Lehrstuhl für Industrie, Energie und Umwelt Entrepreneurship Mag. Florian Pützl
1. General Introduction The first part of the course (Theory of the Entrepreneur / Firm / Innovation) focuses on patterns of entrepreneurial activity and on the theoretical footing of enterprises and entrepreneurs (e.g. Schumpeter, Knight, Kirzner). The second part (The Entrepreneurial Plan and Financial Business Plan) introduces general concepts and key success factors of entrepreneurial activity. This part of the course deals with methods and tools that have proven to be essential parts of business plans, both for start-up companies and wellestablished corporations. Based on the general theory of the firm, and the accumulated knowledge about the several parts of business plans and financial analysis the third part deals with the strategic management, applicable for both successful start-up companies in their ambition to grow further and for well-established corporations in order to maintain or increase their market share. Having discussed the theoretical footing the student will in teams develop their own strategic business plan which will be based on an already existing company (for further details see section 5.Business Plan). 2. Preliminary Schedule Entrepreneurship, Summer 2012 Mag. Florian Pützl Date Time Room Tasks Fr. 02.03.2012 16:00-20:00 HS 9 Theory fo the Entrepreneur / Firm / Innovation Sa. 03.03.2012 09:00-13:00 HS 9 The Entrepreneurial Plan Fr. 09.03.2012 16:00-20:00 HS 9 The Entrepreneurial Plan Sat. 10.03.2012 09:00-13:00 HS 9 The Entrepreneurial Plan / Financial Business Plan Fr. 23.03.2012 16:00-20:00 HS 9 Financial Business Plan Sat. 24.03.2012 09:00-13:00 HS 9 Financial Business Plan / Strategic Management Fr. 30.03.2012 16:00-20:00 HS 4 Strategic Management Sat. 31.03.2012 09:00-13:00 HS4 Strategic Management Fr. 01.06.2012 16:00-20:00 HS 1 Exam (appr. 2h) Sat. 02.06.2012 09:00-13:00 HS 4 Business Plan Workshop Fr. 29.06.2012 16:00-20:00 HS4 Business Plan Presentations Alternative Dates Sat. 30.06.2012 09:00-13:00 HS 4 Business Plan Presentations Fr. 28.09.2012 16:00-20:00 HS 4 Business Plan Presentations Theory: Lecture Application: Team Projects Students form teams (3 4 students) and will work in these teams throughout the course (including the final Business Plan). Page 1
3. Course Contents Theory of the Entrepreneur / Firm / Innovation Theory 1 : Patterns of Entrepreneurial Activity Patterns of Entry and Exit Theory of the Firm (Schumpeter, Knight, Kirzner and Coase) Innovation as a Driving Force (Schumpeter Mach I & Mach II) Competition and Innovation The Entrepreneurial Plan Theory 2 : Legal Structures Market Research Industry & Competition Analysis Product & Brand Positioning Pricing Strategies Financing & Raising of Capital (Dept and Equity Financing, Venture Capitalists and Business Angles) 1) Student will perform an Industry Analysis: Automotive Industry, Aircraft Industry, Steel Industry, Banking and Insurance Industry, Construction Industry, Mobile Communication Industry, etc. 2) Student will perform a Competition Analysis for a new product launch in a selected industry. Financial Business Plan Theory 3 : Content & Components of a Business Plan (brief introduction) Issues from Accounting and Controlling: Financial Statement (Balance Sheet) & Income Statement (Profit & Loss Statement) - Spread Sheets Capital Budgeting (NPV, IRR, Real Options Approach) Investment Decisions Scenario Technique Students will perform of an Investment Analysis using the discussed methods of capital budgeting 1 Mueller, The Corporation, 2003. Tirole, The Theory of Industrial Organization, 1993 Kuratko, Hodgetts, Entrepreneurship, 2001. 2 Kuratko, Hodgetts, Entrepreneurship, 2001. Dowling, Drumm, Gründungsmanagement, 2002. Porter, Michael E.: Competitive Advantage: Creating and Sustaining Superior Performance, 1998. Porter, Michael E.: Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1980. 3 Buchhaltungs- und Controllingliteratur Page 2
Strategic Management Theory 4 : Strategic Diagnosis Business Strategies and Tools (price, quality, and time competition, value chain analysis) Strategic Controlling, Strategic Planning and Business Analysis (Portfolio Analysis) Internationalization Value Based Management Strategic Response Given the Annual Report of several firms students will develop short- or long-run strategies for the corporation in question. They will establish a set of alternative projects and try to evaluate these projects until a final decision in the team is made. 4. Assessment Students will be examined (i) by an exam, (ii) by their active participation in the course including small team projects and (iii) by their Business Plan which has to be presented at the end of the course. (i) (ii) (iii) Exam: The exam will cover the theoretical issues discussed in class. Active Participation: This point includes class attendance and elaboration of small team projects during the course. These projects will help to translate theoretical knowledge into practical work and will be part of the lecture (no homework). Business Plan: Students will form teams of three to four students and prepare an elaborated Business Plan based on the topics treated in class. For the elaboration of the final Business Plan students will have plenty of time during the semester break. The Business Plans will presumably be presented and evaluated in our last session (or alternatively on a date in beginning of October). The final grade consists of: Exam: 40% Active Participation (team projects): 10% Written Version of the Business Plan: 30% Business Plan Presentation: 20% Final Grades will be distributed according to the following scheme: less than 50 Points: 5 (F) 50-64 Points: 4 (D) 65-78 Points: 3 (C) 79-90 Points: 2 (B) 91-100 Points: 1 (A) 4 Baum, Coenenberg, Günther, Strategisches Controlling, 2004. Ansoff, McDonnell, Implementing Strategic Management, 1990. Ewert, Wagenhofer, Interne Unternehmensrechnung, 1995. Kirsch, Roventa, Bausteine eines Strategischen Managements, 1983. Baum, Coenenberg, Günther, Strategisches Controlling, 2004. Carlberg, Business Analysis with Microsoft Excel, 2002. Page 3
5. Business Plan Students will have to select a publicly listed corporation (national or international) in a specific industry. Based on the available annual reports of that company the students will transfer this corporation in their own corporation (were the students are CEO, CFO, etc.) developing their own name, logo, slogan, etc. The data of the original corporation are the footing of a business plan to be established. Based on the (most current available) annual report students will then develop a five-year strategy for this specific company. 5 The core strategy should be split up unto different strategic projects to archive the strategic goal which should then be evaluated separately. After evaluation and project selection the business plan should be developed based on the selected strategic goal and the selected project to archive this goal. It should cover the needed actions, their costs and benefits, the needed methods and procedures and finally the planned balance sheets and expected profit and loss statements. The project selection as well as the final business plan should be based on the PRO-Scenario Approach (Pessimistic Realistic Optimistic). In the presentation of the business plan students should introduce their strategic goal, the projects available for archiving this goal, the argumentation for the chosen project, as well as the implementation of their recommendations and actions. The business plan should furthermore show in how far their actions served to reach the target at the end of the five-year period. The business plan should be designed and based on standard business plan procedures, however, allowing for deviations due to topics such as project evaluation etc. The priority objective is the implementation of current and accumulated knowledge of the students during their studies beyond the scope of this course. The business plan should serve as a rounding off of so far learned expert knowledge, methodical skills and problem-solving abilities. 6. Literature: Ansoff, I., McDonnell, E., Implementing Strategic Management, 2nd ed., Prentice Hall, 1990. Baum, H.C., Coenenberg, A.G.; Günther, T., Strategisches Controlling, 3. Auflage, Schäffer- Poeschl, 2004. Carlberg, C., Business Analysis with Microsoft Excel, 2nd ed., Que Publishing, 2002. Dowling, M., Drumm, H.J., Gründungsmanagement, Springer, 2002. Ewert, R., Wagenhofer, A., Interne Unternehmensrechnung, 2. Auflage, Springer, 1995. Kirsch, W., Roventa, P., Bausteine eines Strategischen Managements, de Gruyter, 1983. Kuratko, D.F., Hodgetts, R.M., Entrepreneurship, 5th ed., Harcourt College Publishers, 2001. Mueller, D.C., The Corporation Investment, Mergers, and Growth, Routledge, 2003. Porter, M. E., Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, 1998. Porter, M.,E., Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, 1980. Tirole, J., The Theory of Industrial Organization, 6th ed., MIT Press, 1993. 5 Strategic goals are to be developed by students. These strategies can include: expansions and growth topics, (such as expansion of product range, expansion of operations, developing new markets, mergers & acquisitions etc.), environmental topics (such as implementing environmental management, certification, etc.), and many other. Page 4