Syllabus-MGMT 454 Spring 2012

Transcription

1 KOÇ UNIVERSITY College of Administrative Sciences and Economics MGMT Entrepreneurship & New Venture Development Spring 2012 Key Course Information Lecture Hours: Mondays & Wednesdays, 17:00-18:15 Location: TBA Instructor: Mahmut N. Ozdemir, Ph.D. Instructor s office: CASE 103 Office Hours: Tuesday 10:00-12:00. If this time is not convenient, make an appointment for a different time. In general, if you knock on my door and I am there, I will be happy to talk to you. maozdemir@ku.edu.tr Phone: Course Web Page: Course Description Many believe that entrepreneurs are born not made. However, it is a myth. Would-be entrepreneurs need the knowledge of planning, forming, operating, and growing new ventures. Hence, investing in personal development by taking entrepreneurship courses is necessary to have a successful career in entrepreneurship. This course is basically a business plan writing course. It will help you identify a business opportunity and write its business plan. You do not have to have a business idea upfront. You will develop the idea together with your teammates. Although writing a business plan is more necessary when you seek formal risk capital such as venture capitalist money at the later stages of business development, you can benefit a lot from this exercise at the early stages because it will enable you to elaborate on your business idea and, in turn, improve it significantly. While you write the business plan of your new venture, you make key decisions regarding the target market, business model, management team, and legal form of your new venture. In addition, you will plan which basic and supplementary technologies are required, which financial sources can be used, how much investment is required, how fast the venture will grow and how you harvest your investments. In the business plan, you will write in detail your decisions and assumptions to convince external stakeholders. During the lectures, I will give you necessary advice to improve the quality of your business plan. Moreover, your classmates and external experts can help you improve your business plan. By reflecting on these feedbacks, you will develop a solid business plan for your commercially viable business idea in a step-by-step by manner. In addition, you will do several in-class exercises, participate in seminars of guest speaker(s), work on real-life business cases and watch a couple of entrepreneurship movies. These activities and exercises will help you understand the practice of entrepreneurship to a higher extent. Course Objectives At the end of this course, each student should be able to: Write business plans of entrepreneurial firms Realize the importance of the entrepreneurial mind-set Understand how new firms are created and developed Aware of the managerial and organizational challenges faced by entrepreneurial firms Formulate marketing and financial strategies of entrepreneurial firms Page 1 of 7

2 Understand the nature of the relationship among entrepreneurs, customers and investors My Expectations Below is a list of things that I expect from you during the term. 1. Be creative. Use both right brain and left brain. Get familiar with critical and creative thinking skills. 2. Be a good team player. You will form teams of 3-4. Form teams no later than the end of the second session. These teams will work together on business plans, in-class exercises, and case write-ups. Contribute to your team. Commit yourself to the future success of your team. 3. Be a good networker & collaborator. Do not perceive your classmates as your competitors. Think of them as part of your current and future collaboration network. Think about ways these people help you achieve your dream. Create a LinkedIn Account, invite them (and me as well, please). 4. Be on time. Don t be late and don t leave early. Finish your assignments on time. I will not change any deadlines. 5. Be present. I want to see all of you in every session. If you will not be present, let me know via before the class meeting. Please turn off your laptops and mobile phones during the class as well. 6. Be active. Participate in class discussions. Comment on your classmate s business plans. Tell them the strengths and weaknesses of their plans. 7. Be open. Do not afraid of sharing your ideas. There are hundreds of thousands of ideas, and unfortunately only very few of them are real business opportunities. Furthermore, given that nearly 7 billion people live in the world, it is hardly possible that you will be the originator of any idea. Share your ideas strategically in order to receive feedback from me, your classmates, and external people so that you can improve your ideas. 8. Be clear and concise in your communication. Revise, edit, and proofread your business plans. Prepare professional presentations. Do not forget that time is money and the readers of your reports and audience of your presentations do not pay attention to your ideas if you are not concise. 9. Be optimistic. I believe you will develop outstanding business plans. Maybe, some of you even begin to implement them immediately. Course Material You will use the following textbook in this course: William Bygrave, Andrew Zacharakis. Entrepreneurship 2 nd Edition, Hoboken, NJ: John Wiley & Sons, Teaching notes, cases, and slides used during the lectures will be provided to the students. You can find the other readings on the website of the university library. Additionally, you will read several Harvard Business Review articles, MIT Sloan Management Review articles, and Harvard Business School cases. Grading 40%: Business plan (team). Your main responsibility in this class is to write a business plan. You will form teams of 3 or 4. The same team will also be working on in-class exercises and case write-ups in the course of the term. Your business plan should cover all essential segments including executive summary, business description and management team, marketing plan, operations plan, financial plan, milestones and critical risks. You will hand out your business plan and present them in the Page 2 of 7

3 class at the end of the term. Your business plan should be between pages. It should look professional. Your presentation should be professional as well. 15%: In-class business plan exercises (team & individual). These are interactive exercises aim to help you develop main segments of your business plan during a session. There will be three sessions in which you, together with your team, will develop the first drafts of different segments of your business plan, shortly present them to class, and receive feedback on critical issues from me and your classmates. In addition, there will be a session in which, I will provide you with real business plans or initial public offering (IPO) prospectuses of entrepreneurial firms. You will put yourself into the shoes of investors and judge the quality of the businesses individually. 25%: Final (individual). There will be a final exam at the end of the term. The final exam will consist of multiple choice and short-essay questions. It will be based on readings, cases, and lectures. 15%: Case write-ups (team/individual). Cases offer the opportunity of putting yourself into the shoes of entrepreneurs who faced and tackled various challenges. As a team you will write a case report, between 2-5 pages, in which you define the problem entrepreneur faces and offer solutions to these problems. We will discuss cases in each class. For each case, different teams may present their case analyses to the class. 5%: Movie sessions (individual). We will watch two movies in two class sessions. I will ask you short essay questions on movies. There will be no midterms and no pop-up quizzes! Feasibility Check for your Business Opportunity & Some Tips 1. Entrepreneurial entry by introducing a new service or a product to a target market is essential. Franchising, acquisition, and replicating an existing business in the target market are not viable options. 2. When you evaluate alternative business opportunities, assume that you will pursue it in the short or mid-term. Don t forget that this course may be the starting point of your entrepreneurship career. 3. Find a business opportunity that targets a large market so that you can easily make necessary adjustments in the future. 4. Do not come up with a business opportunity that requires substantial up-front investments. Assume your team has at most $25,000 budget at the beginning. 5. Focus on low-tech or no-tech rather than high-tech unless you invented a breakthrough technology or designed a tangible product in recent years. 6. Focus on providing a service or a simple product rather than a complex product because of higher up-front investment requirements of the latter. 7. Addressing a social need is a viable option. I am open to opportunities from potential social entrepreneurs although this course is designed for entrepreneurs that address market needs. 8. Screen entrepreneurial firms on the Internet (websites, online magazines, blogs etc.). They might inspire you. You can use entrepreneurship sites on the Internet such as Inc.com (Inc 500 and Inc 5000 lists), startupnation.com, entrepreneur.com, smallbiztrends.com, etc. Also, don t forget to check entrepreneurship contests! (e.g. Global Student Entrepreneur Award and its branch in Turkey, Global Universiteli Girisimci Yarismasi, Global Social Venture Competition, Global Social Entrepreneurship Competition, etc.) Page 3 of 7

4 Student rights, Academic Grievance Procedure, and Classroom Code of Conduct KU Home Page Information for Koç Student Student Code of Conduct Student Rights KU Home Page Information for Koç Student Academic Grievance Procedure KU Home Page Information for Koç Student Classroom Code of Conduct Page 4 of 7

5 Core Course Material & Critical Milestones Date Material February 6 Course Syllabus MODULE 1: IDEA GENERATION, OPPORTUNITY RECOGNITION AND TEAM FORMATION February 8 Idea Generation Lurie, N From Student to Entrepreneur. How to generate and evaluate compelling business ideas quickly. February 13 Movie Session (2.5 points) Bygrave & Zacharakis Chapter 2 February 15 February 20 February 22 February 27 February 29 Movie Session (cont d) Opportunity Recognition Bygrave & Zacharakis Chapter 3 Gut Check Questions adapted from Bruce B. Preparing Effective Business Plans, 2009, Prentice Hall. The Venture Opportunity Profile adapted from Jeffrey A. Timmons J.A, Stephan S New Venture Creation: Entrepreneurship for the 21 st Century, McGraw- Hill/Irwin, New York, pages Elevator Pitch, One pager, Team Bios (2.5 points) Team and Leadership Issues Bygrave & Zacharakis Chapter 6 Leadership Skills and Know-how assessment sheet adapted from Jeffrey A. Timmons J.A, Stephan S New Venture Creation: Entrepreneurship for the 21 st Century, McGraw-Hill/Irwin, New York, pages Legal Forms of Businesses Bygrave & Zacharakis Chapter 12 Table 2.1: Common organizational forms in the United States, adapted from: Smith, J.K., Smith, R. L., Bliss, R. T Entrepreneurial Finance: Strategy, Valuation, & Deal Structure. Stanford University Press: California, p.g. 57. March 5 Case I: Ockham Technologies (A): Building the Team. Harvard Business School Case. (5 points) Partnership agreement example, Inc.com, March 7 IP Protection and Value Creation Bygrave & Zacharakis Chapter 13 Pisano G.P., Teece, D.J How to capture value from innovation: Shaping intellectual property and industry architecture, California Management Review, 5(1), Reitzig, M Strategic management of intellectual property, MIT Sloan Management Review, 45(3), March 12 Wasserman, N. (2008). The founder's dilemma. Harvard Business Review, 86(2), Case II: Evan Williams: From Blogger to Odeo (A & B). Harvard Business School Case (5 points) MODULE 2: BUSINESS MODELS, BUSINESS STRATEGY AND MARKETING March 14 Positioning and Segmentation Marketing Technology Products STRATEGY Page 5 of 7

6 March 19 March 21 March 26 March 28 April 2 April 4 April 9 April 11 April 16 April 18 April 23 April 25 Bygrave & Zacharakis Chapter 4 MacMillan, I.C. & McGrath, R.G Discovering New Points of Differentiation, Harvard Business Review, 75(4), Moore, G.A Crossing the Chasm, HarperCollins Publishers: New York. Chapter 2: High-Tech Marketing Enlightenment. pgs (can be found at reserve desk) Lodish, L.M., Morgan, H. L., Kallianpur, A. Entrepreneurial marketing: Lessons from Wharton's pioneering MBA course (e-book, Suna Kirac Library website) Chapters 1,2 & 13 Guest Speaker Marketing Strategy & Business Models Bygrave & Zacharakis Chapter 5 Lodish, L.M., Morgan, H. L., Kallianpur, A. Entrepreneurial marketing: Lessons from Wharton's pioneering MBA course (e-book, Suna Kirac Library website) Chapters 3,4 & 5. FrankMoyes Website, Sniff Test. Alexander Osterwalder s Business Model Canvas In-class business plan exercise: Presentation of Business Strategy & Marketing Plans (2.5 points) In-class business plan exercise (cont d): Presentation of Business Strategy & Marketing Plans (2.5 points) Business Plans and Business Planning Process Bygrave & Zacharakis Chapter 7 Sahlman, W.A. (1997). How to write a great business plan. Harvard Business Review, 75(4), Mullins, J. Why Business Plans Don t Deliver: The Five Most Common Flaws and How to Fix Them. Wall Street Journal, June 22, 2009, p.r3. MODULE 3: FINANCIAL PLAN Financial Plan (I): Bootstrapping, Cash Management, & Integrated Financial Statements Bygrave & Zacharakis Chapters 8&9 Bhide, A Bootstrap Finance: The Art of Start-ups, Harvard Business Review, 70(6), Financial Plan (II): Financing Sources, Sustainable Growth Rate and Valuation Bygrave & Zacharakis Chapters 10&11 Holiday Holiday Financial Plan (III): Financing Sources Sustainable Growth Rate and Valuation (cont d) Exercise: Analysis of a business plan or an IPO prospectus. (5 points) In-class exercise: Presentations of financial plans (5 points) In-class exercise (cont d): Presentations of financial plans MODULE 4: GROWTH & EXIT STRATEGIES April 30 Bygrave & Zacharakis Chapter 14 Isenberg D. J. (2008). The global entrepreneur. Harvard Business Review, 86(12), Page 6 of 7

7 May 2 May7 May 9 May 14 May 16 Case III: Freej. Harvard Business School Case. (Max 2pg-report) (5 points) Movie Session or Guest Speaker (2.5 points) Final Exam (25 points) Business Plan Presentations (40 points) Business Plans (20-30 pgs (including Appendices), 1.5 Spaces, 12 Times New Roman) & Max-15-slide presentations. Business Plan Presentations (cont d) Page 7 of 7