(1) Which markets do Isolde and Emanuel target respectively? How do their respective business/revenue models align with their markets?
Both Isolde (CEO of Siiquent) and Emanuel (CEO of Teomik) are in identical markets, but their revenue-generating mechanisms are what differ. Although both companies are taking a different approach to the same exact market, they seem to have done quite fine, each on their own rights. First, Isolde has been doubling down on the biological and chemical compounds, test kits, and consumables. Conversely, Emanuel has mostly been selling sophisticated research instruments. In short, Isolde’s profit generator is the “stuff”, whereas Emanuel’s market is the “machine.”
(2) 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 the structure of a single revenue model”
- Pro
- simpler and easier to convey the direction
- more focus on a certain strategy
- Peril
- might be missing out on more financial opportunities
- backlash from existing customers of the discontinued business model
(3) 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?
I would certainly take a balanced and diversified approach to this approach.
First, I would gather the 2 CEOs and inform them that a decision to merge the divisions together had been made. It was now out of anyone’s reach to keep both divisions as separate operations. Since the CEO’s had been seeing eye-to-eye during the previous meeting, I would assume that they would adjust their dialogue to try and figure out which strategy would have higher probability of success going forward. During the discussion I would listen to the logical reasoning each would present.
Second, I would form as many data points as possible to forecast each model’s forecasted revenue and/or growth. The data analytics team and the finance team will each go over the previous data of the companies.
Third, now that the two companies would not have to compete with each other, I would imagine that the competitive landscape changes dramatically. With this in mind, I would most likely reassess the value of each business and business model.
Lastly, I would check the company’s vision to align it with the strategy going forward. Aligning it with crucial business decisions like this is something that should be done in any circumstance.
