Description
This abstract tell entrepreneurship and business strategy first semester, 2011.
BUS827
ENTREPRENEURSHIP AND BUSINESS
STRATEGY
First Semester, 2011
Department of Marketing & Management
1
MACQUARIE UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
UNIT OUTLINE
Year and Semester: Semester 1, 2011
Unit convenor: Julian W. Yim
Prerequisites: Students enrolling in this unit should be familiar with
basic accounting, finance, marketing and general
business concepts.
Not to be counted with: ACCG827, INOV827
Credit points: Four
Studentsinthisunit shouldreadthisunit outlinecarefullyat thestart of semester. It contains
important informationabout theunit. If anythinginit isunclear, pleaseconsult theteaching
staff intheunit.
ABOUT THIS UNIT
EntrepreneurshipandBusinessStrategy(BUS827) isapostgraduateunit offeredbythe
BusinessandEconomicsGraduateCentre(BEGC) aspart of theMaster of Commerceand
Master of International Businessprograms. 4credit pointswill beawardedtostudentswho
successfullycompletethisunit.
Thepurposeof this unit is to providestudents with an understanding of theprocess that an
entrepreneur employstodevelopanideaintoanopportunityandthenintoathriving, valuable
business. Wewill seehowtheapplicationof soundprinciples of business strategy underpins
the entrepreneurial process and is critical in achieving a successful outcome. Successful
completionof this unit will providestudents withknowledgeandtools that will support you
in your own entrepreneurial endeavours or equip you to contribute as part of an
entrepreneurial team.
? Skill Development: Students will practise cognitive, interactive, and teamwork skills
including analysis, synthesis, evaluation, reflection, critical thinking, problem-solving,
critiquing, andcommunicating.
? Creativity and Innovation: The contribution of innovation and the creative process in
entrepreneurshipwill berecurringthemesthroughout thecourse.
? Venture Creation: Students will learn the conceptual model for the entrepreneurial
processof launchingsuccessful newventures.
2
TEACHING STAFF
Lecturer and tutor (North Ryde Campus):
Mr Julian W. Yim MBA, MAppSc, BSc, BA
Email: [email protected]
CONSULTATION TIMES
? Consultationtime: pre-arrangedappointment byemail
onTuesday(Semester 1)
or MondayandThursday(Semester 2)
? ConsultationVenue: E4B-104
? Youareencouragedto seek helpat atimethat is convenient to youfromastaff member
teachingonthis unit duringtheir regular consultationhours. Inspecial circumstances, an
appointment may bemadeoutsideregular consultationhours. Staff will not conduct any
consultationsbyemail. Youmay, however, phonestaff duringtheir consultationhours.
? Students experiencing significant difficulties with any topic in the unit must seek
assistanceimmediately.
CLASSES
? Number andlengthof classes: 3hoursface-to-faceteachingper week, consistingof 1x2
hour lectureand1x1hour tutorial.
? Thetimetablefor classescanbefoundontheUniversitywebsiteat:
http://www.timetables.mq.edu.au/
? Pleasenotethat it isnot possibletoswitchbetweenclassesandstudentsmust attendthe
classfor whichtheyhaveenrolledduetotheintegrativenatureof groupactivities. Once
thetutorial groupsareformed, studentscannot changetheir classes.
? Attendancewill betakenintheweeklyclasses. Medical certificatesmust beprovidedif
youarenot abletoattendaclasswithout incurringapenalty.
? Warning: Youmust attendat least 10of the12weeklyclasses– failuretodosomay
affect your learningoutcomesandperformanceinthisUnit.
? Studentsareexpectedtoarriveontime, andnot toleaveuntil theclassends.
? If youhavearecurringproblemthat makesyoulate, or forcesyoutoleaveearly, havethe
courtesytodiscussthiswithyour lecturer/tutor.
? Studentsmust bequiet duringclasses, unlessof coursewhenclassparticipationis
required. Studentswhodisturbor disrupt inlecturesandtutorial classwill beaskedto
leave.
? Mobilephonemust beturnedOFF.
3
PRIZES
? None
REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS
? Prescribedtext:
Barringer, Bruce R and Duane, Ireland 2010, Entrepreneurship: successfully
launching new ventures, 3
rd
edn, Prentice Hall, Boston.
This textbook comes in a value pack which includes the software CD of Business Plan
Pro, Entrepreneurship: Starting and Operating a Small Business & Business Feasibility
AnalysisPro.
Thistext isavailablefor purchaseat theMacquarieUniversityCo-OpBookshop.
Additional readingsandother materials, includingpowerpoint slidesfor eachlecture, will
beplacedontheunit webpage.
TECHNOLOGY USED AND REQUIRED
? Studentsarerequiredtolearnhowtousepower point, wordprocessing, blackboardand
BusinessPlanProsoftware.
UNIT WEB PAGE
Thewebpagefor thisunit canbefoundat: Blackboardhttp://learn.mq.edu.au
LEARNING OUTCOMES
Thelearningoutcomesof thisunit are:
1. Applytheentrepreneurial processmodel toanalyseentrepreneurs’ venture
creation.
2. Understandandpractiseideagenerationandscreeningincludingopportunity
analysistrends, feasibilityandcompetitiveanalysis.
3. Understand the process how to write up feasibility analysis and business plan to
launchthenewventuresuccessfully.
4. Understandthebasics of entrepreneurial finance: raisingfunds, growthfinancing,
financial evaluationof opportunities, andacquisitionfinancing.
5. Comprehendtheissuesandtasksinvolvedinsettingupaventure, marketingand
financingtheventure, andevaluatingventureperformancefor growthand
sustainability.
4
GRADUATE CAPABILITIES
Businessmanagement graduatesareexpectedtoknowthefollowing6disciplinespecific
knowledgeandskillsupongraduation. Thisunit contributestothislearningbyhelping
student developcapabilitynumber 2, 4and5below(italicised).
1. Gain an understanding of the economic, technological, societal, and global
dimensionsof entrepreneurship.
2. Understand the relationships between personal goals, competencies, and
experience to assess what they bring to all types of venture creation through
entrepreneurship.
3. Understandtheaudiences, purposes, components andtheprocesses of developing
andevaluatingbusinessplansfor newventures.
4. Understand and appreciate the leadership skills necessary to successfully plan and
launch a new venture in an established organization.
5. Knowhowresourcescanbemaximizedfor bothpersonal andcorporateventures.
6. Consider how to monitor venture performance, manage growth, and sustain
organisations.
Inadditiontothedisciplinebasedlearningobjectivesabove, MacquarieUniversityalsoseek
todevelopthefollowing8genericcapabilitiesinour graduatesinorder toaddressthe
challenges, andtobeeffective, engagedparticipantsintheir world.
Thisunit contributestothislearningbyhelpingstudent developgenericskillsnumber 1, 2, 3
and4below(italicised).
1. Critical, Analytical and Integrative Thinking
2. Problem Solving and Research Capability
3. Creative and Innovative
4. Effective Communication
5. EngagedandEthical Local andGlobal citizens
6. SociallyandEnvironmentallyActiveandResponsible
7. Capableof Professional andPersonal J udgement andInitiative
8. Commitment toContinuousLearning
TEACHING AND LEARNING STRATEGY
? Theunit istaught bylecturesandtutorial activitieswithgroupdiscussions.
? Normally, therewill bealectureat thebeginningof eachclassthat will beusedtopresent
newconcepts andtools that will contributeto students’ understandingof thesubject area
and assist you to completeassessment tasks. Theselectures will beinteractiveand will
usereal lifeexamples wherepossible. Inorder to preparefor theselectures, students are
required to completethechapter readingin thetextbook inadvance. Thesereadings are
set out intheweek-by-weektimetablethat canbefoundinthissection.
5
? A detailedweeklyscheduleof theCourseisasfollows:
Weekly Schedule
Week Week
Begins
Lecture Topic Text Readings Tutorial Assessment
1 21/2/2011 Introductionto
Entrepreneurship
Chapter 1 Unit
Overview;
Intro. To
BusinessPlan
Pro(I)
2 28/2/2011 FeasibilityAnalysis Chapter 3 Intro. To
BusinessPlan
Pro(II);
Feasibility
Analysis
Template
3 7/3/2011 WritingaBusiness
Plan
Chapter 4 Practiceof
BusinessPlan
Pro
4 14/3/2011 Recognising
opportunitiesand
GeneratingIdeas
Chapter 2 Practiceof
BusinessPlan
Pro;
Case2.1
(p67-70)
5 21/3/2011 Industryand
Competitor Analysis
Chapter 5 Group
Feasibility
Analysis
Presentation
(I)
GroupFeasibility
AnalysisReport
Due
6 28/3/2011 Developingan
EffectiveBusiness
Model andBuilding
aNew-VentureTeam
Chapter 6& 9 Group
Feasibility
Analysis
Presentation
(II);
Case6.1
(p201-203)
7 4/4/2011 PreparingaProper
Ethical andLegal
Foundation
Chapters7 Group
BusinessPlan
Discussion
Individual
AnalysisReport
onChosen
Entrepreneur
11/4/2011 &
18/4/2011
Mid-Semester
Break
(11 April – 22 April,
2011)
8 25/4/2011
Public
Holiday
(26/4 Tue)
AssessingaNew
Venture’sFinancial
Strengthand
Viability
Chapter 8 Case8.1
(p278-280)
6
Week Week
Begins
Lecture Topic Text Readings Tutorial Assessment
9 2/5/2011 GettingFundingor
Financing
Chapter 10 YouBethe
VC 10.1
(p341)
(Individual ) Case
10.2Due
(p345-347
Discussion
Questions1to4)
Due
10 9/5/2011 UniqueMarketing
Issues
Chapter 11 Business Plan
Project
Wrap-up;
Case11.2
(p382-384)
11 16/5/2011 TheImportanceof
Intellectual Property
Chapter 12 Business Plan
Presentation
(I)
GroupBusiness
PlanReport Due
12 23/5/2011 PreparingFor and
Evaluatingthe
Challengesof
Growth
andStrategiesfor
FirmGrowth
Chapter 13&
14
Business Plan
Presentation
(II)
(Individual ) Case
14.1(p480-482
Discussion
Questions1to4)
Due
13 30/5/2011 Business Plan
Presentation (III)
? Thesecondpart of eachclasswill beusedtocompletein-classexercisesthat will provide
students with an opportunity to put theconcepts and tools discussed during lectures into
practice.
? Students will be placed into groups at the beginning of the course. Groups will work
together to completetwo group assignments. This group assignment will concentrateon
implementing asmall number of thekey tools discussed during thecourse. Thesecond
part of some classes will be used to allow groups to work on some particularly critical
partsof their groupassignments.
? Havingsaidthis, sinceBUS827incorporatesthelectureandtutorial inone3-hour session,
classes may move between lecture and tutorial elements (including student
presentations) in order to break-up the class and ensure an optimal learning
environment. After all, we’relearningabout beingentrepreneurial!
RESEARCH AND PRACTICE
? Useful websitesfor researchinthiscourse:
Australian Government Initiative
http://www.business.gov.au/Pages/default.aspxbusiness.gov.au offersyousimpleand
convenient accesstoall thegovernment information, formsandservicesyouneed. It'sa
7
whole-of-government serviceprovidingessential informationonplanning, startingand
growingyour business.
Australian Industry InnovationXchange Network http://innovationxchange.com.au
A collaborative website that seeks to address the important issues of innovation. It is an
initiativeof theAustralianIndustryGroup.
Business Entry Point http://www.business.gov.au
A Commonwealthgovernment initiativethat makes it easy to searchand deal withall levels
of government including50Commonwealthgovernment agencies, 100stateagenciesand125
industryassociations.
All Business Network http://www.all-biz.com
An in-depth sourceof information for peoplewho arealready in business and for thosejust
starting out. Navigation is easy and many links are included. Good bibliography of print
publications.
AVCAL http://avcal.com.au
AustralianVentureCapital AssociationLimited
Baker Library, Harvard Business School http://www.library.hbs.edu
The Baker Library Web site contains a wealth of information about publications on a wide
range of business topics. The Bibliographies and Guides section contains an extensive,
annotated bibliography of books, serial publications, and Web sites on small business and
high growth companies. Other annotated bibliographies help users find company, industry,
andfinancial servicesinformationsources.
Bread TV http://wwwbreadtv.com.au
Bread TV is an Australian lifestyleTV showshowcasing small business using real lifecase
studies about the trials and tribulations of running a small business. The website provides
deeper content aroundthestoriesandfeaturespractical, hands-onbusinessadvice.
Business Owners Toolkit. Riverwood, IL: CCH, Inc. http://www.toolkit.cch.com
Features advice fromthe SOHO Guidebook, as well as a collection of business forms and
selected current news of interest to small business owners. They also have a fee based
premiumservicethat allowsyoutosearchproprietarydatabases.
Business Resource Center http://www.morebusiness
A very thorough site that offers tips for getting started, advice, a free newsletter, weekly
business tips, marketing tips, management center, financing guide, legal clinic, profitability
tips, informationabout upcomingtradeshows, taxtalk, andother businesslinks.
Business Week Enterprise. New York: Business Week.
http://www.businessweek.com/smallbiz
Features news, articlearchives, and resources for finance, technology, market research, staff
and benefits, travel, and more. Some features are unique to Business Week, with others the
partner withother informationproviders suchas theBusiness Owners Toolkit, DRI/McGraw
Hill, andStandard& Poors.
8
Career LeaderTMhttp://www.careerdiscovery.com/hbsp
Career LeaderTM is afully integrated approach to business career self-assessment developed
by Dr. J ames Waldroop and Timothy Butler, Directors of MBA Career Development
Programsat HarvardBusinessSchool.
CEOExpress http://www.ceoexpress.com
Basedontheprinciplethat 80%of theuseful informationontheInternet comes fromasmall
percentageof theWebsites, CEOExpresswasdesignedtoprovidelinkstothebest
business sites for targetedbusiness applications andresearch. Not just for entrepreneurs, this
sitecontainsthebookmarksfor thebest businessinformationsites. Updateddaily.
Edward Lowe Foundation/Small Biz Net http://www.lowe.org
Sponsored by the Edward Lowe Foundation, this Web site offers features such as current
small businessnews, seminars, current events, digital library, EdgeOnline, andthesmall
biznet exchange. Includeslinkstogovernment & privatesites.
Entre World. Kansas City, MO: Ewing Marion Kauffman Foundation Center For
Entrepreneurial Leadership Inc. http://www.entreworld.org
ThisWebsitegivesadviceonstartingandrunningyour business; includesservicedirectories
anduseful linksfor small businesses.
Entreprize Competition http://www.enterprize.uq.edu.au/index.html
University of Queensland Business School's Enterprize Competition is open to all
entrepreneurs withabusiness ideathat is ready to launch. Enterprizeprovides seedcapital to
promising start-up companies and gives participants the opportunity to have their business
plan reviewed by potential investors. Fostering networking with venture capitalists and
businessangels, it couldbetheperfect launch-padfor your newventure.
FinanceHub http://www.financehub.com
Finance Hub offers many options for seekers of venture capital and investors. Includes
information on venture capital companies, law advice, banking information, and articles on
howto obtain venturecapital. Entrepreneurs can list their companies for freein theFinance
Hubdatabase.
The Foundation for Enterprise Development http://www.fed.org
TheFoundationfor EnterpriseDevelopment is anon-profit organizationthat provides equity
compensation and employee ownership strategies to thousands of entrepreneurs and key
executives worldwide. The site has an array of useful links and tools of interest to anyone
interestedinstartingtheir ownbusiness.
Garage.comhttp://www.garage.com
Provides assistance and advice to entrepreneurs to help themobtain seed level financing.
Identifiesandpre-screenshighqualityinvestment opportunitiesmatchedtoinvestors'
identifiedinterests.
MIT Enterprise Forumhttp://www.mit-forum-cambridge.org
Over the past twenty years, the MIT Entreprise Forum of Cambridge has assisted
approximately 1,000 companies inavariety of ways — helpingthemto maketheir business
9
plans more attractive to financial resources, build management teams, focus on specific
markets, developstrategicalliances, andprovidingeducationprograms.
Bplans.comhttp://www.bplans.com
Palo Alto Software publishes the market leading business plan software, and also has an
excellent freeinformationsiteat Bplans.com— youcanfindout about thesoftwarebehindit
all here.
Quicken: Small Business. Intuit, Inc.
http://www.quicken.com/small_business
Includesnewsandtrends, advice, chat rooms, andquestionsandanswers. Lets youcustomize
thesitewithindustrynews.
The Small Business Advisor http://www.isquare.com
Site includes articles of interest to small business. Topics include: operations, marketing,
selling, legal issues, andcustomers. Sitealsohasbooksfor sale, dailymarketingtips,
taxhints, aglossary, andalist of small businessassociations.
Entrepreneur.Comhttp://entrepreneur.com
This website contains more than 30,000 pages of small business content with 33 industry
expertswhowill answer user questionsandconduct hostedchatsonawidevarietyof
topics. The site also includes 11 databases to help users to locate anything frombanks to
business opportunities, and services such as a barter network, business financing, lawyers,
personnel, andWebdevelopers.
Small Business Administration. Washington, DC: U.S. Small Business Administration.
http://www.sbaonline.sba.gov
TheSmall Business Administration's homepageprovides informationonstarting, financing,
and expanding a business, and includes an extensive list of great business hot-links and a
libraryof businessshareware.
Small Business Centre http://smallbusiness.ninemsn.com.au
From the Channel Nine stable of webpages that run complementary to current television
shows, theSmall BusinessCentreofferspractical advice, toolsandservicesfor small
businessoperators.
Smallbusiness.gov.au http://www.smallbusiness.gov.au
A useful onlinedirectoryof small businessinformationprovidedbyvariousAustralian
government departmentsandagencie
10
RELATIONSHIP BETWEEN ASSESSMENT AND LEARNING OUTCOMES
ASSESSMENTS
Inorder topassthisCourse, studentsmust:
a) Attempt ALL assessment tasksasgivenbelow; and
b) Attainanoverall compositepassmarkof 50%.
Thepurposeof theassessment tasksistodemonstratethat studentshavemet thelearning
objectivesasset out above. Thefollowingtabledescribestherelationshipbetweenthe
assessment tasksandthelearningoutcomes.
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
Description Successful
entrepreneursareable
tobuildteamsand
workwell within
them. Thisgroup
assignment provides
studentswiththe
opportunitytoworkin
ateamenvironment
whileat thesametime
deliveringthekey
elementsof a
feasibilityanalysis
report.
Asapreliminary
evaluationof a
businessidea, a
feasibilityanalysis
(First Screen) doneby
your groupisrequired
todetermineif anidea
isworthpursuingand
toscreenideasbefore
spendingresourceon
them.
For most new
ventures, the
businessplanisa
dual-purpose
document used
bothinsideand
outsidethefirm.
Your groupis
requiredtowork
together through
thesemester to
buildabusiness
planfor anew
ventureby
completingthe
followingtasks
basedonthe
Feasibility
AnalysisReport
(First Screen)
Youarerequired
todoresearch
onthechosen
entrepreneur
that youwould
liketostudyand
his/her related
companies.
Youhaveto
writeaconcise,
clear andwell
editedreport
withyour
findingsand
recommend
solutionfor
major company
issuesrelatedto
venturecreation.
Eachstudent
will beasked
toanalyse
twocase
studiesfrom
thetextbook
(CaseStudy
10.2and
14.1).
Due date Groupreport and
grouppresentation
dueon22/3/2011
(Week5)
Groupreport due
on17/5/2011
(Week11) and
grouppresentation
betweenWeek11
Individual report
dueon
5/4/2011(Week
7)
Case1due
on3/5(Week
9) andCase2
dueon24/5
(Week12)
11
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
and13
Marking
criteria/stan
dards &
expectations
Eachgroupmember
shouldparticipate
equallyand
enthusiastically
towardsthefinal
write-upof thegroup
report andgroup
presentation.
A groupFeasibility
Report (max. 6pages)
hastobesubmittedon
theduedate. The
summaryof thereport
will bepresentedby
thegrouptothewhole
class.
Individual
presentationmarkwill
begivenaccordingto
his/her thorough
preparationfor
presentation(15-20
minutes).
Eachgroup
member should
participateequally
andenthusiastically
towardsthefinal
write-upof the
groupbusinessplan
(max. 30pages)
andgroup
presentation.
Business Plan Pro
softwareisbeing
adoptedtoenhance
theskillsof
businessplan
writing. Each
member should
install thissoftware
inhis/her own
notebookandget a
lot practicesat
homeandin
tutorials.
Groupswill be
allocatedtopresent
betweenWeek11
and13for the
highlightsof their
BusinessPlansfor
amax. 25 minutes.
The3,000word
limit includesall
sectionsexcept
theExecutive
Summary
(maximumONE
page), Contents
Pageandthe
ReferenceList
at theendof the
report.
Thereare
four
questionsin
eachcase
study.
Theanswers
ineach
analysis
report should
not exceed
four (4)
pages with
font size12
and1.5line
spacing. Each
report is
worth10%.
Submission
method
ViaTurnitinandin
classtolecturer
ViaTurnitinandin
classtolecturer
ViaTurnitinand
inclassto
lecturer
ViaTurnitin
andinclass
tolecturer
Feedback Writtenfeedback will
begivenonthereport
andverbal feedback
will beprovided
interactivelyduring
presentation.
Writtenfeedback
will begivenonthe
report andverbal
feedbackwill be
provided
interactivelyduring
Written
feedbackwill be
givenonthe
report.
Written
feedbackwill
begivenon
thereport.
12
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
presentation.
Estimated
student
workload
(hours)
20hours 30hours 30hours 10hours 90
hours
Learning
outcomes
assessed:
1Applythe
entrepreneurial
processmodel
toanalyse
entrepreneurs’
venture
creation.
10 10%
2. Understand
andpractise
idea
generationand
screening
including
opportunity
analysis
trends,
feasibilityand
competitive
analysis.
5 5 10%
3.Understand
theprocess
howtowrite
upfeasibility
analysisand
businessplan
tolaunchthe
newventure
successfully
5 5 10%
4. Understand
thebasicsof
entrepreneurial
finance:
5 5 5 15%
13
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
raisingfunds,
growth
financing,
financial
evaluationof
opportunities,
andacquisition
financing.
5.Comprehend
theissuesand
tasksinvolved
insettingupa
venture,
marketingand
financingthe
venture, and
evaluating
venture
performance
for growthand
sustainability.
5 5 10%
Graduate
capabilities
assessed:
1.Critical,
analytical and
integrative
thinking
5 5 10%
2.Problem
solving&
research
capability
5 5 10%
3.Creativeand
innovative
5 5%
4.Effective
communicat-
ions
5 5 5 5 20%
Total 20% 30% 30% 20% 100%
14
ASSESSMENT TASK 1A & 1B:
Feasibility Analysis and Business Plan for New Venture Creation (50% of total marks)
Duringthefirst class youwill beassignedtoagroupof 4to5students. Thisassessment task
consists of two parts, feasibility analysis (20%) and business plan (30%) for new venture
creation. Your groupshouldmeet at least onceaweektofollowuptheprogressof theproject.
Eachgroupmember shouldparticipateequally andenthusiasticallytowardsthefinal write-up
of the group report and group presentation. Individual presentation mark will be given
accordingto his/her thoroughpreparationfor presentation. Ineachpart, agroupreport has to
besubmittedontheduedate. Thesummaryof thereport will bepresentedbythegrouptothe
wholeclass. Allocation of assessment mark for eachpart canbereferred to theAssessment
TaskTableabove.
What product or service should your group consider?
This is entirely up to your group. You may consider recent inventions that have been
consideredonprogramslikeTheNewInventorsor canfindonthewebincoverageof design
awardswinnersandfinalists. Alternatively, youmayconsider anewnichewithinanexisting
industry. For instance, theinternational educationsector iscurrentlyexperiencingagooddeal
of turmoil. Nonetheless, it remains a sector that should prove very profitable in the years
aheadgiventhedemandfor higher educationthroughout theAsia-Pacificregion. Your group
shouldbrainstormanumber of alternatives beforedecidingonthat onwhich youwill focus.
Think outside the square. For example, would it be feasible to offer a credit card whose
interest rateis2%lessthantheaverageof theleadingprovidersinthismarket? Becreative!
For example, theageing population, Generation Y preferences for new forms of media, and
rapidly changing technologies in healthcare provide further areas for possible consideration
etc.
1A. Feasibility Analysis (20% of total marks)
It is theprocess of determiningif abusiness ideais viable. As apreliminary evaluationof a
businessidea, afeasibilityanalysisiscompletedtodetermineif anideaisworthpursuingand
toscreenideasbeforespendingresourceonthem. Therearefour stagesof feasibilityanalysis
neededtobedoneinthispart of assessment suchasproduct/servicefeasibility, industry/target
market feasibility, organizational feasibility andfinancial feasibility. First Screen(Appendix
1 in this outline) is atemplatefor completingafeasibility analysis. It is called First Screen
becauseafeasibility analysis is anentrepreneur’s initial pass at determiningthefeasibility of
a business idea. If a business idea cuts muster at this stage, the next step is to complete a
businessplan.
Themajor issuestoconsider ineachstageof feasibilityanalysiscanbeincorporatedinthe
groupreport (Report Format):
15
ExecutiveSummary
Tableof Content (withpagenumber)
A. Product/ServiceFeasibilityAnalysis
1. Product/ServiceDesirability
2. Product/ServiceDemand
B. Industry/Target Market Feasibility
1. IndustryAttractiveness
2. Target/Market Attractiveness
C. Organizational FeasibilityAnalysis
1. Management Prowess
2. ResourceSufficiency
D. Financial FeasibilityAnalysis
1. Total Start-UpCashNeeded
2. Financial Performanceof Similar Businesses
3. Overall Financial Attractivenessof theProposedVenture
Appendices
1. Concept Statement
2. CompletedFirst ScreenTable
Report and Presentation– Inthisclass, eachgroupwill present for 15-20 minutes, providing
information to the class about your group determination for the viability of a new business
idea. Your grouphaveto drawconclusionwhether thenewbusiness ideais worthpursuing
before spending resource on them. Class colleagues will be invited to critique your ideas.
Each group must provide a copy of their slides to the lecturer during the class. If the
feasibilityanalysisispassed, your groupcancontinuetothenext phaseof venturecreationby
writingupthebusinessplan.
The Feasibility Analysis Report to be submitted to the lecturer on Week 5 should be a
maximumof 6 pages (plusanyrelevant appendicesincludingthefilledFirst Screentemplate).
Softcopy of thereport should besent to thelecturer via email. Pleasenotethat evidenceof
clear thinking and an appreciation of the process is far more important than the volume of
information generated. In general, the structure of this report should incorporate the all
criterialistedaboveinthereport format.
1B. Business Plan (30% of total marks)
It is a written narrative, typically 25 to 35 pages long, that describes what a new business
plans to accomplishand howit plans to accomplishit. For most newventures, thebusiness
plan is adual-purposedocument used both insideand outsidethefirm. Insidethefirm, the
planhelps thecompany developa“roadmap” to followinexecutingits strategies andplans.
Outside the firm, it introduces potential investors and other stakeholders with the business
opportunitythefirmispursuingandhowit planstopursueit.
Your group is required to work together through thesemester to build abusiness plan for a
newventurebycompletingthefollowingtasksbasedontheFeasibilityAnalysisReport (First
Screen):
16
1. Fromthe ideas generated by your teamselect several opportunities to be screened.
Screen these opportunities using the tools you have been exposed to in this unit.
Select oneopportunity that will formthebasis of your newventure(fromFeasibility
AnalysisReport - First Screen).
2. Create a business plan for your new venture that will encourage investors and debt
providerstoback you.
3. Recommend a team and organisation structure that will best support your new
business.
4. Generateafinancingplanthat recommends themost appropriatefundingsources and
providessupport for thisrecommendation.
5. Finally, recommendaharvest planor exit strategy for your organisationthat provides
themaximumvaluefor theinitial investors.
Thefollowingreport format providesaverybasicformat fromthetextbook. Studentscanuse
thereport format generatedbyBusiness Plan Pro software.
Outlineof theBusinessPlan(Report Format)
1. ExecutiveSummaryCover PageandTableof Contents
2. Tableof Content (withpagenumber)
3. CompanyDescription
4. IndustryAnalysis
5. Market Analysis
6. MarketingPlan
7. Management TeamandCompanyStructure
8. OperationsPlan
9. Product (or Service) DesignandDevelopment Plan
10. Financial Projections
11. Appendix
Table: SalesForecast
Table: Personnel
Table: Profit andLoss
Table: BalanceSheet etc
There are many software packages available that employ an interactive, menu-driven
approachtoassist inthewritingof abusiness plan. Someof theseprograms arevery helpful.
In this unit, Business Plan Pro software is being adopted to enhance the skills of business
planwriting. Eachmember shouldinstall this softwareinhis/her ownnotebook andget alot
practices at home and in tutorials. At least one member fromeach group should bring the
notebook toclasssothat thewholegroupcanuseit for groupmeetingandparticipateinclass
work for thebusiness planwritingduringthetutorial. Therearesamples of business plans in
the software for your self-learning. Be aware that students cannot copy the content from
sampleplans. Whenit isfoundout, it isconsideredasplagiarism. Thepenaltyisveryserious.
17
Report and Presentation– Groups will beallocatedto present betweenWeek 11and13for
thehighlightsof their BusinessPlansfor amaximumof 25 minutes. Eachgroupmust provide
acopy of their slides to thelecturer duringtheclass. Questions and answers will consumea
further 5to10minutes. Classcolleagueswill beinvitedtocritiqueyour ideas. TheBusiness
Plan Report to besubmitted to thelecturer on Week 11 should beamaximumof 30 pages
(plusanyrelevant appendices). Softcopyof thereport shouldbesent tothelecturer viaemail.
Please note that evidence of clear thinking and an appreciation of the process is far more
important thanthevolumeof informationgenerated. Ingeneral, thestructureof theBusiness
Planshouldincorporateall thecriterialistedaboveinthereport format.
Time will be provided during class for your groups to meet and discuss progress with the
lecturer.
Business Plan Competition:
The winner of the best group business plan will be encouraged to enter the business plan
competitionorganisedbyUniversityof Queensland. http://www.enterprize.uq.edu.au/
Other competition:
TheGSEA (Global Student Entrepreneur Awards) isthepremier global competitionfor
highschool, undergraduateandgraduatestudentswhoownandoperatebusinesseswhile
attendingcollegeor university. Nomineescompeteagainst their peersfromaroundtheworld.
Foundedin1998bySaint LouisUniversity, theGSEA isnowanEntrepreneurs’ Organization
program.
http://www.gsea.org/Pages/Default.aspx
ASSESSMENT TASK 2:
Individual Analysis Report on Chosen Entrepreneur(s) (30% of total marks)
Youarerequiredto do researchonthechosenentrepreneur that youwouldliketo study and
his/her related companies. You can discuss the life of a well-known or less well-known
entrepreneur. It couldbesomeoneinyour family, someoneyouknow, or someoneyouhave
trackeddownintheliterature(newspapers, magazines, books, internet). Onesuggestedway
topreparefor thisanalysisreport wouldbetofindabiographyor autobiographythat youcan
read fromcover- to-cover in preparing this assignment. You can consult your lecturer for
confirmationof your choiceif youhavedifficulty.
We do not need to know the “boring basics” of this person’s life. What we would like to
know about are the most interesting experiences, lessons, decisions and “tipping points” in
their life. For instance, LeeIacoccaled theturnaround of Chrysler in the1970s after being
sacked as President of Ford. Theoretically, Iacocca was an “intrapreneur” rather than an
“entrepreneur”, however intrapreneursarealsorelevant for our unit.
By putting all the required information, you have to write a concise, clear and well edited
report with your findings and recommend solution for major company issues related to
venture creation. The individual report is no more than 3,000 words in length. You are
required to consult andprovidefull references of your findings or theories/concept. Thereis
18
nolimit onthenumber of references. Youshouldbalanceyour referencesourcesfrombooks,
edited books, Internet (www), journal articles from the full-text databases, current affairs
magazines and newspapers. The use of WIKIPEDIA online encyclopaedia is not allowed
because of the anonymous authors. You must use the Harvard referencing style to
acknowledgeyour sourcesof information(bothin-text andasareferencelist at theend).
Regardingtheanalysisreport format, youmust include:
? Executive summary
? Table of Content with page number
? Introduction
o descriptionof chosenentrepreneur withname, jobtitleandpersonalityetc
? Company information
o company background withbrief history description, product range, organisational
structure/designetc
? Entrepreneurial process
o critical incidents involved in each process step from the Six steps model of
integratedentrepreneurial process by Morris, Kuratko andSchindehutte(2001) in
WeekOnelecture
? Major company issues with recommendation
? Conclusion
? Reference list
The 3,000 word limit includes all sections except the Executive Summary (maximumONE
page), Contents Pageand theReferenceList at theend of thereport. The report is due on
Week 7 (5 April 2011). Thereport must conformto the guidelines for written assessments
detailed in this unit outline. This assessment must also conform to rigorous academic
standards, especiallywithregardstoreferencing.
ASSESSMENT TASK 3
Individual Case Study Analysis (20% of total marks)
Each student will be asked to analyse two case studies fromthe textbook. There are four
questions ineachcasestudy. Theanswers ineachanalysis report shouldnot exceedfour (4)
pages withfont size12and1.5linespacing. Eachreport isworth10%.
Case Study One (Due on Week 9)
Case10.2Zazzle: Will theCompany Disappoint or “Dazzle” Its Investors? (Textbook p345-
347)
1. So what do you think? Do you think Kleiner Perkins and Sherpalo Ventures madeawise
decisioninvesting$16millioninZazzle? Fiveyears fromnow, do youthink that Zazzlewill
havedisappointedor dazzleditsinvestors? Why?
19
2. Look at Table10.2inthechapter. At thetimethat Zazzleraisedventurecapital funding, to
what extent didit resembletheideal candidatefor venture-capital fundingasstipulatedbythe
materialsinthetable?
3. EvaluateJ asonBall’s (theblogger) criticismof Kleiner Perkin’s investment inZazzle. Do
youthink Ball makes somegoodpoints or do youthink his arguments areoff base? Explain
your answer.
4. What do you think is Zazzle’s exit strategy? How will Kleiner Perkin’s and Sherpalo
Venturesrecouptheir investment?
Case Study Two (Due on Week 12)
Case14.1Cranium: GrowingAggressivelyBut Carefully(Textbookp. 480-482)
1. Would you characterize Craniumas a rapid growth firm? If so, what steps did Cranium
taketoprudentlymanageitsgrowth?
2. Prior to its acquisition by Hasbro, Craniumdid not acquire any firms itself as part of its
growthstrategy. Whydoyouthink Craniumavoidedthisgrowthalternative? Wouldmergers
andacquisitionsbeaneffectivegrowthstrategyfor Cranium? Explainyour answer.
3. Whichoneof thegrowthstrategiescoveredinthischapter doyouthink representsthemost
fruitful strategyfor Cranium, movingforward? Why?
4. Why do you think Hasbro acquired Cranium? Are you surprised that Tait and Alexander
will be leaving the company? Do you think Craniumwill become a more popular or a less
popular gamenowthat it isafullyownedsubsidiaryof Hasbro? Explainyour answer.
GUIDELINES FOR WRITTEN ASSIGNMENTS
All BUS827assignmentssubmittedfor assessment must adheretothefollowingstandards.
1. Cover Page
For each of the four assignments, use a cover (or title) page that provides the following
information:
(a) your full nameandstudent number;
(b) contact details: email address;
(c) unit codeandname(BUS827– EntrepreneurshipandBusinessStrategy);
(d) assignment number andassignment title;
(e) anexact wordcount if required—not aguess or approximation—of thenumber of
words in thebody of your assignment. (UseWord’s Tools menu and click on Word
Count.)
20
2. Presentation of Assignments
Assignments should meet normal academic and professional standards of presentation,
including:
(a) all pages, excludingthecover page, shouldbenumbered;
(b) pagemarginsshouldbeat least 2.5cmonall four edgesand1.5linespaced;
(c) assignmentsshouldbefreeof typographical & grammatical errors;
(d) TimeNewRomanfont typeandfont sizeof 12pointsshouldbeused.
(e) Harvardreferencingsystemshouldbeused.
(f) Turnitin receipt email. This email provides time and date proof of assignment
submissiontotheTurnitinsystem; and
(g) printedcopy of theoriginality report fromTurnitin. Do not copy andpasteonto a
Word document for printing. It has to be the original printing straight fromthe web
site.
Any assignment submission not containing the cover sheet, a print out of the
Turnitin receipt email stating time/date of submission and the Turnitin
originality report with percentage of similarity will not be marked.
3. Submission Procedures
Besides thehardcopy submission, thestudent is also requiredto submit their electronic copy
of assessment to Turnitin viatheInternet as part of thesubmission process for assignment.
Your assignment will then beautomatically compared to work of your classmates, previous
students fromMacquarieand other universities, with material availableon theInternet, both
freely available and subscription-based electronic journals. Before submission, name your
electronic file in a Word document (i.e. not PDF, PowerPoint, etc) with your surname and
student number, e.g., J ones20101309. For group assignment, you can name it with your
company name. To avoid any potential plagiarismissues you or your group can submit the
assignment more than once up to the due date. Please make sure that only one member of
your group can submit the report to Turnitin for plagiarismcheck. Students must use their
MacquarieUniversityemail addressastheir Turnitinusernamefor logginginthesystem. The
class password for Turnitin and the instructions to use it will be provided well before the
assignment is due. The deadline for all assignment submission to Turnitin is 23:59 hours
on the day before your class (Tuesday for Semester 1 or Monday/Thursday for Semester
2). However, you should allow at least 3 hours for processing as sometimes the system
can be slow. After successful submission, digital receipt and originality report with
percentageof similarity will begeneratedfor your printingor storage. Makesureyouattach
these two extra documents (digital receipt and originality report) together with your
hardcopyof assignment for submissionduringtheclasstimeinthedueweek. Softcopyof the
assignment inWordformat hastobesent viaemail toyour lecturer onthesameday.
Please read the Turnitin Student User Guide which is available in the Blackboard for more
information.
21
4. Late Submissions
Special arrangement has tobemadefor latesubmission. It will incur penalties. Thestandard
penalty is a deduction at the rate of 10%of the assignment’s maximummark for each day
late. All requests for extensions must beinwriting, fullydocumented, andbereceivedbefore
the due date. Requests for late submission are generally only acceptable on formal,
“certifiable” medical grounds. However, if youhaveaproblempleasetalk toyour lecturer as
earlyaspossible. Generallyspeaking, latesubmissionsattract asignificant penalty.
5. Feedback
We will endeavour to mark with marking guides and return assignments within two weeks
after theduedatesothat youcanbenefit fromthefeedback.
6. Examination
Please note that there is no final examination in this unit.
ACADEMIC HONESTY
Thenatureof scholarlyendeavour, dependent asit isontheworkof others, bindsall members
of theUniversitycommunitytoabidebytheprinciplesof academichonesty. Itsfundamental
principleisthat all staff andstudentsact withintegrityinthecreation, development,
applicationanduseof ideasandinformation. Thismeansthat:
? all academicworkclaimedasoriginal isthework of theauthor makingtheclaim
? all academiccollaborationsareacknowledged
? academicworkisnot falsifiedinanyway
? whentheideasof othersareused, theseideasareacknowledgedappropriately.
Further informationontheacademichonestycanbefoundintheMacquarieUniversity
AcademicHonestyPolicyat
http://www.mq.edu.au/policy/docs/academic_honesty/policy.html
GRADES
MacquarieUniversityusesthefollowinggradesincourseworkunitsof study:
HD- HighDistinction
D- Distinction
CR - Credit
P - Pass
F - Fail
Gradedescriptorsandother informationconcerninggradingarecontainedintheMacquarie
UniversityGradingPolicywhichisavailableat:
http://www.mq.edu.au/policy/docs/grading/policy.html
22
GRADING APPEALS AND FINAL EXAMINATION SCRIPT VIEWING
If, at theconclusionof theunit, youhaveperformedbelowexpectations, andareconsidering
lodginganappeal of gradeand/or viewingyour final examscript pleaserefer tothefollowing
website which provides information about these processes and the cut off dates in the first
instance. Pleasereadtheinstructionsprovidedconcerningwhat constitutesavalidgroundsfor
appeal beforeappealingyour grade.
http://www.businessandeconomics.mq.edu.au/for/new_and_current_students/undergraduate/a
dmin_central/grade_appeals.
SPECIAL CONSIDERATION
TheUniversityiscommittedtoequityandfairnessinall aspectsof itslearningandteaching.
Instatingthiscommitment, theUniversityrecognisesthat theremaybecircumstanceswhere
astudent ispreventedbyunavoidabledisruptionfromperforminginaccordancewiththeir
ability. A special considerationpolicyexiststosupport studentswhoexperienceseriousand
unavoidabledisruptionsuchthat theydonot reachtheir usual demonstratedperformance
level. Thepolicyisavailableat:
http://www.mq.edu.au/policy/docs/special_consideration/procedure.html
STUDENT SUPPORT SERVICES
MacquarieUniversityprovidesarangeof AcademicStudent Support Services. Detailsof
theseservicescanbeaccessedat http://www.student.mq.edu.au.
IT CONDITIONS OF USE
Access to all student computing facilities within the Faculty of Business and Economics is
restrictedtoauthorisedcoursework for approvedunits. Student ID cards must bedisplayedin
thelocationsprovidedat all times.
Studentsareexpectedtoact responsiblywhenutilisingUniversity IT facilities. Thefollowing
regulationsapplytotheuseof computingfacilitiesandonlineservices:
? Accessing inappropriate web sites or downloading inappropriate material is not
permitted. Material that is not related to coursework for approved unit is deemed
inappropriate.
? Downloading copyright material without permission from the copyright owner is illegal,
and strictly prohibited. Students detected undertaking such activities will face disciplinary
action, whichmayresult incriminal proceedings.
Non-compliancewiththeseconditionsmayresult indisciplinaryactionwithout further notice.
Studentsmust usetheir MacquarieUniversityemail addressestocommunicatewithstaff asit
is University policy that the University issued email account is used for official University
communication.
23
Appendix 1
First Screen for Feasibility Analysis (Template)
From“PreparingEffectiveBusinessPlans” byBruceR. Barringer
Part 1: Strength of Business Idea
For eachitem, circlethemost appropriateanswer andmakenoteof the(-1), (0), or (+1) score.
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Extent towhichthe
idea:
? Takesadvantageof
anenvironmental
trend
? Solvesaproblem
? Addressesan
unfilledgapinthe
marketplace
Weak Moderate Strong
2. Timelinessof entryto
market
Not timely Moderatelytimely Verytimely
3. Extent towhichthe
idea“addsvalue” for
itsbuyer or enduser
Low Medium High
4. Extent towhichthe
customer issatisfied
bycompeting
productsthat are
alreadyavailable
Verysatisfied Moderatelysatisfied Not verysatisfied
or ambivalent
5. Degreetowhichthe
idearequires
customerstochange
their basicpractices
or behaviors
Substantial changes
required
Moderatechanges
required
Small tonochanges
required
24
Part 2: Industry-Related Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Number of
competitors
Many Few None
2. Stageof industrylife
cycle
Maturityphaseor
declinephase
Growthphase Emergencephase
3. Growthrateof
industry
Littleor nogrowth Moderategrowth Stronggrowth
4. Importanceof
industry’sproducts
and/or servicesto
customers
“Ambivalent” “Wouldliketohave” “Must have”
5. Industryoperating
margins
Low Moderate High
Part 3: Target Market and Customer-Related Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Identificationof
target market for the
proposednewventure
Difficult toidentify Maybeabletoidentify Identified
2. Abilitytocreate
“barrierstoentry” for
potential competitors
Unabletocreate Mayor maynot beable
tocreate
Cancreate
3. Purchasingpower of
customers
Low Moderate High
4. Easeof making
customersawareof
thenewproduct or
service
Low Moderate High
5. Growthpotential of
target market
Low Moderate High
25
Part 4: Founder- (or Founders-) Related Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Founder or founders
experienceinthe
industry
Noexperience Moderateexperience Experienced
2. Founder or founders
skillsastheyrelateto
theproposednew
venture’sproduct or
service
Noskills Moderateskills Skilled
3. Extent of thefounder
or founders
professional and
social networksinthe
relevant industry
None Moderate Extensive
4. Extent towhichthe
proposednewventure
meetsthefounder or
founderspersonal
goalsandaspirations
Weak Moderate Strong
5. Likelihoodthat a
teamcanbeput
together tolaunch
andgrowthenew
venture
Unlikely Moderatelylikely Verylikely
26
Part 5: Financial Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Initial capital
investment
High Moderate Low
2. Number of revenue
drivers(waysin
whichthecompany
makesmoney)
One Twotothree Morethanthree
3. Timetobreakeven Morethantwo
years
Onetotwoyears Lessthanoneyear
4. Financial
performanceof
similar businesses
Weak Modest Strong
5. Abilitytofundinitial
product (or service)
development and/or
initial startup
expensesfrom
personal fundsor via
bootstrapping
Low Moderate High
27
Overall Potential
Eachpart hasfiveitems. Scoreswill rangefrom-5to+5for eachpart. Thescoreisaguide—
there is no established rule-of-thumb for the numerical score that equates to high potential,
moderatepotential, or lowpotential for eachpart. Therankingisajudgment call.
Score
(-5to+1)
Overall Potential of the
BusinessIdeaBasedon
EachPart
Suggestionsfor
Improvingthe
Potential
Part 1:
Strengthof Business
Idea
Highpotential
Moderatepotential
Lowpotential
Part 2:
Industry-Related
Issues
Highpotential
Moderatepotential
Lowpoten ia
Part 3:
Target Market and
Customer-Related
Issues
Highpotential
Moderatepotential
Lowpotential
Part 4:
Founder- (or
Founders-) Related
Issues
Highpotential
Mo erate
potential
Lowpotential
Part 5:
Financial Issues
Highpotential
Moderatepotential
Lowpotential
Overall Assessment Highpotential
Moderatepotential
Lowpotential
Summary—brieflysummarizeyour justificationfor your overall assessment:
doc_187502215.pdf
This abstract tell entrepreneurship and business strategy first semester, 2011.
BUS827
ENTREPRENEURSHIP AND BUSINESS
STRATEGY
First Semester, 2011
Department of Marketing & Management
1
MACQUARIE UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
UNIT OUTLINE
Year and Semester: Semester 1, 2011
Unit convenor: Julian W. Yim
Prerequisites: Students enrolling in this unit should be familiar with
basic accounting, finance, marketing and general
business concepts.
Not to be counted with: ACCG827, INOV827
Credit points: Four
Studentsinthisunit shouldreadthisunit outlinecarefullyat thestart of semester. It contains
important informationabout theunit. If anythinginit isunclear, pleaseconsult theteaching
staff intheunit.
ABOUT THIS UNIT
EntrepreneurshipandBusinessStrategy(BUS827) isapostgraduateunit offeredbythe
BusinessandEconomicsGraduateCentre(BEGC) aspart of theMaster of Commerceand
Master of International Businessprograms. 4credit pointswill beawardedtostudentswho
successfullycompletethisunit.
Thepurposeof this unit is to providestudents with an understanding of theprocess that an
entrepreneur employstodevelopanideaintoanopportunityandthenintoathriving, valuable
business. Wewill seehowtheapplicationof soundprinciples of business strategy underpins
the entrepreneurial process and is critical in achieving a successful outcome. Successful
completionof this unit will providestudents withknowledgeandtools that will support you
in your own entrepreneurial endeavours or equip you to contribute as part of an
entrepreneurial team.
? Skill Development: Students will practise cognitive, interactive, and teamwork skills
including analysis, synthesis, evaluation, reflection, critical thinking, problem-solving,
critiquing, andcommunicating.
? Creativity and Innovation: The contribution of innovation and the creative process in
entrepreneurshipwill berecurringthemesthroughout thecourse.
? Venture Creation: Students will learn the conceptual model for the entrepreneurial
processof launchingsuccessful newventures.
2
TEACHING STAFF
Lecturer and tutor (North Ryde Campus):
Mr Julian W. Yim MBA, MAppSc, BSc, BA
Email: [email protected]
CONSULTATION TIMES
? Consultationtime: pre-arrangedappointment byemail
onTuesday(Semester 1)
or MondayandThursday(Semester 2)
? ConsultationVenue: E4B-104
? Youareencouragedto seek helpat atimethat is convenient to youfromastaff member
teachingonthis unit duringtheir regular consultationhours. Inspecial circumstances, an
appointment may bemadeoutsideregular consultationhours. Staff will not conduct any
consultationsbyemail. Youmay, however, phonestaff duringtheir consultationhours.
? Students experiencing significant difficulties with any topic in the unit must seek
assistanceimmediately.
CLASSES
? Number andlengthof classes: 3hoursface-to-faceteachingper week, consistingof 1x2
hour lectureand1x1hour tutorial.
? Thetimetablefor classescanbefoundontheUniversitywebsiteat:
http://www.timetables.mq.edu.au/
? Pleasenotethat it isnot possibletoswitchbetweenclassesandstudentsmust attendthe
classfor whichtheyhaveenrolledduetotheintegrativenatureof groupactivities. Once
thetutorial groupsareformed, studentscannot changetheir classes.
? Attendancewill betakenintheweeklyclasses. Medical certificatesmust beprovidedif
youarenot abletoattendaclasswithout incurringapenalty.
? Warning: Youmust attendat least 10of the12weeklyclasses– failuretodosomay
affect your learningoutcomesandperformanceinthisUnit.
? Studentsareexpectedtoarriveontime, andnot toleaveuntil theclassends.
? If youhavearecurringproblemthat makesyoulate, or forcesyoutoleaveearly, havethe
courtesytodiscussthiswithyour lecturer/tutor.
? Studentsmust bequiet duringclasses, unlessof coursewhenclassparticipationis
required. Studentswhodisturbor disrupt inlecturesandtutorial classwill beaskedto
leave.
? Mobilephonemust beturnedOFF.
3
PRIZES
? None
REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS
? Prescribedtext:
Barringer, Bruce R and Duane, Ireland 2010, Entrepreneurship: successfully
launching new ventures, 3
rd
edn, Prentice Hall, Boston.
This textbook comes in a value pack which includes the software CD of Business Plan
Pro, Entrepreneurship: Starting and Operating a Small Business & Business Feasibility
AnalysisPro.
Thistext isavailablefor purchaseat theMacquarieUniversityCo-OpBookshop.
Additional readingsandother materials, includingpowerpoint slidesfor eachlecture, will
beplacedontheunit webpage.
TECHNOLOGY USED AND REQUIRED
? Studentsarerequiredtolearnhowtousepower point, wordprocessing, blackboardand
BusinessPlanProsoftware.
UNIT WEB PAGE
Thewebpagefor thisunit canbefoundat: Blackboardhttp://learn.mq.edu.au
LEARNING OUTCOMES
Thelearningoutcomesof thisunit are:
1. Applytheentrepreneurial processmodel toanalyseentrepreneurs’ venture
creation.
2. Understandandpractiseideagenerationandscreeningincludingopportunity
analysistrends, feasibilityandcompetitiveanalysis.
3. Understand the process how to write up feasibility analysis and business plan to
launchthenewventuresuccessfully.
4. Understandthebasics of entrepreneurial finance: raisingfunds, growthfinancing,
financial evaluationof opportunities, andacquisitionfinancing.
5. Comprehendtheissuesandtasksinvolvedinsettingupaventure, marketingand
financingtheventure, andevaluatingventureperformancefor growthand
sustainability.
4
GRADUATE CAPABILITIES
Businessmanagement graduatesareexpectedtoknowthefollowing6disciplinespecific
knowledgeandskillsupongraduation. Thisunit contributestothislearningbyhelping
student developcapabilitynumber 2, 4and5below(italicised).
1. Gain an understanding of the economic, technological, societal, and global
dimensionsof entrepreneurship.
2. Understand the relationships between personal goals, competencies, and
experience to assess what they bring to all types of venture creation through
entrepreneurship.
3. Understandtheaudiences, purposes, components andtheprocesses of developing
andevaluatingbusinessplansfor newventures.
4. Understand and appreciate the leadership skills necessary to successfully plan and
launch a new venture in an established organization.
5. Knowhowresourcescanbemaximizedfor bothpersonal andcorporateventures.
6. Consider how to monitor venture performance, manage growth, and sustain
organisations.
Inadditiontothedisciplinebasedlearningobjectivesabove, MacquarieUniversityalsoseek
todevelopthefollowing8genericcapabilitiesinour graduatesinorder toaddressthe
challenges, andtobeeffective, engagedparticipantsintheir world.
Thisunit contributestothislearningbyhelpingstudent developgenericskillsnumber 1, 2, 3
and4below(italicised).
1. Critical, Analytical and Integrative Thinking
2. Problem Solving and Research Capability
3. Creative and Innovative
4. Effective Communication
5. EngagedandEthical Local andGlobal citizens
6. SociallyandEnvironmentallyActiveandResponsible
7. Capableof Professional andPersonal J udgement andInitiative
8. Commitment toContinuousLearning
TEACHING AND LEARNING STRATEGY
? Theunit istaught bylecturesandtutorial activitieswithgroupdiscussions.
? Normally, therewill bealectureat thebeginningof eachclassthat will beusedtopresent
newconcepts andtools that will contributeto students’ understandingof thesubject area
and assist you to completeassessment tasks. Theselectures will beinteractiveand will
usereal lifeexamples wherepossible. Inorder to preparefor theselectures, students are
required to completethechapter readingin thetextbook inadvance. Thesereadings are
set out intheweek-by-weektimetablethat canbefoundinthissection.
5
? A detailedweeklyscheduleof theCourseisasfollows:
Weekly Schedule
Week Week
Begins
Lecture Topic Text Readings Tutorial Assessment
1 21/2/2011 Introductionto
Entrepreneurship
Chapter 1 Unit
Overview;
Intro. To
BusinessPlan
Pro(I)
2 28/2/2011 FeasibilityAnalysis Chapter 3 Intro. To
BusinessPlan
Pro(II);
Feasibility
Analysis
Template
3 7/3/2011 WritingaBusiness
Plan
Chapter 4 Practiceof
BusinessPlan
Pro
4 14/3/2011 Recognising
opportunitiesand
GeneratingIdeas
Chapter 2 Practiceof
BusinessPlan
Pro;
Case2.1
(p67-70)
5 21/3/2011 Industryand
Competitor Analysis
Chapter 5 Group
Feasibility
Analysis
Presentation
(I)
GroupFeasibility
AnalysisReport
Due
6 28/3/2011 Developingan
EffectiveBusiness
Model andBuilding
aNew-VentureTeam
Chapter 6& 9 Group
Feasibility
Analysis
Presentation
(II);
Case6.1
(p201-203)
7 4/4/2011 PreparingaProper
Ethical andLegal
Foundation
Chapters7 Group
BusinessPlan
Discussion
Individual
AnalysisReport
onChosen
Entrepreneur
11/4/2011 &
18/4/2011
Mid-Semester
Break
(11 April – 22 April,
2011)
8 25/4/2011
Public
Holiday
(26/4 Tue)
AssessingaNew
Venture’sFinancial
Strengthand
Viability
Chapter 8 Case8.1
(p278-280)
6
Week Week
Begins
Lecture Topic Text Readings Tutorial Assessment
9 2/5/2011 GettingFundingor
Financing
Chapter 10 YouBethe
VC 10.1
(p341)
(Individual ) Case
10.2Due
(p345-347
Discussion
Questions1to4)
Due
10 9/5/2011 UniqueMarketing
Issues
Chapter 11 Business Plan
Project
Wrap-up;
Case11.2
(p382-384)
11 16/5/2011 TheImportanceof
Intellectual Property
Chapter 12 Business Plan
Presentation
(I)
GroupBusiness
PlanReport Due
12 23/5/2011 PreparingFor and
Evaluatingthe
Challengesof
Growth
andStrategiesfor
FirmGrowth
Chapter 13&
14
Business Plan
Presentation
(II)
(Individual ) Case
14.1(p480-482
Discussion
Questions1to4)
Due
13 30/5/2011 Business Plan
Presentation (III)
? Thesecondpart of eachclasswill beusedtocompletein-classexercisesthat will provide
students with an opportunity to put theconcepts and tools discussed during lectures into
practice.
? Students will be placed into groups at the beginning of the course. Groups will work
together to completetwo group assignments. This group assignment will concentrateon
implementing asmall number of thekey tools discussed during thecourse. Thesecond
part of some classes will be used to allow groups to work on some particularly critical
partsof their groupassignments.
? Havingsaidthis, sinceBUS827incorporatesthelectureandtutorial inone3-hour session,
classes may move between lecture and tutorial elements (including student
presentations) in order to break-up the class and ensure an optimal learning
environment. After all, we’relearningabout beingentrepreneurial!
RESEARCH AND PRACTICE
? Useful websitesfor researchinthiscourse:
Australian Government Initiative
http://www.business.gov.au/Pages/default.aspxbusiness.gov.au offersyousimpleand
convenient accesstoall thegovernment information, formsandservicesyouneed. It'sa
7
whole-of-government serviceprovidingessential informationonplanning, startingand
growingyour business.
Australian Industry InnovationXchange Network http://innovationxchange.com.au
A collaborative website that seeks to address the important issues of innovation. It is an
initiativeof theAustralianIndustryGroup.
Business Entry Point http://www.business.gov.au
A Commonwealthgovernment initiativethat makes it easy to searchand deal withall levels
of government including50Commonwealthgovernment agencies, 100stateagenciesand125
industryassociations.
All Business Network http://www.all-biz.com
An in-depth sourceof information for peoplewho arealready in business and for thosejust
starting out. Navigation is easy and many links are included. Good bibliography of print
publications.
AVCAL http://avcal.com.au
AustralianVentureCapital AssociationLimited
Baker Library, Harvard Business School http://www.library.hbs.edu
The Baker Library Web site contains a wealth of information about publications on a wide
range of business topics. The Bibliographies and Guides section contains an extensive,
annotated bibliography of books, serial publications, and Web sites on small business and
high growth companies. Other annotated bibliographies help users find company, industry,
andfinancial servicesinformationsources.
Bread TV http://wwwbreadtv.com.au
Bread TV is an Australian lifestyleTV showshowcasing small business using real lifecase
studies about the trials and tribulations of running a small business. The website provides
deeper content aroundthestoriesandfeaturespractical, hands-onbusinessadvice.
Business Owners Toolkit. Riverwood, IL: CCH, Inc. http://www.toolkit.cch.com
Features advice fromthe SOHO Guidebook, as well as a collection of business forms and
selected current news of interest to small business owners. They also have a fee based
premiumservicethat allowsyoutosearchproprietarydatabases.
Business Resource Center http://www.morebusiness
A very thorough site that offers tips for getting started, advice, a free newsletter, weekly
business tips, marketing tips, management center, financing guide, legal clinic, profitability
tips, informationabout upcomingtradeshows, taxtalk, andother businesslinks.
Business Week Enterprise. New York: Business Week.
http://www.businessweek.com/smallbiz
Features news, articlearchives, and resources for finance, technology, market research, staff
and benefits, travel, and more. Some features are unique to Business Week, with others the
partner withother informationproviders suchas theBusiness Owners Toolkit, DRI/McGraw
Hill, andStandard& Poors.
8
Career LeaderTMhttp://www.careerdiscovery.com/hbsp
Career LeaderTM is afully integrated approach to business career self-assessment developed
by Dr. J ames Waldroop and Timothy Butler, Directors of MBA Career Development
Programsat HarvardBusinessSchool.
CEOExpress http://www.ceoexpress.com
Basedontheprinciplethat 80%of theuseful informationontheInternet comes fromasmall
percentageof theWebsites, CEOExpresswasdesignedtoprovidelinkstothebest
business sites for targetedbusiness applications andresearch. Not just for entrepreneurs, this
sitecontainsthebookmarksfor thebest businessinformationsites. Updateddaily.
Edward Lowe Foundation/Small Biz Net http://www.lowe.org
Sponsored by the Edward Lowe Foundation, this Web site offers features such as current
small businessnews, seminars, current events, digital library, EdgeOnline, andthesmall
biznet exchange. Includeslinkstogovernment & privatesites.
Entre World. Kansas City, MO: Ewing Marion Kauffman Foundation Center For
Entrepreneurial Leadership Inc. http://www.entreworld.org
ThisWebsitegivesadviceonstartingandrunningyour business; includesservicedirectories
anduseful linksfor small businesses.
Entreprize Competition http://www.enterprize.uq.edu.au/index.html
University of Queensland Business School's Enterprize Competition is open to all
entrepreneurs withabusiness ideathat is ready to launch. Enterprizeprovides seedcapital to
promising start-up companies and gives participants the opportunity to have their business
plan reviewed by potential investors. Fostering networking with venture capitalists and
businessangels, it couldbetheperfect launch-padfor your newventure.
FinanceHub http://www.financehub.com
Finance Hub offers many options for seekers of venture capital and investors. Includes
information on venture capital companies, law advice, banking information, and articles on
howto obtain venturecapital. Entrepreneurs can list their companies for freein theFinance
Hubdatabase.
The Foundation for Enterprise Development http://www.fed.org
TheFoundationfor EnterpriseDevelopment is anon-profit organizationthat provides equity
compensation and employee ownership strategies to thousands of entrepreneurs and key
executives worldwide. The site has an array of useful links and tools of interest to anyone
interestedinstartingtheir ownbusiness.
Garage.comhttp://www.garage.com
Provides assistance and advice to entrepreneurs to help themobtain seed level financing.
Identifiesandpre-screenshighqualityinvestment opportunitiesmatchedtoinvestors'
identifiedinterests.
MIT Enterprise Forumhttp://www.mit-forum-cambridge.org
Over the past twenty years, the MIT Entreprise Forum of Cambridge has assisted
approximately 1,000 companies inavariety of ways — helpingthemto maketheir business
9
plans more attractive to financial resources, build management teams, focus on specific
markets, developstrategicalliances, andprovidingeducationprograms.
Bplans.comhttp://www.bplans.com
Palo Alto Software publishes the market leading business plan software, and also has an
excellent freeinformationsiteat Bplans.com— youcanfindout about thesoftwarebehindit
all here.
Quicken: Small Business. Intuit, Inc.
http://www.quicken.com/small_business
Includesnewsandtrends, advice, chat rooms, andquestionsandanswers. Lets youcustomize
thesitewithindustrynews.
The Small Business Advisor http://www.isquare.com
Site includes articles of interest to small business. Topics include: operations, marketing,
selling, legal issues, andcustomers. Sitealsohasbooksfor sale, dailymarketingtips,
taxhints, aglossary, andalist of small businessassociations.
Entrepreneur.Comhttp://entrepreneur.com
This website contains more than 30,000 pages of small business content with 33 industry
expertswhowill answer user questionsandconduct hostedchatsonawidevarietyof
topics. The site also includes 11 databases to help users to locate anything frombanks to
business opportunities, and services such as a barter network, business financing, lawyers,
personnel, andWebdevelopers.
Small Business Administration. Washington, DC: U.S. Small Business Administration.
http://www.sbaonline.sba.gov
TheSmall Business Administration's homepageprovides informationonstarting, financing,
and expanding a business, and includes an extensive list of great business hot-links and a
libraryof businessshareware.
Small Business Centre http://smallbusiness.ninemsn.com.au
From the Channel Nine stable of webpages that run complementary to current television
shows, theSmall BusinessCentreofferspractical advice, toolsandservicesfor small
businessoperators.
Smallbusiness.gov.au http://www.smallbusiness.gov.au
A useful onlinedirectoryof small businessinformationprovidedbyvariousAustralian
government departmentsandagencie
10
RELATIONSHIP BETWEEN ASSESSMENT AND LEARNING OUTCOMES
ASSESSMENTS
Inorder topassthisCourse, studentsmust:
a) Attempt ALL assessment tasksasgivenbelow; and
b) Attainanoverall compositepassmarkof 50%.
Thepurposeof theassessment tasksistodemonstratethat studentshavemet thelearning
objectivesasset out above. Thefollowingtabledescribestherelationshipbetweenthe
assessment tasksandthelearningoutcomes.
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
Description Successful
entrepreneursareable
tobuildteamsand
workwell within
them. Thisgroup
assignment provides
studentswiththe
opportunitytoworkin
ateamenvironment
whileat thesametime
deliveringthekey
elementsof a
feasibilityanalysis
report.
Asapreliminary
evaluationof a
businessidea, a
feasibilityanalysis
(First Screen) doneby
your groupisrequired
todetermineif anidea
isworthpursuingand
toscreenideasbefore
spendingresourceon
them.
For most new
ventures, the
businessplanisa
dual-purpose
document used
bothinsideand
outsidethefirm.
Your groupis
requiredtowork
together through
thesemester to
buildabusiness
planfor anew
ventureby
completingthe
followingtasks
basedonthe
Feasibility
AnalysisReport
(First Screen)
Youarerequired
todoresearch
onthechosen
entrepreneur
that youwould
liketostudyand
his/her related
companies.
Youhaveto
writeaconcise,
clear andwell
editedreport
withyour
findingsand
recommend
solutionfor
major company
issuesrelatedto
venturecreation.
Eachstudent
will beasked
toanalyse
twocase
studiesfrom
thetextbook
(CaseStudy
10.2and
14.1).
Due date Groupreport and
grouppresentation
dueon22/3/2011
(Week5)
Groupreport due
on17/5/2011
(Week11) and
grouppresentation
betweenWeek11
Individual report
dueon
5/4/2011(Week
7)
Case1due
on3/5(Week
9) andCase2
dueon24/5
(Week12)
11
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
and13
Marking
criteria/stan
dards &
expectations
Eachgroupmember
shouldparticipate
equallyand
enthusiastically
towardsthefinal
write-upof thegroup
report andgroup
presentation.
A groupFeasibility
Report (max. 6pages)
hastobesubmittedon
theduedate. The
summaryof thereport
will bepresentedby
thegrouptothewhole
class.
Individual
presentationmarkwill
begivenaccordingto
his/her thorough
preparationfor
presentation(15-20
minutes).
Eachgroup
member should
participateequally
andenthusiastically
towardsthefinal
write-upof the
groupbusinessplan
(max. 30pages)
andgroup
presentation.
Business Plan Pro
softwareisbeing
adoptedtoenhance
theskillsof
businessplan
writing. Each
member should
install thissoftware
inhis/her own
notebookandget a
lot practicesat
homeandin
tutorials.
Groupswill be
allocatedtopresent
betweenWeek11
and13for the
highlightsof their
BusinessPlansfor
amax. 25 minutes.
The3,000word
limit includesall
sectionsexcept
theExecutive
Summary
(maximumONE
page), Contents
Pageandthe
ReferenceList
at theendof the
report.
Thereare
four
questionsin
eachcase
study.
Theanswers
ineach
analysis
report should
not exceed
four (4)
pages with
font size12
and1.5line
spacing. Each
report is
worth10%.
Submission
method
ViaTurnitinandin
classtolecturer
ViaTurnitinandin
classtolecturer
ViaTurnitinand
inclassto
lecturer
ViaTurnitin
andinclass
tolecturer
Feedback Writtenfeedback will
begivenonthereport
andverbal feedback
will beprovided
interactivelyduring
presentation.
Writtenfeedback
will begivenonthe
report andverbal
feedbackwill be
provided
interactivelyduring
Written
feedbackwill be
givenonthe
report.
Written
feedbackwill
begivenon
thereport.
12
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
presentation.
Estimated
student
workload
(hours)
20hours 30hours 30hours 10hours 90
hours
Learning
outcomes
assessed:
1Applythe
entrepreneurial
processmodel
toanalyse
entrepreneurs’
venture
creation.
10 10%
2. Understand
andpractise
idea
generationand
screening
including
opportunity
analysis
trends,
feasibilityand
competitive
analysis.
5 5 10%
3.Understand
theprocess
howtowrite
upfeasibility
analysisand
businessplan
tolaunchthe
newventure
successfully
5 5 10%
4. Understand
thebasicsof
entrepreneurial
finance:
5 5 5 15%
13
Assessment
Task
1A. Feasibility
Analysis Report
(10%) and
Presentation (10%)
(Group)
1B. Business Plan
Report (20%) and
Presentation
(10%) (Group)
2. Individual
Analysis
Report on
Chosen
Entrepreneur
(30%)
3. Individual
Case Study
Analysis
(20%) (Two
cases, 10%
each)
Total
raisingfunds,
growth
financing,
financial
evaluationof
opportunities,
andacquisition
financing.
5.Comprehend
theissuesand
tasksinvolved
insettingupa
venture,
marketingand
financingthe
venture, and
evaluating
venture
performance
for growthand
sustainability.
5 5 10%
Graduate
capabilities
assessed:
1.Critical,
analytical and
integrative
thinking
5 5 10%
2.Problem
solving&
research
capability
5 5 10%
3.Creativeand
innovative
5 5%
4.Effective
communicat-
ions
5 5 5 5 20%
Total 20% 30% 30% 20% 100%
14
ASSESSMENT TASK 1A & 1B:
Feasibility Analysis and Business Plan for New Venture Creation (50% of total marks)
Duringthefirst class youwill beassignedtoagroupof 4to5students. Thisassessment task
consists of two parts, feasibility analysis (20%) and business plan (30%) for new venture
creation. Your groupshouldmeet at least onceaweektofollowuptheprogressof theproject.
Eachgroupmember shouldparticipateequally andenthusiasticallytowardsthefinal write-up
of the group report and group presentation. Individual presentation mark will be given
accordingto his/her thoroughpreparationfor presentation. Ineachpart, agroupreport has to
besubmittedontheduedate. Thesummaryof thereport will bepresentedbythegrouptothe
wholeclass. Allocation of assessment mark for eachpart canbereferred to theAssessment
TaskTableabove.
What product or service should your group consider?
This is entirely up to your group. You may consider recent inventions that have been
consideredonprogramslikeTheNewInventorsor canfindonthewebincoverageof design
awardswinnersandfinalists. Alternatively, youmayconsider anewnichewithinanexisting
industry. For instance, theinternational educationsector iscurrentlyexperiencingagooddeal
of turmoil. Nonetheless, it remains a sector that should prove very profitable in the years
aheadgiventhedemandfor higher educationthroughout theAsia-Pacificregion. Your group
shouldbrainstormanumber of alternatives beforedecidingonthat onwhich youwill focus.
Think outside the square. For example, would it be feasible to offer a credit card whose
interest rateis2%lessthantheaverageof theleadingprovidersinthismarket? Becreative!
For example, theageing population, Generation Y preferences for new forms of media, and
rapidly changing technologies in healthcare provide further areas for possible consideration
etc.
1A. Feasibility Analysis (20% of total marks)
It is theprocess of determiningif abusiness ideais viable. As apreliminary evaluationof a
businessidea, afeasibilityanalysisiscompletedtodetermineif anideaisworthpursuingand
toscreenideasbeforespendingresourceonthem. Therearefour stagesof feasibilityanalysis
neededtobedoneinthispart of assessment suchasproduct/servicefeasibility, industry/target
market feasibility, organizational feasibility andfinancial feasibility. First Screen(Appendix
1 in this outline) is atemplatefor completingafeasibility analysis. It is called First Screen
becauseafeasibility analysis is anentrepreneur’s initial pass at determiningthefeasibility of
a business idea. If a business idea cuts muster at this stage, the next step is to complete a
businessplan.
Themajor issuestoconsider ineachstageof feasibilityanalysiscanbeincorporatedinthe
groupreport (Report Format):
15
ExecutiveSummary
Tableof Content (withpagenumber)
A. Product/ServiceFeasibilityAnalysis
1. Product/ServiceDesirability
2. Product/ServiceDemand
B. Industry/Target Market Feasibility
1. IndustryAttractiveness
2. Target/Market Attractiveness
C. Organizational FeasibilityAnalysis
1. Management Prowess
2. ResourceSufficiency
D. Financial FeasibilityAnalysis
1. Total Start-UpCashNeeded
2. Financial Performanceof Similar Businesses
3. Overall Financial Attractivenessof theProposedVenture
Appendices
1. Concept Statement
2. CompletedFirst ScreenTable
Report and Presentation– Inthisclass, eachgroupwill present for 15-20 minutes, providing
information to the class about your group determination for the viability of a new business
idea. Your grouphaveto drawconclusionwhether thenewbusiness ideais worthpursuing
before spending resource on them. Class colleagues will be invited to critique your ideas.
Each group must provide a copy of their slides to the lecturer during the class. If the
feasibilityanalysisispassed, your groupcancontinuetothenext phaseof venturecreationby
writingupthebusinessplan.
The Feasibility Analysis Report to be submitted to the lecturer on Week 5 should be a
maximumof 6 pages (plusanyrelevant appendicesincludingthefilledFirst Screentemplate).
Softcopy of thereport should besent to thelecturer via email. Pleasenotethat evidenceof
clear thinking and an appreciation of the process is far more important than the volume of
information generated. In general, the structure of this report should incorporate the all
criterialistedaboveinthereport format.
1B. Business Plan (30% of total marks)
It is a written narrative, typically 25 to 35 pages long, that describes what a new business
plans to accomplishand howit plans to accomplishit. For most newventures, thebusiness
plan is adual-purposedocument used both insideand outsidethefirm. Insidethefirm, the
planhelps thecompany developa“roadmap” to followinexecutingits strategies andplans.
Outside the firm, it introduces potential investors and other stakeholders with the business
opportunitythefirmispursuingandhowit planstopursueit.
Your group is required to work together through thesemester to build abusiness plan for a
newventurebycompletingthefollowingtasksbasedontheFeasibilityAnalysisReport (First
Screen):
16
1. Fromthe ideas generated by your teamselect several opportunities to be screened.
Screen these opportunities using the tools you have been exposed to in this unit.
Select oneopportunity that will formthebasis of your newventure(fromFeasibility
AnalysisReport - First Screen).
2. Create a business plan for your new venture that will encourage investors and debt
providerstoback you.
3. Recommend a team and organisation structure that will best support your new
business.
4. Generateafinancingplanthat recommends themost appropriatefundingsources and
providessupport for thisrecommendation.
5. Finally, recommendaharvest planor exit strategy for your organisationthat provides
themaximumvaluefor theinitial investors.
Thefollowingreport format providesaverybasicformat fromthetextbook. Studentscanuse
thereport format generatedbyBusiness Plan Pro software.
Outlineof theBusinessPlan(Report Format)
1. ExecutiveSummaryCover PageandTableof Contents
2. Tableof Content (withpagenumber)
3. CompanyDescription
4. IndustryAnalysis
5. Market Analysis
6. MarketingPlan
7. Management TeamandCompanyStructure
8. OperationsPlan
9. Product (or Service) DesignandDevelopment Plan
10. Financial Projections
11. Appendix
Table: SalesForecast
Table: Personnel
Table: Profit andLoss
Table: BalanceSheet etc
There are many software packages available that employ an interactive, menu-driven
approachtoassist inthewritingof abusiness plan. Someof theseprograms arevery helpful.
In this unit, Business Plan Pro software is being adopted to enhance the skills of business
planwriting. Eachmember shouldinstall this softwareinhis/her ownnotebook andget alot
practices at home and in tutorials. At least one member fromeach group should bring the
notebook toclasssothat thewholegroupcanuseit for groupmeetingandparticipateinclass
work for thebusiness planwritingduringthetutorial. Therearesamples of business plans in
the software for your self-learning. Be aware that students cannot copy the content from
sampleplans. Whenit isfoundout, it isconsideredasplagiarism. Thepenaltyisveryserious.
17
Report and Presentation– Groups will beallocatedto present betweenWeek 11and13for
thehighlightsof their BusinessPlansfor amaximumof 25 minutes. Eachgroupmust provide
acopy of their slides to thelecturer duringtheclass. Questions and answers will consumea
further 5to10minutes. Classcolleagueswill beinvitedtocritiqueyour ideas. TheBusiness
Plan Report to besubmitted to thelecturer on Week 11 should beamaximumof 30 pages
(plusanyrelevant appendices). Softcopyof thereport shouldbesent tothelecturer viaemail.
Please note that evidence of clear thinking and an appreciation of the process is far more
important thanthevolumeof informationgenerated. Ingeneral, thestructureof theBusiness
Planshouldincorporateall thecriterialistedaboveinthereport format.
Time will be provided during class for your groups to meet and discuss progress with the
lecturer.
Business Plan Competition:
The winner of the best group business plan will be encouraged to enter the business plan
competitionorganisedbyUniversityof Queensland. http://www.enterprize.uq.edu.au/
Other competition:
TheGSEA (Global Student Entrepreneur Awards) isthepremier global competitionfor
highschool, undergraduateandgraduatestudentswhoownandoperatebusinesseswhile
attendingcollegeor university. Nomineescompeteagainst their peersfromaroundtheworld.
Foundedin1998bySaint LouisUniversity, theGSEA isnowanEntrepreneurs’ Organization
program.
http://www.gsea.org/Pages/Default.aspx
ASSESSMENT TASK 2:
Individual Analysis Report on Chosen Entrepreneur(s) (30% of total marks)
Youarerequiredto do researchonthechosenentrepreneur that youwouldliketo study and
his/her related companies. You can discuss the life of a well-known or less well-known
entrepreneur. It couldbesomeoneinyour family, someoneyouknow, or someoneyouhave
trackeddownintheliterature(newspapers, magazines, books, internet). Onesuggestedway
topreparefor thisanalysisreport wouldbetofindabiographyor autobiographythat youcan
read fromcover- to-cover in preparing this assignment. You can consult your lecturer for
confirmationof your choiceif youhavedifficulty.
We do not need to know the “boring basics” of this person’s life. What we would like to
know about are the most interesting experiences, lessons, decisions and “tipping points” in
their life. For instance, LeeIacoccaled theturnaround of Chrysler in the1970s after being
sacked as President of Ford. Theoretically, Iacocca was an “intrapreneur” rather than an
“entrepreneur”, however intrapreneursarealsorelevant for our unit.
By putting all the required information, you have to write a concise, clear and well edited
report with your findings and recommend solution for major company issues related to
venture creation. The individual report is no more than 3,000 words in length. You are
required to consult andprovidefull references of your findings or theories/concept. Thereis
18
nolimit onthenumber of references. Youshouldbalanceyour referencesourcesfrombooks,
edited books, Internet (www), journal articles from the full-text databases, current affairs
magazines and newspapers. The use of WIKIPEDIA online encyclopaedia is not allowed
because of the anonymous authors. You must use the Harvard referencing style to
acknowledgeyour sourcesof information(bothin-text andasareferencelist at theend).
Regardingtheanalysisreport format, youmust include:
? Executive summary
? Table of Content with page number
? Introduction
o descriptionof chosenentrepreneur withname, jobtitleandpersonalityetc
? Company information
o company background withbrief history description, product range, organisational
structure/designetc
? Entrepreneurial process
o critical incidents involved in each process step from the Six steps model of
integratedentrepreneurial process by Morris, Kuratko andSchindehutte(2001) in
WeekOnelecture
? Major company issues with recommendation
? Conclusion
? Reference list
The 3,000 word limit includes all sections except the Executive Summary (maximumONE
page), Contents Pageand theReferenceList at theend of thereport. The report is due on
Week 7 (5 April 2011). Thereport must conformto the guidelines for written assessments
detailed in this unit outline. This assessment must also conform to rigorous academic
standards, especiallywithregardstoreferencing.
ASSESSMENT TASK 3
Individual Case Study Analysis (20% of total marks)
Each student will be asked to analyse two case studies fromthe textbook. There are four
questions ineachcasestudy. Theanswers ineachanalysis report shouldnot exceedfour (4)
pages withfont size12and1.5linespacing. Eachreport isworth10%.
Case Study One (Due on Week 9)
Case10.2Zazzle: Will theCompany Disappoint or “Dazzle” Its Investors? (Textbook p345-
347)
1. So what do you think? Do you think Kleiner Perkins and Sherpalo Ventures madeawise
decisioninvesting$16millioninZazzle? Fiveyears fromnow, do youthink that Zazzlewill
havedisappointedor dazzleditsinvestors? Why?
19
2. Look at Table10.2inthechapter. At thetimethat Zazzleraisedventurecapital funding, to
what extent didit resembletheideal candidatefor venture-capital fundingasstipulatedbythe
materialsinthetable?
3. EvaluateJ asonBall’s (theblogger) criticismof Kleiner Perkin’s investment inZazzle. Do
youthink Ball makes somegoodpoints or do youthink his arguments areoff base? Explain
your answer.
4. What do you think is Zazzle’s exit strategy? How will Kleiner Perkin’s and Sherpalo
Venturesrecouptheir investment?
Case Study Two (Due on Week 12)
Case14.1Cranium: GrowingAggressivelyBut Carefully(Textbookp. 480-482)
1. Would you characterize Craniumas a rapid growth firm? If so, what steps did Cranium
taketoprudentlymanageitsgrowth?
2. Prior to its acquisition by Hasbro, Craniumdid not acquire any firms itself as part of its
growthstrategy. Whydoyouthink Craniumavoidedthisgrowthalternative? Wouldmergers
andacquisitionsbeaneffectivegrowthstrategyfor Cranium? Explainyour answer.
3. Whichoneof thegrowthstrategiescoveredinthischapter doyouthink representsthemost
fruitful strategyfor Cranium, movingforward? Why?
4. Why do you think Hasbro acquired Cranium? Are you surprised that Tait and Alexander
will be leaving the company? Do you think Craniumwill become a more popular or a less
popular gamenowthat it isafullyownedsubsidiaryof Hasbro? Explainyour answer.
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Appendix 1
First Screen for Feasibility Analysis (Template)
From“PreparingEffectiveBusinessPlans” byBruceR. Barringer
Part 1: Strength of Business Idea
For eachitem, circlethemost appropriateanswer andmakenoteof the(-1), (0), or (+1) score.
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Extent towhichthe
idea:
? Takesadvantageof
anenvironmental
trend
? Solvesaproblem
? Addressesan
unfilledgapinthe
marketplace
Weak Moderate Strong
2. Timelinessof entryto
market
Not timely Moderatelytimely Verytimely
3. Extent towhichthe
idea“addsvalue” for
itsbuyer or enduser
Low Medium High
4. Extent towhichthe
customer issatisfied
bycompeting
productsthat are
alreadyavailable
Verysatisfied Moderatelysatisfied Not verysatisfied
or ambivalent
5. Degreetowhichthe
idearequires
customerstochange
their basicpractices
or behaviors
Substantial changes
required
Moderatechanges
required
Small tonochanges
required
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Part 2: Industry-Related Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Number of
competitors
Many Few None
2. Stageof industrylife
cycle
Maturityphaseor
declinephase
Growthphase Emergencephase
3. Growthrateof
industry
Littleor nogrowth Moderategrowth Stronggrowth
4. Importanceof
industry’sproducts
and/or servicesto
customers
“Ambivalent” “Wouldliketohave” “Must have”
5. Industryoperating
margins
Low Moderate High
Part 3: Target Market and Customer-Related Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Identificationof
target market for the
proposednewventure
Difficult toidentify Maybeabletoidentify Identified
2. Abilitytocreate
“barrierstoentry” for
potential competitors
Unabletocreate Mayor maynot beable
tocreate
Cancreate
3. Purchasingpower of
customers
Low Moderate High
4. Easeof making
customersawareof
thenewproduct or
service
Low Moderate High
5. Growthpotential of
target market
Low Moderate High
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Part 4: Founder- (or Founders-) Related Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Founder or founders
experienceinthe
industry
Noexperience Moderateexperience Experienced
2. Founder or founders
skillsastheyrelateto
theproposednew
venture’sproduct or
service
Noskills Moderateskills Skilled
3. Extent of thefounder
or founders
professional and
social networksinthe
relevant industry
None Moderate Extensive
4. Extent towhichthe
proposednewventure
meetsthefounder or
founderspersonal
goalsandaspirations
Weak Moderate Strong
5. Likelihoodthat a
teamcanbeput
together tolaunch
andgrowthenew
venture
Unlikely Moderatelylikely Verylikely
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Part 5: Financial Issues
LowPotential (-1) ModeratePotential (0) HighPotential (+1)
1. Initial capital
investment
High Moderate Low
2. Number of revenue
drivers(waysin
whichthecompany
makesmoney)
One Twotothree Morethanthree
3. Timetobreakeven Morethantwo
years
Onetotwoyears Lessthanoneyear
4. Financial
performanceof
similar businesses
Weak Modest Strong
5. Abilitytofundinitial
product (or service)
development and/or
initial startup
expensesfrom
personal fundsor via
bootstrapping
Low Moderate High
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Overall Potential
Eachpart hasfiveitems. Scoreswill rangefrom-5to+5for eachpart. Thescoreisaguide—
there is no established rule-of-thumb for the numerical score that equates to high potential,
moderatepotential, or lowpotential for eachpart. Therankingisajudgment call.
Score
(-5to+1)
Overall Potential of the
BusinessIdeaBasedon
EachPart
Suggestionsfor
Improvingthe
Potential
Part 1:
Strengthof Business
Idea
Highpotential
Moderatepotential
Lowpotential
Part 2:
Industry-Related
Issues
Highpotential
Moderatepotential
Lowpoten ia
Part 3:
Target Market and
Customer-Related
Issues
Highpotential
Moderatepotential
Lowpotential
Part 4:
Founder- (or
Founders-) Related
Issues
Highpotential
Mo erate
potential
Lowpotential
Part 5:
Financial Issues
Highpotential
Moderatepotential
Lowpotential
Overall Assessment Highpotential
Moderatepotential
Lowpotential
Summary—brieflysummarizeyour justificationfor your overall assessment:
doc_187502215.pdf