The table lacked butter and olive oil, purposefully. So began my meal Saturday night in Orlando Florida at Seasons 52, a fresh dining concept from Darden Restaurants, parent company to Olive Garden and other restaurant chains. Nothing on the Seasons 52 menu has over 475 calories, a requirement that leads to guiltless mini-desserts. The upscale menu changes every three months (I ate from the Fall menu), and includes weekly specials that capture a food in its best season. Brussels sprouts – a rare restaurant find except in gourmet restaurants – caught my eye. Attractive presentation, brick ovens and a terrific wine list (including wines “soon to be famous”) added to the dining experience. An inviting stone and wood décor complete with a fireplace and a welcoming piano bar will draw repeat visitors for sure. I’m writing about Seasons 52 as it contains the…
Business model strategy strengthened by a unique strategic role
Dane County, Wisconsin likely has more organizations focused on environmental improvement per square foot of geography than any other county in the USA. An early member of the “green community” was Sustain Dane. Like many non-profits, Sustain Dane grew out of the values of founders who shared a drive to make the world a better place. In 1998, attendees from a half-day session on The Natural Step with Torbjorn Lahti, the father of the Swedish eco-municipality movement, began meeting regularly. They established Sustain Dane to move Lahti’s eco-municipality concept forward locally. Like many new non-profits, Sustain Dane’s business model was defined by projects a working board and single staff member wanted to take on. One notable project was development of the rain barrel, RainReserve™, used to divert rainwater from gutters into a water reserve for grass and garden. Over 2000 rain barrels were…
Milwaukee Aerotropolis is a winning business model innovation
Milwaukee Gateway Aerotropolis Corporation demonstrates a great example of inter-governmental and government-business cooperation. It also provides an important example of how government can help to advance job creation. The Airport Gateway Business Association, the City of Milwaukee and seven other municipalities, Milwaukee County, General Mitchell International Airport and The Port of Milwaukee are key stakeholders and founders of Gateway to Milwaukee. Their shared aim is create a vibrant economy centered around the Milwaukee airport and the other transportation modes to which it connects. These include Interstate Highway 94, two Class 1 railroad lines, the airport Amtrack station and the Milwaukee Port. University of North Carolina’s Kenan-Flagler Business School Professor John Kasarda works to advance these “aerotropolis” and there are notable examples around the globe. “Airports are now effectively a part of global production systems,” Kasarda says, “and without that connectivity, you’re out of…
Does Carly Fiorina’s HP legacy foreshadow her Senate leadership?
It seems natural to judge a political candidate by her previous work performance, which is precisely why my eyes are on the California Senate race. Former HP CEO Carley Fiorina is challenging the incumbent democrat, US Senator Barbara Boxer, to represent the financially strapped state. While the two women trade public policy barbs, HP shareholders are debating whether to dump HP stock. From my perspective, the seeds for HP’s current problems were planted from 1999-2005 during Fiorina’s tenure as CEO of HP. (Disclosure: I vote in Wisconsin. I am an independent and have voted for both parties.) Before her forced exit, Fiorina changed HP in two ways that each demanded significant internal focus. First, she reorganized the company, a reorganization that Mark Hurd who followed Fiorina spent time dismantling, as it diffused responsibility for organic growth and delayed decisions. (Hurd’s reorganization cut out…
What business are you in?
Baby carrot farmers are attempting to transform their vegetable into a daring, naughty snack food. The tiny orange roots are now branded Baby Carrots Rock. New packaging, bold ads and social media are part of a $25M marketing campaign. Two young entrepreneurs start College Hunks Hauling Junk, differentiating the experience they offer from what you’d except when the typical crew of a local mover shows up on your doorstep. Second Harvest Food Bank of Southern Wisconsin, which supplies food pantries with food donated by grocers and others, faces an insufficient number of food pantries to serve a growing number of needy families. Driven by its mission to eliminate hunger, it transforms itself into a mobile food pantry business after purchasing and outfitting large trucks. Harley Davidson changes the concept of its business from motorcycles to motorcycle experiences and the rest is history. Sweden’s…
Intuition Advances Business Model Strategy
A National Public Radio story this week concerned Ludo Lefebvre, a successful Los Angeles chef who got cold feet after leaving established restaurants to create his own. With two Mobil 5-star ratings on his resume, $2 million in investor support and a weariness from working for bosses, why did Lefebvre change his plans? His gut told him to do something very different, something that has turned out to be a huge winner in the highly competitive LA restaurant scene. Instinct is an important ingredient in business model strategy decisions. A winning business model strategy addresses a multitude of questions with answers that fit together seamlessly to carve out a unique space, a task that is very challenging in increasingly cluttered and mature markets. According to New York Times bestselling author Jonah Lehrer in How We Decide, instinct emerges from the part of our…
Business Model Strategy Built on Collaboration Succeeds
Two vastly different news stories, one about Alzheimer’s and the other about dollar stores, together convey an important strategic leadership lesson about the importance of alignment with partners in achieving an organization’s goals. Dollar stores (Dollar General, Family Dollar Stores and Dollar Trees) are growing rapidly at the expense of Walmart. Recently the dollar stores have added a lot more branded products e.g., Kraft, Heinz and others. Better packaged food selections, plus dollar stores’ closer (than Walmart) proximity to low-income neighborhoods has attracted new customers and larger shopping trips as rising gas prices increase the cost of driving to Walmart. Lipton Cold Brew Iced Tea and Jello No-Bake Cheesecake in a dollar store? I suspect that after decades of Walmart’s ruthless purchasing practices, consumer goods companies seek any opportunity to diversify their channels to gain supplier power to fight Walmart’s Herculean purchasing power….
Technology Strategy as Part of Larger Business Model Strategy
A potential client in a technology industry called me with an all-too-familiar story about his privately held company: • Established decades ago as a niche technology company • Successfully executed many technology evolutions and disruptions • Earned price premiums for decades due to outstanding service and quality • Survived the 2008 decline – hardest years in the leader’s professional life • Previously distant competitors (by geography and technology) are moving into his markets intensifying price competition • His largest direct competitor is now offering “one-stop full-line” solutions which are far more comprehensive than his company’s niche offerings Furthermore, his company’s sales force used to work directly with buyers, with relationships keeping win rates high. Now an online bidding system decides which company gets each order. After becoming “qualified” to compete by proving his company meets quality and service standards, his company must bid…
Apple’s Business Model Lesson
The blogosphere is aflutter with talk on Apple’s recent customer satisfaction issues linked to the new iPhone 4’s antenna design. A quiet whisper turned into thunderous noise once Consumer Reports decided to not recommend the phone because calls are dropped if the antenna is covered while in use (for example, by the user’s hand holding the phone). Much of the on-line conversation centers on public relations lessons and a debate about the sensitivity issues of the iPhone versus competitive products. (For a good assessment of the PR lessons for Apple, see The Leadership Playlist blog.) There is more to this lesson than public relations. I think in terms of business model and strategic leadership, and I believe Jobs ignored Apple’s business model in resolving an internal debate about the antenna, a product design decision that I’m confident Jobs now regrets. Apple’s value promise…
When Is Bigger Better in Business Model Innovation?
I spent the weekend in Scotland, where one cannot escape RBS’s logo, RBS standing for The Royal Bank of Scotland. Its brand imagery stands out exiting the airplane, passing city billboards, and reading or listening to local media. Today, the people of Scotland own close to 70 % of RBS because the former (duly fired) CEO and his board believed that bigger is better. With a small domestic market of 5.2 million residents (about the size of Minnesota) and strong English competitors, RBS acquired what turned out to be a poorly run Dutch bank in order to grow. Thankfully, a strong domestic position will keep the bank in business; but it will be a long time before Scottish taxpayers are repaid for keeping RBS afloat. Small is beautiful. Consider PNC, the regional bank headquartered in my hometown of Pittsburgh compared to Bank of…