Loyola Marymount University

Fall 2004  Course Syllabus

COURSE TITLE: International Entrepreneurship

COURSE NUMBER: MBAG/H 698-01

INSTRUCTOR: Dr. Anatoly V. ZHUPLEV Professor Hilton 249 Tel: (310) 338-7414 Fax: (310) 338-3000 E-mail: [email protected]

CLASSES: Wednesday 4:25 – 7:05 pm Hill 107

OFFICE HOURS: Monday: 11:00 AM -1:00 PM Wednesday: 1:30-3:30 PM Friday: 11 AM-1:00 PM, or by appointment

REQUIRED COURSE MATERIALS 1. US Small Business Administration Starting Your Business http://www.sba.gov/starting_business/index.html

2. SBA Guide to Exporting http://www.sba.gov/managing/marketing/exportguide.html

3. A Basic Guide to Exporting. A publication of the U.S. Department of Commerce in Cooperation with Unz & Co., Inc. 1998 edition. http://www.unzco.com/basicguide/toc.html

4. Handouts: will be provided.

COURSE STRUCTURE The MBAG/H 698 focuses on international small business venture initiation process and seeks to develop your knowledge and skills in three key components of international entrepreneurship: . Initiating entrepreneurial venture . Managing basic international business transactions and . Dealing in multicultural business environments.

GOALS: Developing your knowledge and skills in the following areas: 1. The key issues, concepts, and steps in the entrepreneurship. 2. The major sources of information and assistance on domestic and international entrepreneurship, with a focus on electronic databases. 3. The major characteristics of the business environment and the cross-cultural issues in conducting business overseas. 4. Conducting a feasibility study resulting in a business plan for an international small business venture.

Revised: August 29, 2004 MBAG/H 698-01 International Entrepreneurship Fall 2004 Instructor: Anatoly Zhuplev

INSTRUCTIONAL TECHNIQUES The following techniques will be used throughout the course: lectures, individual and group assignments and class presentations, experiential exercises, videos, case analysis and presentations, and others. Since the subject information is disseminated throughout numerous sources, your individual and group contribution and cooperation is crucial and greatly appreciated. An international business/marketing plan will become the major focus and outcome of our course. Based on a business idea and a country of your choice, this project will enable you to apply and test your academic and practical knowledge, as well as the ability to approach contemporary international entrepreneurship issues.

GRADING Final grades will be based on actual points accumulated individually by each student throughout the course. Participation in the group activities will be graded individually – an evaluation form will be provided.

Grading Scale Source: Undergraduate Bulletin A Superior A- Outstanding B+ Very good B Good B- Better than average C+ Above average C Average C- Below average D Poor F Failure

(Letter Grade = % of Total Points) A (4.0) = 100-90% B+ (3.3) = 85-87% C+ (2.3) = 75-77% D (1.0) = 58-67% A- (3.7) = 88-89% B (3.0) = 80-84% C (2.0) = 70-74% F (0.0) < 58% B- (2.7) = 78-79% C- (1.7) = 68-69%

CLASS SESSIONS The class will be based on systematic self-learning, exchange of knowledge and attitudes, cooperation, and use of a variety of ways of learning to reach educational goals and facilitate future professional and business goals accomplishment through the combination of an academic framework, experiential, and practical sources. Entrepreneurship, particularly international entrepreneurship, means uncertainty, proactive thinking and action. Therefore, those who cannot handle uncertainty, make their own judgements, decisions, and use creativity should not take this course. With that, I see my role in the class as a consultant, facilitator, and catalyst, rather than just a disseminator of information. Usually, class will begin with a topic overview, proceed with a student individual/group case presentation, followed by class discussion, watching and discussing a video. Sometimes, class will go in a different direction. Randomly, without preliminary notification, I will test your home preparation (cases, reading, etc.) by conducting pop quizzes or asking you to formulate an opinion/decision based on your home reading. You will be responsible for preparing and conducting presentations, class discussions etc., putting forth all appropriate efforts to make the class efficient and creative.

EXAMS Exams are not cumulative and will include objective (True/False) questions, essays, and case analysis. They will be based on all materials incorporated in the assigned readings, class discussions, cases, written assignments, videos, and other activities taking place throughout the course. A sample of exam questions will be provided approximately one week prior to an exam.

INTERNATIONAL BUSINESS/MARKETING PLAN Goal: developing international entrepreneurial knowledge and skills through conducting a feasibility study of an international business venture start-up as it relates to the country and the product/service chosen. An International Business/Marketing Plan is a comprehensive study, completed in groups or individually, on the

2 MBAG/H 698-01 International Entrepreneurship Fall 2004 Instructor: Anatoly Zhuplev basis of the country and product (service) chosen for an international small business venture. The business plan covers a broad set of IntEnt issues pertaining to an international business venture startup, while the marketing plan is more narrowly focused on marketing for a small business venture expanding or starting up internationally. In our course, “international” means a business originating in the U.S. or a third country, connected with the U.S., and oriented towards other country(ies).The general structure and detailed recommendations on how to write the business plan will be provided. Please use this material as your general guidelines. It will also be used to grade your report.

If you have your own unique international small business venture ideas and want to explore them in your feasibility study, let me know as early as possible for consultations. Your study can be customized according to your specific educational, business, or career needs.

CASE PRESENTATION Goal: developing your skills in analyzing international entrepreneurship issues, finding effective solutions, and communicating them, in a professional manner, to the class. Groups of 2 students each are formed at the students' discretion. Each group picks up one of the 8 mini-cases assigned in the syllabus. Prior to the scheduled class, the group, acting as an international entreprteneurship consulting firm, analyzes the case, prepares solutions/recommendations, and runs a 15-20 minute class discussion of this case. Generically, your case analysis should cover three major elements: (1) the case (major events and players, their background) and a company profile; (2) the business environment as relates to the industry covered by the case, and (3) the country environment in which the case takes place. After having the class discuss the case, the group presents and explains its own solutions/recommendations.  Since I would like to provide my input/feedback and contribute to your success I kindly request you to discuss your case presentation format with me at least a week before the date of presentation. Failure to do so will indicate a lack of proactiveness and result in reduction of your grade.  A copy of a written handout (a PPP outline, 6 slides per page) summarizing your major points is required (15 copies overall).

Evaluation criteria for the case presentation: . Quality of the case analysis, conclusions and recommendations: the depth, arguments, amount of effort put in the studying the issues, additional sources and experiences presented. . Quality of presentation: informative, dynamic, professionally sound, handouts (1-2 pages). . Completeness: additional sources, and relevant information used. Usually, the following components should be included: industry analysis, country analysis, company background, and the key players involved in the case. . Relevance of theoretical and methodological approaches used from the course materials.

CLASS ATTENDANCE Attendance in class is important because, in addition to reading the course materials, you will learn a great deal from videos, discussions, and other activities in class. Moreover, your attendance and participation will contribute to the success of other students. Missing one class results in losing 7% of your attendance grade, 2 classes – 14%, 3 or more classes (21 % of more of the total) will mean a total loss of your attendance grade points.

PERSONAL CONTRIBUTION Your participation and degree of involvement will greatly influence what you actually gain from this course. It will be equally important for your final grade. Your personal attitude toward participation can also have a major impact on the success of the whole course, including that of the other individuals in the class.

3 MBAG/H 698-01 International Entrepreneurship Fall 2004 Instructor: Anatoly Zhuplev

Evaluation criteria: . Completing your home and class assignments. . Preparedness and active involvement in class discussions with constructive contributions. . Contributing your own experience and other interesting outside experiences from various sources.

Assignments Due Dates Allocation, %

EXAMS 35% . Midterm October 20 15 . Final December 15 20

INT’L BUSINESS/MARKETING PLAN 40% . Paper: about 40 pages December 1 30 . Presentation December 8 10

CASE PRESENTATION: (a group of 2: 1 case per group) According to the class schedule 5%

CLASS ATTENDANCE (15 class sessions) Over the course 10%

PERSONAL CONTRIBUTION Over the course 10% (assignments, class participation, contribution)

TOTAL 100%

BASIC POLICIES  Assignments. You are expected to have completed (read and/or written) your home assignments before the class starts, according to the syllabus or assignment specification. Late completion will be penalized by the grade received ( .3 points per two working days overdue).  Broken Obligations. If you are scheduled for class activities and cannot attend, whatever the reason, please do your best to arrange another student in the class to substitute for you. Notify the instructor in advance of this change.  Conflicting Schedules. The "first come - first served" principle will be used in case of conflicting schedules.  Possible Changes. Expect some changes to occur as a result of developing opportunities and efforts to improve the course, e.g., guest speakers, new publications, etc.  Communication. Obviously, entrepreneurship means high uncertainty and requires intensive communication. If you are not certain or have questions, don't hesitate to contact the instructor in a proactive fasshion. Problems have to be discussed and resolved timely, not when it is too late.  Missed Midterm Exams. A make up midterm exam will be allowed only under extraordinary circumstances (e.g. medical illness or death in the family - student must provide a proper supporting document) during the finals week.

Class Schedule and Assignments Date Session Topic/Home Assignment/Class Activities

Sep. 1 1  Introduction and Administrative Matters: Syllabus, Course Format, Exams, Grading Policies, Interaction and Communication, Individual Adjustments. Forming Project Groups.  LMU Library Resources for International Entrepreneurship: presentation by Glenn Johnson-Grau.  Class will meet at LMU Library, Room 204.  Key Concepts, Issues and Factors of Successful Entrepreneurship. Home Assignment SBA: Starting Your Business http://www.sba.gov/starting_business/index.html Read the whole section “Are you ready?” in the Startup Basics section (the Startup Topics box) including four recommended SBA downloads. Be ready to present and discuss your findings and thoughts in class Video: Entrepreneurs (segments: Gillette, Monopoly): What factors made these business ventures a success?

8 2 Start-Up Basics Home Assignment SBA: Starting Your Business http://www.sba.gov/starting_business/index.html . Read: Finding a Niche, Buying a Business, Buying a Franchise, Protecting Your Ideas, and Product Basics. . Glance through the Start-Up Guide, and go through the Checklist For Starting a Business. This exercise will give you a big picture of a small business venture start-up process and related issues. Later, we will study some of these issues in more detail.  Project Group Meeting #1. Agenda: Product and Country Alternatives, Business Strategies. Look through sample business plans most appealing to you at http://www.bplan.com/samples/sba.cfm Select 3 alternative topics and look for good teammates for the term project. Video: Entrepreneurs (segments: MTV, Famous Amos): What factors made these business ventures a success?

15 3  Developing a Business Plan: the Structure, Requirements, Pitfalls, and International Implications. Home Assignment SBA: Starting Your Business http://www.sba.gov/starting_business/index.html . Read: Business Plan Basics, Writing Business Plan, and Using Business Plan. Please read this chapter carefully: it is the heart of entrepreneurship. . Handout A: Read, find weaknesses existing in this business plan and learn for yourself. Bring a 1-page written summary of your home analysis in a memo format. Be ready to discuss the case and defend your critical judgement in class. Don’t repeat the same mistakes in developing your own business plan!

22 4  Legal Issues. Home Assignment: SBA: Starting Your Business http://www.sba.gov/starting_business/index.html . Read: Forms of Ownership, Licenses and Permits, and Business Laws (in this section you can find a wealth of useful business law information). Also look at the Plain English Guides on the left hand side of the http://www.businesslaw.gov/index.htm web site for specifics on legal aspects of doing business. . Handout B: Essay. Learn lessons in the small business start-up planning, management, and financing.

29 5  Financing. Home Assignment: SBA: Starting Your Business http://www.sba.gov/starting_business/index.html . Read: Financial Basics, Estimating Costs, Finding Capital, Personal vs. Business, Applying for a Loan, Small Business Lenders, and Understanding Financial Statements. . Case 1: Give your answers to questions 1-3 (verbal). . Handout C: Essay: Learn lessons in business angel financing.  Project Meeting #2. Agenda: Finalizing business ideas, strategies, and the most important details. Video: Growing Global: A Business of Details Oct. 6 6  International Business Environment: Opportunities, Barriers, and Strategic Entry Implications. Home Assignment: SBA Guide to Exporting http://www.sba.gov/oit/info/Guide-To-Exporting/ . Ch. 1. Making the Export Decision. International Business Plan. . Ch. 2. Identifying International Markets. Ch. 3. Foreign Market Entry. . Case 2. Video: Going International (Part 2).

13 7 Midterm Exam 2: Covers sessions 1-6. Bring a SCANTRON (Form 882), a pen, and a #2 pencil. No Blue Book is needed. Video: Made in America. Learn about U.S. companies’ success stories in Japan.

20 8  International Market Research and Marketing. Home Assignment: A Basic Guide to Exporting http://www.unzco.com/basicguide/toc.html . Ch. 2. Developing a Market Plan. . Case 3.

27 9 Exporting: Planning, Product Preparation; Export of Services; Documentation, Shipping and Logistics Home Assignment: SBA Guide to Exporting http://www.sba.gov/oit/info/Guide-To-Exporting/ . Ch. 4. Export Transaction. Ch. 6. Transporting Goods Internationally. . Case 4. Nov.. 3 10  International Legal Considerations.  Methods of Payment and Financial Transactions. Home Assignment: A Basic Guide to Exporting http://www.unzco.com/basicguide/toc.html . Ch. 9. International legal Considerations. . Ch. 12. Methods of Payment. . Case 5.

10 11  International Business Venturing: China. Home Assignment: Country Commercial Guide: China. Go to LMU Library => click on the STAT-USA database => click on GLOBUS & NTDB => click on “Country Commercial Guides” => click on China. . Case 6. Video: Doing Business in China: Building the Relationships.

17 12  International Business Venturing: Mexico. Home Assignment: Country Commercial Guide: Mexico. Video: Working with Americans. Due date to submit a draft of your international business/marketing plan for review and feedback.

24 13  International Business Venturing: Russia. Home Assignment: Country Commercial Guide: Russia. . Case: 7. Project Meeting #4. Agenda: Finalizing the project. Questions, consultations. Video: To Russia with Fries Dec. 1 14  International Business Venturing: the European Union. Home Assignment: Country Commercial Guide: European Union. . Case 8.  International business/marketing plan is due.  Peer evaluation is due.

8 15 Business plan Presentations: Groups 1, 2, 3, 4, 5. Please choose your presentation spot on a first come, first served basis.

Dec 16 FINAL EXAM Covers sessions 8-14. Time allocation: 2 hours. 15 Bring a SCANTRON (Form 882), a pen, and a #2 pencil. No Blue Book is needed.

Peer Evaluation Form (Confidential)

Please use this form to evaluate the contribution of each member of your group, including yourself, to the project. It is designed to measure each team member's level of participation in the group project.

PROJECT TOPIC ______DATE OF PRESENTATION ______

To evaluate every group member, simply divide 100 points (roundup your numbers) between the group members in proportion to their actual contribution to the group project. For example, your assessment of 5 members of your group might be as follows: 20, 25, 25, 10, and 20; for a 6-member group it might be: 15, 20, 25, 10, 15, and 15; etc.

EVALUATION CRITERIA 1. Participation in team and business meetings 2. Willingness to accept assigned/selectedtasks, and their timely completion 3. Initiative, resourcefulness, innovation 4. Quality of work 5. Contribution to overall effort 6. Maturity, attitude, professional conduct 7. Overall cooperation, truly a team member

Group Members’ Names Group Comments, If Any Please include yours Members’ Scores Please round-up 1 .

6 . Total=100

. Student can be fired from the group project if his/her individual project grade is less than 60 points. . Individual project grade is calculated as the group grade multiplied by an individual peer evaluation coefficient (calculated by the instructor). Examples:  the group’s papergrade is 86; student’s individual peer evaluation score is 0.95; student’s individual grade is: 86*.95=82.

 the group’s papergrade is 86; student’s individual peer evaluation score is 1.05; student’s individual grade is: 86*1.05=90.

. Please fold this form, give it to me. If you prefer, bring it to my office, or slip it under the door in my office.

Please fill out and return by Dec. 1

Student Information List (Confidential)

NAME ______Please print! Last First

Name you would like instructor to call you in class ______

Contact Information: Phone: ______FAX: ______e-mail: ______

Some facts about yourself:

Your expectations of this course and instructor:

Your personal strengths that you could contribute to class:

Your expectations of others' contributions to class:

Your proposals on change in the format of the course:

Please fill out and return by Sep 8.