Syllabus Entrepreneurship

MSB Pier A. AbettiENTREPRENEURSHIP Summer 2006

MEDITERRANEAN SCHOOL OF BUSINESS

SYLLABUS Summer 2006 – July 6 - 9, 2006

Course Title Entrepreneurship

Instructor: Pier A. Abetti, Ph.D. - Professor, Management of Technology and Entrepreneurship, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USAPhone: Tunis, 913.000; (Hotel Golden Tulip) USA, 1-518-276-6834; Fax, 1-518-276-8661Email: [email protected]

Texts: (1) R.A. Baron, S.A. Shane; Entrepreneurship, Thomson, 2004,

ISBN 0-324-27356-8(2) Selected cases and articles

Objectives: (1) Provide understanding of entrepreneurship, that is, initiating

an innovative new business venture and developing it into a self-sustaining and profitable enterprise

(2) Provide understanding of the process whereby a person decides to become an entrepreneur, screens opportunities, selects an appropriate product/market target, obtains the necessary resources, and launches a new enterprise

(3) Provide the practical knowledge for the preparation of drafts of business plans for the development of new products, processes and services and for the financing of new enterprises.

Course Structure: (1) One-third of the time, approximately, will be lectures,

including a guest speaker(2) One-third will be case discussions and class exercises(3) One-third will be the preparation and review of business

plans by participants in teams.(4) Formal presentations of business plan summaries to a jury of

business persons will conclude the course

Schedule:

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Classes will meet during 4 days, July 6 to 10. Classes are held from 9 AM to 12:30 with a short break and from 2:00 to 5:30 with a short break. On the last day, class will end around 3:00. Accordingly, this syllabus is divided into 8 sessions, including the final presentations of business plan summaries during the last day.

I would like to suggest the following procedures for a smooth running course.

1. Reading Assignments: 1.1 Since this is a new course, the syllabus is tentative and may be

changed depending on the progress, and interest and suggestions of the class.

1.2 Readings should be completed before assigned sessions, in order to understand the subjects to be presented and discussed.

1.3 The textbook is for reference only.

2. Cases: 2.1 Case preparations must be completed before class.2.2 The instructor will briefly summarize the facts of the case and open

the discussion.2.3 All participants are expected to contribute actively to the discussion.

3. Assignments: 3.1 There are two group assignments for the business plan. No reports

are required. Groups will hand in copies of their charts and 2-3 page executive summary at the last session.

4. Team Work: 4.1 Participants are expected to work in teams. Synergy is expected,

that is, two participants in a team should produce more than the sum of two individual contributions.

4.2 Teams should be as diversified as possible, in terms of academic interests, experience and backgrounds.

4.3 Participants should take turns in making presentations so that all can obtain credit for class participation.

5. Attendance: 5.1 Attendance is compulsory and roll call will be made during all

classes.5.2 Justified absences (for reasons of health or work) should be

discussed with the instructor preferably before the fact. Participants with 2 or more half-day absences will be required to do additional work.

6. Grading: 6.1 Final course grade will be weighted as follows:

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40% Class participation and case discussions;20% Homework charts and presentations (first assignment)

40% Final project (in lieu of final exam).6.2 Grades will be given according to the following criteria:

(a) Creative and original thinking, understanding of key issues, entrepreneurial initiative and drive;

(b) Depth of analysis;(c) Logical flow of ideas;(d) Clarity and conciseness of charts, executive

summary and oral presentations.

7. Counseling: 7.1 Students are encouraged to meet with the instructor, during breaks,

before or after class.7.2 In case of problems do not hesitate to call the instructor at the hotel

(913.0000). Please, no calls after 10 PM.

8. Feedback: 8.1 The procedures listed above are tentative. Your feedback, in class

or privately, is most welcome and your suggestions will be given full consideration.

8.2 This is a new course for all of us. It can only succeed if we all work together to improve the subject matter and the learning process, and participate fully in the discussions.

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ENTREPRENEURSHIP

FIRST ASSIGNMENT DUE Friday, July 7, 2006(IN TEAMS)

PREPARE A PRESENTATION OF A PROPOSAL FOR STARTING YOUR OWN COMPANY OR A NEW INTERNAL VENTURE BASED ON YOUR ORIGINAL IDEAS

SUGGESTED FORMAT FOR BUSINESS PLAN PROPOSAL

1. NAME OF THE COMPANYNAMES OF TEAM MEMBERSMISSION OF COMPANY

2. DESCRIPTION OF PRODUCT OR SERVICE (HARDWARE, SOFTWARE, FUNCTIONS, APPROXIMATE PRICE, ETC.)

3. CUSTOMER BENEFITS (WHY WILL THEY BUY YOUR PRODUCT OR SERVICE?)

4. TARGETED MARKET AND APPROXIMATE SIZE (WHO WILL BUY YOUR PRODUCT? WHAT TYPES OF CUSTOMERS? WHERE WILL THEY BE FOUND?)

5. PRELIMINARY PRICING (YOUR MODEL FOR PROFITABILITY)

6. ENTRY STRATEGY (HOW DO YOU PLAN TO ATTACK THE MARKET?)

PREPARE ONE CHART FOR EACH ITEM + SKETCHES AND ADDITIONAL INFORMATION ON YOUR PRODUCT AND MARKETS, USE COLOUR AND VISUAL AIDS.

TIME PER TEAM: 10 MINUTES (STRICTLY ENFORCED) + 5 MINUTES FOR QUESTIONS.

HAND IN YOUR CHARTS. NO REPORT REQUIRED

NOTES:

1. PROPOSE ONLY PRODUCTS OR SERVICES PRESENTLY NOT AVAILABLE ON THE TUNISIAN MARKET.

2. BECAUSE OF THE LIMITED DOMESTIC MARKET, ALL PROPOSALS SHOULD HAVE THE OBJECTIVE OF EXPORTING PRODUCTS OR SERVICES.

3. ALL PROPOSALS SHOULD UTILIZE MODERN INNOVATIVE TECHNOLOGY IN THE DESIGN, PRODUCTION, DELIVERY OF PRODUCTS AND SERVICES.

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CREATION OF INNOVATIVE SME’S – SPRING 2OO5

DRAFT OF BUSINESS PLAN

1. Name and Mission of Company

Note: The mission should describe in one or two sentences the reason for existence and long-range objectives of the company.

2. Product/Service Description

2.1 Technical Description (Functions and Features)

2.2 Customer Benefits

NOTES:a) Assume the future of your Company depends upon the quality of your business plan.b) Emphasize the customer benefits section (What does the product do for me?)c) Product is defined as the total package of benefits the customer receives when he/she

buys (functional utility and reliability, features, warranties, services, etc.)d) Industrial marketing customers and venture capitalists are sophisticated. Be specific in

your claims of benefits and avoid general claims or “image.”

3 Competition

Look at both direct and indirect competition. Example: robots in Finland versus manual assembly in developing countries.

If possible, compare your product or service with those of your main competitors (features, quality, performance, price, support, etc.)

4. Market Analysis

4.1 Market Segmentation and SelectionSelectivity should be the criterion of your plan, since your resources are limited.Start with the most promising segment, then expand to others.

4.2 Market Size and Growth RateThis is quantitative analysis of each market segment. Determine both size and growth rate.

NOTES:5


a) We are concerned here with total served market size, not with your market share. This will be discussed in the next section, since it depends on strategy and resources.

b) Projections should be made until 2010 as a minimum (you want to be in business for a long time!)

5. Strategy and Marketing Plan

5.1 Entry Strategy5.2 Pricing Strategy5.3 Market Share, as a function of time5.4 Sales = Market x Market Share (by year from 2006 to 2010)

6. Resources 6.1 Resources Needed (people, euros or dollars, other)6.2 Milestones (by years and quarter) Assume your plan will be approved in July 2006 and you will start implementation on

January 1, 2007.6.3 Preliminary Financial Plan (profit and loss, cash flow by year, 2006 to 2010)6.4 Request for Funds (in steps, tied to milestones)

ASSIGNMENT TO BE HANDED IN on Sunday, July 10th, 2006

9.1 The assignment will include all the charts of the presentation, plans an Executive Summary (2 pages double spaced).9.2 The Executive Summary will summarize very briefly the key ideas and data of the plan

and present key conclusions at the end. Assume that some busy executives will read only this summary, not the entire plan.

9.3 All pages should be numbered consecutively, including tables and illustrations.

PRESENTATIONS on Sunday, July 10th, 2006, 1:00 to 3:00 pm

10.1 Each team will have 14 minutes.10.2 Only judges will ask questions. The last student speaker will reply or ask another team

member to reply. Answers should be short. If you do not have the answer, say so and offer to give the information later.

10.3 Time limits will be strictly enforced (14 minutes for presentation, 5 for questions and answers).

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Session # Topics Text and Readings(Chapter # = Timmons)

Cases and Oral Presentations

Written Assignments

1.July 6 (Thurs) AM

Introduction1.1 Questionnaire1.2 Course Objectives, Structure, and Syllabus1.3 Economic Development of the Maghreb:

The Role of Technology and Innovative SMEs

1.4 Infrastructure for Technological Entrepreneurship. The examples of Finland and Taiwan

1.5 Video: Yahoo!

Chapter 1 None None

2.July 6 (Thurs) PM

2.1 The Process of New Venture Creation2.2 Key Success Factors2.3 Opportunity Recognition2.4 Self-assessment Exercise2.5 The Business Plan

Chapters 2, 3 None None

3July 7 (Fri) AM

3.1 Proposals of Business Plans3.2 Evaluation by Instructor and Class3.3 Results of Evaluations3.4 Creation of Companies

Chapters 7 Presentations of Proposals according to suggested format (page 5)

Business Plan Proposals – (Charts only)1. Company and Mission2. Product Description Customer Benefits3. Targeted Market Segments4. Preliminary Pricing5. Entry Strategy

4July 7 (Fri) PM

4.1 Case: Kevin Mooney (A)4.2 Globalization4.3 Case: Zobele Chemical Industries

Chapter 11 Kevin Mooney What should Kevin decide?What would you recommend to CEO Enrico Zobele?

5July 8 (Sat) AM

5.1 Case: Kevin Mooney (B&C) 5.2 Venture Capital in USA5.3 Video: The Entrepreneurial Process5.4 Guest Speaker: Tunisian Venture Capitalist

Chapter 6 Kevin Mooney (B&C) What should Kevin do?

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Syllabus

Session # Topics Text and Readings(Chapter # = Timmons)

Cases and Oral Presentations Written Assignments

6.July 8 (Sat) PM

6.1 Case: Map Info and Role Playing

6.2 Obtaining Venture Capital6.3 Going Public (IPO)6.4 Accelerated Growth6.5 Map Info Today

Chapter 10, 14Abetti: Accelerated Growth

Map Info Business Plan Would you invest or not into Map Info? Why or why not?

7.July 9 (Sun) AM

7.1 Entrepreneurial Growth7.2 Case: Steria7.3 Intrapreneurship7.4 Case: Toshiba Laptop

Chapters 12, 13 Abetti: The Creative Evolution of Steria

Questions for discussion (handout).What should Steria do next?

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8. July 9 (Sun) PM

8.1 Business Plans Presentations

8.2 Evaluation of Course and Instructor by students

8.3 Feedback of Jury and Award of Prizes

None Presentation of Business Plan Summaries

Business Plan charts and Executive Summary (2-3 pages double – spaced)

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Syllabus Entrepreneurship

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