Reference no: EM132975017
The Case of the Mystery Investor
Madame X is known in Vancouver as the "mystery investor"; in real life she goes by Mia and jokes with her assistant (Miss Robin) of the past 2 years that it stands for "missing in action". Miss Robin handles virtually all of Madame X's business/investment communications. Indeed, Madame X is a wealthy angel investor: once each year she provides funding for a local business wishing to expand based on two key motives: (a) doing social and/or environmental good; (b) securing extra profits (or at least breaking even financially). She provides $50,000 with no strings attached beyond seeing and signing off on a proposal that provides $20,000 for a "Phase One" commencement (lasting six months) and $20,000 for "Phase Two" commencement (lasting another six months). $10,000 is then provided at the end of one year to the business if they have completed the two phases.
Madame X is particularly busy this year with locating a second residence in a "tony" neighbourhood in Paris, France. Because of these and other international travels, she does not have the time to do in depth reviews of interested financial suitors. Madame X has decided to retain the consulting firm of "Here4You Consultants" to "suggest options" on how to organize decision making given that her time is limited this year. She wants to be kept up to date on the process of decision making and the progress of the awarded business but is also worried about how to stay in touch given her busy schedule and travels. She would like to expand her angel investing into another country- but not France since "this would disturb my privacy".
She is in her fifth year of angel investing- her experience is that two of the first four annual investments have continued successfully. The one business (funded 2 years ago) that was not successful had to close owing to a family owned business dispute; the angel investor did not become involved in the matter but had heard all about it. Madame X has vowed to not fund family businesses in the future because of this incident. A second business (funded 1 year ago) has struggled with creating environmentally friendly packaging and she has learned they are seeking another $50,000 just "to stay in business". Madame X doubts she would fund again another such venture. To date Madame X has not had to be particularly concerned about legal aspects as she has Canadian lawyers who have reviewed all aspects of the past financial exchanges and any other ethical matters as no issues have come to the forefront.
Madame X also has a secret idea and desire. She is considering "coming out of hiding" and making her angel investment public information in order to build and enhance a reputation as a benefactor, and ultimately leverage this into a for-profit brand for a "to-be-determined" international business. "Here4You Consultant" of North Vancouver have been contacted by Madame X's assistant in order to "provide thoughts/review for" Madame X regarding her present situation and future business thinking. Madame X heard from Miss Robin that there was something called a PEST / STEP analysis that could be helpful. She is interested in what she will hear from the consultants....but she will remain incognito as usual during the presentation...
1. What is meant by and what might she consider by way of Social trends and attitudes?
2. What Technological factors may be relevant or important?
3. What are "green"/Environmental factors and why would that be a consideration for her?
4. What are the Political or legal aspects to be aware of?