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)

Everlane Takes A New Fashion Lane
CAiello
Last modified on December 9, 2015 at 6:09 pm
Everlane can be summed up in their 9-word mission: “Know your factories. Know your costs. Always ask why.” This transparency is the key driver of both their business model and operating model.
INSTACART: Fresh Food Fast
Caitlin Carmichael
Last modified on December 9, 2015 at 11:32 pm
Crowdsourcing grocery delivery to get it to your door fast
Bolthouse Farms: Turning a Billion Pounds of Carrots into a Billion Dollars
Noah Rosenberg
Last modified on December 9, 2015 at 12:09 am
An agricultural business that was highly effective at aligning its operating and business models after repositioning its strategy.
Accretive Health: Revolutionizing the Revenue Cycle
Andrew Walker
Posted on December 9, 2015 at 11:24 pm
Accretive Health provided the first end-to-end revenue cycle management solution while locking in clients into a 5 year renewal contract with revenue sharing. By doing and so executing at a high level, they reached a $2.6B market cap within only [...]
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 [...]
Trader Joe’s
SofiaWarner
Last modified on December 9, 2015 at 10:25 pm
How one grocery store is beating the competition at sales per square foot by selling fewer items and focusing on supplier and distributor savings
Airbnb : Finding a Home Anywhere
Yvonne Chiang
Posted on December 9, 2015 at 8:52 pm
Launched in 2008 to capitalize on the hotel room shortage around the Democratic National Convention, Airbnb has emerged as a market leader with its successful alignment of operations and sharing economy model.
Heady Topper: The journey from a small brew pub to the most elusive beer in the U.S.
QF
Posted on December 9, 2015 at 11:15 pm
How a small brewery in Waterbury, VT was able to become world-renowned by emphasizing quality, freshness and community in every aspect of their business.
The misalingment of elections and representation
Luca de Angelis
Last modified on December 9, 2015 at 7:48 pm
Diffusion of power through representation is the main guarantor against abuses of power. A misaligned democratic operating system can lead to substantial distortions and to defeating the purpose of representation itself.
On Time, On Budget, Onshape
MPM
Last modified on December 9, 2015 at 12:39 pm
Solidworks meets google docs while Onshape provides a platform for users to engage with CAD, engineering, and design support.
Why Better Place is in a better place…
Noorin D
Last modified on December 10, 2015 at 10:49 pm
The billion-dollar bet on batteries that ended in bankruptcy
Sexual Assault Evidence Collection Kits in the Emergency Department at Beth Israel Hospital
SHD
Last modified on December 8, 2015 at 10:06 pm
The chain of custody for rape kits pulls nurses off the floor for 3-4 hours. The resulting resistance among ED staff to perform the kit causes breakdowns in care for sexual assault survivors.
Tractor Supply Company: Delivering growth to stockholders and everything but tractors to those living the rural lifestyle
SAM
Last modified on December 9, 2015 at 5:20 pm
Growing stores and sales while staying focused on the target consumer and maintaining disciplined alignment of between business and operating models to drive efficiency.
Do you reddit?
Ishan
Last modified on December 8, 2015 at 9:28 pm
TL;DR - Einstein boiled an egg and reddit is not making money, but in the right way.*
Stop The Press! The Financial Times Proves News Publications can be Profitable
Preeya
Last modified on December 9, 2015 at 9:59 pm
How data and digital technology helped the Financial Times grow revenue in a declining industry.
Yara International: Adapting to a shifting industry
mrossetto
Last modified on December 9, 2015 at 11:22 pm
Yara has re-organized its operations to address increased global pressure on crop yields
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 [...]
My Home Is Your Home: Airbnb Revamps the Hospitality Industry
Komal
Last modified on December 10, 2015 at 12:00 am
Airbnb challenges the status quo in the hospitality industry.
Samsung – Surviving in an Unstable Market
Alfonso
Posted on December 6, 2015 at 12:27 am
The story of Samsung in the unstable Argentina. How did the Korean company do to establish a dominant position in an economical unstsable country?
Reddit: The Front Page of the Internet
MerblesKeberbles
Posted on December 9, 2015 at 9:00 pm
Can the front page of the internet be as profitable as it is addictive?
Hai Di Lao: Service Beyond Imaginations
CY Cai
Last modified on December 7, 2015 at 10:00 pm
How a hot pot chain creates and captures value from focusing on customer services in China?
BuzzFeed is Effective AND THE REASONS WHY WILL SHOCK YOU
MN
Posted on December 9, 2015 at 10:09 pm
BuzzFeed. Business and operational models aligned to bring you content you're not looking for (...but you'll share it with your friends!).
Sweetgreen: Live the Sweetlife
bldavis
Posted on December 9, 2015 at 11:30 pm
Sweetgreen: a Winner Despite its young owners, Sweetgreen has developed a strong alignment between its operating and business models [1]. Started in 2007 by three Georgetown college graduates, Sweetgreen is a fast-casual restaurant that serves farm-to-table salads and wraps [1, [...]
Is Telsa’s Battery Turbo-Charged?
Tesla Motors: How Charged Is It's Battery?
Last modified on December 8, 2015 at 2:59 pm
Tesla's business and operating models are very closely aligned as they tightly control every aspect to ensure processes run exactly how they envision. Tight control = exact execution = positive customer experience.
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