MGMT 348 -
Entrepreneurship
|
Professor Information: Dr. Jeff Shay
Office:
GBB 323 Office
Phone: 243-5880 Home
Phone: 543-8488 (until Email:
jshay@business.umt.edu Office Hours: M: |
|
This course is designed to provide
students with the knowledge, skills, and abilities necessary to plan, finance,
develop and operate either a new business venture. It concentrates on
attributes of entrepreneurs, searching for viable opportunities, and gathering
the resources necessary to convert a viable opportunity into a new business
venture. Students learn how to evaluate
entrepreneurs and their business plans.
In addition, students work in teams to develop a business plan for a
high potential new business venture that they have developed.
COURSE OBJECTIVES AND TEACHING METHODOLOGY
This course concentrates on:
searching the environment for new venture opportunities; matching an
individual’s skill set with a new venture opportunity; evaluating the viability
of a new venture; obtaining financial resources for a new venture; and starting
up and operating a new venture.
This course uses a combination of
lectures, case studies, guest speakers, class discussions, and experiential
exercises in order to expose students to the challenges that entrepreneurs face
in conceiving, planning, financing, and operating a new business venture. This experience provides students with a
framework that can be applied to assessing their own business ideas in the
future.
The main project for the semester is
for student teams of four to five students to develop a business plan for their
own new business venture. Each team
member is required to generate ideas for three
different new ventures. Each member
then presents his or her ideas to the rest of the team members. From the ideas generated by individual team
members each team is required to select one idea that it judges to be the most
viable new venture. The team will then
write a business plan over the course of the semester. Business plans are to be no longer than 40 pages, including text and supporting
exhibits.
Although not all business plans
generated by the class will result in an actual new business start-up, there
are numerous examples of multi-million dollar ventures that were started in
entrepreneurship courses (we’ll read a few cases that will provide
examples). The experience students gain
through this project will be valuable for starting their own business in the
future as well as for those who will work with entrepreneurs in the future as
investors, bankers, lawyers, etc.
This
year all business plans will be submitted to the Montana Business Plan
Competition.
More
information on the business plan is provided later in the syllabus.
Cases: Cases will be analyzed by students before class sessions
and discussed in terms of the entrepreneurial issues and strategic
recommendations for the new business venture.
If you have not read the case and done significant preparations, your
class participation grade will be reflective of your lack of effort.
Exercises: Several exercises will be used
throughout the semester in order to provide the opportunity for you to apply
conceptual material to real business situations.
This course has
several prerequisites. As a student
enrolled in an upper-level course, I expect that you have significant
proficiency in all business disciplines (i.e., accounting, finance, marketing,
organizational behavior, human resource management, etc.). With this in mind, if you feel weak in any
specific area(s) you should be prepared to allocate extra time to rejuvenate
your skills. During the semester we will
be engaging in high-level discussions that will require you to have such
expertise. If at any time you feel like
class discussions are not clear, please be sure to meet with me after class and
I will be sure to clarify and/or point you in the direction of additional
sources of information.
Warning: This class requires significant
financial skills in order to contribute to your group’s work. Writing a business plan, a central part of
this course, requires skills beyond coming up with a novel idea for a
business. It requires understanding the
interconnectedness of income statements, balance sheets, and cash flow
statements. You may want to review your
old texts. If you are weak in finance, or do not prefer courses with financial
content, then please speak with me further.
STUDENT EVALUATION
General comment:
Grading in this course is competitive.
You will be evaluated relative to the work that your classmates submit.
Individual:
Class contribution 20%
Peer evaluation of your work 30%
Group:
Written case analysis #1 10%
Written case analysis #2 10%
Group slides for case studies 10%
Business Plan and Presentation 20%
TOTAL 100%
Note: An intricate instrument has been developed for assessing your class contribution and peer evaluation scores. Be sure to complete the form online at the end of the semester.
As mentioned
above, class contribution will play an integral role in how much learning takes
place during the semester. Your
contribution will be evaluated in terms of the value you add to class
discussions. Both quality and quantity
will be evaluated. This requires not
only completing assigned readings but also coming to class with prepared
questions and arguments regarding what the assigned reading has tried to
convey. The most valuable contribution
that students can make comes through integrating assigned readings with what
you have learned from other courses with what you have experienced in the
outside world. Comments or behaviors
that detract from the learning environment will have a significant and negative
impact on your grade.
You are required
to complete the “Class Contribution” form provided online. This form allows you to assess your own
contribution as well as other team members.
The areas of evaluation are: class attendance, contribution frequency,
and contribution quality. These scores
will be used in addition to the professor’s assessment to determine the grade
you have earned for class contribution.
Group
For each case
study not requiring a written report, your team should complete the following
analysis:
Your group is
required to bring at least a one-page transparency to each class. These are to be submitted via email to
Professor Shay at: jshay@business.umt.edu.
This transparency should include a model, exhibit, or summary that will add to
the class discussion. More importantly, the slide should make a significant
contribution to the discussion and demonstrate a high degree of analytical
thought. You should be as detailed as possible.
I suggest looking at the exhibits from past strategic plans that are
posted on the Web. Your team is
responsible for turning in a hard copy portfolio of these exhibits at the end
of the semester.
Writing the
analysis of a case study may be something you are unfamiliar with. However, developing the skills required for
writing such a report is important. Analyze,
don’t report! The analysis should
not simply restate the facts in the case, but instead should take our
understanding of what is happening in the case to a higher level. Demonstration of a high level of
understanding requires application of the various concepts and models to that
bring greater clarity to the situation in the case. Discussion questions for each case are
provided at the end of this syllabus.
Use these to help generate your analysis but do not simply answer
these questions. In addition, one of our first class sessions will be
devoted to case studies and how to conduct a thorough analysis.
Case analysis
format:
I.
Cover
page (Page 1)
a.
Include
the name of the case and all contributing team members.
II.
Executive
Summary (Page 2)
a.
Statement
covering the contents of the case analysis. Should include brief assessment of
situation, strategic recommendations, and expected results of recommended
strategy.
b.
Maximum
of 2 paragraphs and about ˝ page single-spaced.
c.
Should
be the last part of the report to be written.
d.
Take
your time writing this, I like when it is done well.
III.
Situation
analysis, strategic alternatives (usually three), recommended strategy, and
implementation plan (Pages 3-7)
a.
This
whole section should be no longer than 5 typed pages following these formatting
guidelines:
i.
Double-spaced,
12 point times new roman font, 1.25 inch right and left margins and 1 inch top
and bottom margins
b.
Situation analysis
i.
At
least two pages if not more and apply the various concepts, theories, and ideas
from the text. Can include:
1.
Defining
the company: Who are the customers? What need is being satisfied? What core
competencies does this company possess that make it better in satisfying
customer needs?
2.
E-O-R
Analysis, and 3 M’s Analysis
3.
Macro-environmental
analysis: Forces affecting the industry (social, technological, economic,
political./legal, etc.)
4.
Industry
analysis: Application of Porter’s Five Forces Model
5.
Generic
strategy – low cost, differentiation, broad or narrow focus
6.
Generic
Competitive Advantage Building Blocks – Efficiency, Innovation, Quality, and
Customer Responsiveness
7.
Core
competencies: Identify
8.
Other
models: BCG Matrix, etc.
9.
DO
NOT DO A SWOT ANALYSES
c.
Strategic
alternatives
i.
Describe
three strategic alternatives that your group identified
ii.
Describe
the two that you didn’t choose first, clearly identifying the strengths and
weaknesses of these alternatives
d.
Recommended
strategic alternative and implementation plan
i.
Recommended
strategy: Clearly describe the strengths and weaknesses of the strategy. Indicate how the strategy fits with your
Situation Analysis and addresses the concerns outlined in that section.
ii.
Implementation
plan: This section should identify the process by which the strategy can and
should be implemented. You should
include the various risks and/or challenges that should be considered.
iii.
Use
the following implementation mechanisms:
1. Formalization
2. Organizational Structure
3. Management Processes –
coordination and configuration
e. Exhibits
(pages 8-12)
i.
You are allowed up to 5 pages of exhibits, I
strongly recommend that you take advantage of these exhibits. You may have more than one exhibit per page.
ii.
Do not include irrelevant exhibits. All exhibits should be referred to in the
text and add value to your report.
iii.
Do not include exhibits that represent just text
without any analysis. For example,
including an exhibit with the company’s mission statement will not help. You must analyze.
iv.
Do not photocopy exhibits from the text, reproduce
them in PowerPoint and add your own analysis.
Simply photocopying a model from the text or an exhibit from the case
does not add value. If you want to refer
to an exhibit from the case, simply do so as “see Exhibit #2 in the case”.
v.
Exhibits should be numbered in the order in which
they are referenced in the text portion of your report. Failure to do so indicates a lack of effort
from my perspective.
I will be critical of papers that do not
follow these guidelines. This is done with the purpose of helping
you learn to write in a concise, yet thorough manner. The written section will be evaluated as a
professional report. This means that the
report is representative of one that you would expect to read or produce if you
were currently working in the industry.
This means the paper should not have grammar, typing, or spelling
errors. It should be professionally
presented. Please note: Professional presentation does not mean that because you
spend more money than your classmates on plastic binders and a slick color
cover page you will receive a higher grade.
I can see through the fluff, believe me.
Important notes
There is no
right or wrong answer to a case study. I
will not provide “the answer”, so please don’t ask. Also, what the company has done since the
case study was written does not matter.
They may have been better off with a different strategy. Reports that utilize information that was
available after the case was written will receive a lower grade. There is no need to do research on the
company outside of what is provided in the case. Economic figures (e.g., inflation, interest
rates, etc.) and competitor information available during the time of the case
are acceptable for incorporating in your analysis.
DUE TO THE NATURE OF CASE STUDIES, LATE PAPERS WILL NOT BE ACCEPTED.
Students should
come to class prepared to discuss the case studies. Because you are required to turn in your
written case studies at the beginning of class, you might want to make an extra
copy so that you have it with you for the discussion. HINT:
You may want to email your whole set of exhibits to the professor before class
so that we can use them in our discussion of the case.
The final
business plan that you turn in is likely to be lengthy, but should be no more than 40 pages long including
text and exhibits. The text portion
is to be no longer than 25 pages. You
are to submit one high quality copy,
one regular copy for grading, and one copy for submission to the business plan
competition. The document should
contain all information necessary for an investor to evaluate the business and
its potential. You are a group of
entrepreneurs starting your own business.
As such, I expect that the work will be done solely by your group and
with occasional assistance from either myself or from one of the Business School
Faculty members.
Research for
your business plan should extend beyond reliance on the Internet. There are numerous sources of market data
available. When you do use data from an
Internet source the source should be cited and should be a reliable, recognizable
source of data. For example, using
Fred’s Market Data would not be considered reliable. In contrast, using government census data
would be considered reliable.
Final Business Plan Presentations
Your
group will provide a presentation of your business plan to the class during one
of the final class sessions. The
Professor will determine the length of these presentations. There may be additional judges invited at my
discretion. The presentations are
expected to be formal, as if you were presenting the business to a group of
potential investors. As such, all
students (including those not scheduled to present) are expected to dress in formal
business attire. Should your
group require audio/visual equipment, please inform me one week in advance.
Your entire group is expected to attend
all presentations. No exceptions. Failure to attend will significantly affect
your course grade.
Presentation to external judges
The entrepreneurship class will meet for one night
session at the end of the semester for external judges to see student
presentations. Results from the judges’
assessment of the written business plan will be announced at that time. Five plans will be selected for presentation
to the external judges. Teams will
present in the same format as in class but should be prepared for questions
from the business plan as well. The date
and time for these presentations will be announced during the class.
NOTE: Your group should bring back up transparency
slides for the presentation in case equipment does not work. Regardless of equipment failure your group
will be required to present on its scheduled day and time.
Your success in the business world will depend,
to a large extent, on your ability to communicate. Courses during your first
few years at the
Substance: You should substantiate what you are trying to convey with facts and data. In most cases, you will be asking the reader of your business report to commit substantial resources--financial, human, or physical--to a project. The decision-maker will not make the decision because you think is a good concept. Rather, you will need to convince the reader by providing hard facts and data with appropriate citations. Your rationale and reasoning should be explained logically and clearly. Effective business reports are not documents put together at the last minute—they take time to develop.
Style: The style of your business reports should be clear, concise, and to the point. The executive reading the report does not want to be entertained. He or she wants the information necessary to make a decision. Avoid flowery language with lots of adjectives and adverbs. Don't use the term "big nail" if the word "spike" more accurately conveys the idea. I have high expectations. If you want to excel in the business world you should too.
Outline: Most word processing software includes an outlining function. Use it. Begin your business reports by developing an outline to organize your thoughts and the concepts you are trying to convey. The more comprehensive and detailed your outline, the easier it will be to write the report.
Proofread: Carefully proofread each draft of the report. You will probably need three or four drafts before you are satisfied with the report.
Exhibits/Appendices: I do not expect to receive exhibits or appendices with your handwriting on them. Instead, you should have typed exhibit numbers (let me know if you want some help). This includes copying exhibits from other sources. Unless you are using a photograph that cannot be reproduced in PowerPoint, I expect you to make models, charts, and spreadsheets on your own. This takes time but it is all part of being professional. If you require assistance, please inquire with Dr. Shay.
Due dates: Reports are due on the dates assigned and at the start of our business meetings. Late reports will have the grade lowered accordingly. Late case study analyses will not be accepted and will receive a grade of zero.
Grading: Reports will be graded as if I were an executive trying to make a business decision based upon the written report. Grading will be competitive. That is, your reports will be graded relative to those turned in by your classmates. Proper spelling, syntax, grammar, punctuation, bibliography, citations, footnotes, and professional appearance are expected. Your grade may be lowered as much as two full letter grades if these areas are lacking.
Reviewing papers: My policy is not to
review student papers before they are turned in for grading. I am, however, willing to discuss the logical
reasoning and proposed content of your reports.
Before visiting my office you should have made significant progress and
should be well prepared.
Plagiarism: Don’t do it. I have no mercy. Plagiarism includes taking
exhibits from books without giving credit and taking any exhibit from another
group.
Forming a strong
team is central to successful entrepreneurial ventures. Forming such a team for this class is also
very important. Selecting individuals
with whom you will work during the semester is a key part in this class. Your
decision should not be made lightly.
Although getting along with the other members of your team is important,
for the assignments are required to do in this class it is much more important
that you select team members with a wide range of skills and abilities. This means that you should come to class on the
scheduled day prepared with questions that you will ask other students
regarding their industry experience, relevant course work, work styles, and
motivations for taking advantage of the learning opportunities provided in this
course. I will provide ample time during
this class for you to assess who will be a member of your team. I will also set the group size and require
that all groups comply. This might
mean that some smaller groups may be divided up in order to fill out other
groups. Each team, once established,
will turn in a sheet of paper listing the members of and a name for your team.
TERMINATION
OF ONE OR MORE TEAM MEMBERS’ CONTRACTS
Due to the
nature of the group work required in this class, there is the option that
individual contracts with a particular group may be terminated at any time up
to the last week of the semester. To
terminate a contract, ALL other team members must agree with the termination
and submit a signed statement describing why the contract has been terminated
to Professor Shay and to the individual being dismissed. Individuals who are dismissed from their
group have two choices: 1) complete a business plan and any other group work on
their own, or 2) negotiate entrance into another group in the class.
Termination
letters should first be presented to Professor Shay and should be in business
language and style. Please see Professor
Shay if you would like further details.
PEER EVALUATION OF TEAM MEMBERS
Online forms
have been developed for evaluating the performance on case studies and the
business plan. I strongly suggest
that you check these forms out early in the semester so that you fully
understand the criterion on which you will be evaluated.
In addition,
this form asks that you evaluate your own contribution to the class and the
contribution that your team members made to the class as well. I will use these grades along with my own to
evaluation the class contribution of each student.
Wk
|
Date |
Topic |
Assigned
|
Case /Speaker/ Video/Activity |
Assignments |
|
1 |
4-Sep |
Course Overview |
|
Getting to know you exercise Photos,
info cards |
|
|
2 |
9-Sep |
The Entrepreneurial Process |
B:
1 |
Students
have 1 minute to present business ideas |
Come
to class prepared to describe the business you are interested in |
|
2 |
11-Sep |
Analyzing Case Studies |
|
Robin
Hood, INC. Team
selection |
Come
to class with a list of questions you will ask prospective team members |
|
3 |
16-Sep |
Recognizing and assessing
entrepreneurial opportunities |
B:
2 |
Evaluating
core skills exercise Generating
business ideas exercise |
Meet
with group to discuss business ideas |
|
3 |
18-Sep |
Case discussion |
|
Scott
Tomkins (A)
before class Scott
Tomkins (B)
distributed in class |
Turn
in one page description of business Discuss
case with team before class |
|
4 |
23-Sep |
Selecting an entry strategy |
B:
3 |
Venture
opportunity profile exercises |
|
|
4 |
25-Sep |
Case discussion |
|
ClearVue |
Written
case analysis #1 due (group) |
|
5 |
30-Sep |
Marketing issues for
entrepreneurs |
B:
4 |
Marketing
exercise |
|
|
5 |
2-Oct |
Case discussion |
|
WinSales |
|
|
6 |
7-Oct |
Developing a successful business
plan |
B:
5 |
Marketing
and sales video |
|
|
6 |
9-Oct |
Case discussion |
|
Jack
Sprat’s Restaurant |
|
|
7 |
14-Oct |
Financial projections |
B:
6 |
Writing
a business plan exercise Developing
financial statements handout |
|
|
7 |
16-Oct |
Video and discussion |
|
Finding
financing video Finding
financing exercise |
|
|
8 |
21-Oct |
Venture Capital |
B:
7 |
Financing
Growth Video |
|
|
8 |
23-Oct |
Case discussion |
|
Beautiful
Legs by Post |
Written
case analysis #2 due (group) |
|
9 |
28-Oct |
Debt and other forms of financing |
B:
8 |
Debt
and other forms of financing exercise Managing
Growth Video |
|
|
9 |
30-Oct |
Financing opportunities in |
|
Guest
speaker: |
|
|
10 |
4-Nov |
Franchising as a form of
entrepreneurship Bagelz Case Study |
B:
12 |
Bagelz |
|
|
10 |
6-Nov |
Harvesting your new venture |
B:
14 |
Financing
growth video |
|
|
11 |
11-Nov |
No Class – Veterans Day |
|
|
|
|
11 |
13-Nov |
Legal and Tax Issues |
B:
10 |
Sign
of the Whale video Legal
and tax issues exercise |
|
|
12 |
18-Nov |
Guest speaker |
|
Thad Hughes – William Baldassin Law Firm |
|
|
12 |
20-Nov |
Evaluating business plans |
|
Teams are matched up and consult
on business plans Provide feedback by Friday Nov.
22nd |
Bring completed sections of business
plan to class |
|
13 |
25-Nov |
Review of consulting experience |
|
|
Turn
in completed business plan |
|
13 |
27-Nov |
NO
CLASS - THANKSGIVING |
|
|
|
|
14 |
2-Dec |
Business plan presentations in
class |
|
|
Teams
present business plans in class |
|
14 |
4-Dec |
Business plan presentations in
class |
|
|
Teams
present business plans in class |
|
15 |
9-Dec |
Business plan presentations in
class |
|
|
Teams
present business plans in class |
|
15 |
11-Dec |
Business plan presentations in
class |
|
|
Teams
present business plans in class |
|
15 |
TBA |
Business plan presentations to
external judges |
|
|
Business
plan presentations to external judges |