MHR 722 Entrepreneurial Management
MHR 722 Entrepreneurial Management
MHR 722 Entrepreneurial Management
Phil Greenwood
Fall 2013
Office: 5252 Grainger Hall
E-mail: [email protected] best way to reach me.
Time: 2:25pm 3:40pm, Tuesday and Thursday
Office Hours: by appointment, will usually be in office prior to class. 1-2:00pm,
T/Th
READINGS:
1. Course website: www.learnuw.wisc.edu.
2. Readings and cases either at website or Harvard Business School site.
a. For the Harvard material, instructions:
i. Course link:
https://cb.hbsp.harvard.edu/cbmp/access/19990237
ii. You need to register on the site to create a user name if you
do not already have one.
iii. Some course materials are PDF documents and you can open
them with Adobe Reader.
iv. eLearning materials include a link you can use to gain access
to them.
v. Some course materials may not be available in digital format
and these will be shipped to you.
vi. You will have access to the course materials for 6 months.
vii. After you register, you can get to the coursepack at any time
by doing the following:
viii. Visit hbsp.harvard.edu and log in.
ix. Click My Coursepacks, and then click EntrepMgmt _ Fall
2013
COURSE OBJECTIVES:
1.
2.
3.
4.
5.
6.
Course Assignments:
Possible points
1. New Venture Feasibility or Strategic Plan Written Portion(Group)
300 points
2. Presentation(s) (Group)
100 points
Elevator Pitch 10 points
Business Model Presentation: 15 points
Mid Semester Pitch 25 points
Final Presentation 50 points
3. Mid-term Exams Two (Individual)
300 points
4. Case Analyses (5) (Individual)
200 points
5. Attendance and Participation (Individual)
100 points
1000 points
Average of top 3 scores will represent 100%. The following curve will be applied:
Grade
Grade
Grade
Grade
Grade
Grade
Grade
of A =
93%
AB =
88%
B=
80%
BC =
75%
C = 65 74%
D = 50 64%
F = Below 50%
Idea can come from one of the group members (no more than 3 per group),
a related party to a group member (relative, friend, etc.) or an existing
organization that has a new venture idea.
This is NOT simply a product/service feasibility analysis but an evaluation of
a new venture (products/services offered, team, marketing, resources, legal,
etc.).
There will be three presentations for the New Venture Feasibility an
elevator pitch, a mid-term summary, and a final presentation. Details below.
Report should be minimum twenty pages (not including appendices).
See course website for a more detailed description for the written Feasibility
Analysis.
Presentations
1. Elevator Pitch your group will be required to develop and present a short
Elevator Pitch An elevator pitch is a short summary used to quickly and
simply define your idea and its value proposition. The name "elevator pitch"
reflects the idea that it should be possible to deliver the summary in the time
span of an elevator ride, or approximately thirty seconds to two minutes. The
term itself comes from a scenario of an accidental meeting with someone
important in the elevator.
The pitch should as best you can the following questions in less than 90 seconds:
1.
2.
3.
4.
4. Final Presentations 6 minutes, cover all areas of the Feasibility Analysis, with
a final recommendation whether Venture is feasible or not with summary
analysis supporting your conclusion. If you present that it is not feasible, think
of what would have to be done to make it feasible. If your group states the
idea is feasible, discuss the future steps needed to move the idea to reality.
OPTION 2 - Strategic Plan Project. The members of the class are required to
work as a team with an area entrepreneurial venture and write a
comprehensive Strategic Plan for them. The STRATEIC Planning Guide on the
course website provides details as to the plan.
a.
b.
c.
d.
e.
f.
Presentations
Elevator Pitch your group will be required to develop and present a short
Elevator Pitch An elevator pitch is a short summary used to quickly and
simply define the organization and its value proposition. The name
"elevator pitch" reflects the idea that it should be possible to deliver the
summary in the time span of an elevator ride, or approximately thirty
seconds to two minutes. The term itself comes from a scenario of an
accidental meeting with someone important in the elevator.
The pitch should as best you can the following questions in less
than 90 seconds:
1.
2.
3.
4.
SCHEDULE
Date
Topic/Class Activities
Sept 3
Sept 5
Case Study
Sept 10
Sept 12
Sept 17
Sept 19
Topics
Sept 24
Sept 26
Oct 1
Oct 3
Oct 8
Oct 10
Oct 15
Oct 17
Oct 22
Oct 24
Oct 29
Nov 5
Nov 7
Nov 12
Nov 14
Nov 19
Nov 21
Oct 31
RadioHead Article CW
Buying a Business
Dave Lohrentz, Co-Owner of Madison
Sourdough Baking.- Guest Speaker
The Search Process
Exam 2
EXAM
Nov 26
Nov 28
Thanksgiving
Thanksgiving Holiday
Dec 3
Dec 5-12
Final Presentations
PRESENTATIONS
No Formal Class
Confidentiality Policy
Throughout the Weinert Center for Entrepreneurship classes and events, students
will be exposed to proprietary information from other students, guest lecturers
and faculty. It is the policy of the Weinert Center that all such information is to be
treated as confidential.
By enrolling in and taking part in the Weinert Centers 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 utilize 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 Center.
Any breach of this policy may subject a student to academic integrity proceedings
as described in the University of Wisconsin - Madison University Governance
Policies and procedures and to any remedies that may be available at law.
The Weinert Center, the School of Business, and the University of Wisconsin Madison disclaim any responsibility for the protection of intellectual property of
students, guest lecturers or faculty who are involved in 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.
Cases. Case analysis is used to simulate the role of one who initiates,
manages, or advises a small or medium size venture. Study questions will be
provided, but you should start with your own analysis and then frame your
answers within the questions.
Cases assigned for class discussion only
should also be analyzed before the class. Due prior to the start of class.
Review the Questions by the instructor prior to reading the case
Each case is a potential 40 points.
o 40 points you've done an exceptional job of putting in the extra time in
answering the questions thoughtfully, concisely, and in a well-written
fashion (grammar, logic, typos). Your analyses clearly draw on class
material, show good analyses of key strategic issues and offer strong
ideas about how to take action. Generally is consistent with an A grade
o 34-36 points You've read the case and answered the questions well.
Your comments reflect basic understanding of key material, and your
effort to apply them to the practical setting. (Similar to an AB).
o Below 34 you've read the case but put modest thought into answering
the questions or thinking how to use the strategic ideas. (B or lower)
Take the point of view of the protagonist as you read the case put yourself in
the place of the character identified in the case or study questions as the
decision maker.
Dont repeat the facts of the case, use the facts to complete your analysis
providing support for your argument. Take a definite stance and support it.
ONLY use the information in the case.
There is not a right answer but there is usually a better answer than others.
More important is to provide your answer and provide support for it.
USE BULLET points for each question. With each point, provide the supporting
case facts with it. Also, be concise, the grades for cases will not be provided
based on how much the analysis weighs or how many words are in it.
Dont be afraid to ask questions in class.
Have fun with them.
Case Questions
RnR (PRACTICE CASE)
1. What factors created the opportunity for Reiss?
2. What were the factors or barriers that Reiss faced and how did he overcome them?
3. Was Reiss and the R&R venture successful on a financial basis?
College Couriers
1. As Dwayne Leslie, perform the analyses you deem appropriate in order to
decide whether to purchase College Courier Inc. (Hint: Use POCD or other
similar method to evaluate).
2. What, if anything, would you change about CCI to improve its performance?
Room for Dessert
1.
Using the POCD framework, prepare an analysis of Room for Dessert using the info
in the case. Evaluate their strategy vs. the results of your analysis.
2. Who are the core customers for the business and why might they value the RFD
offering as compared to alternatives?
3. Evaluate the written quality of the plan (1 is excellent to 5 poor). How would you
improve it?
Study Blue
1. Using the Business Model Canvas framework, evaluate the StudyBlue business
model by identifying the key components of the framework.
2. Breakdown the economics of the business model. What are the critical elements or
drivers of the economics in their original plan and how did this compare to actual
operations?
Boston Ducks
1. What appears to be the predominant Organizational Typology for Boston Ducks?
Why?
2. Identify the predominant Operating (aka Survival) Strategy for the Ducks?
Why? What are the long-term implications of this strategy?
3. Recommend changes for Boston Ducks in regards to Typology and Operating
Strategy.
Mason and Shepherd
1. Evaluate the situation in which Mason and Shepherd find themselves with
respect to their existing employers. What legal and ethical issues do you see
and how would you advise them to proceed?
2. Evaluate the Non-Disclosure agreement and its potential impact on venture
capitalists considering an investment in Intelisoft? If you were a venture
capitalist, why would or wouldnt sign?
Scalix
1. In 2003, ... Scalix delivered zero revenues against what was believed to have
been a modest target. What do you think is wrong here? Why isnt the product
selling?
2. Describe the sales model for Scalix as of May 2003. Be as specific and as
complete as possible. What are the resources required by the model (both
initially and at maturity)? What are the assumptions regarding deal success rate
10
and time to close? What are the economics of the solution currently in place?
What are the critical factors that will affect the viability of this model?
3. You are Glenn Winokur, making your first presentation to the Scalix board of
directors in July 2004. What are you going to say, and how are you going to say
it?
Pack ItS
1. Is Pack-iTS a feasible venture?
2. Should the lunch program be positioned as a fundraising initiative? How should
Pack-iTS be positioned against the competition?
3. How much financing is required? If the financing requirement exceeds the
$25,000 available, what is the likelihood the partners will receive external
financing?
4. How risky is the venture?
Gordon Biersch
What factors have made GBiersch successful to date? What risks exist?
Evaluate the strengths and weaknesses of GBs financing strategy?
Which investor should they choose? Why?
1.
Powerwater Beverages
1. Any valuation of PWBI will be based on the firms financial projections. Provide
an analysis of the pro forma financial statements and comment on PWBIs
forecasted future performance relative to peers. Use common size statements
to help with analysis.
2. PWBIs CPA has estimated that the company needs to raise $950,000. Examine
the financial projections and comment on the companys financial needs. How
will PWBI use the financing? Perform a sustainable growth analysis on PWBIs
financial projections; compare PWBIs sustainable growth to its actual projected
growth for the next three year
3. Using the peer valuation statistics in Exhibits 8 and 9, estimate the equity value
of PWBI as of June 30, 2007. If the company raises $950,000 in new equity at
the end of June 2007, how much of an ownership stake will the current owners
give up?
Jim Southern
1. Evaluate Southerns search strategy looking at its strengths and weaknesses?
2. What is the financial opportunity for Southern and his investors?
Gilead Sciences
1. Evaluate the options available to Gilead as outlined towards the end of the case
(IPO vs. Private Equity)
3. What should Gilead do? Why?
Late Policy
Assignments handed in late will receive a grade reduced by 2% per day after
the initial deadline.
11
12
2
Fair
3
Good
4
Very
Good
5
Excelle
nt
Written Report
University of Wisconsin Madison School of Business
Venture Feasibility Evaluation Form
Written Plan
Poor
1
1
Fair
2
2
Adequate
3
3
Good
4
4
Excellent
5
5
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1. Executive summary
(clear, exciting, and effective as a stand-alone
overview of the plan; includes brief description of
each succeeding section of the plan; can be read
in 5 minutes)
Each Section will be rated 1 to 5
13
1 point
Poor
2 points
Fair
14
3
Adequate
4
Good
5 points
Excellent