet.
Verisk Analytics: Repurposing Data to Deliver Unique Customer Value
KMC
Posted on December 9, 2015 at 10:48 pm
"In God we trust, all others must bring data." - W. Edwards Deming
PICARD, French gastronomy everyday for everyone!
JC Napoleon
Posted on December 10, 2015 at 1:36 am
Picard is the most famous success story in French food retail. I could eat Picard everyday!
Sweetgreen: Live the Sweetlife
bldavis
Posted on December 9, 2015 at 11:30 pm
Sweetgreen: a Winner Despite its young owners, Sweetgreen has developed a strong alignment between its operating and business models [1]. Started in 2007 by three Georgetown college graduates, Sweetgreen is a fast-casual restaurant that serves farm-to-table salads and wraps [1, [...]
Rent the Runway
VWalker
Posted on November 27, 2015 at 3:55 pm
Rent the Runway expands your closet, one rental at a time
Wal-Mart: Every Day Low Prices Business Model
Aziz
Last modified on December 9, 2015 at 6:29 pm
Wal-Mart is a great example of a company that is transforming from originally having best in class alignment between its business and operating model towards having a significant friction between the two. Sam Walton first founded Wal-Mart in 1962, as [...]
PETRONAS: Managing Volatility Through Forward Integration
Ash
Last modified on December 9, 2015 at 10:26 pm
Leveraging forward integration in hydrocarbon value chain to weather global downturn
Invisalign – When IP Isn’t Enough
Matt
Last modified on November 28, 2015 at 12:10 pm
Invisalign created an incredibly disruptive technology, but their IP wasn't enough to make this startup a success.
Shinola: “Where American is made.TM”
BetsyVK
Last modified on December 7, 2015 at 9:33 pm
Shinola, whose watches have been rising in popularity (Bill Clinton has reportedly purchased more than a dozen [2]) is attempting to build its brand on the city in which it is made: Detroit.
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