Selected Anatomy of a Start-Up cases (found on the Web: or can be found through the instructor's Web page).

Transcription

1 DePaul University College of Commerce Department of Management MGT. 570 Entrepreneurship and New Venture Management Course Syllabus Fall 2000 INSTRUCTOR: Jill R. Kickul, Ph.D. Office: Management Department, DePaul Center 7032 Office Hours: Thursdays 5-6 pm or by appointment Phone: (312) Fax: (312) Web Address: REQUIRED TEXT AND READINGS: Selected Anatomy of a Start-Up cases (found on the Web: or can be found through the instructor's Web page). Harvard Business Review on Entrepreneurship. Harvard Business School Press. COURSE DESCRIPTION: This course focuses on new venture initiation and the preparation of a feasibility study that can be used to begin operations in a new business enterprise. It examines the critical factors involved in the conception, initiation, and development of new business ventures. The topics covered include: 1

2 Identification of characteristics of prospective entrepreneurs. Identifying innovations. Market potential analysis for new products or services (feasibility analysis). Development of a formal business plan. Financing, organizing, and operating a new business. The course objectives are: To provide training and education regarding the feasibility, planning, and implementation of a new business venture. To improve your managerial and organizational skills through application of theories to real entrepreneurial problems. To develop a basic understanding and appreciation of entrepreneurs as a vital part of the American society. To gain awareness of a business organization as a system of interrelated functions. To strengthen your ability to function as a team member, and to develop a crossdisciplinary understanding of business problems. COURSE REQUIREMENTS: Feasibility Study If you plan to start a business, every business professional and investor you meet - lawyers, bankers, accountants, other entrepreneurs, business "angels" of all types - will ask the same thing, "Is it feasible?" The feasibility study and a business plan defines the essence of entrepreneurship or small business as taught in America's business schools today. Thus, a central component of this course is the opportunity for the students to develop a venture feasibility plan which will be presented for evaluation. Each feasibility study should contain (at the minimum): 1. Executive Summary 2. Company Description 3. Market and Competitor Analysis 4. Market, product, and manufacturing description 5. Financial Analysis (e.g., start-up costs; possible financing alternatives) Students will form teams to work on the feasibility study (2-4 students). This is a joint effort of a team, and all members will receive the same grade. Thus, each member is responsible for the quality of work done by other members. All team members are advised to take a careful look at the entire 2

3 feasibility study to make sure that it is free of defects and inconsistencies before submission and presentation. The feasibility study is worth 30% towards your course grade. Presentation of Feasibility Study: Many studies indicate that presentations that combine words with graphics help to get the points across better and faster, assist groups to reach consensus sooner, and help individuals remember key points longer. Students should develop professional text and graph charts for the presentation material. It is recommended that the team conduct the presentation in a professional manner as possible. It is also recommended that a creative, innovative, multi-method presentation be made (e.g., graphics, handouts, statistics, financial analysis, etc.). This presentation is worth 10% towards your course grade. Anatomy of a Start-Up Case Analysis: Case analysis is the basic methodology that can be used to study entrepreneurship and new venture management. The case approach provides the entrepreneur with a means to become immersed in the complex, ill-structured, and sometimes chaotic circumstances in which organizations operate. In this class, we will be analyzing several different cases (all based on an entrepreneur's experience in starting and running their own business). Each student should choose two cases to formally analyze and report to the instructor. The following is a list of issues you may want to consider as you read these cases and begin to write your analysis: 1. The main issue(s) of the new venture The trends within the industry The company and its founder(s): overall strengths and weaknesses Recent company performance 2-3 key problems 2. Entrepreneurial analysis The Competitive Arena Major Changes in the Market Significant Socio/economic trends Changes in production and marketing technologies The financial posture of the firm Result of past marketing strategies Production capabilities Planning and control systems Organizational and leadership styles (This is basically a SWOT analysis) 3

4 3. Strategic Recommendations (2-3) Identification of activities Timing of activities 4. Finally. "What Can Be Learned From this Entrepreneur's Experience?" (i.e., key issues that can be taken away and applied to your own venture) Each case analysis must be typed, double-spaced, and approximately 4-6 pages long. All cases are worth 15% towards your final course grade (2 15% = 30%). Case Discussion: When cases are assigned during the quarter, we will spend class time discussing each case in detail. Before a case is to be discussed, the instructor will ask for one to two students to be the Discussant(s) of the case to be analyzed. A student should be a "Discussant" at least one time throughout the quarter (5% of your grade). Each Discussant will be asked to lead the discussion of the cases and bring in his/her own unique perspective to the situation. Since it is assumed that everyone has read the cases, the discussants should focus on the strengths and weaknesses of: (1) the characteristic(s) of the founder(s); (2) the idea (product/service concept); (3) financing used in this start-up; (4) the market opportunity; (5) other issues that the discussant feels is relevant to entrepreneurship and new venture management (e.g., the risks and rewards of the start-up). All discussants must post any of their questions, ideas, and recommendations on the Excite Entrepreneurship and New Venture Management Message Board and Discussion Area. Case summaries can be found at the end of this syllabus. If you are the discussant for a particular case, you may want to present your ideas and recommendations using PowerPoint or overheads. The format of your presentation may follow the guidelines given above in the Anatomy of A Start-Up case analysis. Small Group and Class Participation: The success of this course depends not only on your attendance, but also on your participation. The more you participate, the more fun and valuable the course will be for all of us. For every class, students are expected to read the supplemental readings and cases. Participation is measured using several criteria. These include actively participating individually during the "discussion" part of our sessions, in small group meetings, and in group presentations. The instructor's evaluation of your participation is worth 15% towards your final course grade, and will be evaluated using these criteria: When questions or cases were presented to the class, how active (as opposed to inactive) was your participation? 4

5 When you answered questions or commented on reading-related or discussion-related material in class, how accurately (as opposed to inaccurately) did you use concepts previously discussed? When you asked questions or commented on reading-related or discussion-related material in class, how creative (as opposed to redundant or repetitive) was your thinking? When you were asked to answer case questions to solve organizational problems (a career as an organizational consultant offers big buck ($$$!), by the way), how specific, hence implementable (as opposed to vague, hence useless), were your suggested remedies to problems raised in class? When you criticized others' ideas (including the instructor's), how constructively (as opposed to destructively) did you state your criticism? How many times were you absent when your small group was working on in-class and live case (so that your group missed your contributions)? One group absence may not adversely affect your participation grade; more class absences will lower your final grade. BREAKDOWN OF COURSE REQUIREMENTS: Cases (2 15% each) 30% Feasibility Study 30% Feasibility Study Presentation 10% Peer Evaluations 10% Discussant Role 5% Class Participation 15% Total 100% 5

6 GRADING: A A B B B C C C D D F 59 and below PLAGIARISM: DePaul University has issued guidelines for student responsibilities, provided in the Graduate Bulletin: "Plagiarism is a major form of academic dishonesty involving the presentation of the work of another as one's own." Students should be familiar with this policy and the consequences of its violation. 6

7 Course Calendar FOR THE WEEK OF: TOPIC OF DISCUSSION ASSIGNMENTS READINGS September 4 Introduction to the Class and Course Requirements Nature of Entrepreneurship and Small Business Formation of Teams Video: The Entrepreneurial Revolution September 11 The Entrepreneurial Personality and Process New Venture Ideas and Opportunity Recognition Anatomy of a Start-Up: Nowhere Men The Climb Begins; Unveiling a Mission Readings: The Questions Every Entrepreneur Must Answer The Seven Habits of Highly Effective Start- Ups (from 7

8 FOR THE WEEK OF: TOPIC OF DISCUSSION ASSIGNMENTS READINGS September 18 Screening Venture Opportunities (Feasibility Study) Anatomy of a Start-Up: No Experience Required Going for the Green Readings: How Entrepreneurs Craft Strategies that Work The Perfect Internet Business (from September 25 Putting your Feasibility into Action: The Business Plan Anatomy of a Start-Up: Kings of the Hill A Bicycle Built for You Reading: How to Write a Great Business Plan October 2 Group work on Feasibility Analysis October 9 Financing the Venture Anatomy of a Start-Up: Go Sell It On the Mountain Readings: How much money does your new venture need? Strategy vs. tactics from a venture capitalist 8

9 FOR THE WEEK OF: TOPIC OF DISCUSSION ASSIGNMENTS READINGS October 16 Managing Growth Harvesting a Business Anatomy of a Start-Up: Errand Boy The World's Oldest Start-Up Reading: Bootstrap finance: The art of start-ups Commercializing Technology October 23 Wrap-Up ( Lessons Learned from Entrepreneurs ) Anatomy of a Start-Up: Born To Be Wild The Matchmaker Reading: The Secrets to Start-Up Success (from October 30 Feasibility Study Presentations November 6 Feasibility Study Presentations Feasibility Study due November 16 9

10 FINAL PEER EVALUATION GROUP MEMBER BEING EVALUATED: COMPANY NAME: Please evaluate EACH member of your group using the following items: OUT- VERY STANDING GOOD GOOD FAIR POOR 1. Contribution of time to overall group project. 2. Individual effort in getting things done as assigned. 3. Leadership, i.e. provided some type of direction in project. 4. Attitude towards project Attendance at group meetings Willingness to listen to others Willingness to cooperate with others (if not at meetings then cooperation would be difficult) 8. Capacity to solve project problems Came to group meetings prepared to solve the requirements of the project 10. Overall opinion of this person's contribution to the effort of the group. 11. On the reverse side, explain why you rated the student as you did. TOTAL POINTS: SIGNED BY: There is a total of $100 you could pay this student for their group work. Of this $100, how much would you pay the student? I would pay them $ 10

11 ANATOMY OF A START-UP CASE SUMMARIES The Climb Begins What is it really like to start your own business? The E*Entity founders liken the process to climbing a mountain. Follow their progress as they embark on the challenge of bringing a new company to life. Born To Be Wild Dave and Dan Hanlon hope to challenge long-dominant Harley-Davidson for a portion of the American-made motorcycle market. Can their company, Excelsior-Henderson, compete? Nowhere Men The anatomy of a start-up built around creating a cyberstore on the World Wide Web to sell CD recordings. No Experience Required By surrounding herself with experts, can this business owner write a success story with her obscure tea drink? Going for the Green A close-up look at a museum-like golf shop that is sure to spark interest, but will it sell golf equipment? Kings of the Hill A new market with big competition may make it hard for this start-up to make its product an industry standard. Errand Boy This start-up wants to do your shopping, get your dry cleaning and more, all for a small fee. But, will it fly? The Matchmaker Can a powerful database replace the 'black art' of personnel recruiting? A Bicycle Built for You For his second entrepreneurial act, Vermont Teddy Bear founder John Sortino is counting on an unorthodox marketing strategy to sell his high-end cruiser bikes to the over-40 crowd. The World's Oldest Start-Up An anatomy of start-up Ritz Foods International, a producer of snack chips made from the yucca plant. Includes an overview of the snack food industry and setbacks the company has faced so far. Go Sell It on the Mountain A look at Blue Mountain Arts' bold plans for turning its popular Web site into an E-commerce moneymaker. 11