Description
Brief paper in regard to the management of new enterprises.
BAEP 451: The Management of New Enterprises
Fall 2004 Syllabus for Section 18467
Monday and Wednesday 12:00 - 1:50 pm, Room HOH405
Instructor Professor Helena Yli-Renko
Email [email protected] (best way to reach me)
Telephone (213) 821 1477
Office Bridge Hall One, basement level
Office hours Wednesdays 2:00-3:00 pm and by appointment at other times (please email
to set up a meeting)
I. PURPOSE OF THE COURSE
This course provides an introduction and overview of the fundamentals of entrepreneurship.
Bringing together the disciplines of marketing, finance, product development, and management, it
presents an integrative perspective into the process of starting a new business. Whether you
already have an idea and are eager to start your own business, or simply want to learn more about
what an entrepreneurial career would be like, this course equips you with the basic entrepreneur’s
toolkit. The course can either stand alone or you can build on it with further studies in our
Entrepreneur Program.
First, the stage is set by examining what entrepreneurship is and why it is important. Then, the
course traces new venture creation from the first perception of an opportunity to the point of
value realization or exit. Along the way, we look at testing/adapting the business concept,
developing a business plan, defining a marketing and distribution plan, gathering resources, and
raising finance. Because starting a new business from scratch is not the only way of pursuing an
entrepreneurial career, we will also examine other routes including franchising, acquiring an
existing business, and starting a new venture within an established corporation.
Understanding the process of starting and growing a company is essential for pursuing an
entrepreneurial career. But there is more to entrepreneurship than that. It’s a mindset, a way of
looking at things that is opportunity-focused and creative. It’s about passion – doing what you
love. It’s about creating wealth and gaining independence. And it’s about challenge, risk,
persistence, and the ability to innovate – to improve on the old or invent the new. It is my hope
that this course will not only provide you with the entrepreneur’s toolkit but will also foster this
entrepreneurial mindset in you.
II. LEARNING OBJECTIVES
In this course, you will develop your conceptual and practical knowledge of new venture
creation and management.
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Specifically, you will
1. Develop an understanding of the importance of entrepreneurship in society and the different
forms of entrepreneurial activity
2. Become familiar with entrepreneurial career paths and be able to evaluate whether entrepre-
neurship is right for you
3. Develop an understanding of the new venture creation process and the life cycle of a new
venture from idea development and launch through growth to various exit strategies
4. Gain knowledge of business plans, sources of capital, marketing and distribution strategies,
operations, organization issues, as well as key legal considerations affecting entrepreneurial
ventures
5. Expand your general societal and business knowledge through a better understanding of
various industries and the entrepreneurial dynamics and opportunities within them
In addition, this course also provides an opportunity for you to develop your personal capabili-
ties. Specifically, you will
1. Develop your analytical skills: thinking, problem solving, and decision-making
• Learn to analyze and critically evaluate ideas and viewpoints
• Acquire an interest in learning more by questioning and seeking answers
• Learn to find and use resources to answer your questions
• Learn to form conclusions and recommendations and to support them with logic and
evidence
2. Develop your oral and written communication skills
• Improve your ability to deliver oral presentations to an audience
• Improve your ability to ask questions and present viewpoints in discussions
• Gain practice in interviewing
• Improve your ability to write well-structured, clear, and concise documents
3. Develop you creative capacities in, e.g., idea generation, writing, and performing
4. Develop your skills in team work and in managing your own work
• Improve your ability to plan and structure tasks
• Learn to better manage your time
• Gain practice in dividing and coordinating tasks among team members, managing team
dynamics, and participating in team discussions
To achieve these objectives, a combination of methods will be used in the course, including
lectures, case studies, individual and group projects, student presentations, and guest lectures.
“Living Case” visits by entrepreneurs will bring alive the topics of the course and provide role
models.
III. COURSE MATERIALS
1. Allen, K. R. 2003. Launching New Ventures: An Entrepreneurial Approach. Third edition.
Houghton Mifflin Company
2. Course Reader: at Book Store. The Table of Contents of the reader is at the end of this
syllabus.
3. Additional readings and assignments will be posted on Marshall Course Pages or handed out
in class
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IV. COURSE COMMUNICATION
Course communication will take place through announcements in class, emails, and the Marshall
Course Pages, accessible via the MyMarshall website (http://mymarshall.usc.edu), under the tab
“Academics”. If you do not have a MyMarshall user id and password, contact Marshall Help
Desk (tel. 213-740 3000; [email protected]). Marshall Course Pages use your USC
email address ([email protected]) for sending emails, so if this is not your primary email
account please make sure that it is forwarded to the account you use. You are responsible for
ensuring that messages will not bounce back due to, for example, your storage quota being full.
When contacting me, email ([email protected]) is the most effective means of
communication. In the subject line of emails, please use the format “451: subject of email.” You
may also leave a voice message, but I do not check them as frequently as email. For in-person
meetings, my office hour is Wednesdays 2:00-3:00 pm. I will be happy to meet or talk over the
phone at other times; please schedule an appointment via email.
V. COURSE REQUIREMENTS AND EVALUATION
Assignment Value (points)
Participation Individual 150
Interview of an entrepreneur Individual 400
Opportunity recognition paper
• Group paper and presentation Group 400
• Individual effort and results Individual 100
Short assignments
• Written case analyses
(one case will be selected randomly to be graded
for 100 points; remaining points based on on-time
delivery and professional format of other cases)
Individual 250
• Networking event Individual 100
• Living case letter Individual 100
Mid-term examination Individual 500
Total 2,000
Participation requirements
1. Attend all classes. You are allowed to miss two classes without penalty – no questions asked.
All further absences over this limit will reduce your participation grade by 10% per absence.
Students with an excessive number of absences are at risk to fail the course.
2. Show up on time and stay until the end – 5% of participation lost for arriving more than 5
minutes late or leaving early without prior approval.
3. Complete the assigned readings for the class.
4. Analyze what you’ve read based on the questions provided in the syllabus and complete any
exercises assigned for the class.
5. Participate actively in classroom discussions and in-class exercises.
6. Make good use of guest presenters’ time. Ask thoughtful questions after Living Case, guest
speaker, and student presentations.
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Your responsibilities to this course are simple. Treat faculty, staff, and guest speakers like you
would your best customer, and you will be treated in the same manner. The Entrepreneur
Program believes in and follows a customer-centered philosophy. Your input and participation
are important and appreciated. Class meetings start promptly. Please arrange your schedule to
allow you to be on time for every meeting and to stay for the entire meeting.
You will need to come to class prepared as this class is your business. You are expected to have
read and thought about the required materials and done the expected assignments. Effective class
participation consists of analyzing, commenting, questioning, discussing, and building on others’
contributions; it is not repeating facts, or monopolizing class time. The ability to present one’s
ideas concisely and persuasively and to respond effectively to the ideas of others is a key
entrepreneurial skill. One of the goals of this course is to help you sharpen that ability.
Participation is evaluated based on your attendance and your level of involvement in class
discussions and in-class exercises – both the quality (relevance and insightfulness of comments)
and quantity (frequency) of your participation. It is impossible to earn a participation grade if you
are not in class. Be assured that much will be demanded from you in terms of dialogue in class.
Entrepreneurs are participants and learn from each other as well as from their environment.
Grading standards
Grade distributions over time, across departments and courses, and within departments and
courses, should be consistent and in conformity with recommended Marshall School of Business
grading standards. In order to avoid substantial disparities across courses, instructors are required
to adhere to specific target grade point averages for each course they teach. For elective under-
graduate courses (regular sections), the targeted grade point average is 3.15. Instructors are not
permitted to have their average GPA in a single course deviate by more than 0.1 above the target.
The grading system in this course consists of assigning “points” that correspond to the “A to F”
curve that will be reflected in your final grade. I will post your points for each assignment on
Marshall Course Pages; this will allow you to see how your points compare to the rest of the
class. If you have any questions about your grade during the semester, please make an
appointment to see me to discuss your concerns.
Assignment delivery
On time paper delivery is in class at the starting time. Papers will be accepted after the deadline
with the following penalties: Papers turned after the class begins but before 5 pm the same day
will lose 10% of the value. Papers turned in after that will lose 20% of the value. No papers will
be accepted 48 hours after the date due. If you must be absent, plan to deliver your work before
class. E-mailed or faxed work will not be accepted.
Returned paperwork, unclaimed by a student, will be discarded after four weeks and, hence,
will not be available should a grade appeal be pursued by a student following receipt of his/her
course grade.
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VI. COURSE POLICIES
Classroom policies
Please be prompt. Arriving late or leaving early from class meetings is not acceptable, and
will have a direct, negative impact on your participation grade (-5% of participation).
Class seating. Given the number of students I teach and the importance of individual
participation, please sit in the same seat throughout the course.
No eating in class. You may have and use drinks in bottles.
On days when we have a guest speaker, the dress code for the class is business casual.
Please consider your attire also on other days. Remember, appearance is a very strong form
of non-verbal communication. Presentable attire communicates respect and willingness to
learn.
Remember to turn off cell phones and other personal communication devices. Turn off and
close laptop computers.
Academic integrity and disability accommodation
Please be familiar with the Grading Policy and Academic Standards section of the USC Catalog
and the information on University Governance in the SCAMPUS, particularly Appendix A:
Academic Dishonesty Sanction Guidelines.
The use of unauthorized material, communication with fellow students during an in-class
examination, attempting to benefit from the work of another student, and similar behavior defeats
the intent of an examination or other class work and is unacceptable to the University. It is often
difficult to distinguish between a culpable act and inadvertent behavior resulting from the nervous
tensions accompanying examinations. Where a clear violation has occurred, however, the
instructor may disqualify the student's work as unacceptable and assign a failing mark on the
paper.
Any student requesting academic accommodations based on a physical, psychological or learning
disability is required to register with Disability Services and Programs (DSP) each semester. A
letter of verification for approved accommodations can be obtained from DSP. Please be sure the
letter is delivered to me as early in the semester as possible (by the second week of the semester).
DSP is located in STU 301 and is open from 8:30 AM to 5 PM, Monday through Friday. The
telephone number for DSP is (213) 740-0776.
Greif Center for Entrepreneurial Studies Confidentiality Policy
Throughout The Entrepreneur Program's classes and events, students will be exposed to
proprietary information from other students, guest lecturers, and faculty. It is the policy of The
Entrepreneur Program that all such information be treated as confidential.
By enrolling in and taking part in The Entrepreneur Program's classes and activities, students
agree not to disclose this information to any third parties without specific written permission from
students, guest lecturers or faculty, as applicable. Students further agree not to use any such
proprietary information for their own personal commercial advantage or for the commercial
advantage of any third party.
In addition, students agree that any legal or consulting advice provided without direct fee and in
an academic setting will not be relied upon without the enlisted opinion of an outside attorney or
consultant without affiliation to The Program.
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Any breach of this policy may subject a student to academic integrity proceedings as described in
the University of Southern California "University Governance Policies and Procedures" as
outlined in SCampus and to any remedies that may be available at law.
The Entrepreneur Program, the Marshall School of Business and the University of Southern
California disclaim any responsibility for the protection of intellectual property of students, guest
lecturers or faculty who are involved in The Entrepreneur Program classes or events. Receipt of
this policy and registration in our classes is evidence that you understand this policy and will
abide by it.
VII. THE COURSE AT A GLANCE
Date Monday session Date Wednesday session
8/23 Overview of the course.
What is entrepreneurship?
8/25 Living case: Reggie Lathan, ChemTrans
Questionnaire and photo due
8/30 Idea generation. Business concept.
3DP case write-up due
9/1 Analyzing market opportunity: The industry
Your business concept write-up due
9/6 Labor Day: no class 9/8 Living case: Guild Copeland, SisuMedia
9/13 Target market and customers. Developing a
value proposition. Chrysalis case write-up
due
9/15 Evaluating feasibility
IceDelights case write-up due
9/20 Strategic planning. The business plan
Example business plan anal ysis due
9/22 Living case: Paul Orfalea, founder of Kinko’s
9/27 Entrepreneurial marketing. Pricing. 9/29 Living case: Michael Singer, Strategic Partners
10/4 Presentation and discussion of entrepreneur
interviews Interview paper due
10/6 Distribution and sales.
10/11 Intellectual property issues. Guest speaker:
Marshall Lerner, Kleinberg & Lerner, LLP
10/13 Entrepreneurial finance: Estimating capital needs.
Sources of capital.
10/18 Kicking off the team projects. Review of
materials for mid-term exam.
Location: ELC (Bridge Hall basement)
10/20 Introduction to venture capital.
Guest speaker: Darius Sankey, Zone Ventures
10/25 Mid-term exam
10/27 Ethics and values in the entrepreneurial process.
11/1 Living case: George Fatheree, founder of
GovWorks.com
11/3 Planning for growth. Franchising.
NeoPets case write-up due
11/8 Experiential Learning Center exercise:
Organizing your venture
Location: ELC (Bridge Hall basement)
11/10 No class. Teams meet with professor to discuss
group project.
11/15 No class. Teams meet with professor to
discuss group project.
11/17 Living case: Steve Barr, Charter School founder
Networking event write-up due
11/22 Exit strategies. Corporate entrepreneurship.
Finding your personal career path.
11/24 Living case: to be confirmed
11/29 Group project presentations
Project paper due
12/1 Group project presentations
Course wrap-up
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VIII. DESCRIPTION OF COURSE ASSIGNMENTS
Interview of an entrepreneur (400 points) due October 4
Conduct an in-person interview with an entrepreneur whom you do not know. Make sure that
this person’s or their team’s venture is innovative and growth oriented. It is preferred that you do
not choose a small, lifestyle business owner for this project. It is recommended that you choose
someone in the industry in which you are interested for your group project. You should have
your interviewee identified by September 15.
Your written paper should not exceed 4 pages (1.5-spaced, one-inch margins, 12-point font). It
should NOT contain a verbatim transcript of the interview. Use headings. Make sure to reflect on
how the interview illustrates the issues we have discussed in class. Use literature citations to
enhance your interview analysis. Be sure to address the following at a minimum in your
interview, but feel free to deal with other issues as well.
1. Why did you choose this person and how you did you meet him or her?
2. Describe the business and industry.
3. Describe the background of the entrepreneur, education, family, interests.
4. Where did the opportunity for this business come from?
5. What did the entrepreneur do to prepare to start the business?
6. How did the entrepreneur deal with any perceived risk prior to start-up?
7. What major problems did the entrepreneur encounter during start-up, and how were
these problems solved?
8. Who did the entrepreneur use for help and guidance during the startup of the
business?
9. What are the entrepreneur’s growths plans for the business?
The above questions should be answered in about two pages.
1. What advice would the entrepreneur give to someone thinking about starting a
business? What advice did the entrepreneur give to you?
2. Summarize what you learned from this experience. (This is the most important part
of the paper!)
The above two questions should be answered in about two pages.
Bibliography and printout of PowerPoint slides (not included in page count).
Six students will be asked to present their interviews (three volunteers, three cold calls). Please e-
mail your desire to be considered as a volunteer by September 30, mentioning in your email what
your interviewee’s business is and why it would be interesting for the class to hear about it.
Volunteering will be noted in your participation points for the course. All students should
prepare six presentation slides with the key points from the interview. Plan your presentation to
be a maximum of 6 minutes long. Attach a one-page handout format printout of the slides to
your interview paper, and bring transparencies or the PowerPoint file to class on October 4. The
presentation slides will be evaluated as part of the total grade for this project.
Case study write-ups (250 points): 3-DP, Your Business Concept, Chrysalis, IceDelights,
Amvet, NeoPets
There will be six case assignments during the semester. For each of these, you are to submit a
well-crafted one-page response (single-spaced, one-inch margins, 12-point font) to the questions
that will be distributed in class and posted on Marshall Course Pages. Use headings and bullets to
focus your answer. Bring two copies to class: one to be turned in at the beginning of class, the
other for you to use during the class discussion. One case will be randomly chosen for grading
(100 points); the grading for the remaining cases (150 points) will be based on presentation and
timeliness.
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Living case letter (100 points) due one week after Living Case visit
We expect to have seven Living Case visitors. They will tell of their venture and journey and then
leave us with a question or problem regarding an opportunity or idea that they are pursuing. For
one living case visitor, your duty is to research their issue and prepare a 1-2 page letter for
submission one week after their visit. The letter will be on your letterhead, in an envelope with
proper return address and postage. A copy of the letter will be clipped to the sealed letter for
grading. Use course readings and other source materials in writing your letter.
Mid-term examination (500 points) on October 25, location: TBD
The examination will cover all course materials, lectures, Living Case visits, and class
discussions from August 23 to October 20. The examination will be comprised of a combination
of multiple choice, short answer, and essay questions. A review for the exam will take place in
the October 18 class.
Networking event write-up (100 points) due November 17
You will be notified of professional networking events during the semester. Your assignment is to
attend one event, meet three professionals at the event, collecting their business cards. You will
turn in a paper (maximum 2 pages, single-spaced, 12-point font, 1-inch margins) describing the
event you attended, what you learned from the experience, and each of your three professional
contacts: their responsibility with their firm, the type of clients their firm serves, a brief
description of how they got into their business/profession, and how they might be a helpful
contact for you in the future. Attach a copy of the business cards you collected.
Team project: Discovering opportunities in an industry (500 points) due November 29
The objective of this project paper is to research entrepreneurial opportunities in a selected
industry to understand
• What the operating environment for entrepreneurial ventures is like in this industry
• How entrepreneurial ventures have been and are formed in this industry (e.g., by whom,
where did ideas come from, what is the typical growth path)
• What are the typical marketing and distribution strategies for entrepreneurial ventures in
this industry
• What are the key success factors and challenges for entrepreneurial ventures in this
industry
• What are the new entrepreneurial opportunities in this industry
The project serves to integrate the various topics covered during the course. In analyzing the
above issues, you should demonstrate that you have acquired and are able to apply the central
concepts and frameworks. The project will be conducted in teams of five people. We will discuss
team formation in class.
Research methods. Use interviews with entrepreneurs and industry experts (minimum
requirement is one interview per team member, not counting the entrepreneur interview
assignment). Conduct a review of available information on the internet, in the literature, as well
as follow the industry in the news.
Format. Your written paper should not exceed 15 pages (1.5-spaced, 1-inch margins, 12-point
font). Use headings. Make sure to cite the literature and interviews to indicate sources of
information.
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Detailed requirements for the structure of the paper are listed below.
Structure of the team project paper
A cover page containing
• Title of paper clearly identifying the industry
• Date
• Names of all team members
Executive Summary page: Summarize in 300 words or less the key findings of your paper
Table of contents page
Body of the paper, not to exceed 12 pages, should cover at least the following 6 topics
1. Introduction
• Describe which industry you are focusing on and how you are defining the scope of your study (e.g.,
particular sub-sectors, geographically)
• Introduce the structure and contents of the paper to the reader
2. Industry analysis
• Analyze the structure and competitive dynamics of this industry (using, e.g., industry value chain
analysis)
• How has this affected and how will it affect entrepreneurial opportunities in the industry?
3. Recent entrepreneurial entries into the industry
• How have entrepreneurial ventures been formed in the industry (by whom, where did ideas come
from)?
• What is the typical development/growth path for new ventures?
4. Entrepreneurial marketing and distribution in this industry
• What are the typical maketing and distribution strategies used by entrepreneurial ventures?
• Describe any examples of particularly innovative marketing or distribution
5. Key success factors and biggest challenges for new ventures in this industry
• Address the strategic, financial, or operations issues that “make or break” an entrepreneurial venture in
this industry and how successful ventures have addressed these issues
6. Conclusion: Current entrepreneurial opportunities in the industry
• Does this industry currently offer promising entrepreneurial opportunities? Why or why not?
• If you were to start a new venture in this industry, what kind of business would it be? Briefly describe the
business concept, target customers, marketing/distribution strategies, etc.
Not included in the 15-page limit:
• List of references
• Appendices (optional)
Grading of team paper
300 points based on the written paper – same score for each teammate
100 points based on the oral presentation and slides – same score for each teammate
100 points based on peer evaluation of effort and results – varies by individual
500 points total
The peer evaluation will be conducted by filling out a questionnaire in the last class session on
December 1.
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IX. SESSION-BY-SESSION COURSE SCHEDULE AND ASSIGNMENTS
This schedule may change due to changes in guests’ schedules. Also, some additional readings will be
distributed during the semester. Changes will be announced in class and posted on Marshall Course Pages.
Session 1 (8/23) Overview of the course. What is entrepreneurship?
Required readings: None
Be prepared to discuss the following
• How would you define entrepreneurship?
• Why is entrepreneurship important? Think about different levels of analysis: a person, a commu-
nity, a nation, globally.
• What are your personal learning goals for this course?
Session 2 (8/25) Living Case: Reggie Lathan, ChemTrans
Required readings
• Textbook Chapter 1
• Global Entrepreneurship Monitor, 2002 Executive Report (readings book, reading #1)
• Visit www.chemtrans.com to understand what the company does
Be prepared to discuss the following
• What do we learn about entrepreneurial behavior from this Living Case? What are the
characteristics and motivations of entrepreneurs?
Assignment due: STUDENT QUESTIONNAIRE AND PHOTO
Session 3 (8/30) Idea generation. Business concept.
Required readings
• Textbook Chapter 3
• Six Degrees of Lois Weisberg (readings book, #2)
• Three Dimensional Printing case (readings book, #3)
Be prepared to discuss the following
• What are different ways you can find ideas?
• How is prior knowledge related to an individual’s ability to recognize opportunities? How can you
enhance your “prior knowledge”?
Assignment due: 3-D PRINTING CASE WRITE-UP (instructions will be distributed and posted)
Session 4 (9/1) Analyzing market opportunity: The industry and the value chain
Required readings
• Textbook Chapter 4
• Value chain analysis example: Denim jeans (readings book, #4)
Be prepared to discuss the following
• How do you conduct an analysis of an industry? What are different frameworks you can use?
• How do you identify and evaluate your competition?
Assignment due: YOUR BUSINESS CONCEPT WRITE-UP. Bring to class a one-page description of a
business concept that you’ve come up with. What is the product/service, who is the customer, what is the
distribution channel you will use to get to the customer? See case write-up instructions on syllabus page 7.
Labor Day (9/6) No class.
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Session 5 (9/8) Living case: Guild Copeland, SisuMedia
Required readings:
• Textbook Chapter 6
• Visit www.sisumedia.com to understand what the company does
Be prepared to discuss the following
• What were the practical steps that Guild Copeland took to start SisuMedia?
• How did he figure out which customers to target at the very beginning and then later on?
Session 6 (9/13) Target market and customers. Developing a value proposition
Required readings
• A Business is a Value Delivery System (readings book, #5)
• Textbook: Mrs. Gooch’s case study (p. 486-488)
• Chrysalis Limited case (readings book, #6)
Be prepared to discuss the following
• How do you identify your target customer?
• What is a value proposition? What are the characteristics of an effective value proposition?
• How did Mrs. Gooch define her target customers? What was her value proposition to them?
Assignment due: CHRYSALIS CASE WRITE-UP (instructions will be distributed and posted)
Session 7 (9/15) Evaluating feasibility
Required readings:
• Textbook Chapter 5
• IceDelights case (readings book, #7)
Be prepared to discuss the following
• What are the purposes of a feasibility analysis? What is the decision you are trying to reach?
• What are the components of a feasibility study?
• Who is the entrepreneur you will interview for your interview paper; why did you select him/her?
Assignments due:
• ICEDELIGHTS CASE WRITE-UP (instructions will be distributed and posted)
• Entrepreneur for interview identified, and started scheduling interview (nothing to turn in now)
Session 8 (9/20) Strategic planning. The business plan.
Required readings
• Textbook Chapter 11
• One More Time... Should Small Companies Attempt Strategic Planning? (readings book, #8)
• Example business plan (to be distributed)
Be prepared to discuss the following
• Why is it important to write a business plan? What is the process for writing a business plan?
• What is the difference between a feasibility study and a business plan?
• What are the components of a business plan?
• What questions will people ask about your business plan?
Assignment due: EXAMPLE BUSINESS PLAN ANALYSIS WRITE-UP (instructions to be distributed)
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Session 9 (9/22) Living case: Paul Orfalea, founder of Kinko’s
Required readings: None
Be prepared to discuss the following
• How did Mr. Orfalea come up with the idea for Kinko’s?
• What were the key values that governed how Mr. Orfalea built and managed his company?
Assignment due: Research Paul Orfalea on the web. Make notes for yourself or bring print-outs of
interesting things you found to class, but these will not be turned in for grading. (Hint: Better research
equals better questions equals better participation grade.)
Session 10 (9/27) Entrepreneurial marketing. Pricing.
Required readings
• Textbook Chapter 15
Be prepared to discuss the following
• How is entrepreneurial marketing different from a large company’s marketing strategy?
• What are the key factors that determine how to price a product or service?
Assignment due: ENTREPRENEURIAL MARKETING EXAMPLE
Bring in an example of effective marketing by an entrepreneurial company. Be prepared to discuss it:
what is the company and product/service; what is the marketing channel and method used; why do you
consider it particularly effective or creative? The example you bring in can be a flyer, web printout,
brochure, newspaper clipping, or you can write a one-page description of a marketing tactic you’ve
seen. Examples will be collected at the end of class and will count into your participation points.
Session 11 (9/29) Living case: Michael Singer, Strategic Partners, Inc.
Required readings: www.strategicpartners.net
Be prepared to discuss the following
• How does this Living Case illustrate the various issues we have discussed in class: opportunity
recognition, strategic planning, entrepreneurial marketing, etc.?
Session 12 (10/4) Presentation and discussion of entrepreneur interviews
Required readings: None
Assignment due: ENTREPRENEUR INTERVIEW PAPER. Be prepared to present and discuss your
entrepreneur interview in 6 minutes. Three volunteers and three cold-call presentations.
Session 13 (10/6) Distribution and sales. Negotiation skills.
Required readings
• Textbook Chapter 10
Be prepared to discuss the following
• What are the alternative distribution channels available for entrepreneurial firms?
• What factors should be taken into account when selecting a distribution channel?
• How important is it that an entrepreneur is effective in sales and negotiation? How can you
develop those skills?
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Session 15 (10/13) Intellectual property issues
Guest speaker: Marshall Lerner, Kleinberg & Lerner, LLP
Required readings
• Textbook Chapter 7, pages 145-162
• Textbook Chapter 12
• Lecture materials (to be distributed)
Be prepared to discuss the following
• How can you, as an entrepreneur, protect your company’s intellectual property?
Session 14 (10/11) Entrepreneurial finance
Required readings
• Textbook Chapter 9
• Textbook Chapter 18: pages 425-449
Be prepared to discuss the following
• How do you determine the amount of capital a new venture will need?
• How do the financing needs of of the enterprise change over its life cycle?
• What are the alternative sources of capital available to entrepreneurs?
Session 16 (10/18) Kicking off the team projects. Review for mid-term exam. Location: ELC
Required readings: None
Assignment due: Review all the readings we have covered so far, and come to class with any questions
you may have.
LOCATION: Experiential Learning Center, basement of Bridge Hall
Session 17 (10/20) Venture capital. Guest speaker: Darius Sankey, Zone Ventures
Required readings
• The Venture Capital Industry: An Overview (readings book, #9)
• The Venture Financing Process (readings book, #10)
• Angel Investors Fill Void Left by Risk Capital (readings book, #11)
Be prepared to discuss the following
• What is the venture capital investment process like?
• How do venture capitalists evaluate potential investment start-ups?
Session 18 (10/25) Mid-term examination
The mid-term examination will cover all course materials, lectures, Living Case visits, and class
discussions thus far. The examination will include multiple choice, short answer, and essay questions.
13
Session 19 (10/27) Ethics and values in the entrepreneurial process
Required readings:
• Textbook Chapter 2
Be prepared to discuss the following
• How do values and ethics guide the entrepreneurial process?
• How do you, as an entrepreneur, make ethical decisions and maintain the values of your
organization?
Session 20 (11/1) Living case: George Fatheree, founder of GovWorks.com
Required readings: None
Be prepared to discuss the following
• What were the values and priorities of the GovWorks.com founders? How did these influence
their actions?
• What are some barriers and pitfalls that entrepreneurs face when raising funds and starting up their
business?
Session 21 (11/3) Planning for growth. Franchising.
Required readings
• Textbook Chapter 17
• Managing Growth (readings book, #13)
• NeoPets case (readings book, #14)
• Assessing the Franchise Option (readings book, #15)
Be prepared to discuss the following
• What are alternative growth strategies for entrepreneurial ventures, and how do you decide which
one best suits your venture?
• How does the entrepreneur’s role change as the company grows?
• When is franchising an effective growth strategy? What are its advantages and disadvantages?
• Would you consider becoming a franschisee? Why or why not?
Assignment due: NEOPETS CASE WRITE-UP (instructions will be distributed)
Session 22 (11/8) Experiential exercise in the ELC: Organizing your venture
Required readings:
• Textbook Chapter 8
• Characteristics of a Successful Entrepreneurial Management Team (readings book, #12)
LOCATION: Experiential Learning Center, basement of Bridge Hall
Sessions 23-24 (11/10 and 11/15) Teams meet with professor to discuss final project
No class. Each team meets with professor for 30 minutes to discuss the final team project.
List for scheduling the meetings will be in class on 11/1 and 11/3.
Assignment due: Bring to the meeting (1) a draft version or outline of your paper, (2) a statement that
clearly describes what the industry sector is that you are focusing on, (3) a graphical illustration of the
industry (this can be a value chain or other diagram of the structure of the industry), (4) a list of questions
your team has for the professor, and (5) a list of interviews conducted and source materials used
14
Session 25 (11/17) Living case: Steve Barr, charter school founder, Green Dot Public Schools
Required readings: www.animo.org
Be prepared to discuss the following
• How is starting and running a non-profit venture different from starting a for-profit venture?
Assignment due: NETWORKING EVENT WRITE-UP
Session 26 (11/22) Exit strategies. Corporate entrepreneurship.
Finding your personal career path.
Required readings
• Rebuilding Business Building (readings book, #16)
• Choosing Your Exit Strategy (readings book, #17)
• Textbook Chapter 18, pages 449-454
• The Decision (readings book, #18)
Be prepared to discuss the following
• Can entrepreneurship exist within large companies? How is corporate entrepreneurship different
from starting an independent new venture?
• What exit/harvest options are available to entrepreneurs?
• How do you determine the conditions that trigger an exit decision, and how do you select between
exit options?
Session 27 (11/24) Living case: TBD
Required readings: TBD
Session 28 (11/29) Group project presentations
Required readings: None
Be prepared to present your group project (if scheduled for today)
Assignment due: GROUP PROJ ECT PAPER TO BE TURNED IN TODAY
Session 29 (12/1) Group project presentations
Course closing
Required readings: None
Be prepared to present your group project (if scheduled for today)
Assignment due: GROUP MEMBER EVALUATION FORM (will be filled out in class)
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Appendix 1
BAEP 451 The Management of New Enterprises
Professor Helena Yli-Renko
Fall 2004
COURSE READER TABLE OF CONTENTS
1. Global Entrepreneurship Monitor, 2002 Executive Report
2. Six Degrees of Lois Weisberg, Malcolm Gladwell, Annals of Society, The New Yorker, 1999
3. Three Dimensional Printing case, Scott Shane, 1998
4. Denim Jeans Value Chain Analysis, J ason Bertellotti, 2000
5. A Business is a Value Delivery System, Michael J . Lanning & Edward G. Michaels, McKinsey Quarterly,
2000, number 3
6. Chrysalis Limited, London Business School case study
7. ICEDELIGHTS, Harvard Business School case study
8. One More Time... Should Small Companies Attempt Strategic Planning? William R. Sandberg et al., The
Entrepreneurial Executive, 2001
9. The Venture Capital Industry: An Overview, National Venture Capital Association, 2001
10. The Venture Financing Process, Alan E. Salzman & L. J ohn Doerr, Vantage Point Venture Partners
11. Angel Investors Fill Void Left by Risk Capital, Bonnie Azab Powell, New York Times, J uly 6, 2001
12. Characterictics of a Successful Entrepreneurial Management Team, Alexander L. M. Dingee et al.,
Pratt’s Guide to Venture Capital Sources, 1997
13. Managing Growth, Michael J . Roberts, from New Business Venture and the Entrepreneurs, McGraw-
Hill/Irwin, 1999
14. NeoPets, Inc. Harvard Business School case study
15. Assessing the Franchise Option, Surinder Tikoo, Business Horizons, May-J une 1996
16. Rebuilding Business Building, Patrick F. Coveney et al., McKinsey Quarterly, 2002, number 2
17. Choosing Your Exit Strategy, William H. Payne, Kauffman Center for Entrepreneurial Leadership, 2001
18. The Decision, from The Survival Guide to IPOs, American Lawyer Media, 2000
16
doc_719208903.pdf
Brief paper in regard to the management of new enterprises.
BAEP 451: The Management of New Enterprises
Fall 2004 Syllabus for Section 18467
Monday and Wednesday 12:00 - 1:50 pm, Room HOH405
Instructor Professor Helena Yli-Renko
Email [email protected] (best way to reach me)
Telephone (213) 821 1477
Office Bridge Hall One, basement level
Office hours Wednesdays 2:00-3:00 pm and by appointment at other times (please email
to set up a meeting)
I. PURPOSE OF THE COURSE
This course provides an introduction and overview of the fundamentals of entrepreneurship.
Bringing together the disciplines of marketing, finance, product development, and management, it
presents an integrative perspective into the process of starting a new business. Whether you
already have an idea and are eager to start your own business, or simply want to learn more about
what an entrepreneurial career would be like, this course equips you with the basic entrepreneur’s
toolkit. The course can either stand alone or you can build on it with further studies in our
Entrepreneur Program.
First, the stage is set by examining what entrepreneurship is and why it is important. Then, the
course traces new venture creation from the first perception of an opportunity to the point of
value realization or exit. Along the way, we look at testing/adapting the business concept,
developing a business plan, defining a marketing and distribution plan, gathering resources, and
raising finance. Because starting a new business from scratch is not the only way of pursuing an
entrepreneurial career, we will also examine other routes including franchising, acquiring an
existing business, and starting a new venture within an established corporation.
Understanding the process of starting and growing a company is essential for pursuing an
entrepreneurial career. But there is more to entrepreneurship than that. It’s a mindset, a way of
looking at things that is opportunity-focused and creative. It’s about passion – doing what you
love. It’s about creating wealth and gaining independence. And it’s about challenge, risk,
persistence, and the ability to innovate – to improve on the old or invent the new. It is my hope
that this course will not only provide you with the entrepreneur’s toolkit but will also foster this
entrepreneurial mindset in you.
II. LEARNING OBJECTIVES
In this course, you will develop your conceptual and practical knowledge of new venture
creation and management.
1
Specifically, you will
1. Develop an understanding of the importance of entrepreneurship in society and the different
forms of entrepreneurial activity
2. Become familiar with entrepreneurial career paths and be able to evaluate whether entrepre-
neurship is right for you
3. Develop an understanding of the new venture creation process and the life cycle of a new
venture from idea development and launch through growth to various exit strategies
4. Gain knowledge of business plans, sources of capital, marketing and distribution strategies,
operations, organization issues, as well as key legal considerations affecting entrepreneurial
ventures
5. Expand your general societal and business knowledge through a better understanding of
various industries and the entrepreneurial dynamics and opportunities within them
In addition, this course also provides an opportunity for you to develop your personal capabili-
ties. Specifically, you will
1. Develop your analytical skills: thinking, problem solving, and decision-making
• Learn to analyze and critically evaluate ideas and viewpoints
• Acquire an interest in learning more by questioning and seeking answers
• Learn to find and use resources to answer your questions
• Learn to form conclusions and recommendations and to support them with logic and
evidence
2. Develop your oral and written communication skills
• Improve your ability to deliver oral presentations to an audience
• Improve your ability to ask questions and present viewpoints in discussions
• Gain practice in interviewing
• Improve your ability to write well-structured, clear, and concise documents
3. Develop you creative capacities in, e.g., idea generation, writing, and performing
4. Develop your skills in team work and in managing your own work
• Improve your ability to plan and structure tasks
• Learn to better manage your time
• Gain practice in dividing and coordinating tasks among team members, managing team
dynamics, and participating in team discussions
To achieve these objectives, a combination of methods will be used in the course, including
lectures, case studies, individual and group projects, student presentations, and guest lectures.
“Living Case” visits by entrepreneurs will bring alive the topics of the course and provide role
models.
III. COURSE MATERIALS
1. Allen, K. R. 2003. Launching New Ventures: An Entrepreneurial Approach. Third edition.
Houghton Mifflin Company
2. Course Reader: at Book Store. The Table of Contents of the reader is at the end of this
syllabus.
3. Additional readings and assignments will be posted on Marshall Course Pages or handed out
in class
2
IV. COURSE COMMUNICATION
Course communication will take place through announcements in class, emails, and the Marshall
Course Pages, accessible via the MyMarshall website (http://mymarshall.usc.edu), under the tab
“Academics”. If you do not have a MyMarshall user id and password, contact Marshall Help
Desk (tel. 213-740 3000; [email protected]). Marshall Course Pages use your USC
email address ([email protected]) for sending emails, so if this is not your primary email
account please make sure that it is forwarded to the account you use. You are responsible for
ensuring that messages will not bounce back due to, for example, your storage quota being full.
When contacting me, email ([email protected]) is the most effective means of
communication. In the subject line of emails, please use the format “451: subject of email.” You
may also leave a voice message, but I do not check them as frequently as email. For in-person
meetings, my office hour is Wednesdays 2:00-3:00 pm. I will be happy to meet or talk over the
phone at other times; please schedule an appointment via email.
V. COURSE REQUIREMENTS AND EVALUATION
Assignment Value (points)
Participation Individual 150
Interview of an entrepreneur Individual 400
Opportunity recognition paper
• Group paper and presentation Group 400
• Individual effort and results Individual 100
Short assignments
• Written case analyses
(one case will be selected randomly to be graded
for 100 points; remaining points based on on-time
delivery and professional format of other cases)
Individual 250
• Networking event Individual 100
• Living case letter Individual 100
Mid-term examination Individual 500
Total 2,000
Participation requirements
1. Attend all classes. You are allowed to miss two classes without penalty – no questions asked.
All further absences over this limit will reduce your participation grade by 10% per absence.
Students with an excessive number of absences are at risk to fail the course.
2. Show up on time and stay until the end – 5% of participation lost for arriving more than 5
minutes late or leaving early without prior approval.
3. Complete the assigned readings for the class.
4. Analyze what you’ve read based on the questions provided in the syllabus and complete any
exercises assigned for the class.
5. Participate actively in classroom discussions and in-class exercises.
6. Make good use of guest presenters’ time. Ask thoughtful questions after Living Case, guest
speaker, and student presentations.
3
Your responsibilities to this course are simple. Treat faculty, staff, and guest speakers like you
would your best customer, and you will be treated in the same manner. The Entrepreneur
Program believes in and follows a customer-centered philosophy. Your input and participation
are important and appreciated. Class meetings start promptly. Please arrange your schedule to
allow you to be on time for every meeting and to stay for the entire meeting.
You will need to come to class prepared as this class is your business. You are expected to have
read and thought about the required materials and done the expected assignments. Effective class
participation consists of analyzing, commenting, questioning, discussing, and building on others’
contributions; it is not repeating facts, or monopolizing class time. The ability to present one’s
ideas concisely and persuasively and to respond effectively to the ideas of others is a key
entrepreneurial skill. One of the goals of this course is to help you sharpen that ability.
Participation is evaluated based on your attendance and your level of involvement in class
discussions and in-class exercises – both the quality (relevance and insightfulness of comments)
and quantity (frequency) of your participation. It is impossible to earn a participation grade if you
are not in class. Be assured that much will be demanded from you in terms of dialogue in class.
Entrepreneurs are participants and learn from each other as well as from their environment.
Grading standards
Grade distributions over time, across departments and courses, and within departments and
courses, should be consistent and in conformity with recommended Marshall School of Business
grading standards. In order to avoid substantial disparities across courses, instructors are required
to adhere to specific target grade point averages for each course they teach. For elective under-
graduate courses (regular sections), the targeted grade point average is 3.15. Instructors are not
permitted to have their average GPA in a single course deviate by more than 0.1 above the target.
The grading system in this course consists of assigning “points” that correspond to the “A to F”
curve that will be reflected in your final grade. I will post your points for each assignment on
Marshall Course Pages; this will allow you to see how your points compare to the rest of the
class. If you have any questions about your grade during the semester, please make an
appointment to see me to discuss your concerns.
Assignment delivery
On time paper delivery is in class at the starting time. Papers will be accepted after the deadline
with the following penalties: Papers turned after the class begins but before 5 pm the same day
will lose 10% of the value. Papers turned in after that will lose 20% of the value. No papers will
be accepted 48 hours after the date due. If you must be absent, plan to deliver your work before
class. E-mailed or faxed work will not be accepted.
Returned paperwork, unclaimed by a student, will be discarded after four weeks and, hence,
will not be available should a grade appeal be pursued by a student following receipt of his/her
course grade.
4
VI. COURSE POLICIES
Classroom policies
Please be prompt. Arriving late or leaving early from class meetings is not acceptable, and
will have a direct, negative impact on your participation grade (-5% of participation).
Class seating. Given the number of students I teach and the importance of individual
participation, please sit in the same seat throughout the course.
No eating in class. You may have and use drinks in bottles.
On days when we have a guest speaker, the dress code for the class is business casual.
Please consider your attire also on other days. Remember, appearance is a very strong form
of non-verbal communication. Presentable attire communicates respect and willingness to
learn.
Remember to turn off cell phones and other personal communication devices. Turn off and
close laptop computers.
Academic integrity and disability accommodation
Please be familiar with the Grading Policy and Academic Standards section of the USC Catalog
and the information on University Governance in the SCAMPUS, particularly Appendix A:
Academic Dishonesty Sanction Guidelines.
The use of unauthorized material, communication with fellow students during an in-class
examination, attempting to benefit from the work of another student, and similar behavior defeats
the intent of an examination or other class work and is unacceptable to the University. It is often
difficult to distinguish between a culpable act and inadvertent behavior resulting from the nervous
tensions accompanying examinations. Where a clear violation has occurred, however, the
instructor may disqualify the student's work as unacceptable and assign a failing mark on the
paper.
Any student requesting academic accommodations based on a physical, psychological or learning
disability is required to register with Disability Services and Programs (DSP) each semester. A
letter of verification for approved accommodations can be obtained from DSP. Please be sure the
letter is delivered to me as early in the semester as possible (by the second week of the semester).
DSP is located in STU 301 and is open from 8:30 AM to 5 PM, Monday through Friday. The
telephone number for DSP is (213) 740-0776.
Greif Center for Entrepreneurial Studies Confidentiality Policy
Throughout The Entrepreneur Program's classes and events, students will be exposed to
proprietary information from other students, guest lecturers, and faculty. It is the policy of The
Entrepreneur Program that all such information be treated as confidential.
By enrolling in and taking part in The Entrepreneur Program's classes and activities, students
agree not to disclose this information to any third parties without specific written permission from
students, guest lecturers or faculty, as applicable. Students further agree not to use any such
proprietary information for their own personal commercial advantage or for the commercial
advantage of any third party.
In addition, students agree that any legal or consulting advice provided without direct fee and in
an academic setting will not be relied upon without the enlisted opinion of an outside attorney or
consultant without affiliation to The Program.
5
Any breach of this policy may subject a student to academic integrity proceedings as described in
the University of Southern California "University Governance Policies and Procedures" as
outlined in SCampus and to any remedies that may be available at law.
The Entrepreneur Program, the Marshall School of Business and the University of Southern
California disclaim any responsibility for the protection of intellectual property of students, guest
lecturers or faculty who are involved in The Entrepreneur Program classes or events. Receipt of
this policy and registration in our classes is evidence that you understand this policy and will
abide by it.
VII. THE COURSE AT A GLANCE
Date Monday session Date Wednesday session
8/23 Overview of the course.
What is entrepreneurship?
8/25 Living case: Reggie Lathan, ChemTrans
Questionnaire and photo due
8/30 Idea generation. Business concept.
3DP case write-up due
9/1 Analyzing market opportunity: The industry
Your business concept write-up due
9/6 Labor Day: no class 9/8 Living case: Guild Copeland, SisuMedia
9/13 Target market and customers. Developing a
value proposition. Chrysalis case write-up
due
9/15 Evaluating feasibility
IceDelights case write-up due
9/20 Strategic planning. The business plan
Example business plan anal ysis due
9/22 Living case: Paul Orfalea, founder of Kinko’s
9/27 Entrepreneurial marketing. Pricing. 9/29 Living case: Michael Singer, Strategic Partners
10/4 Presentation and discussion of entrepreneur
interviews Interview paper due
10/6 Distribution and sales.
10/11 Intellectual property issues. Guest speaker:
Marshall Lerner, Kleinberg & Lerner, LLP
10/13 Entrepreneurial finance: Estimating capital needs.
Sources of capital.
10/18 Kicking off the team projects. Review of
materials for mid-term exam.
Location: ELC (Bridge Hall basement)
10/20 Introduction to venture capital.
Guest speaker: Darius Sankey, Zone Ventures
10/25 Mid-term exam
10/27 Ethics and values in the entrepreneurial process.
11/1 Living case: George Fatheree, founder of
GovWorks.com
11/3 Planning for growth. Franchising.
NeoPets case write-up due
11/8 Experiential Learning Center exercise:
Organizing your venture
Location: ELC (Bridge Hall basement)
11/10 No class. Teams meet with professor to discuss
group project.
11/15 No class. Teams meet with professor to
discuss group project.
11/17 Living case: Steve Barr, Charter School founder
Networking event write-up due
11/22 Exit strategies. Corporate entrepreneurship.
Finding your personal career path.
11/24 Living case: to be confirmed
11/29 Group project presentations
Project paper due
12/1 Group project presentations
Course wrap-up
6
VIII. DESCRIPTION OF COURSE ASSIGNMENTS
Interview of an entrepreneur (400 points) due October 4
Conduct an in-person interview with an entrepreneur whom you do not know. Make sure that
this person’s or their team’s venture is innovative and growth oriented. It is preferred that you do
not choose a small, lifestyle business owner for this project. It is recommended that you choose
someone in the industry in which you are interested for your group project. You should have
your interviewee identified by September 15.
Your written paper should not exceed 4 pages (1.5-spaced, one-inch margins, 12-point font). It
should NOT contain a verbatim transcript of the interview. Use headings. Make sure to reflect on
how the interview illustrates the issues we have discussed in class. Use literature citations to
enhance your interview analysis. Be sure to address the following at a minimum in your
interview, but feel free to deal with other issues as well.
1. Why did you choose this person and how you did you meet him or her?
2. Describe the business and industry.
3. Describe the background of the entrepreneur, education, family, interests.
4. Where did the opportunity for this business come from?
5. What did the entrepreneur do to prepare to start the business?
6. How did the entrepreneur deal with any perceived risk prior to start-up?
7. What major problems did the entrepreneur encounter during start-up, and how were
these problems solved?
8. Who did the entrepreneur use for help and guidance during the startup of the
business?
9. What are the entrepreneur’s growths plans for the business?
The above questions should be answered in about two pages.
1. What advice would the entrepreneur give to someone thinking about starting a
business? What advice did the entrepreneur give to you?
2. Summarize what you learned from this experience. (This is the most important part
of the paper!)
The above two questions should be answered in about two pages.
Bibliography and printout of PowerPoint slides (not included in page count).
Six students will be asked to present their interviews (three volunteers, three cold calls). Please e-
mail your desire to be considered as a volunteer by September 30, mentioning in your email what
your interviewee’s business is and why it would be interesting for the class to hear about it.
Volunteering will be noted in your participation points for the course. All students should
prepare six presentation slides with the key points from the interview. Plan your presentation to
be a maximum of 6 minutes long. Attach a one-page handout format printout of the slides to
your interview paper, and bring transparencies or the PowerPoint file to class on October 4. The
presentation slides will be evaluated as part of the total grade for this project.
Case study write-ups (250 points): 3-DP, Your Business Concept, Chrysalis, IceDelights,
Amvet, NeoPets
There will be six case assignments during the semester. For each of these, you are to submit a
well-crafted one-page response (single-spaced, one-inch margins, 12-point font) to the questions
that will be distributed in class and posted on Marshall Course Pages. Use headings and bullets to
focus your answer. Bring two copies to class: one to be turned in at the beginning of class, the
other for you to use during the class discussion. One case will be randomly chosen for grading
(100 points); the grading for the remaining cases (150 points) will be based on presentation and
timeliness.
7
Living case letter (100 points) due one week after Living Case visit
We expect to have seven Living Case visitors. They will tell of their venture and journey and then
leave us with a question or problem regarding an opportunity or idea that they are pursuing. For
one living case visitor, your duty is to research their issue and prepare a 1-2 page letter for
submission one week after their visit. The letter will be on your letterhead, in an envelope with
proper return address and postage. A copy of the letter will be clipped to the sealed letter for
grading. Use course readings and other source materials in writing your letter.
Mid-term examination (500 points) on October 25, location: TBD
The examination will cover all course materials, lectures, Living Case visits, and class
discussions from August 23 to October 20. The examination will be comprised of a combination
of multiple choice, short answer, and essay questions. A review for the exam will take place in
the October 18 class.
Networking event write-up (100 points) due November 17
You will be notified of professional networking events during the semester. Your assignment is to
attend one event, meet three professionals at the event, collecting their business cards. You will
turn in a paper (maximum 2 pages, single-spaced, 12-point font, 1-inch margins) describing the
event you attended, what you learned from the experience, and each of your three professional
contacts: their responsibility with their firm, the type of clients their firm serves, a brief
description of how they got into their business/profession, and how they might be a helpful
contact for you in the future. Attach a copy of the business cards you collected.
Team project: Discovering opportunities in an industry (500 points) due November 29
The objective of this project paper is to research entrepreneurial opportunities in a selected
industry to understand
• What the operating environment for entrepreneurial ventures is like in this industry
• How entrepreneurial ventures have been and are formed in this industry (e.g., by whom,
where did ideas come from, what is the typical growth path)
• What are the typical marketing and distribution strategies for entrepreneurial ventures in
this industry
• What are the key success factors and challenges for entrepreneurial ventures in this
industry
• What are the new entrepreneurial opportunities in this industry
The project serves to integrate the various topics covered during the course. In analyzing the
above issues, you should demonstrate that you have acquired and are able to apply the central
concepts and frameworks. The project will be conducted in teams of five people. We will discuss
team formation in class.
Research methods. Use interviews with entrepreneurs and industry experts (minimum
requirement is one interview per team member, not counting the entrepreneur interview
assignment). Conduct a review of available information on the internet, in the literature, as well
as follow the industry in the news.
Format. Your written paper should not exceed 15 pages (1.5-spaced, 1-inch margins, 12-point
font). Use headings. Make sure to cite the literature and interviews to indicate sources of
information.
8
Detailed requirements for the structure of the paper are listed below.
Structure of the team project paper
A cover page containing
• Title of paper clearly identifying the industry
• Date
• Names of all team members
Executive Summary page: Summarize in 300 words or less the key findings of your paper
Table of contents page
Body of the paper, not to exceed 12 pages, should cover at least the following 6 topics
1. Introduction
• Describe which industry you are focusing on and how you are defining the scope of your study (e.g.,
particular sub-sectors, geographically)
• Introduce the structure and contents of the paper to the reader
2. Industry analysis
• Analyze the structure and competitive dynamics of this industry (using, e.g., industry value chain
analysis)
• How has this affected and how will it affect entrepreneurial opportunities in the industry?
3. Recent entrepreneurial entries into the industry
• How have entrepreneurial ventures been formed in the industry (by whom, where did ideas come
from)?
• What is the typical development/growth path for new ventures?
4. Entrepreneurial marketing and distribution in this industry
• What are the typical maketing and distribution strategies used by entrepreneurial ventures?
• Describe any examples of particularly innovative marketing or distribution
5. Key success factors and biggest challenges for new ventures in this industry
• Address the strategic, financial, or operations issues that “make or break” an entrepreneurial venture in
this industry and how successful ventures have addressed these issues
6. Conclusion: Current entrepreneurial opportunities in the industry
• Does this industry currently offer promising entrepreneurial opportunities? Why or why not?
• If you were to start a new venture in this industry, what kind of business would it be? Briefly describe the
business concept, target customers, marketing/distribution strategies, etc.
Not included in the 15-page limit:
• List of references
• Appendices (optional)
Grading of team paper
300 points based on the written paper – same score for each teammate
100 points based on the oral presentation and slides – same score for each teammate
100 points based on peer evaluation of effort and results – varies by individual
500 points total
The peer evaluation will be conducted by filling out a questionnaire in the last class session on
December 1.
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IX. SESSION-BY-SESSION COURSE SCHEDULE AND ASSIGNMENTS
This schedule may change due to changes in guests’ schedules. Also, some additional readings will be
distributed during the semester. Changes will be announced in class and posted on Marshall Course Pages.
Session 1 (8/23) Overview of the course. What is entrepreneurship?
Required readings: None
Be prepared to discuss the following
• How would you define entrepreneurship?
• Why is entrepreneurship important? Think about different levels of analysis: a person, a commu-
nity, a nation, globally.
• What are your personal learning goals for this course?
Session 2 (8/25) Living Case: Reggie Lathan, ChemTrans
Required readings
• Textbook Chapter 1
• Global Entrepreneurship Monitor, 2002 Executive Report (readings book, reading #1)
• Visit www.chemtrans.com to understand what the company does
Be prepared to discuss the following
• What do we learn about entrepreneurial behavior from this Living Case? What are the
characteristics and motivations of entrepreneurs?
Assignment due: STUDENT QUESTIONNAIRE AND PHOTO
Session 3 (8/30) Idea generation. Business concept.
Required readings
• Textbook Chapter 3
• Six Degrees of Lois Weisberg (readings book, #2)
• Three Dimensional Printing case (readings book, #3)
Be prepared to discuss the following
• What are different ways you can find ideas?
• How is prior knowledge related to an individual’s ability to recognize opportunities? How can you
enhance your “prior knowledge”?
Assignment due: 3-D PRINTING CASE WRITE-UP (instructions will be distributed and posted)
Session 4 (9/1) Analyzing market opportunity: The industry and the value chain
Required readings
• Textbook Chapter 4
• Value chain analysis example: Denim jeans (readings book, #4)
Be prepared to discuss the following
• How do you conduct an analysis of an industry? What are different frameworks you can use?
• How do you identify and evaluate your competition?
Assignment due: YOUR BUSINESS CONCEPT WRITE-UP. Bring to class a one-page description of a
business concept that you’ve come up with. What is the product/service, who is the customer, what is the
distribution channel you will use to get to the customer? See case write-up instructions on syllabus page 7.
Labor Day (9/6) No class.
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Session 5 (9/8) Living case: Guild Copeland, SisuMedia
Required readings:
• Textbook Chapter 6
• Visit www.sisumedia.com to understand what the company does
Be prepared to discuss the following
• What were the practical steps that Guild Copeland took to start SisuMedia?
• How did he figure out which customers to target at the very beginning and then later on?
Session 6 (9/13) Target market and customers. Developing a value proposition
Required readings
• A Business is a Value Delivery System (readings book, #5)
• Textbook: Mrs. Gooch’s case study (p. 486-488)
• Chrysalis Limited case (readings book, #6)
Be prepared to discuss the following
• How do you identify your target customer?
• What is a value proposition? What are the characteristics of an effective value proposition?
• How did Mrs. Gooch define her target customers? What was her value proposition to them?
Assignment due: CHRYSALIS CASE WRITE-UP (instructions will be distributed and posted)
Session 7 (9/15) Evaluating feasibility
Required readings:
• Textbook Chapter 5
• IceDelights case (readings book, #7)
Be prepared to discuss the following
• What are the purposes of a feasibility analysis? What is the decision you are trying to reach?
• What are the components of a feasibility study?
• Who is the entrepreneur you will interview for your interview paper; why did you select him/her?
Assignments due:
• ICEDELIGHTS CASE WRITE-UP (instructions will be distributed and posted)
• Entrepreneur for interview identified, and started scheduling interview (nothing to turn in now)
Session 8 (9/20) Strategic planning. The business plan.
Required readings
• Textbook Chapter 11
• One More Time... Should Small Companies Attempt Strategic Planning? (readings book, #8)
• Example business plan (to be distributed)
Be prepared to discuss the following
• Why is it important to write a business plan? What is the process for writing a business plan?
• What is the difference between a feasibility study and a business plan?
• What are the components of a business plan?
• What questions will people ask about your business plan?
Assignment due: EXAMPLE BUSINESS PLAN ANALYSIS WRITE-UP (instructions to be distributed)
11
Session 9 (9/22) Living case: Paul Orfalea, founder of Kinko’s
Required readings: None
Be prepared to discuss the following
• How did Mr. Orfalea come up with the idea for Kinko’s?
• What were the key values that governed how Mr. Orfalea built and managed his company?
Assignment due: Research Paul Orfalea on the web. Make notes for yourself or bring print-outs of
interesting things you found to class, but these will not be turned in for grading. (Hint: Better research
equals better questions equals better participation grade.)
Session 10 (9/27) Entrepreneurial marketing. Pricing.
Required readings
• Textbook Chapter 15
Be prepared to discuss the following
• How is entrepreneurial marketing different from a large company’s marketing strategy?
• What are the key factors that determine how to price a product or service?
Assignment due: ENTREPRENEURIAL MARKETING EXAMPLE
Bring in an example of effective marketing by an entrepreneurial company. Be prepared to discuss it:
what is the company and product/service; what is the marketing channel and method used; why do you
consider it particularly effective or creative? The example you bring in can be a flyer, web printout,
brochure, newspaper clipping, or you can write a one-page description of a marketing tactic you’ve
seen. Examples will be collected at the end of class and will count into your participation points.
Session 11 (9/29) Living case: Michael Singer, Strategic Partners, Inc.
Required readings: www.strategicpartners.net
Be prepared to discuss the following
• How does this Living Case illustrate the various issues we have discussed in class: opportunity
recognition, strategic planning, entrepreneurial marketing, etc.?
Session 12 (10/4) Presentation and discussion of entrepreneur interviews
Required readings: None
Assignment due: ENTREPRENEUR INTERVIEW PAPER. Be prepared to present and discuss your
entrepreneur interview in 6 minutes. Three volunteers and three cold-call presentations.
Session 13 (10/6) Distribution and sales. Negotiation skills.
Required readings
• Textbook Chapter 10
Be prepared to discuss the following
• What are the alternative distribution channels available for entrepreneurial firms?
• What factors should be taken into account when selecting a distribution channel?
• How important is it that an entrepreneur is effective in sales and negotiation? How can you
develop those skills?
12
Session 15 (10/13) Intellectual property issues
Guest speaker: Marshall Lerner, Kleinberg & Lerner, LLP
Required readings
• Textbook Chapter 7, pages 145-162
• Textbook Chapter 12
• Lecture materials (to be distributed)
Be prepared to discuss the following
• How can you, as an entrepreneur, protect your company’s intellectual property?
Session 14 (10/11) Entrepreneurial finance
Required readings
• Textbook Chapter 9
• Textbook Chapter 18: pages 425-449
Be prepared to discuss the following
• How do you determine the amount of capital a new venture will need?
• How do the financing needs of of the enterprise change over its life cycle?
• What are the alternative sources of capital available to entrepreneurs?
Session 16 (10/18) Kicking off the team projects. Review for mid-term exam. Location: ELC
Required readings: None
Assignment due: Review all the readings we have covered so far, and come to class with any questions
you may have.
LOCATION: Experiential Learning Center, basement of Bridge Hall
Session 17 (10/20) Venture capital. Guest speaker: Darius Sankey, Zone Ventures
Required readings
• The Venture Capital Industry: An Overview (readings book, #9)
• The Venture Financing Process (readings book, #10)
• Angel Investors Fill Void Left by Risk Capital (readings book, #11)
Be prepared to discuss the following
• What is the venture capital investment process like?
• How do venture capitalists evaluate potential investment start-ups?
Session 18 (10/25) Mid-term examination
The mid-term examination will cover all course materials, lectures, Living Case visits, and class
discussions thus far. The examination will include multiple choice, short answer, and essay questions.
13
Session 19 (10/27) Ethics and values in the entrepreneurial process
Required readings:
• Textbook Chapter 2
Be prepared to discuss the following
• How do values and ethics guide the entrepreneurial process?
• How do you, as an entrepreneur, make ethical decisions and maintain the values of your
organization?
Session 20 (11/1) Living case: George Fatheree, founder of GovWorks.com
Required readings: None
Be prepared to discuss the following
• What were the values and priorities of the GovWorks.com founders? How did these influence
their actions?
• What are some barriers and pitfalls that entrepreneurs face when raising funds and starting up their
business?
Session 21 (11/3) Planning for growth. Franchising.
Required readings
• Textbook Chapter 17
• Managing Growth (readings book, #13)
• NeoPets case (readings book, #14)
• Assessing the Franchise Option (readings book, #15)
Be prepared to discuss the following
• What are alternative growth strategies for entrepreneurial ventures, and how do you decide which
one best suits your venture?
• How does the entrepreneur’s role change as the company grows?
• When is franchising an effective growth strategy? What are its advantages and disadvantages?
• Would you consider becoming a franschisee? Why or why not?
Assignment due: NEOPETS CASE WRITE-UP (instructions will be distributed)
Session 22 (11/8) Experiential exercise in the ELC: Organizing your venture
Required readings:
• Textbook Chapter 8
• Characteristics of a Successful Entrepreneurial Management Team (readings book, #12)
LOCATION: Experiential Learning Center, basement of Bridge Hall
Sessions 23-24 (11/10 and 11/15) Teams meet with professor to discuss final project
No class. Each team meets with professor for 30 minutes to discuss the final team project.
List for scheduling the meetings will be in class on 11/1 and 11/3.
Assignment due: Bring to the meeting (1) a draft version or outline of your paper, (2) a statement that
clearly describes what the industry sector is that you are focusing on, (3) a graphical illustration of the
industry (this can be a value chain or other diagram of the structure of the industry), (4) a list of questions
your team has for the professor, and (5) a list of interviews conducted and source materials used
14
Session 25 (11/17) Living case: Steve Barr, charter school founder, Green Dot Public Schools
Required readings: www.animo.org
Be prepared to discuss the following
• How is starting and running a non-profit venture different from starting a for-profit venture?
Assignment due: NETWORKING EVENT WRITE-UP
Session 26 (11/22) Exit strategies. Corporate entrepreneurship.
Finding your personal career path.
Required readings
• Rebuilding Business Building (readings book, #16)
• Choosing Your Exit Strategy (readings book, #17)
• Textbook Chapter 18, pages 449-454
• The Decision (readings book, #18)
Be prepared to discuss the following
• Can entrepreneurship exist within large companies? How is corporate entrepreneurship different
from starting an independent new venture?
• What exit/harvest options are available to entrepreneurs?
• How do you determine the conditions that trigger an exit decision, and how do you select between
exit options?
Session 27 (11/24) Living case: TBD
Required readings: TBD
Session 28 (11/29) Group project presentations
Required readings: None
Be prepared to present your group project (if scheduled for today)
Assignment due: GROUP PROJ ECT PAPER TO BE TURNED IN TODAY
Session 29 (12/1) Group project presentations
Course closing
Required readings: None
Be prepared to present your group project (if scheduled for today)
Assignment due: GROUP MEMBER EVALUATION FORM (will be filled out in class)
15
Appendix 1
BAEP 451 The Management of New Enterprises
Professor Helena Yli-Renko
Fall 2004
COURSE READER TABLE OF CONTENTS
1. Global Entrepreneurship Monitor, 2002 Executive Report
2. Six Degrees of Lois Weisberg, Malcolm Gladwell, Annals of Society, The New Yorker, 1999
3. Three Dimensional Printing case, Scott Shane, 1998
4. Denim Jeans Value Chain Analysis, J ason Bertellotti, 2000
5. A Business is a Value Delivery System, Michael J . Lanning & Edward G. Michaels, McKinsey Quarterly,
2000, number 3
6. Chrysalis Limited, London Business School case study
7. ICEDELIGHTS, Harvard Business School case study
8. One More Time... Should Small Companies Attempt Strategic Planning? William R. Sandberg et al., The
Entrepreneurial Executive, 2001
9. The Venture Capital Industry: An Overview, National Venture Capital Association, 2001
10. The Venture Financing Process, Alan E. Salzman & L. J ohn Doerr, Vantage Point Venture Partners
11. Angel Investors Fill Void Left by Risk Capital, Bonnie Azab Powell, New York Times, J uly 6, 2001
12. Characterictics of a Successful Entrepreneurial Management Team, Alexander L. M. Dingee et al.,
Pratt’s Guide to Venture Capital Sources, 1997
13. Managing Growth, Michael J . Roberts, from New Business Venture and the Entrepreneurs, McGraw-
Hill/Irwin, 1999
14. NeoPets, Inc. Harvard Business School case study
15. Assessing the Franchise Option, Surinder Tikoo, Business Horizons, May-J une 1996
16. Rebuilding Business Building, Patrick F. Coveney et al., McKinsey Quarterly, 2002, number 2
17. Choosing Your Exit Strategy, William H. Payne, Kauffman Center for Entrepreneurial Leadership, 2001
18. The Decision, from The Survival Guide to IPOs, American Lawyer Media, 2000
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