BA 320f (01928)
Fall 2013
Professor Robert Warren
Office M1082, AT&T Conference Center
Office Hours Monday – 10:00 AM – Noon, Wednesday – 1:00 PM - 3:00 PM or by appointment
Phone 512.232.6404
Course Web Page via Blackboard
Teaching Assistant
Administrative Ann Whitt, , 512.232.6597
Course Objectives
This course will:
1. Introduce you to the various types of entrepreneurship and the specific skills required for each one.
2. Provide you with an introduction to the entrepreneurial skills sought by large companies when recruiting employees, e.g. market validation, financial management and presentation of a business plan.
3. Introduce you to the key issues involved in developing an entrepreneurial strategy for a new or existing firm.
4. Provide you with a basic understanding of how to create a financial model for a venture and the various forms of financing available.
5. Provide you with an understanding of the issues associated with the growth and harvest of an entrepreneurial venture.
6. Provide you with the ability to write and present a business plan.
Leadership and this Course
The McCombs School of Business seeks to develop influential business leaders. To accomplish this, four fundamental and broad pillars of leadership have been identified: knowledge and understanding, communication and collaboration, responsibility and integrity, and a worldview of business and society.
In this course, you will enhance your knowledge and understanding of entrepreneurs and entrepreneurship and the important role these play in the economy. Through class discussion, informal study groups and formal group projects (written and oral), you will enhance your communication and collaboration skills. You will learn how high-quality, credible validation of markets enhances the ability of managers to lead their organizations effectively and with integrity. Finally, many of the examples provided in class involve international companies and markets, affording you a global perspective on the field of entrepreneurship.
Materials
Required: Entrepreneurship: Theory, Process, Practice, Donald F. Kuratko, Cenage Learning, 2014
Course Requirements and Grading
Your grade in this course will be based on a combination of your individual efforts and those of your group. This is to reflect the fact a key part of being an entrepreneur is the ability to work effectively as part of a team. The point breakdown for each of these areas is as follows:
Individual
Participation 100 points
Weekly Assignments 150 points
Invention Contest 50 points
Term Tests (2 @ 150 points) 300 points
Sub-Total Individual 600 Points
Group
Idea Pitch Presentation 50 Points
Business Model Presentation 50 Points
Written Business Plan 150 Points
Presentation of Business Plan 150 Points
Sub-Total Group 400 Points
TOTAL 1,000 Points
As there is currently no McCombs guideline for undergraduate courses, this course uses the target grade distribution approved by the MBA Programs Committee for all Core and Flex Core courses: A (4.0) 25%,A- (3.67) 20%,B+ (3.33) 15%, B (3.0) 35%,B- or below (2.67) 5%. This course uses the above target distribution as a guideline for establishing final grades.
Description of Requirements
Participation
Studying entrepreneurship requires the active involvement of the instructor and class. This class uses a combination of lectures and interactive discussion to cover the day’s topic. Therefore it’s important that you read the assigned material and come to class prepared to discuss it. Each class you will be assigned a participation grade of 0-3. A 0 is recorded if you are absent from class without informing the instructor beforehand. A student will earn a 1 for attending class if they sign the attendance sheet for that day. A 2 is awarded if the student participates in the discussion but does not make a major point or move the discussion forward while a 3 is awarded for making a major contribution to the discussion by doing such things as relating it to a current business news story or integrating the lesson with their project.
Case Studies
Each class students are required to submit a case analysis. The cases and the associated questions are found in the textbook. This assignment should be submitted via Blackboard by 12:00 PM (Noon) of the class day. Your answers should be submitted in a Word or PDF format using 12 point font, 1.5 line spacing and one inch margins around the page. Please keep your answers brief and submit no more than two pages per assignment. Assignments will be graded using a 0-3 point scale (detailed rubric attached) where 0 = Not Submitted, 1 = Below Expectations, 2 = Met Expectations and 3 = Exceeded Expectations.
Invention Contest
On September 24, each student will make a one minute presentation on a proposed invention that solves a problem they have identified in their daily lives. The grading rubric for this assignment is:
Identification of a problem 10 Points
(The broader, the better)
Creativity of the solution 10 Points
(Remember sometimes simple is the most creative)
Feasibility of the proposed solution 10 Points
(It has to work)
Presentation of the solution 10 Points
(Ability to explain the problem and solution)
Effective use of time 10 Points
(Ability to get as close to a minute as possible)
Total 50 Points
Term Tests
There will be two term tests for this course. The first test covers Chapters 1-8 and the second Chapters 9-15. Each test will consist of a series of short answer questions designed to test your ability to apply classroom theory to a given situation. Students are responsible for providing a blue exam booklet for these tests.
Idea Pitch Presentation
The first group exercise will involve each group making a five minute presentation of their proposed idea and answering three minutes of questions. The grading rubric for this assignment is as follows:
Identification of the market pain 10 Points
Description of the potential target market 10 Points
Proposed market validation methodology 10 Points
Competitive assessment 10 Points
Style of business to be created 10 Points
Total 50 Points
Business Model
The second group exercise requires the group to present their proposed business model along with their revenue and expense estimates for three years and funding requirements at launch. Each group will have five minutes to present this information followed by a three minute question and answer session. The grading rubric for this assignment is:
Identification of the business model 10 Points
Discussion of how the revenue figure was developed 10 Points
Discussion of the methodology used to estimate expenses 10 Points
Description of how the funding requirement was established 10 Points
Presentation ability 10 Points
Total 50 Points
Written Business Plan
Each group will prepare a business plan for their proposed venture using the guidelines found below. Business plans are to be submitted via AngelList by 12:00 PM (Noon) on November 19.
Guidelines
1. Cover Page. Length – Page. This page will include the name of the venture and students involved.
2. Executive Summary. Length – 1 page. This document is a mini-version of your plan. It should be engaging as it’s the only part of the plan the presentation judges are required to read.
3. Table of Contents. Length – 1 page. This page lists the various sub-sections of the plan’s body.
4. Body of the Plan. Length – 10 pages. This is the meat of your plan and contains the information necessary for an investor to make a decision.
5. Appendices. Length – 6 pages. This should include the relevant financial statements and other material necessary to support the plan’s text.
The financial statements contained in the appendices will be a cash budget, income statement and balance sheet. For Year 1, the cash budget and income statement should be prepared on a monthly basis and for Years 2 and 3 these statements should be prepared on a quarterly basis. In Years 4 and 5, the cash budget and income statement should be prepared on an annual basis. A balance sheet should be prepared for the venture at T0 and then annually for the five years of the plan.
Your plan will be written in 12 point font with 1.5 line spacing and one inch margins around the page. Please see the attached grading rubric for this assignment.
Presentation of Business Plan
Each group will present their plan to a panel of outside judges. Each group will have 15 minutes to present their plan followed by 15 minutes of questions. Groups will have five minutes each to set-up their presentation. Please see the attached grading rubric for this assignment.
McCombs Classroom Professionalism Policy
The highest professional standards are expected of all members of the McCombs community. The collective class reputation and the value of the McCombs experience hinges on this.
You should treat the classroom as you would a corporate boardroom.
Faculty are expected to be professional and prepared to deliver value for each and every class session. Students are expected to be professional in all respects.
The classroom experience is enhanced when:
· Students arrive on time. On time arrival ensures that classes are able to start and finish at the scheduled time. On time arrival shows respect for both fellow students and faculty and it enhances learning by reducing avoidable distractions.
· Students display their name cards. This permits fellow students and faculty to learn names, enhancing opportunities for community building and evaluation of in-class contributions.
· Students do not confuse the classroom for the cafeteria. The classroom (boardroom) is not the place to eat your breakfast tacos, wraps, sweet potato fries, or otherwise set up for a picnic. Please plan accordingly. Recognizing that back-to-back classes sometimes take place over the lunch hour, energy bars and similar snacks are permitted. Please be respectful of your fellow students and faculty in your choices.
· Students minimize unscheduled personal breaks. The learning environment improves when disruptions are limited.
· Students are fully prepared for each class. Much of the learning in this course takes place during classroom discussions. When students are not prepared they cannot contribute to the overall learning process. This affects not only the individual, but their peers who count on them, as well.
· Students respect the views and opinions of their colleagues. Disagreement and debate are encouraged. Intolerance for the views of others is unacceptable.
· Laptops are closed and put away. When students are surfing the web, responding to e-mail, instant messaging each other, and otherwise not devoting their full attention to the topic at hand they are doing themselves and their peers a major disservice. Those around them face additional distraction. Fellow students cannot benefit from the insights of the students who are not engaged. Faculty office hours are spent going over class material with students who chose not to pay attention, rather than truly adding value by helping students who want a better understanding of the material or want to explore the issues in more depth. Students with real needs may not be able to obtain adequate help if faculty time is spent repeating what was said in class. There are often cases where learning is enhanced by the use of laptops in class. Faculty will let you know when it is appropriate to use them. In such cases, professional behavior is exhibited when misuse does not take place.
· Phones and wireless devices are turned off. We’ve all heard the annoying ringing in the middle of a meeting. Not only is it not professional, it cuts off the flow of discussion when the search for the offender begins. When a true need to communicate with someone outside of class exists (e.g., for some medical need) please inform the professor prior to class.
Academic Dishonesty
I have no tolerance for acts of academic dishonesty. Such acts damage the reputation of the school and the degree and demean the honest efforts of the majority of students. The minimum penalty for an act of academic dishonesty will be a zero for that assignment or exam.
The responsibilities for both students and faculty with regard to the Honor System are described on the final pages of this syllabus. As the instructor for this course, I agree to observe all the faculty responsibilities described therein. As a student, you agree to observe all of the student responsibilities of the Honor Code. If the application of the Honor System to this class and its assignments is unclear in any way, it is your responsibility to ask me for clarification.
Students with Disabilities
Upon request, the University of Texas at Austin provides appropriate academic accommodations for qualified students with disabilities. Services for Students with Disabilities (SSD) is housed in the Office of the Dean of Students, located on the fourth floor of the Student Services Building. Information on how to register, downloadable forms, including guidelines for documentation, accommodation request letters, and releases of information are available online at http://deanofstudents.utexas.edu/ssd/index.php. Please do not hesitate to contact SSD at (512) 471-6259, VP: (512) 232-2937 or via e-mail if you have any questions.
Schedule
Date Chapter Topic Assignment
August
29 Syllabus Review
September
3 Chapter 1 Introduction
5 Chapter 2 Individual Mindset Case 2.2, Page 61
10 Group Formation 1 minute presentation
12 Chapter 3 Corporate Entrepreneurship Case 3.1, Page 93
17 Chapter 4 Social Entrepreneurship Case 4.1, Page 121
Groups Due
19 Chapter 5 Innovation Case 5.1, Page 171
24 Individual Creativity Exercise
26 Chapter 6 Opportunity Recognition Case 6.2, Page 193
October
1 Group Idea Pitch I
3 Group Idea Pitch II
8 Chapter 7 Developing a Venture Case 7.2, Page 228
10 Chapter 8 Capital Case 8.1, Page 225
15 Term Test 1 – Chapters 1-8
17 Chapter 9 Legal Case 9.1, Page 305
22 Chapter 10 Marketing I
24 Chapter 10 Marketing II Case 10.1, Page 332
29 Chapter 11 Financial Statements
31 Chapter 11 Financial Statements Case 11.1, Page 371
November
5 Chapter 12 Business Plan Case 12.2, Page 405
7 Business Model Presentation I
12 Business Model Presentation II
14 Green Valley Solar Blackboard
19 Chapter 13 Growth Case 13.2, Page 499
Business Plans Due