MGS 8510 BUSINESS PLAN DEVELOPMENT

Transcription

1 MGS 8510 BUSINESS PLAN DEVELOPMENT INSTRUCTOR INFORMATION Brett Anitra Gilbert, Ph.D. Office: 35 Broad Street, 1009 Telephone: Office Hours: Wednesdays, 5:00-6:00PM and By Appointment COURSE INFORMATION Section: Semester: Spring 2006 Time: Thursdays, 4:30PM -7:00PM Room: GCB 501 COURSE OVERVIEW AND OBJECTIVES MGS 8510 is designed to help you learn how successful entrepreneurs create, find, and differentiate profitable and durable opportunities from good ideas, and present those ideas to potential investors. The principal objective of this course is for you to learn how to prepare a full business plan which, when completed, could be presented to investors for funding consideration. In this course, you will have the opportunity to critically evaluate business plans of existing businesses so as to determine the essential components of effective business plans for successful businesses. You will also have an opportunity to interact with entrepreneurship content experts to hear from their view what is most important for successful new venture creation and funding. With a completed business plan in hand, you may opt to submit it to the Moses Lee Reid or Herman J. Russell Business Plan Competitions, which each award $5,000 to entrepreneurs of the winning business concept and plan. REQUIRED MATERIALS This course utilizes cases and other reading materials primarily available to you through Harvard Business School Publishing. To eliminate additional costs and fees associated with obtaining copyrights through a middleman, all cases and reading materials (unless otherwise noted) are to be paid for and downloaded directly through the Harvard Business Online Website Reading materials sourced from publishers other than Harvard Business Online can be downloaded free of charge as PDF files through Vista ( STUDENT EVALUATION CRITERIA Classroom Participation Business Plan Company, Product/Service Description (100) Market, Industry and Competitive Analysis (200) Management Team, Operations, Sales/Promotions (300) Financials (100) Final Business Plan (300) Presentation Exam Final Exam (Optional) 250 Points 1000 Points 250 Points 250 Points 250 Points 1

2 COURSE FORMAT AND POLICIES MBA courses typically generate learning through some combination of lectures, case discussions, and simulated problem solving. Although this course will use these methods, an additional and very important learning methodology will be actual participation in the business concept and plan development processes. Class Participation Much of the learning that takes place in a course is a result of classroom discussion. Therefore, classroom participation, defined in terms of the contributions of a student to a positive learning environment, will constitute a portion (25%) of the student s final grade. Contributing to a positive learning environment has a different meaning than that traditionally associated with classroom participation. Classroom participation is often viewed as an individualistic activity, where students compete for airtime to demonstrate personal conceptual superiority. In contrast, students who excel in contributing to a positive learning experience take personal responsibility for the overall quality of the discussion. A student contributes to a positive learning environment through a number of avenues: As a good listener, demonstrating respect for others opinions Making thoughtful, insightful comments, not just speaking to be heard Asking interesting questions, not just answering questions Building on others comments in a meaningful way Identifying and integrating concepts from the various readings or cases Asking thoughtful questions of speakers Politely playing the role of devil s advocate Providing respectful feedback to other teams business plan presentations Students can t contribute to a positive learning environment unless they are in attendance so attending class is a minimum part of class participation. I recognize, however, that work or family obligations may necessitate an absence from class. In the case of a missed session, you have the option of doing a makeup assignment. If you elect to do the make-up assignment you should read the assigned reading(s) and draft a brief single-spaced, typed response to the discussion questions associated with the readings (as listed in Vista). Where no discussion questions are provided, the student should submit a discussion point paper for the reading(s) assigned during the missed session. A discussion point paper is a typed paper (single spaced) of approximately one page in length where you (1) identify one point of your choosing from the assigned reading and (2) either broadly critique the point or relate it to your personal experiences, knowledge of a relevant current situation, or other readings or cases discussed in this course or others. In addition to the traditional classroom participation, your team mates evaluation of your team participation will also impact your grade. You will be provided peer evaluation sheets later in the semester. How to Prepare for Class Quality classroom discussion and a positive learning environment are facilitated through appropriate preclass preparation. You should (1) review the discussion questions associated with the assigned readings, (2) carefully read the assigned texts, and (3) make any associations between/ among the readings and the cases. (Notes may come in handy if a student is randomly picked to lead off the case discussion.) Students are also encouraged to come to class with their own discussion points from the reading. The 2

3 discussion points can take any of several forms including, for example, major insights revealed in the reading, controversial assertions made in the reading, or your personal thoughts and observations that build on or otherwise evolve from the reading. Pre-class discussion of the readings or cases with classmates is also encouraged. Business Plan You will be required to partner with at least one but not more than three students in the class to develop the business plan. If you prefer to work alone you may do so with permission. However, the amount of work required to do a good business plan should make this alternative highly unattractive. All teams must develop their own business plan and idea. You will submit the business plan in parts several times throughout the semester. While descriptions of the type of information that should be included in each report are provided below, the concept you are developing may require sections not specified below. Feel free to include any sections and additional information that is needed to best convey your business concept to external parties. The cases and reading materials utilized for class discussions should help guide your determination of the information that should be considered in developing your business concept and plan. Company, Product/Service Description Products/services to be offered Market, Industry and Competitor Analysis Market: Customers, user benefits, value added, product life Market Structure: Size, growth rate, capacity, market share attainable, cost structure; entry barriers Competitors: Top competitors strengths, weaknesses, price points Management Team/Business Model Management Team: Positions to be held, industry and/or technical experience Business Model: Core strategy, Strategic Resources (Core Competencies, Strategic Assets), Partnership Network (suppliers, other key relationships), Operations, Marketing Strategy, Fulfillment and Support, Pricing, Launch Objectives, Milestones Financials Pro Formas, time to break even/positive cash flow, ROI potential, capital requirements; sales growth, working capital, gross margins, after-tax profits, time to break even profit and loss, startup capital. Additional Information Submitted with Final Business Plan Exit mechanism and strategy, Legal/Ownership structure, Intellectual property Appendices Resumes for each team member Some Tips for Developing a Better Business Plan Typically the idea is generated from work or other personal experiences from at least one of the team members. Business Plans that match a team s experience typically score higher than those lacking a connection to the team. Information is gathered from other sources in addition to the Internet. Visiting your local library to search for sources not included on the Internet, calling pertinent trade associations, etc., produces a better concept and plan. Team members need to talk to potential customers, suppliers, and partners. You can t develop a successful business concept in a vacuum!!! 3

4 Exam Because the business plan is written in teams, it is necessary to have a means of assessing what each individual has learned about the new venture creation and business plan development processes. In addition to the business plan assignments, each person will be required to complete a mid-semester exam. These exams will use case analyses to test your knowledge of and application of core concepts discussed in the class. Academic Dishonesty It is impossible to prepare a good business plan without using data or statistics. High quality sources of data give your plan greater credibility (which means a higher grade). Your business plan must reflect proper acknowledgment of sources both from the internet and other types of publication. If you use data or quote text or paraphrase ideas from any source, you should give full reference information. Plagiarism, as defined in the academic dishonesty policy of the University, will be enforced on all assignments and exams. Using the exact words from a published work without giving a proper citation is within this definition. Also included is citing information or text from websites that you do not cite. Please refer to the GSU academic honesty policy if you have questions regarding this matter. It is available in On Campus: The Undergraduate Co-Curricular Affairs Handbook or you can go to and search using academic honesty policy. Disabled Students GSU provides accessibility and reasonable accommodations for persons with disabilities. If you have a disability, you are responsible for contacting the Office of Disability Services to have your needs assessed and the appropriate accommodations arranged. Additionally, you must also identify yourself and your need to me no later than the first day of class. FINAL GRADE FOR THE COURSE The final grade for this course will be assigned on the basis of total points earned according to the following percentage distribution: With Optional Final Exam Without Optional Final Exam A Points Points B Points Points C Points Points D Points Points F 1199 and Fewer Points 1049 and Fewer Points Syllabus Changes This syllabus provides a general plan for the course. The instructor reserves the right to make deviations to this plan as necessary. 4

5 KEY DATES February 2, 2006 February 23, 2006 March 23, 2006 April 6, 2006 April 13, 2006 April 27, Company Product/Service Descriptions Market, Industry and Competitor Analysis Management Team, Business Model, Sales/Promotion Reports Take-Home Exam Due Financials Business Plans are DUE!!!!! Presentations May 4, (Optional) Final Exam Due 5

6 CLASS SCHEDULE All discussion questions for readings and cases will be posted in Vista. Additionally, cases/readings marked with a (V) are available (free of charge!) through Vista rather than HBSP. CLASS TOPIC READINGS DELIVERABLES Week 1 January 12 Overview and Introductions -- The Entrepreneurial Process, Role of Business Plans Some Thoughts on Business Plans. Sahlman. - None - Week 2 January 19 Week 3 January 26 Analysis of a Business Plan Guest Speaker: Claudia Dale, GSU Librarian Recognizing a Great Business Opportunity How To Write a Winning Business Plan. Rich and Gumpert (V). CASE: Walnut Venture Associates The Discipline of Innovation. Drucker (V). - None Minute summary of Business Idea Week 4 February 2 Exploiting a Business Opportunity CASE: Staples: A Year in the Life of a Start-up Note on Developing Startup Strategies. Bhide. Purchasing a Business: The Search Process. Roberts & Walton. Product/Service/Company Description. Also include Team Members Names and Contact Information Week 5 February 9 Week 6 February 16 Concept Research Week, No Class The Nuances of Entrepreneurship CASE: Eastwind Trading Company (A) - None - - None - The Heart of Entrepreneurship. Stevenson & Gumpert. (V) The Politics of New Venture Management. MacMillan. (V) - None - Week 7 February 23 Legal Considerations CASE: Ruth Owades Legal Aspects of Entrepreneurship: A Conceptual Framework. Bagley. Market, Industry and Competitor Analysis Guest Speaker: TBD The Legal Protection of Intellectual Property. Roberts. CASE: CVD Inc. Versus A.S. Markham Corporation 6

7 CLASS TOPIC READINGS DELIVERABLES Week 8 March 2 Developing a Why Business Models Matter. Business Model Magretta. (V) Building Your Company s Vision. Collins & Porras. (V) Week 9 March 16 CASE: Staples, Eastwind, Walnut Venture Associates MARCH 3 RD LAST DAY TO WITHDRAW AND RECEIVE A W MARCH 6-12, 2006 SPRING BREAK!!!!! Constructing an Effective Management Team Characteristics of a Successful Entrepreneurial Management Team. Dingee, Haslett and Smollen. (V) - None - CASE: Ockham Technologies: Living on the Razor s Edge. Week 10 March 23 Critical Resources Negotiating Strategic Alliances. Watkins. From Initial Idea to Unique Advantage: The Entrepreneurial Challenge of Constructing a Resource Base. Brush, Greene and Hart. (V) Management Team, Business Model, Sales/Promotions Week 11 March 30 Financing CASE: Heather Evans New Venture Financing. Stevenson & Roberts. Bootstrap Finance: The Art of Startups. Bhide. (V) Guest Speaker: TBD CASE: Stratus Computer Week 12 April 6 Take-Home Exam - None Exam Due by end of Class Period Week 13 April 13 Growth Rapid Growth and High Financials Performance: The Entrepreneur s Impossible Dream? Nicholls-Nixon. (V) Managing Growth Transitions: Theoretical Perspectives and Research Directions. Arbaugh and Camp. (V) CASE: Kate Spade APRIL 17 TH - LAST DAY TO WITHDRAW TO RECEIVE A WF 7

8 CLASS TOPIC READINGS DELIVERABLES Week 14 April 20 From the Investor s Perspective Guest Speaker:TBD Venture Capitalists Assessment of New Venture Survival. Shepard. (V) How to Pitch a Brilliant Idea. Elsbach. (V) Week 15 April 27 PRESENTATIONS All Business Plans Due!!! Finals Week May 4 th Optional Final Due by end of Class time. 8