Founded in 2018, MGMT Crypto Inc. is a fledgling cryptocurrencyexchange looking to make a big name for itself in the “blue ocean”sea of opportunities promised by this emerging technology.Cryptocurrency exchanges are websites where you can buy, sell orexchange cryptocurrencies for other digital currency or traditionalcurrency like US dollars or Euros. Basically, an exchange is wherebuyers and sellers conduct their business.
“Crypto-currencies have the potential to transform fundamentalaspects of industry and society and make a considerable differenceto the activities of government bodies and policy-making. They areperhaps the truest form of digital economy technology that has yetemerged – sitting at the crossroads of technology, economics,social sciences and business – where cryptography has managed todisrupt our established practices and notions of trust, identityand value. “
Exchanges come in a few flavours and the company is exploringthe following structures:-Trading Platforms –These are websites that connect buyers and sellers and take a feefrom each transaction.Direct Trading – Theseplatforms offer direct person to person trading where individualsfrom different countries can exchange currency. Direct tradingexchanges don’t have a fixed market price, instead, each sellersets their own exchange rate.Brokers – These arewebsites that anyone can visit to buy cryptocurrencies at a priceset by the broker. Cryptocurrency brokers are similar to foreignexchange dealers.
The company has rented traditional office space in a smallbuilding, but expects the world to know it from its website andonline presence in all its various forms e.g. blogs and socialmedia.
Whatever its final form, MGMT Crypto Inc. will be a user centriconline service, and by positioning itself as the hub in an emerginginfrastructure, hopes to become the de facto exchange for severalcryptocurrencies.
You got a lucky break and have been hired as a management internby the new start-up. You instantly realize you need to do someresearch, as words and phrases like cryptocurrency, blue ocean,exchange, ATH, block chain, bitcoin, satoshi, ethereum etc. meannothing to you. Your boss soon presents you with some historicaldata as well as a point-in-time dataset on currency trades for asubset of the more than 1500 cryptocurrencies in existence. As anew management intern, you are tasked with analysing the providedinformation and reporting your findings and possiblerecommendations at an upcoming meeting.
Cybercrimes, security breaches, election hacks andadvertising blacklisting have been in the news recently and theseare of concern to the company Also, remember thatsurge in Oct 2017 (Power BI)? Well recently, there has also beenmuch volatility in the market with huge volumes moving between“fiat” and crypto currencies. Many start-ups, like your employer,have been trying to position themselves to ride the next wave ofexpected growth.Your company wishes to be the one leading thepack! This requires them to anticipate the true demand but also toknow which products and likely to fail, but moreimportantly they have to decide on the final business model, andsafeguard their electronic assets!
Still glowing from the praises for your earlieranalysis, you have been given a new enormous responsibility. Youare to assume the role of a functioning manager in the company, andreport some findings and possible recommendations at the upcomingmeeting.
REQUIRED
Management Reporting
You need to research/analyse the above business models(don’t over think it, just the highlights), propose one toimplement and also how the company will organize itself to handlesecurity.
You are attending a number of routine meetings that areconducted online. You are to post questions and response withinformation related to your analysis. Posts can be conversationalamong managers asking and responding to questions. There is norequirement for groups to meet outside of the course for thisdiscussion, as it is expected that the meetings/posts will proceedin a manner similar to messaging with acorporatecollaboration tool.
1: Introduce yourself Identifying your Management Level and yourFunctional Area and your proposed company structure
My Management Level and Functional Area and proposedcompany structureis: Tactical Manager,Accounting and Finance,investigating Direct Trading.
2. Discuss your business structure
From the perspective of your department and management level,describe your business structure.
Suggest ONE contributing factor that may make yours thepreferred structure.
Request information from TWO other departments that could assistin your investigation. Please specify both the TYPE, and specificCONTENTS of the report you are requesting (Unit 3 types ofoutput)
3: Discuss the security implications
From the perspective of your department and management level,discuss the implications of a security breach in the company’sinfrastructure (all forms - human, technology etc.)
Suggest ONE reason why such a breach could occur.
Critique TWO post made by group mates from other departments
4: Create the process diagram
DESIGN and DRAW a high level “as-is” process diagram depictinghow a trade would be made, under your proposed structure. Thediagram should be for the model you are supporting and should showthe bands, process flows, roles and/or cross functionalinteractions required.
5: Summarise and make Recommendations
Summarise the information shared thus far, and discuss TWOfindings about your analysis from your management level that can beused to decide on the final company structure. Make TWOrecommendations to prevent security breaches.
Please assist in answering questions 2 - 5. Due at 12:00 p.mtoday, so would appreciate a quick yet thorough answer. Thankyou.
