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 (930)

UberPool – Transportation for Everyone
Palak
Last modified on December 8, 2015 at 11:18 pm
UberPool is providing affordable transportation to riders and increased number of rides and revenues to drivers using its data-driven technology platform.
Celgene – The Business of Performing Miracles
arlo
Last modified on December 9, 2015 at 7:10 pm
The business model for biotech is simple: discover and develop therapies and sell them at high-enough margins to justify the costs until the patent expires. The larger the unmet need and the more effective the therapy, the more value is [...]
JD.com: China’s E-commerce Pioneer
Haochen Lu
Last modified on December 9, 2015 at 6:06 pm
JD.com is China's largest direct sale e-commence company with massive self-own logistics network. It witnessed a great growth story with equally tremendous capital investment.
Johnson & Johnson
KKing
Last modified on December 8, 2015 at 5:12 pm
Company Overview “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services.” [1] As the first line in Johnson & Johnson’s values-driven Credo dictates, the [...]
Amazon: Making History
Clive Bixby
Last modified on December 9, 2015 at 7:15 am
Amazon has been operating for two decades and is one of the world's largest retailers with its Fulfillment Centers at its backbone.
Birchbox: Using Customer Data to Set Itself Apart
eunnah
Last modified on December 8, 2015 at 3:41 pm
Despite an oft-copied business model, Birchbox continues to distinguish itself from its competitors by using data-driven customer insights to create value for both its subscribers and brand partners.
FedEx: Delivering on Speed and Reliability
Jeff Witt
Posted on December 9, 2015 at 5:45 pm
FedEx was founded to meet a need that many companies and individuals believed was not being adequately met by the slow and often unreliable U.S. Postal Service. FedEx responded by creating a very complex network and infrastructure that met the [...]
SolarCity’s Rise to the Top
chollyday
Last modified on December 9, 2015 at 1:17 pm
In an environment where many solar energy companies have failed, SolarCity has effectively implemented a no-fuss approach to facilitate customer adoption and has quickly become the leading player in the market.
Zara: disrupting the fashion industry
Silvia Closa
Posted on December 8, 2015 at 4:24 pm
Zara has disrupted the industry through its “fast fashion” model in the last years. While traditional players design their collections more than 5 months in advance, Zara is able to bring the latest trends from the catwalks and the streets [...]
Nucor Revolutionizes the Steel Industry
Vik Bakshi
Posted on December 9, 2015 at 6:48 pm
Nucor Steel disrupted and overhauled the steel industry with innovative technology, forever changing how steel is manufactured around the world. In doing so, it built a culture that proved the potential of well-executed pay-for-performance systems.