Dragons’ Den The Dragons’ Den television series features a number of potential entrepreneurs pitching their innovative business ideas to a panel of venture capitalists. The venture capitalists then assess each entrepreneur’s presentation and business plan and a bid accordingly for a stake in the equity of the business. Although the programme started in Japan there are a number of international variations based on the same theme. In the show, the potential entrepreneurs present what they perceive to be a viable and potential profitable product but lack funding to take the product to the market. As part of their opening pitch, they specify the amount of money they require from the Dragons. In exchange for the investment, the contestants offer equity in their businesses, the percentage of which is also stipulated at the beginning of the pitch. The rules of the programme stipulate that is the entrepreneurs do not raise at least this amount from one or more of the Dragons they must leave with nothing. If the Dragons see potential in the business idea or product, negotiations then take place around the amount of equity on offer, or simply walk away. Dragons can also offer a percentage of the money requested if they do not wish to commit the full amount, leaving the other Dragons free to do the same. This can lead to the contestant receiving the financial backing of more than one Dragon, with the benefit of a broader range of expertise. However, for this to occur, the entrepreneurs usually have to agree to relinquish a larger share of their business than they had first planned. It is interesting to observe that the venture capitalists are very selective and tend to only invest in products and markets they have experience of and understand. It is clear that they try to look for new ventures that will be complementary to their other business interests and take advantage of their marketing and distribution facilities. This approach helps to explain why they have a high level of self-confidence. By sticking to what they know and the niche markets they understand they are able to accurately assess the new product’s potential and risks. Source: Burke & Barron. Project Management Leadership.

QUESTION 1 (25)

It seems a necessity that entrepreneurs taking part in the Dragons Den must be able to communicate effectively. Write an essay in which you will clearly demonstrate your understanding of communication process in the context of the case study by amongst others identifying the source, the message and the receiver in the process of communication. Your essay must also include a proper selection of the five (5) factors that potential Dragons Den entrepreneurs must consider in compilation of a winning communication process?

Answer rating: 100% (QA)

Answer The source of the communication in this case is the entrepreneur who is trying to communicate their business idea to the panel of venture capit... View the full answer