Azeem's Profile

PETRONAS is a very familiar name in the upstream world. Having worked for the company from the services end, I did realize some inefficiencies in the operating model. As the organization is primarily state owned, I wonder how the company is able to align its goals, overcoming the inefficiency that comes with any state run organization. I would like to know your thoughts on the role of MPM in the most minuscule of decision making. Especially in the down-turn these days, is the over involvement of MPM helping the cause for the company, or is it mis-aligning the business and the operating model? In my opinion, the situation requires faster decision making as the market is very volatile these days. Also, how do you see the organization moving forward? Is there a possibility to privatize to keep the business and the operating models aligned?

Luca,

I was so expecting an article like this by you! It was a very interesting read. I do kind of agree that the business and the operating models for the U.S democracy are misaligned – by your definition. Although I very much appreciate the metaphorical example you undertook, my greatest cause for concern is the absence of similarity between the process by which a company and a country set their goals. To elaborate a bit further, the whole idea of democracy is to have representation for the people and by the people, whereas a company’s vision is set forth not by the vast majority of the people who work for it, but in fact the founders or the board of directors (in case of a publicly listed one). And this would bring me to my next question, how would you come about solving the misalignment of representation, in case of a country like the US?
As well, given that you have a passion for such topics, I would like to know what you think of democracy for the emerging part of the world where the vast majority of people are illiterate and the power to vote is not well understood. Would the same business and operating model work for two completely different organizations?

Hi Sierra,

I would be the last person to know a thing or two about home decorations, but given my Field 3 project is very much related to this, I myself actually went to a Pottery Barn store during dash day and interviewed customers – of course after the approval from the store manager. A couple of interesting insights from my limited experience:
1. Most people shopped at Pottery Barn during the sale period, which typically happens close to the major holidays or the end of year.
2. The product variety does not change over time. A sofa you may like today, would most likely be available in the warehouse even after a year.
3. All in-store displays are managed centrally by the corporate office. Every tiny detail on the store layout is mapped to enhance the customer experience.
4. With online sales possible, people prefer to visit stores to just get a feel for the product and tend to mostly go back and order online from home.
I would like to know if 1&2 should somehow be incorporated in the business model to improve the overall sales? Perhaps lower prices and more variety…….also what do you think if Pottery Barn becomes a display center with no inventory? People just coming in to browse and eventually shop online – an operating model to keep costs low for inventory and staff salaries.

Hi L (whoever you actually are),

This was a very enlightening article and kind of surprising for me at least. I am having difficulty understanding why the stock price spiraled down after the acquisition. As per my understanding, even if the operating models for the two companies are different, they could still operate as separate entities under one umbrella. Just because the parent company relies on high margin big projects, and Vivint being focused on lower return market should not hamper the conglomerate. I would like to get further into the details of the acquisition and the balance sheet financials for SunEdison, prior to the acquisition. After doing a bit research, what I understand is that SunEdison was never in a position to acquire Vivint solar. Not sure if you agree with my thought process, but I would like to get your thoughts on this……….

Hi,

Very interesting read, but I believe you are aware of the recent E. coli outbreak in Chipotle’s restaurants. The whole scenario kind of gives an ironic take on the core value of ‘food with integrity’ for Chipotle. The stock price fell over 25% in the past two months. The situation is alarming as the incident highlights a weakness in the operating model. As I understand, Chipotle only procures fresh ingredients to support its business model of ‘food with integrity’. But unfortunately, this model requires Chipotle to deal with an extensive number of suppliers which has caused a major relapse in quality control. It would be interesting to see how the company revamps the supply chain to overcome the current hurdle. Chipotle cannot afford to go back on fresh ingredients, so I feel the likeliest solution would either focus on extensive quality checks or supplier management.

Given that you are a Chipotle enthusiast, I look forward to your take on the current scenario, or perhaps your suggestion on how to tackle it……..

Hi David,

Very interesting read, but I believe you are aware of the recent E. coli outbreak in Chipotle’s restaurants. The whole scenario kind of gives an ironic take on the core value of ‘food with integrity’ for Chipotle. The stock price fell over 25% in the past two months. The situation is alarming as the incident highlights a weakness in the operating model. As I understand, Chipotle only procures fresh ingredients to support its business model of ‘food with integrity’. But unfortunately, this model requires Chipotle to deal with an extensive number of suppliers which has caused a major relapse in quality control. It would be interesting to see how the company revamps the supply chain to overcome the current hurdle. Chipotle cannot afford to go back on fresh ingredients, so I feel the likeliest solution would either focus on extensive quality checks or supplier management.