Can One Business Unit Have Two Revenue Models?

  • Which markets do Isolde and Emanuel target respectively? How do their respective business/revenue models align with their markets?

Isolde targets the ‘razor blades’ market of the razor-blade model. In this case, Siiquent makes its money on the chemical compounds, test kits, and consumables needed by hospitals and labs to perform DNA sequencing. On the other hand, Emanuel specializes more on the ‘shavers’ market of the razor-blade model. Instead, Teomik makes its money on biological research equipment needed by researchers for genomic studies research.

  • What are the pros and perils of “imposing the structure of a single revenue model” vs. “letting [the company] continue on its flexible way”?

The pros of imposing the structure of a single revenue model include allowing the company’s sales team to have a focused direction. No resources or employees will be stretched too thin. On the other hand, letting the new merged company to continue in its flexible way preserves the company’s original direction and allows them to continue to provide good costumer support.

  • 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 the PM assigned to mediate the interaction between department heads, I would try to maintain a neutral third party that facilitates the conversation and allows the two department heads to discuss. I would make sure the conversations stays on track and follows respectful guidelines. I would anticipate needing multiple meetings to make such a large decision so I would go ahead and plan multiple blocks for all three of us to meet.

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