Essays on Case Study (Community Web) Case Study

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This case involves Community Web, a new company offering online services to localised markets. The company had cultivated a niche market for its services, but financial and management problems meant that the company could not exploit that opportunity. Senior management had several options that could have been used in solving their firm’s problems. One of the solutions lied with Wall Street Venture Capital, a financial firm based in New York. However, Community Management were concerned that the Venture Capital might not need all of their company needs, a fact which they were ignoring because of their pressing financial needs.

The following sections of this paper will constitute some analysis on whether Community Web’s management should go ahead and use funds for the aforementioned firm; whereas other sections discuss various aspects of the internet firm’s operations. Avoiding Wall Street Venture Capital as the Primary FinancierCommunity Web’s need to use Wall Street Venture Capital funds is out of desperation; few companies, if any, would agree to finance the company due to its financial woes, poor business planning and rigid management. Relying on one single source of capital that happens to be external should be avoided at all costs.

The company could find itself being swallowed by its creditors who will have much management power. In any case, it is better to have a variety of sources of funds to avoid such scenario. Since the company is already experiencing, cash flow, management and financing problems, diverse sources of funds will bring with them different advisory that could help through the navigation of company problems. Using one company would only provide a single source of advice that is not sufficient to the Community Web through its problems. Transparency problem regarding Wall Street Venture Capital’s past business operations should be of concern to the management of Community Web.

The excuse that the venture firm does not have information on its past deals should leave potential clients with questions of why there was too much secrecy. Legality of financiers’ past operations should also raise concerns. Furthermore, lack of information regarding the company from the database of important institutions are clear indications that all was not well, which should make Community Web avoid using such a company in its operations.

Sources of funds that Venture Capital will provide to Community Web could cause problems later because of the questions listed above. In the end, Community Web could find itself entangled in scandals that will compound problems with regulatory authorities. Next StepRe-writing the Business Plan; Community Web’s problems started with poor planning that characterised the preparation of the company’s business plan. The result was documents that could not impress mainstream financiers such as banks and other private money.

It is thus important for the management to consider going back to the drawing board and prepare new plans that would include how to get Community Web back on its track. Polishing some sections of the business plan will be the beginning point of developing proper documents that will catch financiers’ attention. This could mean complete removal of redundant sections of the business plans and replace them with realistic issues that will increase value of the company’s business model.

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