Question: Write a detailed analysis to this question that is connected to the article Managed by Q by Zeynep Ton and Cate Reavis: It was the
Write a detailed analysis to this question that is connected to the article Managed by Q by Zeynep Ton and Cate Reavis:
It was the end of July and Dan Teran had reason to be pleased with his monthold on demand office cleaning and maintenance company, Managed by Qknown affectionately just as Q The startup was named after Q the R&D wizard in the James Bond movies who made sure Bond was fitted out with whatever gadgets he might need, and it was the firms ultimate goal to provide its customers not only with clean floors and windows but with whatever they might need in managing their physical space. Q had recently raised $ million in a Series A round and had expanded from New York to Chicago and San Francisco, with high customer satisfaction in all three markets. As CEO, Teran had no doubt that he wanted Q to keep growingthe question was how. Should it focus on acquiring more customers in its existing markets and increasing revenue from each customer by offering more services? Or should it keep expanding into new markets?
Consider these points when writing the detailed analysis:
Since its founding, Q grew about each month. By July it was providing services for accounts in New York, in Chicago entered in April and in San Francisco entered in June serving of target market in New York and less than in Chicago and San Francisco. In a given month, about of a typical customers spending came from office cleaning. The rest came from maintenance and supplies. The gross margins for maintenance were the highest, followed by cleaning and supplies. Q expected all three city markets to be profitable by the end of
Teran was also aware of the challenges of scaling up a businesses like Q: The supply side is challenging. The product is really good, and it solves a real need, but its not just software, right? So if you were just like a pure software business, you can set up new servers very easily. But when youre dealing with a living, breathing workforce that needs to be trained and provided for, you cant just set up another server to do that.
There was more than one way to grow, and Teran still wasnt sure which would be best for Q and its people. One option was to go ahead with its plans to enter new markets. But during Qs expansion into Chicago and San Francisco, it had found that each new market posed different challenges. Chicago was a different real estate market than New York. It had more consolidated commercial land ownership, which meant more managed properties and fewer of the commercial buildings that were the best fit for Q In San Francisco, Q faced a different labor market.
Please cite and sources, references and exhibits used in this analysis.
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