Question

Founded in 2018, MGMT Crypto Inc. is a fledgling cryptocurrency exchange 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 or exchange cryptocurrencies for other digital currency or traditional currency like US dollars or Euros. Basically, an exchange is where buyers and sellers conduct their business.

“Crypto-currencies have the potential to transform fundamental aspects of industry and society and make a considerable difference to the activities of government bodies and policy-making. They are perhaps the truest form of digital economy technology that has yet emerged – sitting at the crossroads of technology, economics, social sciences and business – where cryptography has managed to disrupt our established practices and notions of trust, identity and value. “

Exchanges come in a few flavours and the company is exploring the following structures:-Trading Platforms – These are websites that connect buyers and sellers and take a fee from each transaction.Direct Trading – These platforms offer direct person to person trading where individuals from different countries can exchange currency. Direct trading exchanges don’t have a fixed market price, instead, each seller sets their own exchange rate.Brokers – These are websites that anyone can visit to buy cryptocurrencies at a price set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers.

The company has rented traditional office space in a small building, but expects the world to know it from its website and online presence in all its various forms e.g. blogs and social media.

Whatever its final form, MGMT Crypto Inc. will be a user centric online service, and by positioning itself as the hub in an emerging infrastructure, hopes to become the de facto exchange for several cryptocurrencies.

You got a lucky break and have been hired as a management intern by the new start-up. You instantly realize you need to do some research, as words and phrases like cryptocurrency, blue ocean, exchange, ATH, block chain, bitcoin, satoshi, ethereum etc. mean nothing to you. Your boss soon presents you with some historical data as well as a point-in-time dataset on currency trades for a subset of the more than 1500 cryptocurrencies in existence. As a new management intern, you are tasked with analysing the provided information and reporting your findings and possible recommendations at an upcoming meeting.

Cybercrimes, security breaches, election hacks and advertising blacklisting have been in the news recently and these are of concern to the company Also, remember that surge in Oct 2017 (Power BI)? Well recently, there has also been much 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 of expected growth.Your company wishes to be the one leading the pack! This requires them to anticipate the true demand but also to know which products and likely to fail, but more importantly they have to decide on the final business model, and safeguard their electronic assets!

Still glowing from the praises for your earlier analysis, you have been given a new enormous responsibility. You are to assume the role of a functioning manager in the company, and report some findings and possible recommendations at the upcoming meeting.

REQUIRED                                                                                

Management Reporting

You need to research/analyse the above business models (don’t over think it, just the highlights), propose one to implement and also how the company will organize itself to handle security.

You are attending a number of routine meetings that are conducted online. You are to post questions and response with information related to your analysis. Posts can be conversational among managers asking and responding to questions. There is no requirement for groups to meet outside of the course for this discussion, as it is expected that the meetings/posts will proceed in a manner similar to messaging with acorporate collaboration tool.

1: Introduce yourself Identifying your Management Level and your Functional Area and your proposed company structure

My Management Level and Functional Area and proposed company 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 the preferred structure.

Request information from TWO other departments that could assist in your investigation. Please specify both the TYPE, and specific CONTENTS of the report you are requesting (Unit 3 types of output)

3: Discuss the security implications

From the perspective of your department and management level, discuss the implications of a security breach in the company’s infrastructure (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 depicting how a trade would be made, under your proposed structure. The diagram should be for the model you are supporting and should show the bands, process flows, roles and/or cross functional interactions required.

5: Summarise and make Recommendations

Summarise the information shared thus far, and discuss TWO findings about your analysis from your management level that can be used to decide on the final company structure. Make TWO recommendations to prevent security breaches.

Please assist in answering questions 2 - 5. Due at 12:00 p.m today, so would appreciate a quick yet thorough answer. Thank you.

Answer 1

2. Discuss your business structure

The user adaptation of various cryptocurrencies are improving shortly and millions of wallets along with billions in market capital has been estimated to be present currently. The thin line differentiating the wallets and the crypto-currencies are slowly eroding.

The crypto-currency business is both globally present and locally active with borderless exchange operations and geographically focused mining activities taking place around the globe.

The emerging market of crypto-currencies are thriving to share a new economy governed not by the Government systems across the world but driven by market dynamics and exchange platforms. Though the system still needs to set forth a proper regulatory compliance governance and security model to ensure safeguards from collapsing prematurely.

As a Tactical Manager, Accounting and Finance the structure of the business operations of the organization that I will be looking after will involve the following fields of operation:

• The trading of crypto currency in the virtual exchange markets: This area of operation will involve listing of crypto currency in the various exchanges, maintaining the price levels for facilitating the trade and ticketing of the traded value to the accounts department for updating of record and the data sharing with the marketing department for analysis and strategy formulation jointly.
• Wallets subscriptions of the customers and query handling with my team for. Defining the functionalities of the wallets and its linkages and features with other vendors and service providers. Maintaining the passbooks and credentials of the account holders in a secure way for maximizing data security.
• Maintaining a mining team for mining and security protocols development of the customer data and the datacenter of the cryptocurrency at a remote self sustainably powered destination shared only with the top management.

From the perspective of your department and management level, describe your business structure.

The business structure would be involving the day to day trade handling and liquidation requests of the customers. Another responsibility would be to maintain the wallets status and ensuring safe and encrypted storage of credentials.

The monitoring functions would include management of the master data center and the remote location security protocols to safeguard company assets.

Decision making and strategy formulation with teams and data from the marketing and accounts departments would be required for efficient coordination of operations of the service line.

Suggest ONE contributing factor that may make yours the preferred structure.

The contributing factor is the overall integration of the key stakeholder departments namely accounts, marketing and tactical operation in maintain the customer transactions on areal time platform and the ultra-high security protocols maintained for safeguarding company assets by regulatory rules and guidelines.

3: Discuss the security implications

The security of the company assets including customer data is of high importance and the main database is powered by a self-sustainable power source which is operating in a standalone facility at some remote location having adequate protocols and regulations to operate them which is only known to the management and some stakeholders as defined in the protocols.