The fictional company London Entrepreneurial Exchange has an opportunity to develop its own crowdfunding vehicle. This involves investors buying equity in young businesses - it's almost like a private online stock exchange. LEE is ideally placed as international entrepreneurial academics to carry out due diligence on company valuations and growth potential, facilitating opportunities for investors. Equity raising process facilitation service is part of the site offering among

1) Complete a situational analysis of the crowdfunding sector facilitating the opportunity of developing a crowdfunding site ‘The London Entrepreneurial Exchange’ and Develop an e-marketing and social media campaign to launch such a site focusing on a performance model approach as there is a limited Marketing budget of AED 50,000 to cater for this launch.

2) ‘Performance model approach’

A 'performance model' is an approach where you may offer a service to clients of the Exchange based on results achieved. For example, you offer a reduced fee or no fee to carry out some service i.e., marketing service, that if you get a certain level of results for the client's company--(some customers/sales) then you get a percentage of that income they receive i.e., 15%. This can be a good way to get more clients on developing a service linked to your performance. So, think of ways you can utilize this approach in developing the service to clients. Not only do you facilitate an investment platform for the company, but you continue with other services OVER a longer-term, as their company grows so does your level of service and income

Part 1 can cover the following points:

Situational analysis

Utilizing market research, a situational analysis will define potential customers (these are 2 target groups although not totally exclusive, i) target groups who are potential companies that want to raise funding via the LEE crowdfunding platform, and ii) potential investors who want to invest in the listed companies on the site). Also considered in the situational analysis, projected growth, competitors, and a realistic assessment of your business. It involves targeting the specific objectives in the business and identifying the factors that will support or hinder those objectives. This assessment often is called a SWOT (strengths, weaknesses, opportunities, and threats). Strengths and weaknesses involve an internal analysis of the company, while opportunities and threats are derived from external analysis. A SWOT analysis usually is presented as a list of information but also can fit into a matrix model.

Highlight critical factors that will enable or constrain the development of the crowdfunding platform.

Internal analysis:

The internal analysis is a thorough knowledge and understanding of the strengths and weaknesses within an organization set up. These factors are seen in company culture and image, organizational structure, staff, operational efficiency and capacity, brand awareness, financial resources, etc. Strengths are positive attributes, which can be tangible or intangible, and are within the control of the organization. Weaknesses are factors that may hinder the achievement of the desired goal.

External analysis:

Opportunities and threats are measured as part of an external analysis. Both can occur when things happen in the external environment that may require a change within the business. These external changes can be attributed but are not limited to market trends, suppliers, partners, customers, competitors, new technology, and the economic environment. Opportunities present themselves as attractive factors that can propel or positively influence the organization in some way. Threats are external factors that could place the organization’s goal at risk. These often are classified by their level of severity and probability of occurrence.