Initiation And Management Of New Business Enterprise

Description
Within this description in regard to initiation and management of new business enterprise.

MGMT 473

INITIATION AND MANAGEMENT OF NEW BUSINESS ENTERPRISE

Fall 2012

Section 001: T-Th 3:30PM - 4:45PM
Section 300: T-Th 5:30PM - 6:45PM

Professor: J oel Stevenson Telephone 803-777-5972
Office: Room 782 Moore School E-mail: [email protected]
Office Hours: All times by appointment.
Prerequisite: MGMT 472

Textbook: Launching New Ventures: An Entrepreneurial Approach (6th ed.), Kathleen R. Allen
(South-Western Cengage Learning). This textbook may also be useful to you in MGMT
479, should you choose to develop a business plan in that course.

Purpose and Objectives of the Course

The purpose of MGMT 473 is to present entrepreneurship in both theoretical and practical terms.
In the belief that “there is nothing more practical than a good theory,” we will examine entrepreneurship by
focusing on how opportunities are discovered, the conditions of markets and industries that must be
weighed in choosing to enter them, and the resources needed by the entrepreneur to establish a new
venture and build it into a successful enterprise. The venture must have some advantage over its rivals in
the eyes of at least some potential customers, and that advantage rests on making use of the appropriate
resources in a way that meets those customers’ needs.

We also will apply these theoretical perspectives to actual examples in order to develop your
practical understanding of entrepreneurship. You will need to use knowledge and techniques that you
learned in other courses, much as a startup entrepreneur must know something about almost everything
involved in his business.

Our ultimate objective in this course is to apply that practical understanding in a feasibility
study for a venture that you will devise. Your grade is a short-term measure of success in MGMT 473,
but the course’s real test comes in later years: Will you be able to start a commercial venture if your
ambition points in that direction?

What we cover in this course is an introduction to the knowledge and techniques that experience
has proved to be necessary for entrepreneurship. My aim is to help you to become better informed and
more capable as a potential entrepreneur. Together we can accomplish a great deal if you so desire.
Understand, though, that I cannot carry you and can do only so much to push you: your desire, effort, and
intelligence are indispensable ingredients of success both in the short run (your grade in this course) and
the long run (your entrepreneurial success in life).

The graded work in MGMT 473 consists of your contribution to class, two exams, and the
feasibility study. The following sections explain those components and their evaluation.

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Class Sessions and Your Preparation for Them

We will use a variety of methods to achieve the objectives of MGMT 473. Most class sessions
will involve a combination of lecture and discussion, guest lecturers that are entrepreneurs, and guest
lecturers that will assist your research and teamwork capabilities. Be prepared as a minimum to answer
any questions stated at the end of the chapters. Better preparation will include thinking about other issues
or problems or the implications of your answers to the stated questions. Reflect on how the profile
illustrates the chapter’s key concepts or principles, and be ready to discuss their application to the profile
and their broader implications for entrepreneurship.

When a chapter of the textbook is assigned, you are expected to arrive at that day’s class
prepared to answer the “Issues to Consider” questions printed at the end of the chapter. Lectures will
not summarize all the important material in a chapter. Instead, I will speak about the subject, emphasize
some key points, specify where research or my thinking differ from the textbook’s, and try to summarize
the subject and its relation to others that are important to entrepreneurship. You should use class sessions
to ask questions to clarify your understanding of the topics covered in each chapter, and to go beyond the
textbook’s coverage.

When the class is handed over to guest lecturers remember the following: these speakers have
been chosen for their experience and ability to shed additional light on issues that are important to
establishing and running a business. You should come armed with questions about their subject
and prepared to participate as actively as the speaker wishes. (It may be necessary to modify our
course schedule to accommodate the availability of guest speakers.)

Evaluating Your Attendance and Contributions to Discussion

Each student is expected to attend every class. Here’s why: Your active and informed
participation is critical to your success both in class and in real life. Our chapter discussions can be
very interesting and rewarding if you, the students, make them so. Even when a lecture is the day’s
principal activity, your preparation, attention, and participation will be vital to your learning. Reviewing
notes borrowed from a classmate, or attending without preparing the day’s assignment, simply are not
substitutes for your own presence and effort.

This course will operate on a “cold-call” system. That is, anyone present may be called on at
any moment and is expected to contribute productively. Of course I welcome volunteers and depend
on them to keep the discussion flowing.

Your contribution will be evaluated regularly on the basis of both quality and quantity, with an
emphasis on its quality. Discussions of chapters and lecture material are the most important setting for
your contribution. Expect your ideas to be challenged by me and by classmates, and be prepared to defend
them. Listen carefully to classmates’ comments and engage them in discussion. Not every comment is a
valued contribution, and merely speaking is not enough to gain credit.

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The most value contributions in our discussion in class are those that add insight rather than
merely state facts. It is important to relate facts to their facts or to reasonable assumptions, and to see
their implications. Your analysis should be thorough, and you should be able to support your comments.
Answers to the printed questions that accompany the case are important, but so are the answers to the
instructor’s questions or to other issues raised during the class discussion.

Regular, dependable, class participation performance is what I’m looking for. Regular,
dependable performance is far more reliable than any effort to make a big impression late in the semester.
There is no predetermined average score for class participation; you are not competing against others but
are building your own record of contribution.

All unexcused absences after three (see below) will result in a zero for the day, costing points
to be taken from your “attendance and contribution” grade. (Absences are excused for medical or
other weighty reasons, but not for vacations, working on other courses, interviews, business travel, etc.
Submit written documentation of your reason for being absent, such as a physician’s statement that you
were unable to attend class.) Attendance is recorded on the instructor’s seating chart, usually at the
beginning of each day’s class. If you arrive after the scheduled starting time, it is your responsibility to
ensure at the end of that day’s class that your presence was recorded.

Failure to prepare adequately for a class will also cost you points for you “attendance and
contribution” grade. Keep in mind that you may be called on at any moment, on any day. If your
response demonstrates to me that you are unprepared for the class, this penalty will be invoked. If you
wish to avoid the possibility of being caught unprepared, you may ask to be exempted from discussion for
the day. (To receive exemption from discussion you must give the instructor written notice before the start
of class.) Each student is allowed three unexcused absences or exemptions from discussion before
penalties begin. We’ll discuss remedies for a fourth absence.

Conduct that unprofessional or otherwise detracts from the educational goals of this course may be
penalized at the discretion of the instructor by reducing the offender’s grade in class contribution. Further
disciplinary measures may be imposed consistent with university policy.

Feasibility Studies

The term project will require you to develop and carry out a feasibility study. When completed,
the study will assess the viability of a business concept (which you will have developed) by examining its
industry, target market, management needs, financial requirements, and potential returns. Your textbook
was written with the feasibility study in mind–the author, Kathleen Allen, developed the book for use in
her course at the University of Southern California, which focuses on the feasibility study. We will follow
her book’s outline, guidance, and ideas, subject to a few modifications to suit our circumstances.

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You will form a team of four or five students to carry out this project. Important written
assignments and oral reports related to this project will be due throughout the semester. Grades on the
project’s components are weighted as follows as proportions of the course grade:

Feasibility Study 50%

* weight includes 20 percent to oral presentation and 30 percent to written report

You and your teammates will have opportunities to exchange peer evaluations during the life of
the project. By giving and receiving honest feedback throughout the semester, you and your teammates
can strengthen the team’s performance and guard against surprises and disappointment in the evaluation of
each person’s contributions. This will be done orally in the presence of all teammates.

Each project will receive an overall grade, after which I will determine individual grades.
Comprehensive (i.e. covering the entire project) peer evaluations play a potentially major part in my
grading of each student’s performance. These final evaluations are provided to me, and I will weigh
them as well as my own observations of students’ performance in arriving at individuals’ grades. Work
diligently; communicate closely and regularly with your teammates; carry out your responsibilities
as though your grade depended on it–because it does!

Allocation of Individual Grades

Mid Term Exam 25%
Final Examination (comprehensive) 25%
Individual Grade on Feasibility Study 50%
100%
**I will inform you if your class participation, or attendance record is jeopardizing your grade

Grading Scales and Standards

MGMT 473 is a demanding course, just as entrepreneurship is a demanding career. Standards are high
and evaluation is tougher than in many courses. The average grade on tests typically falls between 78 and
82. Team grades on feasibility studies usually averages in the mid-80s, but some individuals fall much
lower. None of these averages is predetermined; they simply reflect experience to date.

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Letter grades, numerical grades, and standards applied in this course are as follows:

A 90.0 and up (Excellent, far exceeding standards of acceptable work.)

B+ 87.0 to 89.9 (Very good, significantly exceeding standards of acceptable work.)

B 80.0 to 86.9 (Good, exceeding standards of acceptable work.)

C+ 77.0 to 79.9 (Fair, slightly surpassing standards of acceptable work.)

C 70.0 to 76.9 (Meets standards of acceptable work.)

D+ 67.0 to 69.9 (Marginal, somewhat below standards of acceptable work.)

D 60.0 to 66.9 (Poor, clearly below standards of acceptable work.)

F 59.9 or less (Failing, significantly below standards of acceptable work.)

Please do not expect to be “rounded up" because your grade is close to a higher one or because you “need”
the higher grade. In return I won’t “round down” if your grade is close to a lower one or reduce your grade
if I think you “don’t need” the higher one.

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MGMT 473—Fall 2012
COURSE OUTLINE & SCHEDULE OF ASSIGNMENTS
(Subject to change as necessary)

All written assignments are to be typed (double-spaced unless otherwise described) and are due at the
end of the class session for which they are assigned. Assignments that are not typed will be given back,
and I will ask you to “do over”.

Day & Date Topic and Assignment

Thurs 8/23 Introduction to the Course

Tues 8/28 Chapter 1 Understanding Entrepreneurship
Chapter 2 Preparing for the Entrepreneurial J ourney

Thurs 8/30 Chapter 3 Recognizing and Shaping an Opportunity
Chapter 4 Developing and Testing a Business Model

Tues 9/4 BE PREPARED You will take no more than two minutes
to introduce yourself. Where you are from, family, hobbies,
college major, ideas for a feasibility study.

Thurs 9/6 Finish up introductions. Form Teams

Tues 9/11 Chapter 5 Analyzing the Industry and Market

Thurs 9/13 Chapter 6 Analyzing Product/Service Design and Protection

Tues 9/18 FEASIBILITY STUDY: TEAM ROSTER AND INDUSTRY CHOICE. (ONE
SUBMITTED BY EACH TEAM) (Maximum length: two pages, may be single-spaced) List your team
members and identify the industry chosen and its five-digit NAICS code. Concisely justify your choice of
this industry (i.e. tell the industry’s “positives” for a new venture) and state its possible drawbacks. What
potential opportunities in this industry emerged from the in-class exercise? Tell of any special knowledge,
experience, or contacts you will use in this project. USE BULLETS

Thurs 9/20 Chapter 7 Building the Founding Team
Chapter 8 Calculating Startup Capital Requirements

Tues 9/25 Chapter 9 Proof of Concept: A new approach to Business Plans

Thurs 9/27 Presentation to Class by the BA Librarian on Research Resources

Tues 10/2 EXAM Chapters 1,2,3,4,5,6,7,8,9

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Thurs 10/ 4 Using Industry and Competitor Information the
Staff of the “Center for Business Communication”, Brad Stranton,
will cover research and documentation methods needed for the Feasibility Study.
Brad will also cover Teamwork

Tues 10/9 FEASIBILITY STUDY: BUSINESS CONCEPT STATEMENT .
Your concept statement must be concise.
Your team should be ready to present its concept statement in class.. Expect to have 3
minutes for your presentation; questions and discussion will follow each one. USE
BULLETS

Project Peer Evaluation (Round 1): Contact me if you are having problems

Thurs 10/11 Chapter 10 Choosing the Legal Form of Organization

Tues 10/16 FEASIBILITY STUDY: PROGRESS REPORTS TO THE INSTRUCTOR

Each team will meet with the instructor to discuss its progress on the project, to ask
questions or seek guidance, and to receive comment and advice. These meetings will take
place according to a schedule to be provided by the instructor. Attendance and
participation are expected of every team member.

Thurs 10/18 Chapter 12 Designing an Entrepreneurial Organization

Tues 10/23 Chapter 13 Planning Startup Operations

Thurs 10/25 Chapter 14 Developing a Startup Market Plan

Tues 10/30 Chapter 15 Funding a Start Up Venture

Thurs 11/1 Chapter 16 Funding a Rapidly Growing Venture

Tues 11/6 Election Day No Class

Thurs 11/8 Chapter 17 Planning for Growth

Tues 11/13 “The Real Deal”

Thurs 11/15 Chapter 18 Planning for Change

Tues 11/20 Feasibility Study Work Day

Thurs 11/22 Happy Thanksgiving No Class

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Tues 11/27 FEASIBILITY STUDY: WRITTEN FEASIBILITY STUDY
Teams 1-4
The completed written study is due at today’s class.
FEASIBILITY STUDY: ORAL PRESENTATION
Teams will make oral presentations of their feasibility studies according to a schedule to
be published by the instructor.

Thurs 11/29 FEASIBILITY STUDY: WRITTEN FEASIBILITY STUDY
Team 5-8
The completed written study is due at today’s class.
FEASIBILITY STUDY: ORAL PRESENTATION
Teams will make oral presentations of their feasibility studies according to a schedule to
be published by the instructor.

Tues 12/4 Chapter 11 Incorporating Ethics and Social Responsibility into the Business

Thurs 12/6 Review for Final

MID-TERM AND FINAL EXAMINATIONS

The exams will include “objective” (multiple choice, true/false) items to test your learning of vocabulary,
facts, and concepts. (You must take the exams on the scheduled date. Any makeup of an exam is
subject to the regulations for Deferred Examinations published in the Undergraduate Studies
Bulletin.)

T-Th Final…………….TBA

Your team’s graded Feasibility Study will be available. Send me an e-mail if you want the feasibility grade
after your course grade has been posted.
Your course grade should be available via VIP. Please do not ask me for your grade. (I won’t give it
out over the phone or in person)

Thanks in advance for your cooperation.

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