Categories
Uncategorized

Hong Kong Venture Limited (HKVL) is a fictitious company. Hyperlinks to some of the company home-pages are realistic demonstrations for students to visualize the business scope of venture capital firms.

Scenario:

Hong Kong Venture Limited (HKVL) is a fictitious company.  Hyperlinks to some of the company home-pages are realistic demonstrations for students to visualize the business scope of venture capital firms.  Students should state their assumptions and rationales whether or not they found similar arguments stated on those pages.

HKVL is a venture capital firm based in Hong Kong.  It is a private equity established since 2005 to generate continuous operation funding for the founder’s local charity foundation. HKVL specializes in investing working capitals for the emerging technology firms in exchange for their company shares.  The record shows that some of the firms have become successful and offer extremely high returns to offset the uncertainty of financing risky start-ups.  The fact that it is owned by a  private charity relieves HKVL from the pressure of annual dividend.  It enables HKVL to focus on the promising long-term investments.  As a result, HKVL ROI has been much better than it peers.  Some of the HKVL successful investments include Airbnb, AlphaGo, Facebook, Siri, and Zoom.

The past investments were restricted to the late-stage of start-ups.  It offered very handsome dividends.  The founder wants to extend HKVL investments to the seeding stage and cultivate the local start-ups.  He thinks the community should have a positive environment to nurture young entrepreneurs to materialize their venture ideas.  HK Startup Stadium (HKSS) is the new cultivation project plans to offer a variety of services like office space, virtual platform, meeting rooms, conference facilities for start-up companies at their seeding stage.  It provides a start-up ecosystem by providing coaching programs like workshops and seminars. The concentration of start-ups in HKSS  will also provide a network for enabling technologies to facilitate development.  The other enabling professional services like mentors, investors, legal, and secretarial services can also be accessed in HKSS.  The founder thinks that nurturing the local talents is already a charity by itself. HKSS can tolerate longer and more risky ventures then HKVL.

Your team is responsible for the Design-Build-Operate (DBO) of HKSS project.

Student Assignment:

Students should form teams of four or five members within their tutorial group. A report for the HKSS Project, with ten sections specified below, should be produced.  Each member of the team should contribute to the report and participate in a presentation.  Virtual Project approach can be used to replace or supplement the face-to-face meetings for the project. The report should conform to the PMI standard.  The CityU PMO small projects templates can be used as the primary reference.  In case of any uncertainty in the templates, students may reference and correlate with the PMBOK6 and Prince2 standards.

Presentation marks will be awarded only to team members who participated in the presentation.  The fifteen-minute online presentation with Zoom is followed by a five minutes Q&A session during the Week 10 tutorial.  The individual contribution will reference to the RACI chart in the report.

Nine months into the operation, a team member Emily, started coming into work late. The quality of her work deteriorated and, increasingly, she was not communicating with other members of the team.  She is a private equity expert.  As the Project Manager, you talked about the problem informally with other team members to try to find out if Emily’s personal circumstances have changed and if this might be affecting her work.  The team members did not know of anything.  You decided to talk with Emily to try to understand the problem.

After some initial denials of the problem, Emily admitted that she had lost interest in the job.  She expected she would be able to develop and use her M private equity skills.  However, because of the project direction that has been chosen, she has little opportunity for this.  She was working as an administrator like the other team members.  While she admits that the work was challenging, she was concerned that she was not developing her private equity skills.  She worried that finding a job that involves private equity will be difficult after this project.  Because she did not want to upset the team by revealing that she was thinking about the next project, she has decided that it is best to minimize conversation with them.

Personal difficulties can affect motivation because people cannot concentrate on their work.  As a project manager, you think that you should give people time and support to resolve these issues before letting members leave the team and find opportunities elsewhere.  However, You also knew that this situation has to be dealt with quickly.  If the problems were not sorted out, the other group members would become dissatisfied and feel that they were doing an unfair share of the work.

Question

The Board wants to outsource the Operation of HKSS Project to a contractor to relieve HKVT man-power for other developments.  Suggest a Cost-Reimbursable contract strategy with a comparison discussion.  The contract should offer good flexibility to enable the owner and the contractor to work together on technical, commercial, and financial problems. Incentives should be build-in to motivate the contractor to help the Start-ups to success and attract more tenants to HKSS.  Lowering the operating cost is the least concern.  (10 marks)

Leave a Reply

Your email address will not be published. Required fields are marked *