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)

BirchBox: A BEAUTY-FULL monthly gift
MBA
Last modified on December 9, 2015 at 11:04 pm
BirchBox provides a smart, fast and fun way to shop for beauty products through its innovative subscription payment and delivery model and supporting online offerings.
John Lewis: A better way of doing business?
Elena Chong
Posted on December 7, 2015 at 5:01 pm
The UK's leading retailer is owned not by outside shareholders but by its employees. The result? A company that maximises 'happiness' for its employees, is experiencing record levels of sales and has been voted the 'UK's favourite retailer' for the [...]
Some Go to Church, Others Go to SoulCycle
LC
Last modified on December 14, 2015 at 5:50 pm
Inside the business of a modern day cult brand.
Planet Fitness: Fitness for Everyone
dturenshine
Last modified on November 29, 2015 at 1:31 pm
How Planet Fitness revitalized the gym concept to appeal to the mass market
Aravind Eye Care’s Grand Vision for India
Abhilasha
Posted on December 8, 2015 at 10:22 pm
Can quality and affordability go hand-in-hand for healthcare services? Aravind Eye Care is determined to make this a reality!
Ryanair’s low-cost 30th birthday
Peter Mannion
Last modified on December 9, 2015 at 12:31 am
Ryanair, the Dublin-based low cost carrier (LCC), celebrates its 30th birthday this year. Though some may scoff at the company’s claim to be “Europe’s favorite airline,” the numbers are hard to dispute. This year the airline will carry 105m customers [...]
Iora Health — Working Together to Improve Health
SC
Posted on December 5, 2015 at 12:20 am
Iora Health's team-based, patient-centered care model is putting the focus of health care back on the patient.
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
FreshDirect: Knowing when to stay in your lane
LL Cool Chea
Posted on December 6, 2015 at 1:38 pm
Learn how FreshDirect's operating model makes its business model even more compelling to customers.
BlackBerry: How to Destroy $75 Billion of Value
Vitali
Last modified on December 6, 2015 at 11:53 am
BlackBerry is an example of how ineffective alignment between business and operating models can destroy company performance. How did a company that essentially invented the modern smartphone and later led the smartphone market find itself on the brink of failure?
Lending Club: Bringing Loans to the Masses
akashpradhan
Last modified on December 6, 2015 at 4:34 pm
Lending Club has disrupted the lending industry through its business and operating strategy
Costco Wholesale: A Warehouse Powerhouse
KLM
Last modified on December 6, 2015 at 4:10 pm
Warehouse giant Costco is effectively leveraging its operating model to sustain a business advantage and drive growth.
Unilever: More Than a Just a Marketing Company
Sinem
Last modified on December 9, 2015 at 10:56 pm
U logo – “trust mark of sustainable living?”
P&G – a giant hungry for growth
Karen Morven
Last modified on December 2, 2015 at 11:26 pm
Procter and Gamble is a giant hungry for growth, willing to invest its vast resources to foster innovation and world-class execution
In-N-Out – The Freshest, Friendliest Fast Food
Leigha Kemmett
Last modified on December 5, 2015 at 5:48 pm
In-N-Out Burger stands apart from its fast food competitors by shirking freezers and encouraging smiles
Flipkart: Every Wish Will Be Fulfilled
sidharthmishra
Last modified on December 9, 2015 at 9:59 pm
Flipkart is India's largest online retail firm and has been providing a delightful experience to customers since late 2007.
Sears – The collapse of a company from within
Spencer Reynolds
Posted on December 6, 2015 at 9:28 pm
How a misaligned operating model can cause the decline and possible collapse of a 100 year old company.
Coyote Logistics – Providing Innovative Solutions to an Age-old Industry
Luke Rundel
Last modified on December 9, 2015 at 9:08 pm
How did a trucking company with zero revenue grow into a $2 billion market leader in less than ten years?
ICEHOTEL: 8th Wonder of the World?
Richard
Last modified on December 7, 2015 at 3:29 am
Constructing and Managing the World's Largest Hotel Built of Snow and Ice
The Honest Company: No Smoke & Mirrors
JoyceW
Last modified on December 4, 2015 at 1:40 pm
E-commerce startup turned global lifestyle brand refines model to create a culture of honesty
Iora Health: Redefining Primary Care
Christiana
Posted on December 8, 2015 at 11:14 pm
Iora's unique take on primary care - focused on customer service as good as Southwest Airlines and Zappos - shows promise but is its innovative model scalable?
Blue Nile: A hidden gem in the diamond and fine jewelry online marketplace
Unkown
Last modified on December 13, 2015 at 8:11 pm
Efficient use of supply chain management and low cost operating model delivering joy to many couples.
Gelson’s: The Super Market
dadamolekun
Last modified on December 9, 2015 at 11:09 pm
Find out how this Los Angeles grocery favorite has been able to protect its turf from the likes of Whole Foods, Sprouts and Trader Joes.
Get the door. It’s the liquor store.
CT6000
Posted on December 7, 2015 at 5:38 pm
Drizly does what Burt Reynolds couldn't (and what Amazon can't).