Buad 301

DATE: December 8, 2017

TO: Aseem Badshah, Founder

FROM:

SUBJECT: Where to focus: Uptown Treehouse or Socedo

Based in Los Angeles, Uptown Treehouse is a well-established company that currently brings in profits of $300,000 annually. Socedo, based in Seattle, is an up and coming company that has potential to be more profitable than Uptown Treehouse but has higher level of risk.

Objective: Our objective is to determine how to best delegate your time between the two companies in order to maximize your profits and mitigate risks. In the long term, our goal is to establish Socedo as a strong company at the same or at a higher level of profitability than Uptown Treehouse.

Significance of Problem

If your time isn’t properly delegated over the two companies, you run the risk of lower revenues. Your sole focus on Uptown Treehouse’s foundation was what allowed to company to become as successful as it is today. If you do the same with Socedo, Uptown Treehouse’s performance might fall. If you don’t focus on Socedo, the company could fail, causing a major loss of revenues.

Solution 1: Focus Mainly on Socedo

In this solution, you stay in Seattle and focus on Socedo for the majority of time and occasionally travel back to Los Angeles to check in on Uptown Treehouse. Uptown Treehouse is already well established with a team that knows how to properly manage the company’s day-to-day operations. If any significant problems arose for Uptown Treehouse you would only be a phone call away. Traveling back to Los Angeles occasionally or setting up video conferences would allow you to check in with your team and make sure everything was running smoothly. Spending the rest of your time in Seattle would allow you to closely monitor Socedo’s progress.

Solution 2: Spend Your Time Equally Between Socedo and Uptown Treehouse

In this solution your time is divided equally amongst the two projects. By doing this you can minimize the risk that Uptown Treehouse will fall short of its previous performance by playing a larger part in the day-to-day operations, and you would still be playing a hands on role in the development of Socedo

Conclusion and Recommendation

If our goal is to maximize your profits and mitigate risks, you should spend the majority of your time in Seattle working on Socedo. You don’t need to spend as much time being hands on in LA because you’ve established a trusted team to run the company. Socedo has the potential to become even more successful than Uptown Treehouse if it is monitored very closely in order to mitigate its high level of risk; to do that you need to be hands on in Seattle. The success and profitability of Socedo is dependent on you being able to focus your attention one hundred percent on this new company the same way you did your first company.