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Course Outline for BUS 451 — Small Business & Entrepreneurship Sonoma State University Stevenson Hall 3049 Monday-Wednesday: Noon – 1:50p.m. August 27 – December 15, 2008
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Does this look like a big business to you, Stilman?
Dr. Armand Gilinsky Professor of Business Stevenson 2026F: 707.664.2709 (MW 3-4 pm & by appointment) Sonoma State University Rohnert Park, CA 94928 USA [email protected]
BUS 451-01: 7/29/08 FINAL BUS 451-01 — Fall 2008 Dr. Gilinsky/page 2
COURSE OUTLINE
Required Texts (on sale in the SSU Bookstore) Katz, J. A. & Green, R. P. (2009) Entrepreneurial Small Business, 2/E, New York: McGraw-Hill. ISBN: 007340506x Case studies & supplemental readings — please download from the instructor's website.
Required Readings (on reserve in the Jean & Charles Schulz Information Center) Arkebauer, J.B. (1995) The McGraw-Hill Guide to Writing a High-Impact Business Plan, New York: McGraw-Hill. [Please read all by October 13, 2008.] Kawasaki, G. (2004) The Art of the Start. New York: Portfolio. [Please read all by December 1, 2008] Levinson, J.C. (1998) Guerrilla Marketing: Secrets for Making Big Profits from Your Small Business. New York: Houghton Mifflin. [Please read all by November 12, 2008.] Timmons, J. & Spinelli, S. (2006) New Venture Creation, 7/E, New York: McGraw-Hill/Irwin. [Please read all of Chapter 4 by October 1, 2008.]
Instructor’s website: www.sonoma.edu/users/g/gilinsky/ Username: gilinsky Password: to be announced in class
By accepting this learning contract, I (the student) also agree to abide by and comply with the terms of the University’s Honor Code.
Course Prerequisite You need to have successfully completed BUS 360 or its equivalent in order to take this course. Working knowledge of financial and managerial accounting and/or an introductory finance course will also be essential for you to complete the semester course project.
Course Objectives and Project The aims of this course are to develop your capacity for small business and entrepreneurial management and provide practice in conducting research and action planning to capitalize on a selected opportunity. Opportunity recognition is a critical learning skill for an entrepreneur or small business owner. Working in teams, you will learn how to identify, conceptualize, plan, finance, launch, manage, and develop growth opportunities for selected small business ventures. In established firms, this process is called “Intrapreneurship,” according to Gifford Pinchot. We will also examine how small businesses foster diversity and ethical practices. Class discussion, readings, case studies, guest speakers, interviews with entrepreneurs and small business owners, and the “Live Venture” course project and judges’ evaluations are the learning tools. Your semester project is developed throughout this course and involves the comprehensive evaluation of an existing small business and a growth opportunity for that business, identified and analyzed by your venture team.
Your Live Venture project (please see pp. 5-6) may be a diversification opportunity based upon your own idea; a franchising opportunity; a corporate “new venture” project or product within an existing business; a buy-out of another business; a spin-off from an existing corporation; a business plan for a non-profit organization or public social services agency; or a strategic plan for a family business that you plan to enter. Your team will identify the semester project, or choose from a list of possible ventures provided by the instructor or by invited special guests, and submitted as a proposal in outline form on September 24th.
This should be a practical experience for you. Whenever possible, contact individuals with the proper expertise, e.g., to determine the cost of capital and collateral requirements for a loan, speak to a BUS 451-01 — Fall 2008 Dr. Gilinsky/page 3
venture capital firm or a bank; to determine the cost of a specific piece of equipment, speak to an equipment supplier; to determine the feasibility of market entry, visit competing businesses, etc. Seek out both primary and secondary sources of data, particularly for the industry and marketing sections of the opportunity assessment. Consider doing a survey or conducting a focus group to gain necessary consumer information. You must quantify the size of your total market and target market subsets. Use both the hard copy reference books (e.g. Standard & Poor’s Industry Surveys) and the electronic databases (e.g. ProQuest, ABI/Inform, Lexis/Nexis, and Factiva) in the Schulz Info Center. Rick Robison will provide an orientation to these reference tools in Shultz 2050 on October 1st.
Course Requirements & Grading Final grades will be on a curve, with the top 20% of the section receiving “A or A-,” the middle 70% receiving “B+/B/B-,” and the bottom 10% receiving grades in the “C” or “D” range.
Written case analysis (Six individual “Issue Briefs”— see pp. 10 & 11)...... 30% Quiz on Katz & Green text (in-class, multiple guess, November 24th)...... 10% Course project (see pp. 5–9 for individual and team assignments and weights)...... 40% Class participation, attendance and preparation (see p. 13) ...... 20% Total...... 100% NOTES: Attendance will be taken at all class sessions. Each student is permitted one (1) unexcused absence, except during the final presentation sequence in December.
COURSE CALENDAR
Week(s) Dates Topics Reading/Assignment
1 8/27 Syllabus; The Importance of Small Business; Scoping Pick up Syllabus & sign-in Opportunity; New Ways of Seeing; Team-building Intro lecture, class cards Preview Assn. #1 Video: “Dead Poets Society”
2 9/3 Small Business as a Career; A Model of Katz & Green: Ch. 1 Entrepreneurial Leadership Styles; “Small Wins” (in- ASSN. #1: One-Page class interviews, see p. 13) Résumé + Career Goals (see Preview Assn. #2 p. 7 for detail); Class Cards w/head photo
3 9/8 Opportunity Recognition; International Katz & Green: Chs. 3 & 20 Entrepreneurship; Assessing Venture Feasibility; Case: “Koots Green Tea” Business Life Cycles (Instructor website) Preview Assns. #3 & #4 ASSN. #2: KGT Issue Brief (individual)
9/10 Idea Generation and Screening Katz & Green: Ch. 4 Guests: TBA Observe entrepreneurs in class Idea Generation exercise (handout)
4 9/15 Student interviews with entrepreneurs and small Fieldwork – no class meeting. business owners at their place of business
9/17 Start-up Strategies; Lifestyle, Social and Rapid Katz & Green: Chs. 5 & 6 Growth Ventures; Do I Need a Business Plan? ASSN #3: Interviews with BUS 451-01 — Fall 2008 Dr. Gilinsky/page 4
Week(s) Dates Topics Reading/Assignment
entrepreneurs (individual) 5 9/22 The Live Venture Team ASSN. #4, Creating the Live Venture Team
9/24 Scoping the Live Venture Team’s Scope of Work Teams schedule meeting with Return Assns #1 & #2; Preview Assns #5 & #6 LiveVenture client and prepare Scope of Work w/ roles & responsibilities of individual team members ASSN. #5: Team Scope of Work (team)
6 9/29 Venture Team Dynamics; Managing Human Katz & Green: Chs. 2 & 19 Resources; Diversity; Managerial Case: “The Happy Holidays Communications; High Technology Memo” (website) Ventures; Venture Capital; The ASSN. #6: HHM Issue Brief Transacter’s Dilemma and Entrepreneurial (individual) Ethics Return Assn #3; Preview Assn #6 10/1 Information Resources for Industry Analysis and Read: Timmons & Spinelli, Market Research NOTE: Teams meet in Ch. 4 (all -- on Shultz 2050, Noon - 1:00 pm with Rick reserve in Shultz) Robison
7 10/6 Analyzing Industries; Competitive Strategy Katz & Green: Ch. 7 Return Assn #5; Preview Assn #7
10/8 Porter’s Five Forces Analysis; Competitive Positions; Katz & Green: Ch. 8 The Innovator’s Dilemma and Entrepreneurial Ethics Read: Porter, “How Guest speaker: TBA Competitive Forces Shape Strategy” (website) Case: “Mendocino Brewing Company - 1996” (website) ASSN. #7: MBC Issue Brief (individual)
8 10/13 Business Plans Read: Arkebauer (All -- on Return Assns #6 & #7; Preview Assn #8 reserve in Schulz)
10/15 Business Plan Evaluation; Risk Management; Legal Katz & Green: Chs. 17 & 18 Issues; Social Responsibility & Entrepreneurial Ethics Case: “Hookah Haven” (handout) ASSN. #8: HOOK Issue Brief (individual)
9 10/20 Market Analysis; Marketing Plans; 4P Strategies Katz & Green: Chs. 9 & 12 Return Assn #8; Preview Assns #9 & #10
10/22 Justifying the Top Line Forecast; Diversity; Case: “Nadior Corporation Intrapreneurship; Technology Strategy; Ltd.” (website) BUS 451-01 — Fall 2008 Dr. Gilinsky/page 5
Week(s) Dates Topics Reading/Assignment
The Promoter’s Dilemma and ASSN. #9: NAD Issue brief Entrepreneurial Ethics (individual)
10 10/27 Teams Work on Industry and Competitor Analyses Team meetings – in class Return Assn. #9; Preview Assn. #10
10/29 Teams Work on Industry and Competitor Analyses; Fieldwork: Teams schedule Review Progress w/ Your Live Venture meetings w/ LV clients Client 11 11/3 Teams Present Industry Analyses (selected) ASSN #10: Industry Preview Assn. #11 Analysis (team)
11/5 Importance of Cash Flow; Financial Ratio Analysis; Katz & Green: Chs. 13 & 14 Developing Forecasting Assumptions Read: “A Note on Ratio Analysis” (Instructor website) Run the numbers!
12 11/10 Pro forma Financial Forecasts; Venture Valuation; Katz & Green: Chs. 15 & 16 Debt v. Equity Financing; Harvesting the Venture Case: “Sula Vineyards” (website) ASSN. #11: SULA Issue brief (individual)
11/12 Teams Work on Market Research Reports (Assn. #12) Katz & Green, Chs. 10 & 11 Read: Levinson, “Guerrilla Marketing” (All – on reserve in Shultz)
13 11/17 Review Progress w/ Your Live Venture Client Fieldwork: Teams schedule meetings w/ LV clients
11/19 Teams Present Market Research Reports ASSN. #12: Market Review for Midterm Quiz (Assn. #13) Research (team) Schedule 12/1 & 12/3 ‘dress rehearsals’ + 12/8 & 12/10 final presentations Return Assn. #9
14 11/24 Midterm Quiz on Katz & Green text (all) ASSN #13: Quiz (individual, Return Assns. #11 & #12 in class)
11/26 Thanksgiving Holiday – No Class
15 12/1 Videotaped presentation and review of Final Projects Kawasaki, The Art of the Start & (‘dress rehearsals’ w/ instructor – 5 minutes per team) (All – on reserve in Shultz) 12/3 Return Midterm Quiz (Assn. #13); Preview Assn. #14 See schedule for presentation Teams work on presentations and final papers! times + presentation tips
15 12/8 Final Presentations – in class ASSN #14: Compilation & & Guest judges: TBA Presentation (All teams) 12/10 Course Evaluations BUS 451-01 — Fall 2008 Dr. Gilinsky/page 6
Week(s) Dates Topics Reading/Assignment
16 12/15 Course Wrap-up – 2 p.m. In class BUS 451-01 — Fall 2008 Dr. Gilinsky/page 7
COURSE PROJECT: “LIVE VENTURE” PAPER & PRESENTATION
OVERVIEW: Working in teams, you will be assigned to a local business to evaluate and conduct opportunity analysis. Part of the assignment includes interviewing at least 3 members of the executive team. In addition to writing the paper, your team will also make a presentation on the results.
INSTRUCTIONS: 1) You will be assigned to or choose a local small business or start-up with prior permission of the instructor. It may be one of the businesses owned and operated by the small businessperson/ entrepreneur that you interviewed for Assignment #2. The organization can be for-profit or non- profit, public or privately held. NOTE: the business cannot be a part of SSU or affiliated with the University. Two teams will analyze and provide recommendations for each business. 2) Call or e-mail the chief operating officer to request a meeting of 30-60 minutes PER PERSON*. Explain this is part of a class assignment to write a paper Offer to give him or her a copy of the paper when you are done. Get directions to the company’s office. * IMPORTANT: You need to interview at least 3 people in the company – ideally the Founder/CEO and one of the following (bookkeeper/CFO, head of sales/marketing, HR, and/or operations) 3) Conduct interview. Take written notes – no tape recording allowed. Thank them. 4) Send a thank you letter or email after interview. Provide client with drafts of your work in progress (Assignments #9 and #11) to obtain feedback and comment prior to preparing your final report (Assignment #13).
LIVE VENTURE WRITTEN REPORT Length: No cover pages please! Plan for 10-20 pages, maximum. Place team members’ names, followed by page numbers, as a running header in the top right corner of each page. Include each team member’s one page résumé at the end of the document in an Appendix. Format: Typed, double-spaced, Times New Roman 12 point font or higher; Use headings, numbered lists, bullets, etc.; if you are creating tables, showing financial calculations, or using any graphics, label and number these as Exhibits and refer to them in consecutive order (i.e. Exhibit 1, 2, 3, etc.); place Exhibits at the END of the document but BEFORE the bibliography and any appendices. References: Must list at least 4 references from library and electronic database searches. Follow proper bibliographic format for endnotes and citation of sources. Spelling/Grammar/Person: 1 point off for each error; write in 3RD Person (not first person). Refer to company in first person singular (i.e., it or its) or by name. Contents (for more specifics regarding Industry and Market sections, see pp. 7-9): 1) Executive Summary – One page maximum, using headings and bullet points to summarize. Consider this to be an abstract of your project. 2) Company Overview – describe the opportunity or challenge and the strategic decision this business/businessperson has to make now, making reference to the time frame and the nature of the decision-maker. Then describe products/services it offers; locations; brief history of the company (at least 4 paragraphs) 3) Company Mission, Vision, and Values – if they don’t have a written one; ask the owner(s) and staff verbally to describe it (you will be doing them a service!) 4) Operations – describe how their operations work and include a drawing of their value chain. 5) Stakeholders – Key customers, competitors, funding sources, community opinion leaders, and suppliers 6) Human Resources – include # of employees; draw organization chart; describe human resource policies; compensation philosophy and any benefits provided. BUS 451-01 — Fall 2008 Dr. Gilinsky/page 8
7) Marketing & Sales – Describe how product(s)/service(s) are marketed and sold (at least 2 paragraphs) 8) Financial Health – Complete at least the following calculations and describe what they mean, as well as implications for the company: Gross Profit Margin; Operating Profit Margin; ROA; Debt to Equity Ratio. Attach income statement and balance sheet for the last 3 years. If publicly traded, obtain the last 3 years income statements off the Internet. If not, most will probably not be comfortable telling you this information, so instead ask: Can you give me a rough estimate of your annual revenue? By what percentage has that changed from the previous year? Can you give me a rough idea of the cost of your operating expenses, e.g. variable and fixed costs, including labor costs? 9) Competitive Environment – Recent happenings in the competitive environment based on the library searches you’ve conducted. Obtain as much information about local, regional, and national rivals as you can. Source correctly. 10) Industry Analysis – Complete a Porter’s 5 Forces on the industry and Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis of the company’s position in the industry. Drawings and tables are ideal ways to summarize this information, but you also should write a paragraph describing the strength of each competitive force, and a paragraph describing and prioritizing each of the SWOT elements. 11) Company Strategy – identify the generic strategies your case client uses and support your selection with 4 to 5 key elements it is using to implement the strategy, e.g., market focus; quality of product/service; technology used; policies; pricing, etc. Describe in minimum of 4 paragraphs. 12) Major Issues & Your Team’s Recommendations for Action – create a 3-column table (Exhibit) consisting of the 4 -5 major issues/opportunities/challenges you see facing the company in the future on the left hand side, a middle column that lists the options for resolving the issue or challenge, and in the right-hand column your team’s chosen recommendation to resolve the issues (or capitalize on the opportunities). Each issue should be described in at least one paragraph (e.g., a minimum of 5 sentences).
PRESENTATION Prepare a 10-minute presentation based on your project. Choose one person from your team to deliver the presentation. The presentation should include 1 slide for each topic listed above, except for #8 and #10, with the corresponding heading. Include a title slide with the name of your company, names of your team members, and the titles of the 3 people you interviewed. Please limit your presentation to 10 minutes.
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ASSIGNMENT DESCRIPTIONS, DUE DATES, AND WEIGHTS
Please type and double-space all assignments. Files should be in MS Word format only. Put your name (or team members’ names), the name of the assignment, and the date due on the top of the right-hand corner of each page. Please use Times New Roman 12-point font or higher. Make an extra copy of each assignment for your records. Late assignments will be penalized one full grade level per day (for example, an A would be lowered to a B, and so on). Course grading weights are indicated.
1. Sept 3 — Résumé and Career Goals (Grade weight = acceptable or do over) Please submit your one (1) page résumé in class. No e-mail submissions, please. Put your skills and accomplishments first, education last. On an attached separate page or two (maximum), please list your career goals for the next three years and ten years. In addition, please name at least two career/life role models and explain why you desire to emulate them. List your favorite: book, movie, television show. Describe a personal accomplishment of which you are most proud. What industry would you like to work in and/or start your own business? Is there a particular business for which you would like to work? You may need to revise these as the semester progresses and will be resubmitting your resume and career goals as an Appendix to your team’s final Live Venture project report in December.
2. Sept 8 — “Koots Green Tea” [KGT] Issue Brief (Grade weight = 5%) Written case analysis (issue brief) due from each student by 8 a.m. to me via e-mail. Study questions for the KGT case will be sent to you via e-mail. Briefs submitted after 8 a.m. will be considered one day late. Attach your analysis as a MS Word document. See pp. 9 & 10 of this syllabus for guidance.
3. Sept 17 — Interviews with SB/Es (Grade weight = 5%) Each individual student must interview three (3) small businessperson(s) or entrepreneur(s) who own and/or work in three separate organizations. Your interviews should cover the following three (3) questions: 1) How did you come to perceive your personal opportunity and to act on it (and what encouraged or deterred this)? 2) What do you consider to have been the critical success (and critical *failure*) factors for your venture opportunity? For example, how important are customer relationships, social networks, access to suppliers, access to capital, competitors, human resource practices, government regulations, economic factors, etc.? 3) Do you have a business plan and if so, how often is this updated? If you do not have a business plan, for what reason(s)? Do you need a business plan? If so, is there potential for a semester-long student project and would you be willing to participate this semester? Your write-up of each interview should be no more than one (1) double-spaced and typed page, should include contact information for each interviewee (e-mail and phone number), and be submitted via e-mail. Please use separate pages for each interviewee’s responses!
4. Sept 22 — Creating the Live Venture Team (Grade weight = acceptable or do over) Each student must join a team composed of two (2) students. Teams may be randomly assigned. Two teams will be assigned to each Live Venture project, so that there should be a total of six (6) Live Venture projects per course section. Each team must meet and select, from the Small Businesses identified by the instructor, which one business opportunity the team will further develop for the rest of this course. This should be a lively session, with each group member campaigning for the selection of his or her opportunity. At some point every entrepreneur must attract other key players to his or her team. The ability to inspire someone to see your vision and dream your dream is a vital skill. Teams cannot exceed two students without my permission. BUS 451-01 — Fall 2008 Dr. Gilinsky/page 10
5. Sept 24 — Work Scope, Roles & Responsibilities (Grade weight = acceptable or do over) Each team must submit via e-mail a roster of their team and a planned Scope of Work for developing the chosen opportunity. Include a brief description (1-2 sentences) of the business you are using as a “Live Venture” as well as contact information for your client (e-mail and phone number). Be sure to send a copy to your client! Your Scope of Work must be adapted from the outlined course project assignment on pp. 5-6, and must include the primary responsibilities of each team member. Groups will be picked at random for brief oral presentations of interim assignments.
6. Sept 29 — “The Happy Holidays Memo” [HHM] Issue Brief (Grade weight = 5%) Written case analysis (issue brief) due from each student by 8:00 a.m. Study questions for the HHM case will be sent to you via e-mail. As you read this case, reflect on how your Live Venture executives might cope with similar situations and what you might do differently or better to motivate your team to complete its tasks.
7. Oct 8 — “Mendocino Brewing Co. — 1996” [MBC] Issue Brief (Grade weight = 5%) Written case analysis (issue brief) due from each student by 8:00 a.m. Study questions for the MBC case will be sent to you via e-mail. Be sure to do the industry/competitive analysis, using Michael Porter’s “How Competitive Forces Shape Strategy” (website) reading as a guide.
8. Oct 15 — “Hookah Haven” Issue Brief [Hook] (Grade weight = 5%) Written case analysis (issue brief) due from each student by 8:00 a.m. Study questions for the HOOK case study will be sent to you via e-mail.
9. Oct 24 — “Nadior Corporation Ltd.” Issue Brief [NAD] (Grade weight = 5%) Written case analysis (issue brief) due from each student by 8:00 a.m. Study questions for the NAD case will be sent to you via e-mail. Be sure to fill out Tables 1 & 2 (which will be forwarded to you via e-mail with the study questions) with your “best guesses” or estimates. You may use MS Excel to prepare forecasts, but please copy and paste the spreadsheet tables into your MS Word document. Turn in your forecasts with their justification in the Issue Brief. We will compare your answers in class.
10. Nov 3 — Live Venture Industry Analysis (Grade weight = 5%) Industry analysis on your venture opportunity is due from each team via e-mail by 8:00 a.m. Each section of your report should begin with a summary or overview of what is to be covered in this section. See specifics on pp. 5 & 6. Use the 10/8 reading on “How Competitive Forces Shape Strategy” by Porter and the Arkebauer business plan book (read by 10/13) to guide your efforts. Each team’s industry analysis should be 3-5 double-spaced pages, summarizing its key findings. One submission per team, please. If you disagree with your team’s assessment, you may submit a “minority report” under separate cover.
11. Nov 10 — “Sula Vineyards” Issue Brief [NAD] (Grade weight = 5%) Written case analysis (issue brief) due from each student by 8:00 a.m. Study questions for the SULA case will be sent to you via e-mail.
12. Nov 19 — Live Venture Market Research Report (Grade weight = 10%) Market research report for your small business is due from each venture team via e-mail by 8:00 a.m. Your report should begin with a summary or overview of what is to be covered, and include a detailed description of niche and targeted segments, size in dollars and/or units and growth rates of each segment, description of unique product or service advantages, pricing comparisons, a financial ratio analysis based on past history, and a top-line forecast for the next three years. Financial ratios and pro forma forecasts should be by quarters for the past three years and next three years. Include your SWOT analysis in this section. The market research section of your BUS 451-01 — Fall 2008 Dr. Gilinsky/page 11
report should be 4-6 pages, summarizing your key findings. Charts and graphs are often useful means of summarizing data for this section of your final report. A convincing top-line forecast is the most important component of most business plans. The top line is made believable by a your industry analysis, your comprehensive market analysis and your SWOT analysis. Be sure to include in your top line justification ample proof that there is a market niche for your venture’s existing and proposed product(s) or service(s) and how it will serve customer needs better than its rivals. Consult Jay Levinson’s Guerrilla Marketing book (read by 11/12) for low-cost ideas. Justify your projected market share. Describe the demographics of your targeted market segments. Are these segments growing, stable, or declining? What are the other significant trends, i.e. economic forces, competition, government regulations, technology, etc.? What are your proposed product, distribution, and pricing strategies? What are your sales and promotion plans? What will be your positioning versus the competition? What barriers to entry will you have to overcome? What barriers will your venture need to erect to prevent other players from entering?
13. Nov 24 — Midterm Quiz (Grade weight = 10%) The Quiz on the Katz and Green textbook will comprise fifty (50) multiple-choice questions, each worth two (2) points and is open book/open notes. Students who regularly keep up with the readings rather than try to cram in all the reading the night before the quiz are likely to do better! NOTE: There will be no make-ups available for this assignment! Check in before you leave today to find out when your team practice and final presentations are scheduled in December.
14. Dec 8 and 10 [in class, 12:00 – 1:50 p.m.] — Compilation & Presentation of Live Venture Projects (Grade weight = 20% = 10% for Presentation & Executive Summary + 10% for Final Report) Final projects reports due on your presentation day in hard copy form. Include as an Appendix your résumé and career goals, revised from Assignment #1. Be sure to make two (2) copies: one to turn in when you arrive, and one for your Live Venture client. Each Live Venture team will make a ten (10) minute “elevator pitch” presentation of its final report, followed by a five (5) minute Q&A session. Read Guy Kawasaki’s book, The Art of the Start (on reserve in Shultz), for tips on how to perfect your “elevator pitch.” Please also review the Live Venture Presentation Score Sheet on p. 14 of this syllabus for guidance. Select one (1) member of your team to make the presentation, but your partner should also on hand to answer questions about your individual contributions to the project. If you use Power Point, be sure to use 30-point Arial Font, plenty of white space, and limit the visuals to at most one slide per minute. You must plan to attend all semester project presentation sessions: attendance will be taken. These sessions will be judged by business owners and members of the financial and business community; so, your team will need to be prepared, punctual, polished, and professional.
Please reproduce a one page Executive Summary of your project for distribution to the audience (30 copies). Your team’s final project submission is an enhancement and compilation of all previous interim assignments. Your previous assignments make up the key components of venture feasibility study for a small business. None of you will have sufficient time to do a complete business and operating plan for your “Live Venture,” since those typically require 250– 500 hours for anything larger than a lifestyle venture. What additional sections you choose to add and/or emphasize is up to your discretion, since the correct choice will depend on the nature of your venture. Each team must include a section in its final report and presentation that briefly describes what additional information would have been included had there been sufficient time to complete its “Live Venture” plan. BUS 451-01 — Fall 2008 Dr. Gilinsky/page 12
Written case analysis (Grade weight = 20%) In order to create opportunities for us to explore more basic small business management and entrepreneurship issues and discuss methods of implementation that might otherwise have to be rushed, we will be using an electronic submission format for issue briefs.
Please submit your Issue Briefs as an attached MS Word document (double-spaced, 12 point font) via e-mail to my e-mail address, [email protected]. Please note that my computer cannot retrieve documents in MS Works or other formats. The subject line for your e-mail message and file name for the MS Word document should read like this:
1. Indicate your key case decision (what the SB/E needs to do now and why – one complete sentence, 17-20 words maximum); 2. Support your decision by three (3) bullet points (≤1 line; dimensions of small business or entrepreneurship theory or practice that bear on the problem at hand; avoid judgment here) 3. Add any qualitative and/or quantitative comments/discussion which you feel is/are necessary to substantiate your analysis. (1-2 page limit) 4. Conclude by restating the central problem or issue and recommendation for action, stating lessons learned about entrepreneurship, linking to readings that you have gleaned from the Katz & Green textbook. How would your incorporate your proposed solution into your semester Live Venture project?
Electronic case analyses are due by 8:00 a.m. on class days upon which Issue Briefs are assigned (see “Course Calendar,” pp. 2-4). Your timely submission of the Issue Briefs will facilitate compilation of the results of case analysis as well as a summary of your qualitative/ quantitative comments. You should always keep a printed copy of your Brief for yourself and bring this to class. Grading and feedback on your Issue Briefs will be returned to you as soon as practicable.
Your “Issue Brief” should serve as a personal document from which you could lead a class discussion. Acceptable Issue Briefs will be given a “check,” which is roughly equivalent to a “B” grade. Unacceptable or late submissions will be assigned a “check minus,” roughly equivalent to a “C” grade. Briefs not submitted on the date due for any reason will be assigned an “F” grade. A rare, outstanding effort will receive a “check plus,” roughly equivalent to an “A” grade.
Suggested guidelines for approaching a case In approaching a case, keep in mind that there is no single, right solution. Each case describes a complex situation and there may be a number of equally valid analyses. Try to put yourself in the place of the entrepreneur who is facing the problem(s) and who is required to make decisions and act. You may want to consider the following factors in your analysis. The list on the next page is far from complete, but I hope it will be a helpful start.
1. What is the problem—or problems? You may want to list the problems and prioritize them. Are the problems short-term, long-term, new to the organization, chronic, etc.?
2. What is the time framework? How urgent is the situation?
3. What is the nature of the organization? Who are the key people involved? What are the key relationships? BUS 451-01 — Fall 2008 Dr. Gilinsky/page 13
4. What industry, competitive, economic factors/trends are significant? How do they influence the current situation? How do they influence future action?
5. What financial information is important (costs, cash flow, margins, etc.)? How do these data impact your analysis and recommendation?
6. What are the significant marketing considerations? What is the product or service? Who is your market? How do you price, promote, distribute?
7. What are the significant production/operational considerations? How and where do you produce? Are the operations labor-intensive? capital-intensive? What lead times are required?
8. What are the key leadership issues? possible organizational structure configurations? human resource management issues? How do these impact on your course of action, particularly in its implementation?
9. What business are you in? What is the organization’s strategy? Is it consistent across functions? What are the risk of/potential rewards from retaining this strategy?
After analyzing the case, generate as many solutions as you deem appropriate. Consider the risks/tradeoffs involved in each alternative and then decide what you would do in the situation and why. What is your plan of action? (Be specific.) How are you going to implement it? (Be specific.) Please be prepared to support your recommendations, but also remain open to different, possibly better ideas.
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Class preparation, attendance and participation (Grade weight = 20%)
Attendance will be taken at the beginning of each class. Each student is permitted one unexcused absence. Venture teams will be selected at random throughout the semester to make a 7–10 minute presentation on their findings for each interim assignment. We will not have time for every team to make a presentation on each assignment. An entrepreneur must always be prepared to discuss the latest evolution of her/his venture with a potential ally, team member, or source of financing.
Participation and contributions to class dialogues are evaluated on the basis of the following:
1. An understanding and appreciation of the selected readings and case studies,
2. Analysis of case data using the tools and techniques developed in the lectures and the readings, and
3. Recommendations for management decision and action that arise from analysis.
Below is a checklist to help you evaluate and improve your effectiveness in class discussions:
___ Are you a good (active) listener?
___ Are the points that are made relevant to the discussion? Are they linked to the comments of others?
___ Do the comments add to our understanding of the situation?
___ Do the comments show evidence of analysis of the case (case preparation)?
___ Do you distinguish among different kinds of data such as facts, opinions, beliefs, concepts, etc.?
___ Is there a willingness to share?
___ Is there a willingness to test new ideas, or are all comments made “safe”? (An example of a “safe” comment is mere repetition of case facts with no analysis or conclusions.)
___ Are you willing to interact with other class members?
___ Do your comments clarify and highlight the important aspects of earlier comments and lead to a clearer statement of the concepts being covered?
My assessments of your participation will be made on the basis of your preparedness for class, your responses to questions that arise in dialogues, as well as your voluntary participation. BUS 451-01 — Fall 2008 Dr. Gilinsky/page 15
“SMALL WINS” EXERCISE
A small win is a concrete, complete, implemented outcome of moderate importance. By itself, one small win may seem unimportant. A series of wins at small but significant tasks, however, reveals a pattern that may attract allies, deter opponents, and lower resistance to subsequent proposals. Small wins are controllable opportunities that produce results. -- Weick, K.E. (1984) Small wins: redefining the scale of social problems. American Psychologist, 39(1): 40-49.
Entrepreneurial Survey
1. How would you like to spend an ideal day? week? month? What attracts you to/repels you from this ideal existence?
2. I would/would not like to start/acquire my own business someday because______.
3. Imagine you had $1,000 to buy the following items. How would you allocate the money? Then rank the top three items in order of importance, 1–2–3.
A. Location B. Lifestyle & work style C. Standard of living D. Personal development E. Status & prestige F. Ecology & environment G. Capital required H. Other considerations (please state) _____
4. How would you characterize your own entrepreneurial strengths and weaknesses? (List.)
5. List, in 3 minutes, the goals you would like to accomplish if you have exactly one (1) year from today to live. (Assume good health in the interim, no additional insurance or borrowings, and that you can do whatever you want to do).
6. Are you an entrepreneur? by what definition?
BUS 451-01 — Fall 2008 Dr. Gilinsky/page 16
BUS 451 LiveVenture Team Presentation Score Sheet
YOUR NAME______
PRESENTERS’ NAMES______DATE: Dec. 2008 [Key: 0 = Marginal; 1 = Satisfactory; 2 = Superior] [Comments]
PROBLEM IDENTIFICATION Specified venture opportunity 0 1 2
Showed depth of 0 1 2 understanding of current business
Made logical call to action 0 1 2 Total (0-6) ------
BUSINESS ANALYSIS Performed industry analysis 0 1 2 Showed understanding of market and competition 0 1 2
Conducted venture SWOT 0 1 2 analysis Total (0-6) ------
RECOMMENDATIONS Provided reasonable range of 0 1 2 alternatives
Provided financial forecasts 0 1 2
Identified and defended 0 1 2 assumptions
Specified strategic milestones 0 1 2
Demonstrated how opportunity 0 1 2 is a good fit with venture’s Total (0------core competence 10)
TEAMWORK & Marginal = 0 PRESENTATIO Satisfactory = 1 Total (0- N Superior = 2 2) ------Visual aids, sharing of workload, clarity, effectiveness in Q&A
TOTAL POINTS ------
Grading: A = 20–24, B = 16–19, C = 12–15, D = 8–11, F= < 8 BUS 451-01 — Fall 2008 Dr. Gilinsky/page 17
BullshitBullshit BingoBingo Do you keep falling asleep in meetings and seminars? What about those long and boring conference calls? Here is a way to change all of that!
How to play: Check off each block when you hear these words during a meeting, seminar, or phone call. When you get five blocks horizontally, vertically, or diagonally, stand up and shout BULLSHIT!!
Synergy Big Picture Core Best Practice Bottom Line Competencies
Pick Your IPO 24/7 Angel Drilling Down Brain
Value-Added Proactive Win-Win Think Outside VC the Box
Empower Mindset Knowledge At the End of Touch Base [or] Base Empowerment the Day
Belly up Ball Park Conventional Game Plan Leverage Wisdom
Testimonials from satisfied players: “I had only been in the meeting for five minutes when I won.” -Jack W. - Boston “My attention span at meetings has improved dramatically.” -David D. - Florida “What a gas. Meetings will never be the same for me after my first win.” -Bill R - New York City “The atmosphere was tense in the last process meeting as 14 of us waited for the 5th box.” -Ben G. - Denver “The speaker was stunned as eight of us screamed ‘Bullshit’ for the third time in 2 hours.” - Kathleen L. - Atlanta