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Great example of how business and operating models are not static concepts, but instead must be dynamic in order to adapt to ever changing market and competitive conditions. We hear of so many companies that “got it right” from inception, but very interesting to read about a successful re-positioning story. Not sure if this realignment would have worked 10 years ago before today’s health craze, but seems like a smart move in today’s world!

On December 13, 2015, Kevin commented on FedEx Ground’s Remarkable Ride to the Top :

Interesting example of how divisional operating models align with specific business models within a company. With the importance of B2C transportation growing given online shopping tailwinds, this service will only continue to scale and reach additional operating efficiences. If FedEx has found a competitive advantage vs. UPS it will be interesting to see if it’s sustainable and how UPS responds. Can UPS just replicate the operating model or are they too invested already in its current infrastructure…?

Adam – great post! I think it’s interesting how the operating procedures for a company like KK are standardized so that the consumer has a similar experience at any store, but just as important, the standardized productions allows the franchisee owners an almost cookie cutter infrastructure that’s scalable and minimizes variability across operators. As franchisee owners often look for ways to improve their own store profitability and processes, I wonder how much leeway they are actually given from corporate to innovate their individual operations (my guess is very little, if any…).