Description
With this detailed file about professor of entrepreneurship, business policy department, esade.
DEGREE IN TOURISM AND
HOSPITALITY MANAGEMENT
Syllabus
2012-2013 Academic Year
Course title: Business Plan
Semester: 7
Lecturer:
Joan Riera
Professor of Entrepreneurship TSI
Professor of Entrepreneurship, Business Policy Department, ESADE
e-mail:
[email protected]
[email protected]
BACHELOR´S PROGRAMME – COURSE SYLLABUS
COURSE: Business Plan
CODE: OP7BUSPL
COURSE TYPE: Compulsory YEAR: 4
ECS CREDITS: 5 SEMESTER: 7
LECTURER/S: Joan Riera
1. General description of the course.
The dynamics of business have changed fundamentally. Technological advances,
global interconnectedness, and societal changes among other factors create a new setting
for businesses. Large corporations experience hyper-competition and limits to growth due
to saturated markets for their traditional products. Markets converge or differentiate into
ultra-niche markets. The classical economics of capital and scale have turned into
economics of ideas and networks while the speed of innovation and change increases.
More than ever vast opportunities arise for aspiring entrepreneurs.
This course aims to inspire and empower you to become an entrepreneur. Through a
variety of cases, examples, readings, and hands-on experiences you can gain insights
how entrepreneurs start and grow ventures. You will experience different approaches to
becoming an entrepreneur taking into account high-opportunity costs, start-up costs, and
high risks of failure. We will focus on major aspects of the founding process including the
identification of promising business ideas, the evaluation of business opportunities, the
development of business models, the preparation of a business plan, the creation of an
entrepreneurial team as well as the financing and launch of the venture. In addition,
throughout the course we will examine the similarities and differences between starting a
new, independent venture and entrepreneurial efforts made within an established
organization.
The course is designed to present you with diverse insights and perspectives from
various entrepreneurs, your fellow participants and research. Empowering means placing
you in the driver´s seat and equipping you with the knowledge, skills, and experiences to
make your aspirations become reality.
2. Competencies developed within the course
Type Name
Indicators
General G1
1, 2, 3
G2
2, 3, 4, 5, 7
G3
1, 2, 3, 5
G5
1, 2, 3, 4, 6, 7, 8, 9
G7
1, 2, 3, 4
G8
1, 2, 3, 4
G11
1, 2, 3
G12
3, 6
G14
1, 2, 4
G15
1, 2, 3, 4
Basic BC1
2, 3, 5
BC 2
1, 3, 4
BC 3
1,2,3,6
BC 4
1, 2, 3
BC5
1, 3
3. Content
Block Topic/Unit
Content
1
The Process of
New Venture
Creation
This session will introduce you to the course and help you
discover the actual process of getting a new venture
started, growing it, and – if and when necessary – exiting
it.
Please read the case “Dr. John’s Products, Ltd.” (Harvard
Business School 9-803-063) and consider the following
questions:
2
From Idea to
Business Model
This session provides some insights into the discovery of
new business ideas and their development into robust
business models and real opportunities. When preparing
for the session, please identify and bring to class
examples of different business models. We will also
discuss how entrepreneurs really are and what makes (or
breaks) an entrepreneur, focusing on the challenges of
establishing and running a new venture.
3
Entrepreneurs
and their
Investors
One of the critical tasks of entrepreneurs is to secure
resources for the venture. This session is dedicated to
learn about the experiences of entrepreneurs who started
to implement their business concepts and tried to obtain
resources for their ventures.
4 Evaluating
In this session, we will learn how to differentiate between
Business
Opportunities:
an idea and an opportunity, and how investors and
stakeholders evaluate the strength of a new venture to
decide whether to offer a deal to the entrepreneur.
5
Pitching your
business idea
In this session, we will practice one of the most important
skills for entrepreneurs: the presentation of an idea to
partners and investors. You will receive feedback on the
idea potential and viability from students, faculty, and
experts present in order to improve for the final
presentation.
6
The Business
Plan – structure
and contents
In this session, we will focus on the content and structure
of the business plan and how it can help entrepreneurs
present their ventures. We will also discuss the scope and
value of the business plan to investors, lenders,
employees, suppliers and customers.
7
Financing the
New Venture
This session is dedicated to one of the most challenging
and difficult activities that an entrepreneur must
encompass: the building of a financial strategy for the new
venture. The entrepreneur must prepare carefully the
negotiation with investors, determining the financial needs
and valuing the new company.
8
Corporate
Entrepreneurship
During this session we will examine how innovative
companies succeed in fostering an entrepreneurial culture
and how a company (big or small) can promote a
particular Corporate Entrepreneurship program.
9
Final
presentations
The participants count with 10 minutes to present its
business concept for a new venture in a concise,
compelling, and convincing way.
4. Course objectives.
This course seeks to assist you in:
? Grasping and using a model that integrates four main dimensions of
entrepreneurship: the entrepreneurial team, the opportunity, the resources, and the
context.
? Identifying, developing, assessing, and pitching new ideas:
o Identifying ideas for new ventures.
o Assessing the potential of new business ideas to become business
opportunities.
o Developing your ability to present ideas in a concise, compelling way.
? Developing an awareness of the possibilities and limitations of different business
models.
? Integrating your previous knowledge in the development of a business plan.
? Enhancing our sensitivity and skills in discussing the financial needs of a new
venture:
o Determining capital requirements of a new venture: how much/when.
o Negotiating with investors.
? Identifying the challenges and opportunities of growth and harvesting.
5. Methodology and sessions chart with Required Readings and Exercises.
The learning experience is based on a range of teaching methods that seek to foster your
understanding of entrepreneurial processes and the development of your entrepreneurial
skills, such as case discussions, theoretical presentations, self-directed learning based on
recommended readings, role play, teamwork, experiences shared by invited
entrepreneurs and hands-on experiences. Further, the integrative nature of the course
allows connecting and reflecting concepts and insights you have learnt in other courses,
such as strategic management, marketing, operations, finance and human resources,
among others.
SESSION 1 and 2: THE PROCESS OF NEW VENTURE CREATION
This session will introduce you to the course and help you discover the actual process of
getting a new venture started, growing it, and – if and when necessary – exiting it.
Please read the case “Dr. John’s Products, Ltd.” (Harvard Business School 9-803-063)
and consider the following questions:
1. What do you think of John Osher’s process for identifying opportunities and building
companies?
2. What is the nature of the opportunity confronting Dr. John’s at the time of the case?
3. What should Osher and his colleagues do?
Required Reading
Keller, J.L. (2005). Manage Like an Entrepreneur. Harvard Management Update (Art.
Reprint U0501B).
Kim, W.C. & Maubourgne, R. (2000). Knowing a Winning Business Idea When You See
One. Harvard Business Review, Sept-Oct.
Recommended Reading
Stevenson, H. (1989). A Perspective on Entrepreneurship. In Stevenson, H., Roberts,
M.J. & Grousbeck, H.I. New Business Ventures and the Entrepreneur. Boston, MA. Irwin.
Timmons, J.A. and Spinelli, S. (2007). New Venture Creation, 7th ed., Irwin Mc. Graw-
Hill. New York.
SESSION 3: FROM IDEA TO BUSINESS MODEL. THE ENTREPRENEUR
This session provides some insights into the discovery of new business ideas and their
development into robust business models and real opportunities. When preparing for the
session, please identify and bring to class examples of different business models. We will
also discuss how entrepreneurs really are and what makes (or breaks) an entrepreneur,
focusing on the challenges of establishing and running a new venture.
The class discussion will be based on the case “The Knot” (Harvard Business School 9-
899-116, 2000), which describes an early stage company in need of financing that is
developing online presence in the wedding space. While reading the case, please think
about and address the following questions:
1. Who are the founders? What have they done in the past that would make you
believe they could succeed? Who is missing from the team?
2. What is the nature of the opportunity? What is the business model? How/why
does it change?
3. How much money should they raise? From whom? For what purpose? On what
terms?
Required readings
Magretta, J. (2002). Why Business Models Matter. Harvard Business Review, May, pp.
86-92.
Hamermesh, R.G., Marshall, P.W., Pirmohamed, T. (2002). Note on Business Model
Analysis for the Entrepreneur. Harvard Business School, 9-802-048.
Bricklin, D. (2001). Natural-Born Entrepreneur. Harvard Business Review, 122-127.
Osterwalder, A., Pigneur, Y., 2010: Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers. The preview:http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.
pdf
Recommended reading
W. Kuemmerle, A Test for the Fainthearted, Harvard Business Review, (May 2002), 122-
127.
Web of interest (in Spanish)http://www.banespyme.org/Banespymes.do?prefix=/emprendedores&page=/archivoTV.d
o
SESSION 4: ENTREPRENEURS AND THEIR INVESTORS
One of the critical tasks of entrepreneurs is to secure resources for the venture. This
session is dedicated to learn about the experiences of entrepreneurs who started to
implement their business concepts and tried to obtain resources for their ventures. We
will focus on steps the entrepreneurs took and the reactions of resource providers. This
session will feature an entrepreneur who will explain the process he chose, the
challenges he was confronted with and how he overcame them. We contrast these
experiences with the perspectives of a venture capital investor who will explain how they
select their funded firms, how they work with the portfolio firms in the process and how
they exit their investments. This session will be giving you ample opportunities to interact
with entrepreneurs and investors and learn from their experiences.
The first part will be dedicated to the debate between entrepreneurs and investors. In the
second part we will experience the creation, financing, and subsequent evolution of a new
venture.
Material used
Case: Startup.com. A video case that will be presented during the session.
Preparation
Prepare yourself for the interaction with entrepreneurs and investors.
SESSION 5: EVALUATING BUSINESS OPPORTUNITIES:
In this session, we will learn how to differentiate between an idea and an opportunity, and
how investors and stakeholders evaluate the strength of a new venture to decide whether
to offer a deal to the entrepreneur.
The discussion will be based on the case “Chrysalis Limited” (London Business School
396-100-1, 2000) and on the case “How VCs evaluate business opportunities”. Please
read the Chrysalis case and the VC case and think about criteria Carl and VC use in
assessing the proposals. Which two proposals of the Chrysalis case would you select?
Why? Please be prepared to argument your choice.
Required readings
Kawasaki, G. (2001). The Top Ten Lies of Entrepreneurs. Harvard Business Review,
January, 2-3.
SESSION 6: PITCHING YOUR BUSINESS
In this session, we will practice one of the most important skills for entrepreneurs: the
presentation of an idea to partners and investors. You will receive feedback on the idea
potential and viability from students, faculty, and experts present in order to improve for
the final presentation.
Some guiding questions for the final presentation:
? Description of the business idea:
? Which need are we fulfilling?
? Who is/are the target customer(s)?
? How are the target customers’ needs currently fulfilled?
? Opportunity analysis:
? How attractive is the market?
? What are main competitors?
? What are the entry barriers?
? Description of the business model:
? What is the value proposition?
? Which channels will you be using?
? How will the business generate revenues?
? How will you build the customer relationship?
? Which are the main cost drivers?
? What are key success-factors of the business?
? How will the venture assure its competitive edge?
Recommended reading
Elsbach, K.D. (2003), How to Pitch a Brilliant Idea, Harvard Business Review, 117-123.
SESSION 7: The Business Plan – structure and contents
In this session, we will focus on the content and structure of the business plan and how it
can help entrepreneurs present their ventures. We will also discuss the scope and value
of the business plan to investors, lenders, employees, suppliers and customers.
Required readings
Zacharakis, A. (2004). Writing a Business Plan. In Bygrave, W.D. and Zacharakis, A.
(Eds.) The Portable MBA in Entrepreneurship. John Wiley and Sons, Inc.
Recommended readings
Sahlman, W.A. (1997). How to Write a Great Business Plan, Harvard Business Review,
vol.75, nº 4.
SESSION 8: FINANCING THE NEW VENTURE
This session is dedicated to one of the most challenging and difficult activities that an
entrepreneur must encompass: the building of a financial strategy for the new venture.
The entrepreneur must prepare carefully the negotiation with investors, determining the
financial needs and valuing the new company.
Please read the case “Spotfire: Managing a Multinational Start-up” (Harvard Business
School 9-899-078) and consider the following questions:
1. What is the nature of the opportunity for Spotfire? What strategy should the
company pursue in the next 3-5 years?
2. Spotfire expects to raise additional capital in December 1998. How much capital is
needed? What is the valuation of the company? Under what terms should Spotfire
seek to raise capital?
3. Spotfire’s development group and the rest of the firm work in geographically
separate locations (Göteborg, Sweden and Boston, USA). Is this strategy
sustainable? Why? Why not?
Required readings
De Clerq, D., Fried, V.H., Lehtonen, O., Sapienza, H.J. (2006). An Entrepreneur’s Guide
to the Venture Capital Galaxy. Academy of Management Perspectives, August, pp. 90-
112.
Roberts, M.J., Stevenson, H. (2005). Deal Structure and Deal Teams. Harvard Business
School 9-806-085.
Recommended readings
Stevenson, H., Roberts, M.J. (2004). New Venture Financing, Harvard Business School,
9-802-131.
Reinbergs, I.A., Crane, D.B. (2001). Note on Valuing Private Business, Harvard Business
School, 9-201-060.
Roberts, M.J., Barley, L. (2004). How Venture Capitalist Evaluate Potential Venture
Opportunities, Harvard Business School, 9-805-019.
Robinson, R.J., Wasserman, N. (2000). Venture Capital Negotiations: VC versus
Entrepreneur, Harvard Business School, 9-800-170.
Wainwright, F. (2003). Riding on Angels' Wings, Financial Times, August 15
th
.
SESSION 9: CORPORATE ENTREPRENEURSHIP
During this session we will examine how innovative companies succeed in fostering an
entrepreneurial culture and how a company (big or small) can promote a particular
Corporate Entrepreneurship program.
Please read the case “3M Optical Systems: Managing Corporate Entrepreneurship”
(Harvard Business School, 9-395-017, 1999) and consider the following questions:
1. What are the elements that make 3M an innovative company?
2. As Andy Wong, how would you handle the authorization for expenditure (AFE) for the
re-launch of the privacy screen?
3. As Paul Gehler, would you approve the AFE if Wong sends it to you? Why?
When preparing for the session, think about the ways in which entrepreneurship is similar
and different in the context of established firms relative to independent ventures. Bring
examples of your favorite intrapreneurial companies.
Required readings
Rao, J. (2004). The Discipline of Corporate Entrepreneurship. ESADEAsociación, 111,
107-114.
Birckinshaw, J. (2003). The Paradox of Corporate Entrepreneurship. strategy + business
issue 30
Recommended readings
Dollinger, M. (1999). Entrepreneurship, Strategies and Resources. Chap.10, New York,
Prentice Hall.
Dess, G.G., Lumpkin G.T., McGee, J.E. (1999). Linking Corporate Entrepreneurship to
Strategy, Structure and Process: Suggested Research Directions. Entrepreneurship,
Theory and Practice.
SESSION 10: Mentoring Open Session
In this session, we will have an open session to prepare the final presentation. You will
get support and mentoring from the professors.
SESSION 11, 12, 13: FINAL PRESENTATION
The participants count with 10 minutes to present its business concept for a new venture
in a concise, compelling, and convincing way.
This is an EXAM, so please make sure your presentation conveys well your idea, the
business model, and the essentials of your business plan.
As mentioned in the introduction to the course, this presentation has an important impact
on your final grade.
Some guiding questions for the final presentation:
? Description of the business idea:
? Which need are we fulfilling?
? Who is/are the target customer(s)?
? How are the target customers’ needs currently fulfilled?
? Opportunity analysis:
? How attractive is the market?
? What are main competitors?
? What are the entry barriers?
? Description of the business model:
? What is the value proposition?
? Which channels will you be using?
? How will the business generate revenues?
? How will you build the customer relationship?
? Which are the main cost drivers?
? What are key success-factors of the business?
? How will the venture assure its competitive edge?
Recommended reading
Elsbach, K.D. (2003), How to Pitch a Brilliant Idea, Harvard Business Review, 117-123.
6. Learning activities and distribution of work load (in student work
hours).
Workload distribution) Hours (approx.)
Lectures 30
Seminars 2
Assessments 25
Team work 20
Reading and study 44
Research 25
Oral presentations 2
Exam 2
Total 150
7. Evaluation procedure.
Your final grade consists of three parts. To successfully complete the course, you must
have made the minimum required grade for passing in each of the parts.
Evaluation activity % on grade Comments
Class Participation 30%
Come to class ON TIME,
PREPARED to take part in the
case discussions and other
activities. You will be
assessed on the QUALITY of
your comments and your
ability to CONNECT with and
build upon the comments
made by your colleagues.
Business Plan Final
Presentation
30%
The participants will work
throughout the course to
identify a promising business
opportunity and develop a
high-potential business model
with a high degree of practical
relevance.
Final Business Plan Write-up 40%
8. Lecturer
Joan Riera
He is currently managing partner of Active Development and professor in ESADE's
Department of Business Policy and at the ESADE Entrepreneurship Institute. He is also a
‘business angel’ investor and independent advisor for various business initiatives
(established company spin-offs as well as business start-ups), and an active writer and
lecturer in the field of innovation and entrepreneurship. Regarding ESADE's alumni
association, he is president of the ESADE Alumni Innovation Club and member of the
Board of the ESADE Business Angels Club.
He holds a combined undergraduate degree and MBA in Management from ESADE
(Lic&MBA programme) and from Cornell University's Johnson Business School (Ithaca,
New York). He is a real estate agent, and has complemented his executive education at
ESADE (Real Estate Management) and at IESE (Developing Business Innovation). He
has broad experience in different fields in the UK, US and Spain.
In the area of innovation and corporate entrepreneurship, he was one of the founders of
ESADE Creapolis, the world's first innovation park to be backed by a business school,
where he also assumed the position as the park's first managing director for five years
comprising its conception, construction, launch and consolidation. He started and
founded the company from scratch raising the funds (€40M) in a private-public
collaboration and launching the initiative. In ten months (2009), EsadeCreapolis reached
the 60% occupancy with 40 resident customers and positive monthly EBITDA despite the
complex economic environment.
His experience also includes consultancy in the banking sector ("la Caixa"
www.laCaixa.com), setting up a new department in a multinational company
(www.Gamo.com), creating a technology company in the real estate sector when he
was only 23 years old (www.newHabitat.com), launching a company in the tourism
sector (www.flatBarcelona.net), cofounding an innovative company in the real estate
equipment sector (www.TheSoundVisionFurniture.com) coaching over 400
entrepreneurs leading ESADE's technological springboard and organising the ESADE's
first Investors' Forum.
He has been teaching Entrepreneurship, Leadership, Change Management, Growth
management and Innovation for more than 10 years. He has been teaching executive
education programs for companies like Telefónica, Boston Scientific, Pfizer, Danone,
Novartis, PricewaterhouseCoopers, Abbott, Solvay or Adif.
9. Literature.
In addition to the cases we will be discussing in class, the course binder provides a
number of required and recommended readings. Additional resources will be provided in
class. You may also be requested to search for particular readings in the library
databases.
Recommended Textbooks
Timmons, J.A. and Spinelli, S. (2007). New Venture Creation: Entrepreneurship for the
21
st
century. Boston: Irwin/McGraw-Hill.
Mullins, J., Komisar, R., 2009: Getting to Plan B: Breaking Through to a Better Business
Model, Boston: Harvard Business Press.
Osterwalder, A., Pigneur, Y., 2010: Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers.
Kawasaki, G., 2004: The art of the start. New York: Portfolio.
Hisrich, R.D., M.P. Peters and D.A. Shepherd (Eds.) (2004) Entrepreneurship, 6
th
ed.
New York: McGraw-Hill.
Drucker, P. (1993). Innovation and Entrepreneurship. Collins (UK).
Other sourceshttp://www.banespyme.org – videos of Spanish entrepreneurshttp://www.barcelonactiva.es – the website of the Local Development Agency of
Barcelona City Council (Entrepreneur’s attention service)http://www.evca.com – European Private Equity and Venture Capital Association
htpp://www.fastcompany.com – the internet home of Fast Company Magazine featuring
innovative ideas, people, and companieshttp://money.cnn.com – the Internet home of Fortune, Business 2.0http://www.bplans.com – resources on business planshttp://www.ted.com/talks - videos with inspiring ideashttp://ecorner.stanford.edu/ - Stanford University’s Entrepreneurship corner
10. Observations.
PUNCTUALITY (respect for your time and that of others!) and active PARTICIPATION
(of highest quality and building on the comments of your classmates) are two essential
requirements for this course.
Classes start and end on time. Please arrive and be ready on time, turn off your cell
phone, and do not leave the room during the class.
We can cold-call you, so if you happen to be unprepared for a class, please tell us in
advance (the reason doesn’t matter) so that we don’t call on you.
Identified cases of PLAGIARISM in individual or group submissions will lead to
suspending the course.
doc_315072710.pdf
With this detailed file about professor of entrepreneurship, business policy department, esade.
DEGREE IN TOURISM AND
HOSPITALITY MANAGEMENT
Syllabus
2012-2013 Academic Year
Course title: Business Plan
Semester: 7
Lecturer:
Joan Riera
Professor of Entrepreneurship TSI
Professor of Entrepreneurship, Business Policy Department, ESADE
e-mail:
[email protected]
[email protected]
BACHELOR´S PROGRAMME – COURSE SYLLABUS
COURSE: Business Plan
CODE: OP7BUSPL
COURSE TYPE: Compulsory YEAR: 4
ECS CREDITS: 5 SEMESTER: 7
LECTURER/S: Joan Riera
1. General description of the course.
The dynamics of business have changed fundamentally. Technological advances,
global interconnectedness, and societal changes among other factors create a new setting
for businesses. Large corporations experience hyper-competition and limits to growth due
to saturated markets for their traditional products. Markets converge or differentiate into
ultra-niche markets. The classical economics of capital and scale have turned into
economics of ideas and networks while the speed of innovation and change increases.
More than ever vast opportunities arise for aspiring entrepreneurs.
This course aims to inspire and empower you to become an entrepreneur. Through a
variety of cases, examples, readings, and hands-on experiences you can gain insights
how entrepreneurs start and grow ventures. You will experience different approaches to
becoming an entrepreneur taking into account high-opportunity costs, start-up costs, and
high risks of failure. We will focus on major aspects of the founding process including the
identification of promising business ideas, the evaluation of business opportunities, the
development of business models, the preparation of a business plan, the creation of an
entrepreneurial team as well as the financing and launch of the venture. In addition,
throughout the course we will examine the similarities and differences between starting a
new, independent venture and entrepreneurial efforts made within an established
organization.
The course is designed to present you with diverse insights and perspectives from
various entrepreneurs, your fellow participants and research. Empowering means placing
you in the driver´s seat and equipping you with the knowledge, skills, and experiences to
make your aspirations become reality.
2. Competencies developed within the course
Type Name
Indicators
General G1
1, 2, 3
G2
2, 3, 4, 5, 7
G3
1, 2, 3, 5
G5
1, 2, 3, 4, 6, 7, 8, 9
G7
1, 2, 3, 4
G8
1, 2, 3, 4
G11
1, 2, 3
G12
3, 6
G14
1, 2, 4
G15
1, 2, 3, 4
Basic BC1
2, 3, 5
BC 2
1, 3, 4
BC 3
1,2,3,6
BC 4
1, 2, 3
BC5
1, 3
3. Content
Block Topic/Unit
Content
1
The Process of
New Venture
Creation
This session will introduce you to the course and help you
discover the actual process of getting a new venture
started, growing it, and – if and when necessary – exiting
it.
Please read the case “Dr. John’s Products, Ltd.” (Harvard
Business School 9-803-063) and consider the following
questions:
2
From Idea to
Business Model
This session provides some insights into the discovery of
new business ideas and their development into robust
business models and real opportunities. When preparing
for the session, please identify and bring to class
examples of different business models. We will also
discuss how entrepreneurs really are and what makes (or
breaks) an entrepreneur, focusing on the challenges of
establishing and running a new venture.
3
Entrepreneurs
and their
Investors
One of the critical tasks of entrepreneurs is to secure
resources for the venture. This session is dedicated to
learn about the experiences of entrepreneurs who started
to implement their business concepts and tried to obtain
resources for their ventures.
4 Evaluating
In this session, we will learn how to differentiate between
Business
Opportunities:
an idea and an opportunity, and how investors and
stakeholders evaluate the strength of a new venture to
decide whether to offer a deal to the entrepreneur.
5
Pitching your
business idea
In this session, we will practice one of the most important
skills for entrepreneurs: the presentation of an idea to
partners and investors. You will receive feedback on the
idea potential and viability from students, faculty, and
experts present in order to improve for the final
presentation.
6
The Business
Plan – structure
and contents
In this session, we will focus on the content and structure
of the business plan and how it can help entrepreneurs
present their ventures. We will also discuss the scope and
value of the business plan to investors, lenders,
employees, suppliers and customers.
7
Financing the
New Venture
This session is dedicated to one of the most challenging
and difficult activities that an entrepreneur must
encompass: the building of a financial strategy for the new
venture. The entrepreneur must prepare carefully the
negotiation with investors, determining the financial needs
and valuing the new company.
8
Corporate
Entrepreneurship
During this session we will examine how innovative
companies succeed in fostering an entrepreneurial culture
and how a company (big or small) can promote a
particular Corporate Entrepreneurship program.
9
Final
presentations
The participants count with 10 minutes to present its
business concept for a new venture in a concise,
compelling, and convincing way.
4. Course objectives.
This course seeks to assist you in:
? Grasping and using a model that integrates four main dimensions of
entrepreneurship: the entrepreneurial team, the opportunity, the resources, and the
context.
? Identifying, developing, assessing, and pitching new ideas:
o Identifying ideas for new ventures.
o Assessing the potential of new business ideas to become business
opportunities.
o Developing your ability to present ideas in a concise, compelling way.
? Developing an awareness of the possibilities and limitations of different business
models.
? Integrating your previous knowledge in the development of a business plan.
? Enhancing our sensitivity and skills in discussing the financial needs of a new
venture:
o Determining capital requirements of a new venture: how much/when.
o Negotiating with investors.
? Identifying the challenges and opportunities of growth and harvesting.
5. Methodology and sessions chart with Required Readings and Exercises.
The learning experience is based on a range of teaching methods that seek to foster your
understanding of entrepreneurial processes and the development of your entrepreneurial
skills, such as case discussions, theoretical presentations, self-directed learning based on
recommended readings, role play, teamwork, experiences shared by invited
entrepreneurs and hands-on experiences. Further, the integrative nature of the course
allows connecting and reflecting concepts and insights you have learnt in other courses,
such as strategic management, marketing, operations, finance and human resources,
among others.
SESSION 1 and 2: THE PROCESS OF NEW VENTURE CREATION
This session will introduce you to the course and help you discover the actual process of
getting a new venture started, growing it, and – if and when necessary – exiting it.
Please read the case “Dr. John’s Products, Ltd.” (Harvard Business School 9-803-063)
and consider the following questions:
1. What do you think of John Osher’s process for identifying opportunities and building
companies?
2. What is the nature of the opportunity confronting Dr. John’s at the time of the case?
3. What should Osher and his colleagues do?
Required Reading
Keller, J.L. (2005). Manage Like an Entrepreneur. Harvard Management Update (Art.
Reprint U0501B).
Kim, W.C. & Maubourgne, R. (2000). Knowing a Winning Business Idea When You See
One. Harvard Business Review, Sept-Oct.
Recommended Reading
Stevenson, H. (1989). A Perspective on Entrepreneurship. In Stevenson, H., Roberts,
M.J. & Grousbeck, H.I. New Business Ventures and the Entrepreneur. Boston, MA. Irwin.
Timmons, J.A. and Spinelli, S. (2007). New Venture Creation, 7th ed., Irwin Mc. Graw-
Hill. New York.
SESSION 3: FROM IDEA TO BUSINESS MODEL. THE ENTREPRENEUR
This session provides some insights into the discovery of new business ideas and their
development into robust business models and real opportunities. When preparing for the
session, please identify and bring to class examples of different business models. We will
also discuss how entrepreneurs really are and what makes (or breaks) an entrepreneur,
focusing on the challenges of establishing and running a new venture.
The class discussion will be based on the case “The Knot” (Harvard Business School 9-
899-116, 2000), which describes an early stage company in need of financing that is
developing online presence in the wedding space. While reading the case, please think
about and address the following questions:
1. Who are the founders? What have they done in the past that would make you
believe they could succeed? Who is missing from the team?
2. What is the nature of the opportunity? What is the business model? How/why
does it change?
3. How much money should they raise? From whom? For what purpose? On what
terms?
Required readings
Magretta, J. (2002). Why Business Models Matter. Harvard Business Review, May, pp.
86-92.
Hamermesh, R.G., Marshall, P.W., Pirmohamed, T. (2002). Note on Business Model
Analysis for the Entrepreneur. Harvard Business School, 9-802-048.
Bricklin, D. (2001). Natural-Born Entrepreneur. Harvard Business Review, 122-127.
Osterwalder, A., Pigneur, Y., 2010: Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers. The preview:http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.
Recommended reading
W. Kuemmerle, A Test for the Fainthearted, Harvard Business Review, (May 2002), 122-
127.
Web of interest (in Spanish)http://www.banespyme.org/Banespymes.do?prefix=/emprendedores&page=/archivoTV.d
o
SESSION 4: ENTREPRENEURS AND THEIR INVESTORS
One of the critical tasks of entrepreneurs is to secure resources for the venture. This
session is dedicated to learn about the experiences of entrepreneurs who started to
implement their business concepts and tried to obtain resources for their ventures. We
will focus on steps the entrepreneurs took and the reactions of resource providers. This
session will feature an entrepreneur who will explain the process he chose, the
challenges he was confronted with and how he overcame them. We contrast these
experiences with the perspectives of a venture capital investor who will explain how they
select their funded firms, how they work with the portfolio firms in the process and how
they exit their investments. This session will be giving you ample opportunities to interact
with entrepreneurs and investors and learn from their experiences.
The first part will be dedicated to the debate between entrepreneurs and investors. In the
second part we will experience the creation, financing, and subsequent evolution of a new
venture.
Material used
Case: Startup.com. A video case that will be presented during the session.
Preparation
Prepare yourself for the interaction with entrepreneurs and investors.
SESSION 5: EVALUATING BUSINESS OPPORTUNITIES:
In this session, we will learn how to differentiate between an idea and an opportunity, and
how investors and stakeholders evaluate the strength of a new venture to decide whether
to offer a deal to the entrepreneur.
The discussion will be based on the case “Chrysalis Limited” (London Business School
396-100-1, 2000) and on the case “How VCs evaluate business opportunities”. Please
read the Chrysalis case and the VC case and think about criteria Carl and VC use in
assessing the proposals. Which two proposals of the Chrysalis case would you select?
Why? Please be prepared to argument your choice.
Required readings
Kawasaki, G. (2001). The Top Ten Lies of Entrepreneurs. Harvard Business Review,
January, 2-3.
SESSION 6: PITCHING YOUR BUSINESS
In this session, we will practice one of the most important skills for entrepreneurs: the
presentation of an idea to partners and investors. You will receive feedback on the idea
potential and viability from students, faculty, and experts present in order to improve for
the final presentation.
Some guiding questions for the final presentation:
? Description of the business idea:
? Which need are we fulfilling?
? Who is/are the target customer(s)?
? How are the target customers’ needs currently fulfilled?
? Opportunity analysis:
? How attractive is the market?
? What are main competitors?
? What are the entry barriers?
? Description of the business model:
? What is the value proposition?
? Which channels will you be using?
? How will the business generate revenues?
? How will you build the customer relationship?
? Which are the main cost drivers?
? What are key success-factors of the business?
? How will the venture assure its competitive edge?
Recommended reading
Elsbach, K.D. (2003), How to Pitch a Brilliant Idea, Harvard Business Review, 117-123.
SESSION 7: The Business Plan – structure and contents
In this session, we will focus on the content and structure of the business plan and how it
can help entrepreneurs present their ventures. We will also discuss the scope and value
of the business plan to investors, lenders, employees, suppliers and customers.
Required readings
Zacharakis, A. (2004). Writing a Business Plan. In Bygrave, W.D. and Zacharakis, A.
(Eds.) The Portable MBA in Entrepreneurship. John Wiley and Sons, Inc.
Recommended readings
Sahlman, W.A. (1997). How to Write a Great Business Plan, Harvard Business Review,
vol.75, nº 4.
SESSION 8: FINANCING THE NEW VENTURE
This session is dedicated to one of the most challenging and difficult activities that an
entrepreneur must encompass: the building of a financial strategy for the new venture.
The entrepreneur must prepare carefully the negotiation with investors, determining the
financial needs and valuing the new company.
Please read the case “Spotfire: Managing a Multinational Start-up” (Harvard Business
School 9-899-078) and consider the following questions:
1. What is the nature of the opportunity for Spotfire? What strategy should the
company pursue in the next 3-5 years?
2. Spotfire expects to raise additional capital in December 1998. How much capital is
needed? What is the valuation of the company? Under what terms should Spotfire
seek to raise capital?
3. Spotfire’s development group and the rest of the firm work in geographically
separate locations (Göteborg, Sweden and Boston, USA). Is this strategy
sustainable? Why? Why not?
Required readings
De Clerq, D., Fried, V.H., Lehtonen, O., Sapienza, H.J. (2006). An Entrepreneur’s Guide
to the Venture Capital Galaxy. Academy of Management Perspectives, August, pp. 90-
112.
Roberts, M.J., Stevenson, H. (2005). Deal Structure and Deal Teams. Harvard Business
School 9-806-085.
Recommended readings
Stevenson, H., Roberts, M.J. (2004). New Venture Financing, Harvard Business School,
9-802-131.
Reinbergs, I.A., Crane, D.B. (2001). Note on Valuing Private Business, Harvard Business
School, 9-201-060.
Roberts, M.J., Barley, L. (2004). How Venture Capitalist Evaluate Potential Venture
Opportunities, Harvard Business School, 9-805-019.
Robinson, R.J., Wasserman, N. (2000). Venture Capital Negotiations: VC versus
Entrepreneur, Harvard Business School, 9-800-170.
Wainwright, F. (2003). Riding on Angels' Wings, Financial Times, August 15
th
.
SESSION 9: CORPORATE ENTREPRENEURSHIP
During this session we will examine how innovative companies succeed in fostering an
entrepreneurial culture and how a company (big or small) can promote a particular
Corporate Entrepreneurship program.
Please read the case “3M Optical Systems: Managing Corporate Entrepreneurship”
(Harvard Business School, 9-395-017, 1999) and consider the following questions:
1. What are the elements that make 3M an innovative company?
2. As Andy Wong, how would you handle the authorization for expenditure (AFE) for the
re-launch of the privacy screen?
3. As Paul Gehler, would you approve the AFE if Wong sends it to you? Why?
When preparing for the session, think about the ways in which entrepreneurship is similar
and different in the context of established firms relative to independent ventures. Bring
examples of your favorite intrapreneurial companies.
Required readings
Rao, J. (2004). The Discipline of Corporate Entrepreneurship. ESADEAsociación, 111,
107-114.
Birckinshaw, J. (2003). The Paradox of Corporate Entrepreneurship. strategy + business
issue 30
Recommended readings
Dollinger, M. (1999). Entrepreneurship, Strategies and Resources. Chap.10, New York,
Prentice Hall.
Dess, G.G., Lumpkin G.T., McGee, J.E. (1999). Linking Corporate Entrepreneurship to
Strategy, Structure and Process: Suggested Research Directions. Entrepreneurship,
Theory and Practice.
SESSION 10: Mentoring Open Session
In this session, we will have an open session to prepare the final presentation. You will
get support and mentoring from the professors.
SESSION 11, 12, 13: FINAL PRESENTATION
The participants count with 10 minutes to present its business concept for a new venture
in a concise, compelling, and convincing way.
This is an EXAM, so please make sure your presentation conveys well your idea, the
business model, and the essentials of your business plan.
As mentioned in the introduction to the course, this presentation has an important impact
on your final grade.
Some guiding questions for the final presentation:
? Description of the business idea:
? Which need are we fulfilling?
? Who is/are the target customer(s)?
? How are the target customers’ needs currently fulfilled?
? Opportunity analysis:
? How attractive is the market?
? What are main competitors?
? What are the entry barriers?
? Description of the business model:
? What is the value proposition?
? Which channels will you be using?
? How will the business generate revenues?
? How will you build the customer relationship?
? Which are the main cost drivers?
? What are key success-factors of the business?
? How will the venture assure its competitive edge?
Recommended reading
Elsbach, K.D. (2003), How to Pitch a Brilliant Idea, Harvard Business Review, 117-123.
6. Learning activities and distribution of work load (in student work
hours).
Workload distribution) Hours (approx.)
Lectures 30
Seminars 2
Assessments 25
Team work 20
Reading and study 44
Research 25
Oral presentations 2
Exam 2
Total 150
7. Evaluation procedure.
Your final grade consists of three parts. To successfully complete the course, you must
have made the minimum required grade for passing in each of the parts.
Evaluation activity % on grade Comments
Class Participation 30%
Come to class ON TIME,
PREPARED to take part in the
case discussions and other
activities. You will be
assessed on the QUALITY of
your comments and your
ability to CONNECT with and
build upon the comments
made by your colleagues.
Business Plan Final
Presentation
30%
The participants will work
throughout the course to
identify a promising business
opportunity and develop a
high-potential business model
with a high degree of practical
relevance.
Final Business Plan Write-up 40%
8. Lecturer
Joan Riera
He is currently managing partner of Active Development and professor in ESADE's
Department of Business Policy and at the ESADE Entrepreneurship Institute. He is also a
‘business angel’ investor and independent advisor for various business initiatives
(established company spin-offs as well as business start-ups), and an active writer and
lecturer in the field of innovation and entrepreneurship. Regarding ESADE's alumni
association, he is president of the ESADE Alumni Innovation Club and member of the
Board of the ESADE Business Angels Club.
He holds a combined undergraduate degree and MBA in Management from ESADE
(Lic&MBA programme) and from Cornell University's Johnson Business School (Ithaca,
New York). He is a real estate agent, and has complemented his executive education at
ESADE (Real Estate Management) and at IESE (Developing Business Innovation). He
has broad experience in different fields in the UK, US and Spain.
In the area of innovation and corporate entrepreneurship, he was one of the founders of
ESADE Creapolis, the world's first innovation park to be backed by a business school,
where he also assumed the position as the park's first managing director for five years
comprising its conception, construction, launch and consolidation. He started and
founded the company from scratch raising the funds (€40M) in a private-public
collaboration and launching the initiative. In ten months (2009), EsadeCreapolis reached
the 60% occupancy with 40 resident customers and positive monthly EBITDA despite the
complex economic environment.
His experience also includes consultancy in the banking sector ("la Caixa"
www.laCaixa.com), setting up a new department in a multinational company
(www.Gamo.com), creating a technology company in the real estate sector when he
was only 23 years old (www.newHabitat.com), launching a company in the tourism
sector (www.flatBarcelona.net), cofounding an innovative company in the real estate
equipment sector (www.TheSoundVisionFurniture.com) coaching over 400
entrepreneurs leading ESADE's technological springboard and organising the ESADE's
first Investors' Forum.
He has been teaching Entrepreneurship, Leadership, Change Management, Growth
management and Innovation for more than 10 years. He has been teaching executive
education programs for companies like Telefónica, Boston Scientific, Pfizer, Danone,
Novartis, PricewaterhouseCoopers, Abbott, Solvay or Adif.
9. Literature.
In addition to the cases we will be discussing in class, the course binder provides a
number of required and recommended readings. Additional resources will be provided in
class. You may also be requested to search for particular readings in the library
databases.
Recommended Textbooks
Timmons, J.A. and Spinelli, S. (2007). New Venture Creation: Entrepreneurship for the
21
st
century. Boston: Irwin/McGraw-Hill.
Mullins, J., Komisar, R., 2009: Getting to Plan B: Breaking Through to a Better Business
Model, Boston: Harvard Business Press.
Osterwalder, A., Pigneur, Y., 2010: Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers.
Kawasaki, G., 2004: The art of the start. New York: Portfolio.
Hisrich, R.D., M.P. Peters and D.A. Shepherd (Eds.) (2004) Entrepreneurship, 6
th
ed.
New York: McGraw-Hill.
Drucker, P. (1993). Innovation and Entrepreneurship. Collins (UK).
Other sourceshttp://www.banespyme.org – videos of Spanish entrepreneurshttp://www.barcelonactiva.es – the website of the Local Development Agency of
Barcelona City Council (Entrepreneur’s attention service)http://www.evca.com – European Private Equity and Venture Capital Association
htpp://www.fastcompany.com – the internet home of Fast Company Magazine featuring
innovative ideas, people, and companieshttp://money.cnn.com – the Internet home of Fortune, Business 2.0http://www.bplans.com – resources on business planshttp://www.ted.com/talks - videos with inspiring ideashttp://ecorner.stanford.edu/ - Stanford University’s Entrepreneurship corner
10. Observations.
PUNCTUALITY (respect for your time and that of others!) and active PARTICIPATION
(of highest quality and building on the comments of your classmates) are two essential
requirements for this course.
Classes start and end on time. Please arrive and be ready on time, turn off your cell
phone, and do not leave the room during the class.
We can cold-call you, so if you happen to be unprepared for a class, please tell us in
advance (the reason doesn’t matter) so that we don’t call on you.
Identified cases of PLAGIARISM in individual or group submissions will lead to
suspending the course.
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