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)

Gelson’s: The Super Market
Last modified on December 9, 2015 at 11:09 pm
Find out how this Los Angeles grocery favorite has been able to protect its turf from the likes of Whole Foods, Sprouts and Trader Joes.
Inditex and Zara: Delivering fast (and more profitable) fashion
Last modified on December 9, 2015 at 8:20 pm
Through its flagship brand Zara, Inditex has revolutionized fashion retailing through its promise to design, produce, and deliver cutting-edge apparel in under 3 weeks. Read on to find out how Zara successfully delivers to over 2000 stores in 88 countries [...]
Stitch Fix: Decoding fashion through analytic
Posted on December 6, 2015 at 10:06 pm
How much easier would shopping be if a stylist mailed you five pieces of clothing that she tailored just for you, and you had the choice to buy what you like and mail the rest back for free?
Revolution Foods. Transforming the way America eats.
Posted on December 9, 2015 at 4:16 pm
Named by Fast Company as one of the most innovative companies in 2015, Revolution Foods is setting a precedent for social impact for-profit enterprises in the US. The now famous social enterprise was founded in 2006 with the mission to [...]
The United States Postal Service: Snail Mail Forever
Posted on December 9, 2015 at 7:02 pm
The United States Postal Service is an independent government agency that is self-sustained, yet carries out a critical public service. It has experienced multiple periods of unprofitability due to its inability to optimize operations as a fully private sector entity [...]
Profitably lending to lower income households in Mexico
Axel P
Posted on December 9, 2015 at 12:19 am
Mexico´s largest microfinance lender, Banco Compartamos has more than 2.5 million customers with an average loans of US$360. Through an effective alignment of its business model and operating model, this lender has profitably served millions of lower income households by [...]