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)

Cards Against Humanity: A party game for horrible people
Riley Horne
Last modified on December 7, 2015 at 6:24 pm
Cards Against Humanity: A quick look into one of the most popular (and vulgar) card games.
AB InBev: Standardization and Cost-Efficiency
Tom
Last modified on December 13, 2015 at 11:25 pm
For the win.
Best-In-Class Retailer Nordstrom Inc. Maintains Top Spot As Ecommerce & Consumer Experience Leader
Grace
Posted on December 9, 2015 at 10:59 pm
How Nordstrom Inc.'s operational model made it the darling of the retail industry
Rebuilding LEGO
Jeremy 'Just a guy' Whyte
Posted on December 9, 2015 at 8:12 pm
After being on the brink of disaster in 2004, LEGO made a number of critical decisions around product innovation and user engagement that saved the company.
Winner Winner, Chicken Dinner
LRoberge
Last modified on December 15, 2015 at 2:15 pm
“An on-trend, well-positioned, high-growth retail concept at the intersection of three high growth sectors — healthy foods, weight management and restrictive diets, including food allergies.”
Patagonia: A Focus on a Sustainable Model
MS
Last modified on December 10, 2015 at 6:04 am
How Patagonia has matched its business model with a sustainable and impact-driven operating model
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.
Minerva: Reinventing Higher Education in the 21st Century
trosbash
Posted on December 9, 2015 at 9:26 pm
Minerva has invented a new higher education model from the ground up to deliver a unique high-quality and low-cost undergraduate student experience.
Target’s failed entry in to Canada
Sid Bhandari
Last modified on December 8, 2015 at 2:26 pm
Lessons learned from Target's botched entry into Canada.
Goods Doing Good: Sustainable Luxury at Maiyet
Selin
Posted on December 9, 2015 at 8:52 pm
Maiyet is paving the way for sustainable luxury through partnerships with artisans around the world.
Aldi: delivering what and only what the customer values
Meili
Last modified on December 9, 2015 at 8:18 pm
Aldi’s business model is formulated with a very specific customer in mind: someone who evaluates groceries from a utilitarian perspective. Aldi’s customer wants low prices in a quick shopping environment and is willing to make sacrifices on choice and service. To [...]
AB InBev: Getting High on Growth
Anirban Datta Gupta
Last modified on November 29, 2015 at 3:07 pm
The world’s largest brewer has been able to drive sustainable growth throughout its merger-filled history. What’s the secret brew behind all this success?
CCL Industries: A ‘sticky’ business model
JNeely
Posted on December 8, 2015 at 3:59 pm
Scale, co-location, pre-production and leading edge processes make CCL the best label manufacturer in the world
Tableau: Managing the data explosion
Sagar
Posted on December 9, 2015 at 11:24 pm
At the crossroads of truly understanding how to leverage data..
How NOT to run an airline : AirIndia
Charanya
Last modified on December 9, 2015 at 1:29 am
A handy checklist of what not to do when you are in the airline business.
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.
Airbnb: A sharing business so you can #BelongAnywhere
gurmukhchhabra
Last modified on December 9, 2015 at 2:29 am
An analysis of a successful business that catalyzed the jumpstart of the sharing economy
FCB: The Healthiest Club in Europe?
dk_22
Last modified on December 10, 2015 at 4:44 pm
FC Bayern joins European football's top-earning clubs, with zero debt.
Westland Distillery – Crafting America’s Finest Single Malt Whiskey
Keith Tyler
Posted on December 9, 2015 at 4:37 pm
Westland Distillery is boldly creating a truly unique product- an American Single Malt Whiskey
Mumbai Dabbawalas Vs Top Gear
Saumya
Last modified on December 7, 2015 at 4:38 pm
200,000+ hungry customers to be fed – who will you bet on?
Aligning McKinsey to impact
Cynthialiu
Posted on December 8, 2015 at 6:26 pm
How McKinsey is shifting its operating model to maintain alignment with client service
The United States Postal Service: Snail Mail Forever
HKrentzman
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 [...]
American Apparel: Factors leading to its recent bankruptcy
Yezi Peng
Last modified on December 9, 2015 at 6:48 pm
When appealing to hipsters is not enough.
Starbucks: It’s not just about the coffee.
Alejandra Rios
Last modified on December 8, 2015 at 5:19 pm
Starbucks' continued success is not just about the coffee, but about the close alignment between its business and operating models.