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?

Responses (930)

Samsung semiconductor
Go Choi
Last modified on December 9, 2015 at 11:29 pm
Samsung is one of the companies that is highly effective in aligning its business strategy and operation model. Although Samsung has been perceived as a mobile phone manufacturer to most consumers, Samsung’s core business is in semiconductor. Since 1993, Samsung [...]
M-Pesa: a Mobile Money success story from Kenya
Last modified on December 9, 2015 at 11:29 pm
M-Pesa is a phone-based peer to peer money transfer service launched by Safaricom, Kenya’s largest telecom provider, in 2007. According to a Kenyan government report published from 2012, just five years after launch, there were 19.5 million mobile money users [...]
Topgolf Fore the Win
David Anderson
Posted on December 9, 2015 at 11:25 pm
Topgolf circumvents the declining trend of the golf industry by effectively aligning its business and operating models.
Bonobos: Hybridizing the Digital and Physical Shopping Experience
Last modified on December 9, 2015 at 11:30 pm
For many men, the ideal shopping experience is markedly different than what women typically envision. The ecommerce platform, Bonobos, took advantage of this difference to create a business model specifically targeted for the needs of male shoppers. To achieve their [...]
RadioShack and its Operational Missteps
Posted on December 9, 2015 at 11:28 pm
RadioShack In February 2015, RadioShack, once a leading provider of consumer electronics, filed for bankruptcy after years of declining same-store sales and net losses. While numerous factors contributed to the precipitous decline in the company’s financial health, RadioShack’s poor financial [...]
Chipotle Mexican Grill – The creation of “Fast-Casual”
Posted on December 9, 2015 at 11:25 pm
Chipotle - Ownership allows control and drives efficiency, allowing for consistent delivery of a complex value proposition. Quintessentially TOM- assembly line service and holistic management of 1,800 wholly owned fast casual outlets.
Barack Obama: Against the Odds
Last modified on December 9, 2015 at 11:32 pm
    2008: “There was a new actor in the campaign drama: Jim Messina. Obama convinced Messina to leave his political father, Sen. Max Baucus, by calling him the day after Hillary Clinton dropped out of the Democratic primary contest. [...]
TriMark: The Foodservice Equipment Distribution Giant
Last modified on December 9, 2015 at 11:31 pm
In a growing, but fragment foodservice equipment distribution space, TriMark has managed to become the largest consolidator by providing better value to customers through a superior operating model vs. peers.
PillPack: the new kid on the block in the world of pharmacy
Last modified on December 9, 2015 at 11:32 pm
PillPack is a Somerville, MA-based an independent online pharmacy start-up founded in February 2014, with $62.5M raised to date (valuation unknown). In less than two years, PillPack has distributed over a million individual dose packets, acquired licenses to serve patients [...]