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)

Missed Opportunities at Coin
David
Posted on December 5, 2015 at 3:57 pm
Coin failed to take advantage of a unique but temporary niche in the consumer payments space by giving users a way to eliminate the need for carrying all their credit cards.  Due to development and other operating failures, competitors have [...]
Success of SF Express in China
ClayZ
Posted on December 9, 2015 at 10:16 pm
How does a courier company differentiate itself in an undifferentiated industry?
IndiGo Airlines: On Time, Every Time
Surabhi
Last modified on December 1, 2015 at 7:54 pm
Less than a decade old, how does an airline grow to become the country's largest and only profitable air carrier?
Lenovo: for those who do not have a good operating model
MBA_SecJ
Last modified on December 6, 2015 at 1:48 am
Lenovo Brazil created a good business model, but can execute it well?
Dorman Products: The First To Find Fault
Mike Bechek
Last modified on December 7, 2015 at 11:50 pm
The company that knows what's wrong with your car before you do.
Aravind Eye Care’s Grand Vision for India
Abhilasha
Posted on December 8, 2015 at 10:22 pm
Can quality and affordability go hand-in-hand for healthcare services? Aravind Eye Care is determined to make this a reality!
Venmo: The Facebook of e-payments?
Ben
Posted on December 9, 2015 at 6:02 pm
Venmo's business and operating models are well-aligned, but the business model has not yet captured much value. It will have to evolve to do so and Venmo has already prepared its operating model to support such a shift.
The NFL Gravy Train: Too popular to derail? The Rewards and Risks of Power Centralization
EE
Posted on December 9, 2015 at 10:12 pm
A look at the operations of the NFL, a winning model with increasing risks of a dramatic fall from grace
Joining the Club: How Lending Club’s Improved Borrowing Experience Drives Company Performance
Christine Kang
Posted on December 9, 2015 at 7:26 pm
To what extent do operations drive the growth of a fast-growing fintech company?
SunEdison: The Renewable Supermajor Stumbles
L
Last modified on December 9, 2015 at 11:30 pm
Has the fastest growing solar company overheated its operating model?
Kraft Heinz: Zero-Based-Budgeting its way into the hearts of consumers?
JC
Last modified on December 7, 2015 at 8:24 pm
Big Food is falling out of favor, but is 3G's aggressive cost slashing model the way to redeem this CPG giant?
Expeditors International – Simply Synchronized
Steven
Posted on December 9, 2015 at 11:30 pm
Company Overview: A third-party logistics provider, Expeditors International of Washington is a global logistics company satisfying the increasingly sophisticated needs of international trade. The Company’s primary services include air and ocean freight transportation and customs brokerage. The Company also provides [...]
Bim – pioneer of discount retail in Turkey
Tariq Musa
Posted on December 9, 2015 at 11:08 pm
Established in 1995, BIM Birlesik Magazalar (known as “Bim”) was the pioneer of the “hard discount” retail model in Turkey.
Patagonia: Accidental Success Through a Deliberate Mission
Prak Malhotra
Posted on December 8, 2015 at 4:18 pm
“If I had to be a businessman, I was going to do it on my own terms.” – Yvon Chouinard, Let My People Go Surfing
Wyzant, Inc: A brilliant way to keep everyone on board
Neha Dave
Last modified on December 9, 2015 at 11:23 pm
Win-win-win situations do exist!
Bonobos: a modern way to shop
Claire
Posted on December 8, 2015 at 2:39 pm
With an emphasis on convenience and ease, Bonobos' operating model is perfectly designed to meet consumers' needs.
Now That’s one Tough Mudder…
Cameron
Last modified on December 9, 2015 at 11:29 pm
A look into the company that redefined mud-runs.
IKEA: Modularizing Design and Value
Sherri Geng
Last modified on December 8, 2015 at 7:52 pm
IKEA’s vision is to “create a better every day life for the many people”[1], aiming to bring good design to as many people as possible. As CEO Mikael Ohlsson once said, IKEA’s goal is to offer “people with limited means [...]
Efes Russia: How operations react to regulations
Yigit Y
Last modified on December 9, 2015 at 1:04 pm
“Regulations is what happens to you while you are busy improving your bottom line” - When the market got hit by the adverse effects of regulations, optimizing your operations usually turns out to be your plan A.
REI: Helping Consumers Explore the Outdoors
DWang
Posted on December 9, 2015 at 7:25 pm
REI has become the largest Outdoor Specialty Retailer, built on an old school cooperative business model.
Chipotle: Can I have some guac to go with that efficient service model?
Russell Westbrook
Last modified on December 5, 2015 at 3:23 pm
Fast, high-quality food at an affordable price. Boomer Sooner.
Dunkin’ Brands: A Cup of Coffee is a Cup of Coffee
A.J.
Posted on December 7, 2015 at 11:10 pm
Despite great efforts to increase relationships and product offerings, all customers want at Dunkin' Donuts is a quick and cheap cup of coffee.
Shake Shack – The Fine Casual Dining Experience
Azeem
Last modified on December 14, 2015 at 5:47 pm
Will Shake Shack's model of 'Stand for something good' survive the economics of the post-IPO world...........
The Golden Ticket to Fine Dining – Alinea Shakes up a 250 Year Old Industry
Alex Fisher
Posted on December 9, 2015 at 11:24 pm
Alinea's innovative, dynamic ticketing reservation system and dedication to developing painstakingly creative tasting menus have optimized profits and created a truly differentiated experience in a highly competitive industry.