CASE STUDY: Can One Business Unit Have Two Revenue Models?

Isolde’s focus is primarily on established markets, emphasizing traditional revenue streams known for long-term stability and predictability. She believes in establishing and nurturing long-term relationships with clients, providing consistent value and ensuring steady revenue for the company. On the other hand, Emanuel targets emerging markets, which are volatile but also offer the potential for fast growth. His revenue model is flexible and adaptive, ready to change based on the market. Each strategy has its merits: a structured revenue model offers clarity and efficiency but risks rigidity in the face of change; flexibility fosters innovation but can lead to resource dispersion. Assuming the CEO has decided that Isolde’s and Emanuel’s divisions must merge, it’s important to create a process that is collaborative and transparent. As a PM responsible for this aspect of the merger, I would first establish clear and upfront communication, specifically multiple meetings where both division heads present their strategies, priorities, and concerns. I would also conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for both divisions to delve deeply into potential challenges. I also think it would be helpful to bring in an external consultant to ensure we’re taking a bird’s eye view perspective, as this is not a black or white solution but would require an intricate combination of both models.