- Which markets do Isolde and Emanuel target respectively? How do their respective business/revenue models align with their markets?
Isolde’s unit mainly targets hospitals and diagnostic labs. Her unit uses uses a razor-blade revenue model that generates profit from consumables. This business model makes sense for Isolde’s unit given the market lies within healthcare and hospital need ongoing supplies. Emanuel’s unit instead targets research institutions and focuses on selling high-margin machines and instruments in less quantity. His revenue model aligns with the market as research institutions prioritize high-quality equipment and would be willing to buy more expensive, high-end equipment and allows them to be nimble creators. The reading states “ the diagrams showed that over time Emanuel had adjusted his pricing policies to address customer demands”, which is crucial for the market this segment targets.
- What are the pros and perils of “imposing the structure of a single revenue model” vs. “letting [the company] continue on its flexible way”?
Imposing a single revenue model would simplify operations, make the company known and establish for a single business, and overall reduce customer confusion about what the companies does. However, it may also hold back innovation, the ability to adapt to the needs of customers, and restrict the company from pivoting and adapting to current market trends. If the company maintains its flexible way, it may be more innovative, but it could also lead to operational inefficiency and poor customer experiences. Overall, it is difficult to distinguish what is “right” way forward for the company.
- Pretend that the CEO has decided the department heads must merge their divisions together. As a star PM assigned to mediate this interaction between department heads, how would you scaffold the discussion to ensure a fair merging process?
As a PM mediating this discussion, I would first allow both Isolde and Emanuel to explain their units, respective business models / markets, and why their units are crucial to the overall business. I would then try to find any overlapping opportunities where the strategies of both segments could maybe complement each other and create synergies. For example, the article says “Consolidating their sales forces and
operations would reduce costs”. Next, I would put the discussion in the perspective of the customer and try to think what kind of business, product, and company is most appealing for our customers. Finally, I’d propose try to propose a way to integrate both segments in a way that minimizes damages.
