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)

Pizza-Pizza or Win-Win? Little Caesars, A Slice Above The Rest
TChadwick
Posted on December 9, 2015 at 10:21 pm
In the war for pizza, Little Caesars has found a way to expertly address the challenges faced in the highly competitive pizza market.
Greenhill: Alignment Through Simplicity
Jacob Goldstein
Posted on December 9, 2015 at 11:22 pm
Greenhill's business model and operating structure are perfectly aligned to maximize profitability by driving fee based revenue while minimizing headcount and overhead
Dirt Cheap: Extreme Value Retail
MMason
Posted on November 29, 2015 at 2:02 pm
Dirt Cheap's unique procurement process allows it to deliver incredible value (and prices!) to customers
Amazon’s Razor Thin Margins – Poor Performance or Business Strategy?
Aparajita
Last modified on December 9, 2015 at 6:44 pm
Amazon is a fascinating company to study from the point of understanding a business model, for it is continually evolving. Regardless of whichever business the firm has entered however, it’s customer value proposition has remained consistent to delivering price, convenience [...]
Strategy&: Delivering Strategy through Execution
Antoine
Last modified on December 9, 2015 at 8:14 pm
The story behind the acquisition of Booz & Company
DryBar: No cuts! No color! Just Blowouts!
MTS
Posted on December 9, 2015 at 6:15 pm
Blowouts on steroids! Transforming the hair industry one head at a time!
AB InBev: Standardization and Cost-Efficiency
Tom
Last modified on December 13, 2015 at 11:25 pm
For the win.
Allegiant Air Soars Above the Competition
#BENRIZZO
Posted on December 4, 2015 at 2:45 pm
Fewer flights + targeted customer base = Industry leading profitability
Oscar – Taking on Giants – Health Insurance 2.0
David
Posted on December 9, 2015 at 6:13 pm
Oscar health is a innovative healthcare insurance company focusing on the Internet era.
Aldi’s Crusade Against Costs
Andrew Yoo
Last modified on December 7, 2015 at 1:26 pm
The success of Aldi’s operating and business models is causing a stir in grocery store markets around the world.
Tesla Lights Fire Under Automobile Industry
Carol Lv
Last modified on December 9, 2015 at 11:30 pm
Tesla Motors fires warning shots at automakers, and they can’t help but pay attention.
Area Woman Writes on The Onion, Questions Not Choosing IKEA Instead
Alice
Last modified on December 9, 2015 at 4:22 pm
May the ox of journalism always be yoked to the cart of commerce
ASOS: Leveraging Network Effects in High Street Fashion
elleenem
Posted on December 9, 2015 at 11:29 pm
ASOS closely follows pop culture through social media and is obsessed with understanding their customers’ hobbies, Facebook “likes,” and daydreams. By tapping into their consumers’ digital world, they create value by quickly producing fashion that fits into both their everyday [...]
Capital One Financial
SCross2017
Posted on December 9, 2015 at 8:53 pm
How Capital One's operating model enabled it to out last competitors and go from a monoline credit card issuer to one of the 10 largest diversified banks in the US by deposits.
Dollarama: How adding additional price points impacted operations
Sam
Posted on December 8, 2015 at 8:59 pm
Dollarama is a deep discount/value retailer operating in Canada.  The company offers a wide range of general merchandise, seasonal products, and consumer packaged goods.  Until 2009, Dollarama was a pure dollar store, selling items at only one price point: one [...]
Rocket Internet – Sprawling digital business empire
Katarina
Last modified on December 9, 2015 at 11:08 pm
Start-up factory that turned the process of identifying, rolling out and scaling new businesses into an assembly line.
Patachou: A Student Union for Adults
Guy Fawkes
Posted on December 9, 2015 at 9:10 pm
A Student Union for Adults, Since 1989 “My parents were New Yorkers who believed that New York was the center of the world. I believed, as I had been taught by my parents, hat [sic] the best ingredients in the world [...]
Brooks: A Laser Focus on Running
Ryan
Last modified on December 5, 2015 at 8:59 pm
Brooks On the verge of bankruptcy in 2001 (and $65 million of annual revenue in 2000), Brooks grew at 18% compounded annual growth through 2014, largely due to reinventing its business and operating models. Business Model Rather than compete head [...]
The Tragic Map Of The Only Places You Can Get In-N-Out Burger [1]
Kevin H
Last modified on April 20, 2018 at 5:20 pm
In-N-Out quality tied to the west coast...for now.
Local Players at Risk: Online Payments in Mexico
desponda
Posted on December 9, 2015 at 11:08 pm
Local players can gain significant market share and raise barriers to entry to their market when they have a good alignment between their operating and business models. In this article, we will review Conekta, an online payments solution, that strayed [...]
Steve Wynn continues to Win
KS
Last modified on December 9, 2015 at 11:41 pm
Wynn Resorts combine superior design and customer service to drive the industry!
Ikea: Making Couches Look Good Since 1943
YRezni
Last modified on December 6, 2015 at 9:30 pm
What do H&M, Zara, and Ikea have in common? #FastFashion. Ikea's operations revolutionized the customer experience, paving the way for all those retail giants that we all know and love. #disruption #lowcost #highvalue
Panera: Winners in Fast Casual
APSwiecicki
Last modified on December 6, 2015 at 10:20 pm
In an industry where good food is just the cost of doing business, Panera differentiates itself based on customer service and the eating experience.
Lynda.com
zjohn
Posted on December 3, 2015 at 8:04 pm
Recurring payments on top of crowd-sourced content.
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