Very interesting article, thank you. The shortfall of over 1 billion on 3.2 billion seems extreme to me (definitely not allowed to add back depreciation), even with a stronger management structure I wonder how much of this gap can ever be closed. The issue here seems to be an odd combination of an unclear business model combined with excessive constraints on the operating model. Do you think, even with these constraints, that there exists room to improve operations in the current model (without relief from congress)?
Disney Parks would make a really interesting TOM case for early in the semester. They seem to be operating at max capacity for their more popular parks (even with high prices). I have been behind the scenes at EPCOT for a day long session at the Disney Institute while at my last job and I can say their people management is also an integral part of their operating model. Every member of the team is considered a “Cast Member” and this communication is constant. Each employee feels an obligation to deliver on the customer experience and is trained in cultural sensitivity because of the large international customer base.
Great question, this is a huge concern I have for them in the future. One of the major fabless semiconductor producers for smartphones is Qualcomm, their major product is the Snapdragon line of processors which have been largely ARM based. I just looked into the most recent launch, the Snapdragon 820:
This is run on a new “Kryo” CPU that Qualcomm developed internally. As ARM this is very concerning, I might be forced to give up some of the high end if Apple, Samsung, and Qualcomm both go away from the architecture. There is still plenty of space in the lower/middle market where manufacturers are unwilling to invest millions in architecture R&D.
Interesting case, I used to love LEGO, pretty sure my parents still own a few dozen sets of mine somewhere… I tend to think of LEGO as a very customer-friendly organization but not necessarily an innovative one. How far do you think they can take this “materials and their contribution to children’s learning and development” model and apply it beyond their core competencies of plastic blocks? I know they have tried robotics, not sure if that is a huge part of their business today, I wonder where else they can expand to.