Golden Gate University Ageno School Of Course Syllabus

Instructor: Dr. Robert W. Sosna Campus Email: [email protected] Telephone: 650-473-1401

Course: Mgt 301-SF1, Entrepreneurship Start-End Date: 01/08/08- 04/22/08 Office Hour: (T) 5:00 pm to 6:00 pm or by appointment Day & Time: (T) Tuesday- Semester / Year: Spring / 2008 6:50 pm to 9:30 pm

Course Overview

From the GGU catalogue: Studies the underlying principles and theories of entrepreneurship, exploring its “how tos” and “pitfalls.” Entrepreneurial strategies and management alternatives will be examined. Emphasis on starting new ventures, acquiring other and making existing enterprises profitable. You will be able to work on projects while learning the “ins” and “outs” of being successful and happy entrepreneurs. Both academic and practical considerations will be emphasized.

Course Objectives

To help the student:

• Appraise how to identify an opportunity. • Argue how to evaluate an opportunity. • Judge the ethical issues that are intimately intertwined with entrepreneurial activities. • Assess how to make complex and critical decisions about the enterprise you manage. • Defend how to develop a strategic way of thinking about a venture. • Estimate opportunities of value necessary to finance a new venture.

Required Text

New Venture Creation- Jeffry A. Timmons, Stephen Spinelli, 2007, McGraw-Hill/Irwin, Boston, Ma.

1 Recommended Supplementary Reading (Helpful Resources)

Financial Times Entrepreneurial Magazine Harvard Business Review Wall Street Journal Forbes Magazine

Recommended Supplementary Texts (Not required reading)

Launching New Ventures, 4th. ed., (2006) Kathleen R. Allen, Houghton Mifflin, Boston MA.

Entrepreneurship, 3rd ed., Peggy Lambing, Charles R. Kuehl, 2003, Prentice-Hall, Inc., Upper Saddle River, NJ.

Valuation, Tim Koller, Marc Goedhart, David Wessels, 4th. ed. 2005, McKinsey & Co., John Wiley & Sons Hoboken, NJ

Entrepreneurial Finance, 2nd ed., Philip J Adelman, Alan M. Marks, 2001, Prentice-Hall, Inc., Upper Saddle River, NY.

Essentials of Entrepreneurship and Small Business Management, 3rd ed., Thomas W. Zimmer and Norman M. Scarborough, 2002, Prentice-Hall, Upper Saddle River, NJ.

Small Business Management- Entrepreneurship and Beyond, 2nd.ed., Timothy S. Hatten, 2003, Houghton Mifflin Company, Boston, MA.

Mastering Entrepreneurship, Sue Birley & David F. Muzyka, 2002, Prentice-Hall, Inc., Upper Saddle River, NJ.

Marketing Management, 11th ed., Philip Kottler, 2003, Prentice-Hall, Inc., Upper Saddle River, NJ.

The Entrepreneurial Venture, 2nd ed., William A. Sahlman, H. H. Stevenson, M. Roberts, and A. Bhide, 1999, Harvard Business School, Boston, MA.

Business and Society- A Strategic Approach to Corporate Citizenship, Debbie Thorne, O.C. Ferrell, Linda Ferrell, 2003, Houghton Mifflin Company, Boston, MA.

The Market System, What it Takes, How it Works, and What to Make of It, Charles E. Lindblom, 2001, Yale University Press, New Haven, CT.

2 Course Requirements and Approach to Learning

This is a very intensive reading course. It is assumed that the student will have read the readings and other work detailed in the syllabus calendar before each meeting. Please make the appropriate time allowances for preparing each session. Being adequately prepared for each meeting is a key part of this course.

Academic Integrity Policy

Golden Gate University requires students be honest in their academic work. Academic dishonesty is viewed as ethical issues and as a violation of the principles expressed in the university’s mission. Academic dishonesty defrauds all those who depend upon the integrity of the university, its courses and its degrees.

Special Needs

Golden Gate University affirms its commitment to its applicants and students who identify and express their special needs. Information regarding The Americans with Disabilities Acts and the university’s policies and services may be obtained from the University Advising Center.

Instructor Bio

Bob Sosna has over twenty-eight years of experience as a senior executive with multi- billion dollar organizations. Over the last eighteen years, he has been the Managing Director of a private investment firm. During his career directing diverse organizations, Bob developed a proprietary management financial reporting and control system that he employs to restructure companies and provide ongoing operating guidance. Bob works closely with senior management and investors to preserve capital and keep companies on track by increasing their performance value. He served as President and CEO of Reliance Marketing Management. Prior to managing RMM, Bob was Senior Vice President of Operations for CIGNA Corporation. As a Professor of Management, he has taught graduate and undergraduate courses in entrepreneurship, managerial analysis and team dynamics, executing strategic initiatives, risk management, marketing management, negotiating in business, compensation and Executive MBA Program at Penn State University’s School of Business, Menlo College, and Golden Gate University. Professor Sosna has a B.A. Degree from La Salle University and a Doctor of Business Administration Degree from Golden Gate University – Ageno School of Business. In 2006 Golden Gate University named him the Outstanding Graduate Student – Doctor of Business Administration. He is a visiting Professor at INSEAD – Fontainebleau, France and a member of the National Association of Scholars.

Research and Documentation: Documenting Sources:

3 6 Free Resources (Live and Online) Just 4 Rules for GGU Students 1. For short passages (usually under 40 words) 1. For detailed information on using and citing quoted word for word, “put the quoted material sources using APA, MLA, and other styles, consult inside quotation marks (like this is), and provide A Writer’s Reference by Diana Hacker, the textbook the author, date, and page number in parentheses used in GGU English composition classes, available right after the quotation” (Jones, 1999, p. 76). in the GGU Bookstore, or consult the free website http://dianahacker.com/writersref/resdoc.html 2. For longer quotations, 2. The University Library’s web site offers a wealth of information to guide you through the research Instead of quotation marks, the quoted process. Resources include a sample research paper material gets its own paragraph, and the and detailed information on evaluating and citing entire paragraph is indented (given wider sources. Available at margins than the rest of the paper, like this http://internet.ggu.edu/university_library/ paragraph). Then the author, date, and page number appear in parentheses at the 3. An online tutorial, Core Research Skills, is end of the paragraph, and outside the last designed to help you find, evaluate, and use library period. (Jackson, 2003, p. 229) and online sources in your projects and papers. In every step of the tutorial, a reference librarian is available to help with specific research needs and 3. If you use material from another source but questions. The tutorial is free and can be accessed at change the wording (called paraphrasing), give the http://www.ggu.edu/cybercampus/FreeDemo author and date in parentheses (Jones, 1999).

4. At the Writing Center, located in Room P-25 at 4. At the end of the paper, give full bibliographical the San Francisco campus, you work one-on-one information for all your sources on a page called with experienced writing tutors (most of them GGU References. There are different styles for instructors) who are familiar with the types of documenting sources. GGU recommends the APA writing assignments common in GGU courses. style, which is used in the social sciences. An 5. The Online Writing Lab (OWL) offers online instructor, however, may require another style, so writing help to GGU students. OWL tutors help you ask. APA references (for a web site, book, and solve specific problems in the work you submit, and journal article) look like this: guide you through the writing process. The OWL is available at References http://www.ggu.edu/academic_programs/division _general_ed/english_communications/online_writ Archer, Z. (n.d.). Exploring nonverbal ing_lab communication. Retrieved July 18, 2001, from 6. Ask your instructor about Turnitin.com. Turnitin http://zzyx.ucsc.edu/~archer helps you avoid unintentional plagiarism. When you Highmore, B. (2001). Everyday life and submit a paper to Turnitin’s website, it searches 4.5 billion pages of web and printed sources, documents cultural theory. New York: any matches, and give you the source for each Routledge. match. You can then be sure your sources are Morawski, J. (2000). Social psychology a properly documented. Any instructor can set up century ago. American Psychologist, Turnitin for his or her students to log in to. In 55, 427-431. addition, Turnitin’s homepage has research resources available to anyone at http://www.turnitin.com without logging in.

4 Grading Policies

Final grades for this course will be determined as follows:

Individual Business Plan: 30 points Position Outline: 25 points Team Case Analysis 25 points Mid-term examination 10 points Class Participation: 10 points

Class Participation:

Grade Skills A Contributions are prompt, timely, relevant, self-initiated; remarks are raised freely on all assignments throughout the course; there is no attempt to dominate conversation. B Student generally keeps up with the discussion. Needs some prompting to contribute. C Participation is spotty; picks and chooses topics to get involved. Demonstrates little initiative. D Some participation, makes relevant remarks F No participation

Grading:

A 4.0 93% - 100% A- 3.7 90% - 92.9% B+ 3.3 87% - 89.9% B 3.0 83% - 86.9% B- 2.7 80% - 82.9% C+ 2.3 77% - 79.9% C 2.0 73% - 76.9% C- 1.7 70% - 72.9% D+ 1.3 67% - 69.9% D 1.0 63% - 66.9% D- 0.7 60% - 62.9% F 0.0 0% - 59.9%

5 Case Analysis- (Team Scholarship)

As a student your ability to express your thoughts and ideas in writing influences your success in many courses, and will especially affect your outcome in this course. In your up coming working career, writing is even more important. You will discover this point as a new hire, entrepreneur, manager, or a potential business partner. Also, you will learn in the workplace that co-workers often judge a person’s competence based upon her writing skill. Lucid and persuasive writing will magnify your abilities and enhance your reputation in your career. Whether you are going to be involved with a new venture or an existing business the short memo has become an art form. This is because of both an overage of information and shortage of time. Therefore, complex ideas must be presented quickly in a strait forward manner. In this class you will be asked to read a business case, which presents fairly complex issues. Your team will be expected to present team analysis and conclusions, concerning the case, in the form of a two-page memo. In evaluating your team document four criteria will be employed:

1. The Central Issue- Please determine the central issue of the assigned case. Team members should ask is the case vague or have we missed the case information? Has the team focused on the Central Issue? Has the team identified the essential elements embedded in the case but may have been overlooked or under- explained? It is most important for your case analysis as well as the Central Issue to be concise. 2. Recommended Course of Action- Begin by stating your team recommendation. Please be certain your writing is clear, concise, and that any summaries are succinct with any arguments specifically stated. Is there a logical flow to the points of view and are the conclusions supported by logic? Does the recommendation align with the Central Issue? 3. Basis For Recommendation- be as concise as possible with your thinking and writing regarding the Basis for your Recommendation. Make certain there is logic for choosing your recommendation above all of your other team developed alternatives. Finally, does the basis for your team recommendation match and or align with the Central Issue and the Recommendation? 4. Reasonable Alternative Courses of Action- Are the alternatives being considered actually reasonable alternatives? Why? Does each reasonable alternative match and or align with the Central Issue, the Recommended Course of Action, and the basis for such recommendation? Most important please be concise, clear and to the point with your response.

6 Process- your team report, the memo, is to be submitted to me according to the schedule determined and announced in class. It is required to be double spaced, no smaller than 10-point font, and contain a full 1-inch margin. The team is permitted to include an attachment which presents any relevant facts they may have gathered and arranged in a table format.

Position Outline- (Individual Scholarship)

Your scholarship will be assessed as follows:

(a) Position Outline. The Position Outline (PO) must be typed and consist of no more than two pages double-spaced. The Position Outline should present your main thought about the reading or assignment. Remember that a PO is not a summary of the reading. It is intended in order for you to present to me what you think is important about the reading or assignment. Please make certain that the PO details the central issue of the reading, and your analysis as to why the issue is important. If the PO is addressing a particular case please make certain you address a recommended course of action.

Please underline in the PO the single most significant contribution you wish to bring to the class discussion. The purpose of this approach to writing is to focus your reading and to enhance your thoughts for our interactive classroom discussions. Each week you will be submitting to me a PO and I will read as well as grade each document. To assist you with the writing of the PO I will review and grade the reports and return them to you with comments to give a handle on what is expected.

PO evaluations are as follows: • 3- exceptional in both content and style • 2- competent, at the level of the class • 1- needs improvement

The PO should assist the student with class preparation and participation. The PO is to be submitted to the instructor at the beginning of class. No credit will be given for a late PO. (Employed and described by Professor Mintzberg at McGill University)

Individual Business Plan

The following is provided in order to assist you with your upcoming report plan.

The dehydrated business plan is not intended to be employed exclusively in the process of raising or borrowing cash. Essentially it is a guide or road map of the opportunities, which are ahead however it will not provide the necessary details, and tactical plans necessary to operate on a day-to-day basis. The dehydrated business plan format was provided in this course to allow you the opportunity to apply your learning coupled with

7 your integrated perspective of entrepreneurship with respect to the development of a sagacious business plan. The paper should consist of a minimum of 4 pages and a maximum of 10 pages, double-spaced, and with a one-inch margin. References, exhibits or attachments, if applicable, are to be attached to the end of the paper and these items need not be numbered.

Description of the business concept and the business

Describe the business concept for the business you are or will be in. Be certain to explain how your product or service will fundamentally change the way customers currently do certain things. Identify when the company was formed, what it will do, what is special or proprietary about its product, service, or technology. Do not forget to include summary information about any proprietary technology, trade secrets, or unique capabilities that give you an edge in the marketplace. Finally if the firm has existed a few years, a brief summary of its size and progress is appropriate.

The opportunity and strategy

Provide a brief yet complete summary of the opportunity. Detail why it is compelling and explain the entry strategy planned to exploit it. Clearly state the main point or benefit you are addressing. You may do this as an outline of the key facts, conditions, competitors’ vulnerabilities, industry trends and other evidence and logic that define the opportunity. Certainly include plans for expansion and growth beyond the entry products or services and into other market segments, e.g. global, as appropriate.

The target market and projections

Explain and identify the industry and market. Clarify who is the primary customer group and how the product or service will be positioned. Also, explain how you plan to reach and service these groups. Include information about the structure of the market, the size and growth rate for the market segments or niches you are addressing, and your unit/ sales estimates. List the anticipated market share, the payback period for your customers and finally your pricing strategy to include price versus performance/value/benefits considerations.

The competitive advantages

It is important to indicate the key competitive edges you enjoy or can create as a result of your innovative product, service, and strategy. What are your advantages in lead time and barriers to entry? How about with respect to competitors’ weaknesses and vulnerabilities along with any other industry conditions.

The economics, profitability, and harvest potential

8 Summarize the economics of the venture (e.g. gross and operating margins, expected profitability, and the durability of these products); the relevant time frames to attain breakeven and positive cash flow. List and explain the key financial projections and the expected return on investment.

The team

Explain the relevant knowledge, experience, know-how, and skills of the lead entrepreneur and any team members. Please describe all relevant prior key accomplishments and in particular any accomplishments involving profit and loss responsibility. Describe any accomplishments involving general management and people management experience. Specifically include information, which describes the size of the operation, project, or prior business with which the lead entrepreneur or a team member was the key-driving factor.

The offering

Indicate the dollar amount of equity and/or debt financing needed. Describe how much of the company you are prepared to offer for that financing. Describe the principal use of the capital and how the investor, lender, or strategic partner will achieve its desired rate of return. Source: New Venture Creation- Jeffry A. Timmons and Stephen Spinelli, 2007

Course Calendar Outline

Week 1 - 01/08/08

Global impact Venture creation What can be learned? Position Outline Discussion Text: Chapter 1, please read and purchase text

Week 2 - 01/15/08

The entrepreneurial revolution Self-Made individuals Equity creation Myths and realities Case: Roxanne Quimby Text: Chapter 2 individual PO due

9 W eek 3 – 01/22/ 08

The Timmons Model Ideas A start up venture Case: Kurt and John Bauer Text: Chapter 3, individual PO due

Week 4 - 01/29/08

Think big Opportunity search New venture realities Screening opportunities Case: Securities Online, Inc. Text: Chapter 4, individual PO due

Week 5 - 02/05/08

Screening ventures How do you make cash? Opportunity shaping Case: Burt’s Bees Text: Chapter 5, individual PO due

Week 6 - 02/12/08

Developing the Business Plan Close look at the opportunity Preparing the business plan Internet impact Case: Newland Medical Technologies Text: Chapter 6, individual PO due

Week 7 - 02/19/08

Manager of what? Growth stages Competencies

10 Case: Jim Poss Text: Chapter 7, individual PO due

Week 8 - 02/26/08

Building a team Rewards and incentives Ethics and governance Thorny issues Begin team business plan development Case: Maclean Palmer Text: Chapters 8, 9 individual PO due (submit one PO for both Chapters)

Week 9 - 03/04/08

Resources Outside resources Financial resources Mid-term examination (1 hour) Case: No case assigned Text: Chapter 10, please read

Week 10 – 03/11/08

Business plan – expanded discussion Dehydrated business plan Road map Tactical plans Franchising-venture financing Case: Quick Lube Franchise Corporation Text: Chapters 11, 12 individual PO due (submit one PO for both Chapters)

Week 11 - 03/18/08

Goals and actions Venture financing Angels Tar Pits Case: Paul J. Tobin Text: Chapters 13, 14 individual PO due (submit one PO for both Chapters)

11 Week 12 - 03/25/08

Debt capital The bank – and no High growth companies Organization culture Valuation Case: EverNet Corporation Text: Chapters 15, 16 individual PO due (submit one PO for both Chapters)

Week 13 - 04/01/08

Family connection The family enterprise Strategy Advice The lending decision Case: Indulgence Spa Products Text: Chapter 17 individual PO due

Week 14 - 04/08/08

Possible trouble Predicting trouble The threat of bankruptcy Intervention Case: Lightwave Technology Text: Chapter 18 individual PO due

Week 15 - 04/15/08

A journey? A harvest goal Beyond the harvest Self-assessment Crafting a personal strategy Case: Boston Communications Group Text: Chapter 19 individual PO due

Week 16 - 04/22/08

Final Examination: Submit and present Business Plan

12 Point Value: 30 Points Determined as follows: • Individual Presentation - 10 Points • Complete Written Business Plan - 20 Points

Thank you for taking this course. I hope it will assist you with your business endeavors.

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