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Introduction to Entrepreneurship


									                            THE UNIVERSITY OF TEXAS AT AUSTIN
                              McCOMBS SCHOOL OF BUSINESS
                              DEPARTMENT OF MANAGEMENT

               Introduction to Entrepreneurship (Man 337.20)
                               (Formally “Entrepreneurial Management”)

                                             Course Outline
                                              Spring 2006

                      Instructor:     Professor Jeffrey A. Martin
                      Office:         Management CBA 4.202 (Office CBA 4.258)
                      Telephone:      (512) 232-4750 Fax: (512) 471-3937
                      Office hours:   By appointment

                     Unique           Days         Time                 Room
Man 337.20           04030            M-W          2:00-3:30pm          UTC 1.118

Required Materials:
   Reading packet: Available at the University Co-op. Note: Due to copyright provisions, the GSB
      Honor Code requires that each student purchase a new case packet. It is a violation of the Honor
      Code to duplicate case packets.

   Management simulation (TBA, estimated fee is $30 per user)

   Assigned Reading Links on the Web

Suggested Reading Materials (note: obtain through your favorite bookseller):

   Komisar, Randy with Kent Lineback, The Monk and the Riddle, HBS Press

   Jerry Kaplan. Startup: A Silicon Valley Adventure

Course Description
This course is for anyone interested in starting a business, working with an entrepreneurial company, or
using entrepreneurial ideas to revitalize a larger company. The course uses different learning media,
especially cases, to examine the life cycle of opportunities in new and established business contexts.
This involves identifying a winning business opportunity, getting funding for and launching the
opportunity, growing the business and harvesting the rewards. The course invites you to consider how
your entrepreneurial initiative can make a difference to business and society.
                                     Introduction to Entrepreneurship

To be effective, entrepreneurial managers need to have an in-depth understanding of the ongoing
challenges in key functional areas such as marketing, finance, MIS, R&D, and operations.
Consequently, this course builds on and makes use of the knowledge developed in earlier classes.
However, entrepreneurial management also involves a distinct set of skills, perspectives, and insights
about the business problems and opportunities confronting the total enterprise. Therefore, students are
expected to combine knowledge from other courses with the new material presented here to develop
sophisticated analyses and solutions to pursuing opportunity in today’s fast-paced, global, and highly
competitive business environment.

Entrepreneurial management is best learned by immersion in actual business situations where one can
fully appreciate the inherent conflicts, pressures, uncertainties, and risks that entrepreneurial
management entails. Moreover, verbal communication is both vital to and inseparable from
entrepreneurial management. Therefore, there will be relatively few lectures in this course. We will,
instead, emphasize case analysis and discussion. Your active participation is both integral to your
performance in this course and a prerequisite for your enrollment. As such, please read, complete, and
sign the course agreement on the last page of this syllabus.

Class Format
The course is composed primarily of case discussions and short lectures. It is important that you
participate in these conversations. To encourage participation, class discussion counts for 25% of your
grade. Students start off with zero participation points (i.e., an “F”) and accumulate points through their
contributions to classroom discussions. Attendance does not equate to participation.

Students will be randomly called upon to identify the key issues in assigned cases or provide their
analysis and answers to the assigned case study questions. Class presentation points are based on the
quality (not simply quantity) of the student’s discussion of those issues. Students may also be randomly
called on to “close” or summarize the discussion at the end of class.

You are strongly encouraged to meet in study groups of four people to prepare the cases (and you will
need to meet regularly as part of the entrepreneurship simulation) Your study groups are your first line
of support to get help in understanding and applying the course material. Moreover, it is important that
you develop an effective working team in preparation for the simulation.

If for any reason you will not be in attendance in class please email or call me prior to the start of class.
If you must miss a class period, you may submit a write-up of the case that was missed in order to
receive ‘passing’ participation credit for that day. Three or more missed classes will result in a lowering
of your overall class participation grade by at least one letter grade (i.e., of the letter grade assigned to
25% of your final grade). Likewise, if you are unprepared on a particular day please let me know prior
to class.

 In order to promote an environment of active listening and participation, there will be
                          a no laptops policy in this course.

                                     Introduction to Entrepreneurship

In addition to class participation, there will be a management simulation midterm (with a write-up) and a
final exam. The management simulation is an integrative exercise that will require students to apply
management skills in an entrepreneurial setting. This simulation will be at team exercise in which the
study group teams of four people you formed at the start of the course will compete with other study
group teams over a six class period session. Team grades will be based on your performance in the
simulation (ranking relative to other teams) and your write-up of the simulation experience. The second
exam will be comprehensive and will ask students to apply the knowledge of the concepts developed
over the entire course. This exam will be an individual assignment. Homework will be assigned

Components and Weighting
Your grade will be based on four components, which are weighted as follows:

                 Class participation (Individual)                  25%
                 Midterm Exam (Individual)                         25%
                 Homework (Team)                                   15%
                 Simulation exercise & write-up (Team)             25%
                 Solo Simulation Run (individual)                  10%

                 Total                                             100%

Class Participation

The essence of entrepreneurial management is a willingness to make decisions on the basis of imperfect
and limited data, and despite great risk and uncertainty, to have the courage and boldness to carry out
proposed actions. In the end, goals, targets, and ideas must be converted into actions that require
convincing others. Consequently, the classroom should be a considered a laboratory where you can test
your ability to convince your peers of the value of your ideas.

Clearly, you must participate in class if you are going to share your ideas with others. Yet there is no
need to speak in every session. Some of the best contributors participate far less often than the most
active speakers. Though less vocal, their thoughts are truly insightful and persuasive. Quality of
participation, rather than quantity, is what enhances the overall classroom learning experience.

In a typical session, two students will be asked to start the class by answering a specific question or
discussing a specific issue. Case preparation, which includes careful thought about the assignment
questions and the associated readings, should be sufficient to handle such lead-off responsibilities.
After a few minutes of initial analysis, we will then open the discussion to the rest of the class. While
there are many ways to effectively prepare for class, every student is responsible for having a plan of
action for the case protagonist, be it an individual or an entire organization. Action plans answer
three questions: (1) What’s going on?; (2) What do we do next?; and (3) How do we make it happen?

                                      Introduction to Entrepreneurship

Shown below is a description of how I will calibrate your class contributions:

Outstanding contributor. In-class contributions reflect exceptional preparation. Ideas offered are
always substantive, and provide one or more major insights as well as direction for the class.
Arguments are well supported, persuasively presented, and reveal that this person is an excellent
listener. Comments invariably help others to move their thinking to a higher plane. If this person were
not a member of the class, the quality of our discussions would be greatly diminished.

Good contributor. In-class contributions reflect thorough preparation. Ideas offered are usually
substantive, and provide good insights and sometimes direction for the class. Arguments are generally
well supported and often persuasive, and reveal that this person is a good listener. Comments usually
help others to improve their thinking. If this person were not a member of the class, the quality of our
discussions would be diminished considerably.

Adequate contributor. Contributions reflect satisfactory preparation. Ideas offered sometimes provide
useful insights, but seldom offer a major new direction for discussion. Supporting arguments are
moderately persuasive. Comments occasionally enhance the learning of others, and indicate that this
person is a passable listener. If this person were not a member of the class, the quality of our discussions
would be diminished somewhat.

Unsatisfactory contributor. Contributions in class reflect inadequate preparation. Ideas offered are
seldom important, often irrelevant, and do not provide insights or a constructive direction for the class.
Integrative comments and higher-order thinking are absent. This person does very little to further the
thinking and potential contributions of others.

Non-participant. The person has said little or nothing in this class to date and so has not contributed
anything. Such persons are free-riders because they have benefited from the thinking and courage of
their peers but have offered little in return. If this person were not a member of the class, the quality of
the discussion would be unchanged or possibly improved.

In assessing your class contributions, I ask myself the following questions:

   a. Is this person an excellent listener?

   b. Are the points made relevant to the discussion and linked to the comments of others?

   c. Do the comments add value and new insight, or are they simple recitations of case facts?

   d. Do comments improve our understanding by clarifying and highlighting the important aspects of
      earlier remarks?

   e. Does the participant distinguish among different kinds of data – facts, opinions, personal beliefs,
      theoretical concepts, etc.?

   f. Is there a willingness to test new ideas, or are all comments safe? Example: seconding or
      repeating earlier comments without elaboration.

   g. Does this person raise great questions that expand the scope of our conversation?

                                    Introduction to Entrepreneurship

Study Groups. You will be required to form study groups of four students and submit a list of your
study group members by the third day of class. This will be the team that you will work in in the
management simulation and with on the homework assignments. In addition, there may be some case
assignments and/or classroom activities that will require you to prepare and participate as study groups.
In no case will changes to study group membership be permitted during the course. If problems arise in
the study groups, it is the study group’s responsibility to resolve them.

Homework (group). Homework will be assigned regularly. This will typically be a short write-up of
one of the case assignment questions, which you will be asked to turn in at the beginning of class. These
assignments will be graded on a ‘Check’, ‘Check-Plus’, ‘Check Minus’ basis. Homework assignments
are subject to change – changes will be announced in class and posted on Blackboard.

Mid-term Exam (individual). You will take an in-class mid-term exam. The exam will be taken
individually, during the regular class meeting time prior to Spring Break.

Simulation Exercise & Write-up (Team). You will participate in teams that compete with each other
in an internet based simulation exercise that begins in the fifth week of class and extends through the
end of the semester. The simulation exercise consists of 12 sets of quarterly decisions and a write-up that
you will do in the study-group teams formed at the beginning of the semester. The team grade is based
on your teams performance relative to the other teams in the course on several business performance
measures (1/3 of your team grade) and on a written analysis of your efforts as entrepreneurial managers
during the simulation experience and a presentation on this experience (2/3 of your team grade). A
detailed description of the simulation and write-up will be distributed in class.

In addition, each team member will be required to submit a confidential ‘peer evaluation’ form in which
you will divide up a fictitious $100,000 bonus between the other members of your team in a way that is
representative of their contribution to the simulation exercise. Individual grades on the simulation
exercise may, in some cases, be adjusted up or down based on the each individual’s peer evaluations.

Solo Exam Simulation Run (Individual). During the final week of class a ‘solo simulation exam run’
will be scheduled. This will be an individual exercise.

Final Exam. There is no final exam in this course.

Other Points:

A. Students must make a demonstrated, good-faith effort on all required elements of the course in order
   to earn a passing grade.

B. In determining final grades, class contribution is given particular emphasis in settling borderline

C. You are required to form study groups and strongly encouraged to brainstorm within these study
   groups about cases and reading assignments, in addition to working together on the simulation

D. If you miss class, you are responsible for informing me beforehand and obtaining any notes,
   handouts, additional reading materials, or assignment changes from your classmates. You must
   ‘write-up’ the case questions in order to receive participation credit for missed classes.

                                  Introduction to Entrepreneurship

                Entrepreneurial Management (Man 385.23)
                       Course Topics and Assignments


Class   Date        Cases, readings and assignments

1       Wednesday, January 18

                                  Introduction and goals for the semester

                    Reading(s):       A note on case learning (HBSP 9-899-105)

                                      The Financial Perspective: What Should Entrepreneurs Know (9-293-045)

                                      The Road Well Traveled (9-898-205)

                                      Skim: How to Read a Financial Report (distributed via blackboard)

                    Assignment:   1. What is your plan for getting the most out of a case discussion-based class?

                                  2. How does participating in a course on the entrepreneurial process help you in
                                     managing your career?

                                  (Use the above questions to guide your reading. You do not need to hand in a
                                  written response to the above questions).

                                  Student Background Information

                    Turn in:          Please fill out and sign the “Student Information and Course Agreement”
                                          form at the end of the syllabus and turn it in at the end of class.

                    For next          A. Please turn in a copy of your resume at the beginning of the next class.
                                      B. Please write a description of your ‘ideal job’ (not to exceed 1-page)
                                         and turn this in at the beginning of the next class.

                                   Introduction to Entrepreneurship

I. What is an entrepreneurial manager?

2      Monday, January 23

                                   What is an entrepreneurial manager?

       Case:                       R & R (HBSP 9-386-019)

                     Reading(s):       Note on the structural analysis of industries (HBS 9-376-054)

                     Assignment:       1.   What factors created an opportunity for Bob Reiss and the "TV Guide

                                       2.   What were the risks and rewards faced by Bob Reiss and other
                                            participants in the enterprise?

                                       3.   Would this approach have worked for Parker Bros. or Milton Bradley?

                     Turn in:                 A) Copy of your resume

                                              B) Description of ‘ideal job’

                                   Study Group Formation
                                   You are required to form study/midterm exam groups of four students. The
                                   midterm will be a group case analysis write-up. You are strongly encouraged
                                   (and for some classes may be required) to work in these study groups as you
                                   prepare the cases. Each study/midterm group must submit a list of their
                                   members by the end of the next class period.

3      Wednesday, January 25

                                   Social Entrepreneurship

                     Case:         The Aravind Eye Hospital, Madurai, India: In Service for Sight (9-593-098)

                     Assignment:       1.   How do the Aravind Eye Hospitals achieve such exceptional results,
                                            offering free service to 60% of patients and still generating a 52%
                                            operating margin? Is this performance sustainable? Why or why not?

                                       2.   How much does it cost to deliver an operation in Aravind's Hospitals in

                                       3.   Compare the productivity of Madurai's doctors to other doctors in
                                            India. What accounts for the difference?

                                       4.   Do you see problems developing at Aravind, particularly at T-Valley
                                            (Tirunelveli) and Theni? If so, what are they, and how might they be

                                       5.   What should Dr. V. do going forward to achieve his goal of eradicating
                                            blindness in India, Asia, and Africa?

                              Introduction to Entrepreneurship

4   Monday, January 30

                              The Entrepreneurship Life-Cycle

    Case:                     Vermeer Technologies (A): A Company is Born (HBSP 9-397-078)

                Reading(s):       A note on pre-money and post-money valuation (A&B) (9-801-446)

                Assignment:       1.   What decisions did Charles Ferguson make, and what actions did he
                                       take, from late 1993 through January 1995 to build an enterprise that
                                       attracted an offer from a group of venture capital firms to invest $4
                                       million at a $4 million pre-money valuation?

                                  2.   As Charles Ferguson, would you agree to the proposed deal?

                                  3.   In January 1995, what can go right and what can go wrong for
                                       Vermeer? As Charles Ferguson, what would you do to seize the
                                       opportunities and mitigate the risks?

                Class         Case Readings for next class:
                Handouts:     Vermeer (D): Making Transitions (HBSP 9-397-082)
                              Vermeer (E): New Beginning (HBSP 9-397-085)

                Turn in:      Each study/midterm group must submit a list of their members by the end
                              of this class period.

5   Wednesday, February 1

    Case(s):                  Distributed after class previous class
                              Vermeer (D): Making Transitions (HBSP 9-397-082)
                              Vermeer (E): New Beginning (HBSP 9-397-085)

                Reading(s):       A Perspective on Entrepreneurship (9-384-131)

                Assignment:       1.   What did Chris Peters hope to get from acquiring Vermeer?

                                  2.   How would you evaluate Chris Peters' actions to integrate the Vermeer
                                       team into Microsoft?

                                  3.   Compare Vermeer as an organization before its acquisition and the
                                       Microsoft organization. How are they similar? What are their major

                                  4.   Thinking back on the four managers we’ve looked at so far (Bob Reiss,
                                       Linda Rottenberg, Charles Fergusen, and Chris Peters), how would you
                                       characterize them along the 6 dimensions of management articulated in
                                       Stevenson’s “A Perspective on Entrepreneurship” chapter 1 in TEV

    Homework:   (1)           Turn in write-up of case assignment question #1 above

                                    Introduction to Entrepreneurship

II. Recognizing opportunity and developing business models: Fundamentals for the entrepreneur

6      Monday, February 6

                                    Recognizing opportunity and developing business models

       Case:                        Beta Golf (HBSP 9-898-162)

                     Reading(s):        Some Thoughts on Business Plans (9-897-101)
                                        (note: this is a key reading for the course)

                     Assignment:        1.   What is your assessment of the Beta Golf opportunity? Be sure to use
                                             the P-O-D-C framework (People, Opportunity, Deal, Context)

                                        2.   Should Beat group pursue the golf market as a commercial opportunity
                                             for HXL technology? If so, of the five choices for exploiting the
                                             technology described on pages 9 & 10 of the case, which would you
                                             choose? Why? In what order?

                                        3.   Given the response from Callaway, what should Zider and Krumme do

                                        4.   What would happen to this project if it were developed inside an
                                             existing industry competitor? What would a venture capitalist do with
                                             Beta Golf?

7      Wednesday, February 8

                                    Refining the Business Plan

       Case:                        Online Socrates (A) (will be distributed via Blackboard)

                     Reading(s):        Why business models matter (HBR R0205F)

                     Assignment:        This case contains excerpts from a business plan.

                                        1.   Should Bjorn enter the business?

                                        2.   Would you invest in this deal?

                                        3.   How has the deal been structured? Why?

                     Poll at            A. Would you advise Bjorn to pursue this opportunity?
                     beginning of
                     class:             B. Would you invest in Online Socrates under the terms described in the

       Simulation    Reading(s):        Threshold Entrepreneur Participant Manual (available on www)
                                        How to Read a Financial Report (distributed via blackboard)
                     Assignment         1. Read participant manual
                                        2. Practice solo simulation

                              Introduction to Entrepreneurship

8   Monday, February 13

                              Suppliers, distribution & customers

    Case:                     Keurig (9-899-180)

                Assignment:   How attractive is the Keurig system to each of the following participants in the
                                   Office Coffee market?
                                                  A. The typical Office Coffee Distributor
                                                  B. The Coffee Roaster (use Green Mountain as typical)
                                                  C. Keurig
                                                  D. The typical Office Manager
                                                  E. The Coffee Drinking Employee
                              It will help the class discussion if we use some common assumptions:
                              Number of brewing units in offices = 1,937,000 (Exhibit 6)
                              Number of cups consumed per brewing unit per day = 43 (page 11)
                              Number of work days per year = 250
                              Number of cups consumed per year in offices = 20.8 billion (product of three
                              assumptions above)
                              Current average cost of cup consumed = $0.125 per cup (Exhibit 6)
                              Profit to Keurig per K-cup produced = $0.04 (page 5)
                              Output per year for packaging line = 16.125 million K-cups (page 11, needed to
                              support 1500 brewers)
                              Price per K-cup to office coffee distributor = $0.25
                              Price per K-cup to Office Manager = $0.50

                                  1.   How attractive is the Keurig system for each of the players as
                                       compared to the traditional office coffee service?

                                  2.   What advice do you have for Nick Lazaris concerning his dealings
                                       with MTS, the current vendor for the packaging line, and the other
                                       potential vendors? Be specific: What price goal would you have for the
                                       negotiation and what would your negotiating strategy be?

                                  3.   What advice do you have concerning the selection of the vendor for the
                                       brewing machine?

                                  4.   What actions should Keurig take to penetrate the Office Coffee Service
                                       market? Be specific: How should they price the brewing machine to
                                       the OCS distributors? How rapidly should they plan to grow and what
                                       should they do to avoid constraints on this growth plan?

    Homework:   (2)           Turn in write-up of case assignment question #1 above

                              Note: hint excel template will be posted on blackboard

                               Introduction to Entrepreneurship

9   Wednesday, February 15

    Simulation   Reading(s):       Threshold Entrepreneur Participant Manual
                                   How to Read a Financial Report (distributed via blackboard)

                 Assignment        1.   Practice solo version of simulation on your own
                                   2.   Make at least one run through quarter 4 and print out results – due next

                               Recognizing opportunity and developing business models

    Case:                      Zipcar: Refining the business plan (HBSP 9-803-096)

                 Reading(s):       Note on Business Model Analysis for the Entrepreneur (9-802-048)

                 Assignment:       1.   Evaluate this potential venture and the progress that Chase has made.

                                   2.   What is the business model, and how has it changed between
                                        December 1999 and May 2000? What do the data from actual
                                        operations in September say about how the business model is playing
                                        out in practice? Do these data give you comfort or concern?

                                   4.   What is the strongest argument Chase could make to a potential
                                        investor about the attractiveness of the venture? What, specifically,
                                        should her elevator pitch be at the Springboard forum?

    Homework:    (3)           Turn in write-up of case assignment question #2 above. Do a fishbone
                               analysis (that compares forecasted vs. actual revenues and costs – with
                               numbers) and turn this in with your answer to the assignment question.

                               Note: A ‘hint’ template will be posted on blackboard

                                   Introduction to Entrepreneurship

III. Forming the venture (more Fundamentals for the entrepreneur)

IV. Entrepreneurial Management Simulation

10     Monday, February 20

       Simulation                  Management Simulation Introduction

                     Assignment    Turn in Printout of Solo Moves through Q4 Due at Beginning of Class

                                       A. The simulation is an exercise that will be done in the study groups that
                                          you submitted to me on the third day of class. No rearranging of
                                          groups is permitted.

                                       B. The simulation will require your team to conduct an analysis of your
                                          business and competitive situation and submit then submit a set of
                                          business decisions based on this analysis.

                                       C. You will also be required to fill out a ‘peer evaluation’ form, where
                                          you assign each of your other group members a portion of a ‘$100,000’
                                          bonus based on your assessment of their contribution to the simulation
                                          exercise. These peer evaluations may be used in some cases to adjust
                                          individual grades on the simulation exercise.

       Homework:     (4)           Turn in printout of Solo Moves through Q4 (also mentioned above)

                                   Leaving your employer

       Case:                       Sheila Mason and Craig Shepard (HBSP 9-803-095)

                     Reading(s):       “Leaving your employer”, (pp. 9-30) Chapter 2. in The Entrepreneur’s
                                           Guide to Business Law (Bagley and Dauchy 2003)
                                       The Legal Protection of Intellectual Property (HBSP 9-898-230)

                     Assignment:       1.   Evaluate the situation that Sheila and Craig find themselves with
                                            respect to their current 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 Intelesoft. Do you
                                            think it is reasonable to expect potential investors to sign such an
                                            agreement? As a VC, why wouldn’t you sign? What are the effects of
                                            the “residual clause” suggested in exhibit 4? Should Mason and
                                            Shepherd agree to this?

                                       3.   Do Mason and Shepard need a lawyer? How should they select one?

                                       4.   What actions should Mason and Shepard take in order to terminate
                                            their employment relationship with their current employers?

                     Class         “ABCs of Job Interviewing,” Harvard Business Review July-August 1989
                     Handout:      (HBR 89408)

                                Introduction to Entrepreneurship

11   Wednesday, February 22

     Simulation                 Q1 Decisions Due at 8 am Today

                                Splitting the pie

     Case:                      Ockham Technologies (HBSP 9-804-129)

                  Reading(s):      “Splitting the Pie”, (pp. 85-91) in Chapter 5 of The Entrepreneur’s Guide to
                                        Business Law (Bagley and Dauchy 2003)
                                    “Benefits of Having an Independent Board”, (pp. 113-118) in Chapter 5 of
                                        The Entrepreneur’s Guide to Business Law (Bagley and Dauchy 2003),
                                   “Choosing and Protecting a Name for a Business”, (pp. 68-70) in Chapter 4
                                        in The Entrepreneur’s Guide to Business Law (Bagley and Dauchy

                  Assignment:       1.   What is your assessment of the job Jim Triandiflou has done getting
                                         started and assembling key human resources?

                                    2.   How will the current fund-raising efforts affect the formation of
                                         Ockham’s board of directors? What board-related factors should
                                         Triandiflou consider when deciding which financing offer to accept?

                                    3.   If you were Jim Triandiflou, how would you handle the increasing
                                         tension between you and Mike Meisenheimer?

                                    4.   (Time permitting) Should Ockham outsource its system-development
                                         efforts? If yes, to which company? If no, how should it complete
                                         development of the system for IBM?

                                 Introduction to Entrepreneurship

12    Monday, February 27

      Simulation                 Q2 Decisions Due at 8 am Today

                                 Founder / CEO Succession

      Case:                      Founder-CEO Succession and Wily Technology (HBSP 9-805-150)

                   Reading(s):   TBA

                                       1.   Has Lew Cirne been a good CEO so far? Should he fight to remain

                                       2.   Does Wily need a new CEO at this stage of development? Why or
                                            why not?

                                       3.   As Lew Cirne, why would Dick Williams want to replace you as

                                       4.   As David Strohm, if Lew rejects Dick Williams’ demand and threatens
                                            to leave Wily, what would you do?

13    Wednesday, March 1

      Simulation                 Q3 Decisions Due at 8 am Today

                   Case:         Film: TBA

14    Monday, March 6

      Simulation                 Q4 Decisions Due at 8 am Today

                                 Review Session for mid-term

      Case:                      N/A

                   Reading:      Review course readings

                   Note:         The midterm is based on BOTH the course readings and the class

15    Wednesday, March 8

                   MIDTERM       In class mid-term

Monday, March 13                 SPRING BREAK

Wednesday, March 15              SPRING BREAK

                                  Introduction to Entrepreneurship

16     Monday, March 20

V. Managing the Growing Venture

       Simulation                 Entrepreneurial Management Simulation
                    NOTE:         Sign-up for your Tue-Wed team meetings on my door – CBA 4.202

       Case:                      TBA

                    Assignment:   TBA

**     Tuesday, March 21

       Simulation                 Entrepreneurial Management Simulation
                    Assignment    Updates to Team Plan Due at 8 a.m. – turn in hardcopy in CBA 4.202

                                  Team Meetings with Angel Investor (me)
                                  Sign-up for a time on my door

17     Wednesday, March 22

       Simulation                 Q5 Decisions Due at midnight Today

                                  Entrepreneurial Management Simulation

                    Class         Team Meetings with Angel Investor (me)
                                  Sign-up for a time on my door

                                  Introduction to Entrepreneurship

VI. Assembling Financial Resources

18     Monday, March 27

       Simulation                 Q6 Decisions Due at 8 am Today

                                  Financing the new venture
       Case:                      Walnut Venture Associates (A): RBS Group Investment Memorandum (HBSP

                    Reading(s):       Angel Investing (HBSP 9-800-273)

                    Class         Walnut Venture Associates (B): Due Diligence-Customers (HBSP 9-899-063)
                    Handouts:     Walnut Venture Associates (C): Due Diligence-Market Size (HBSP 9-899-064)

                    Assignment:   This case is the first on sources of financing and focuses on angel investors.
                                  The angel investors in this case like the entrepreneur and the business, and want
                                  to invest. What do they need to do before they can feel comfortable actually
                                  writing a check? The case includes lengthy excerpts from the company’s
                                  business plan. Please read pages 1-11 especially carefully and then focus your
                                  attention on those portions of the business plan that your analysis suggests are
                                  particularly important. Think about any issues you would want to dig into more
                                  deeply, and how you would accomplish this.

                                      1.   Who are angel investors? Why are they investing in start-ups? Why
                                           would an entrepreneur seek financing from an angel?
                                      2.   Evaluate the potential investment in RBS from Walnut’s point of view.
                                      3.   As a Walnut investor, what critical issues do you see as requiring more
                                           investigation/due diligence on your part prior to investing, and how
                                           would you accomplish that? What level of comfort/certainty would
                                           you need to have prior to investing?
                                      4.   As Bob O’Connor, what issues/concerns do you have relative to
                                           Walnut’s investing in your business, and how would you resolve those

19     Wednesday, March 29

       Simulation                 Q7 Decisions Due at 8 am Today

       Simulation                 Review session for final phase of simulation

                                  Making your final rounds of simulation decisions

                                  Writing the final report

                                  Doing the final presentation

                                  The Solo Exam Run

                    Reading(s):   TBA

                    Assignment:   TBA

                                   Introduction to Entrepreneurship

VII. Planning and Executing Successful Sales Calls

20     Monday, April 3

       Simulation                  Q8 Decisions Due at 8 am Today

                                   Selling to individual customers / small businesses

       Case:                       Austin Woman Magazine (will be distributed via Blackboard)

                     Reading(s):   Chapters 1,3,4,9 from “The New Conceptual Selling,” Robert B. Miller and
                                   Stephen E. Heiman, in course reader

                     Assignment:   TBA

       Homework:     (5)           TBA

21     Wednesday, April 5

       Simulation                  Q9 Decisions Due at 8 am Today

                                   Sales in the Entrepreneurial Venture: The Complex Buyer

       Case:                       Radialpoint (will be distributed via Blackboard)

                     Readings:     Chapters 4,5,10 from “The New Strategic Selling,” Robert B. Miller and
                                   Stephen E. Heiman, in course reader

                     Turn in:      TBD

                                  Introduction to Entrepreneurship

22     Monday, April 10

       Simulation                 Q10 Decisions Due at 8 am Today

                                  Financing the Venture: Venture Capital

       Case:                      uShip (will be distributed via Blackboard)

                    Readings:     “Issues related to investment securities” (pp. 146-154). Chapter 7 in The
                                           Entrepreneur’s Guide to Business Law (Bagley & Dauchy, 2nd edition)

                    Assignment:   TBA

       Homework:    (6)           TBA

23     Wednesday, April 12

VIII. Entrepreneurship through Turnarounds

       Simulation                 Q11 Decisions Due at 8 am Today

                                  Entrepreneurship through buying a company: Turnarounds

       Case:                      Jim Sharpe: Extrusion Technology, Inc. (Abridged) (HBSP 9-603-084)

                    Reading(s):      Purchasing a business: The search process (HBSP 388-044)
                                     Managing transitions in the growing venture (HBSP 9-393-107)

                    Assignment:      1.   Assess this opportunity from Jim Sharpe’s perspective. How is the deal
                                          constructed? How leveraged will he be? Will he be able to meet his

                                     2.   What should Jim Sharpe do on his first day as owner of Extrusion
                                          Technology, Inc.?

                                     3.   What should his action plan be for the first six months? The next twelve
                                          months? What should his priorities be?

                                    Introduction to Entrepreneurship

24     Monday, April 17

       Simulation                   Q12 Decisions Due at 8 am Today

                                    Making Bets on Growth

       Case:                        Austin City Limits Music Festival (will be distributed via Blackboard)

                      Reading(s):   TBA

                      Assignment:   TBA

25     Wednesday, April 19

IX. Realizing Value

       Simulation                   Simulation write-up Next Thursday at 5 p.m. Late write-ups will only be
                                    accepted in extreme circumstances, and will be reduced by one letter grade per
                                    day late (e.g., late simulation write-up, with an acceptable reason, turned in by
                                    5pm the next day will be penalized one letter grade).

                                    Coping with disaster: Managing bankruptcy

       Case:                        Stephan Shang (A) “Dealing with disappointment” (will be distributed via

                      Reading(s):       “Creditors’ Rights and Bankruptcy,” Ch. 12 in The Entrepreneur’s Guide
                                            to Business Law, Bagley and Dauchy, Thomson Learning, 2003.

                      Assignment:       TBA

                                 Introduction to Entrepreneurship

26   Monday, April 24

     Simulation: Do one or two regular solo runs of eight (8) quarterly decisions to review for
     your individual solo exam run next week

                                     Deciding how best to harvest value

     Case:                           Nantucket Nectars (HBSP 9-898-171)

                   Reading(s):       The Process of Going Public in the United States (9-105-016)

                   Assignment:       1.   What are the pros and cons of remaining independent? Going public?
                                          Selling the company?

                                     2.   If management decides to consider selling the company, how should
                                          they orchestrate the process? Should they hire an investment banker?

                                     3.   How would they identify and deal with the prospective buyers?

                                     4.   What is Nantucket Nectars worth? To whom? Why?

                                     5.   If management decides to sell the business, how should they think
                                          about their role after the sale?

                                     6.   What should management do?

27   Wednesday, April 26

                                 Creating Value through M&A

     Case:                       Kate Spade (9-800-002)
                   Assignment:       1.   Evaluate Kate Spade's progress to date. How has the team done in
                                          identifying and pursuing the opportunity?

                                     2.   What are the key factors for success as the company moves forward?

                                     3.   Which, if any, of the options would you recommend the company
                                          accept/pursue? Why? What are the company's alternatives?

                                     4.   What will it take for Kate Spade to achieve its stated goal of $100
                                          million in revenues?
                   Turn in:      Of the options listed at the end of the case, which one is your recommendation?
                                               a) A
                                               b) B
                                               c) C
                                               d) D

DUE Thursday – APRIL 27 – 5 p.m.
                                 Simulation write-up due Thursday at 5 p.m., in CBA 4.202. Late write-ups
                                 will only be accepted in extreme circumstances, and will be reduced by one
                                 letter grade per day late (e.g., late simulation write-up, with an acceptable
                                 reason, turned in by 5pm the next day will be penalized one letter grade).

                               Introduction to Entrepreneurship

28   Monday, May 1

     Simulation                Entrepreneurial Management Simulation Presentations
                  Assignment   TEAM PRESENTATIONS

29   Wednesday, May 3

     Simulation                Entrepreneurial Management Simulation Presentations
                  Assignment   TEAM PRESENTATIONS

**   Simulation Solo Exam

                            Complete anytime between Thursday 8 a.m. and Saturday 8 a.m.
                            (note: specific days of the individual solo exam subject to change)

                            8 quarterly decisions – allocate about 2-3 hours

                            Note: Once you start solo exam you cannot ‘reset’ and start over,
                            so be sure you are prepared to finish the solo exam run before you

                            (Note: you can start the exam and then stop it if you need to, but
                            you will restart at the same point where you left off)

                            Suggestion: practice by doing one or two regular solo runs during
                            the beginning of the week first – DO NOT sign onto the solo exam
                            for these.

     Introduction to Entrepreneurship

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     Introduction to Entrepreneurship

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                                      Introduction to Entrepreneurship

Student Information and Course Agreement
Your name:      __________________________________________________

Preferred first name to use in class: ________________________________

How do you pronounce your name: ________________________________

Your hometown:                  ______________________________________

Your major/minor:               ______________________________________

Your full e-mail address:       ______________________________________

What Other Entrepreneurship Courses:

Have you taken?                         __________________________________________________

Are you taking now?                     __________________________________________________

Do you plan to take in the future?      __________________________________________________

Which of the following describes your prior classroom experiences (please check all that apply):

I have taken other case-based discussion classes at UT:                                  True     False 

I find it easy to participate in classroom discussions, and do so often:                 True     False 

I am comfortable participating in classroom discussions, and do so occasionally: True             False 

I find it difficult to participate in class discussions, and do so infrequently:         True     False 

Language has been a barrier to my participation in classroom discussions:                True     False 

Comments/concerns regarding classroom participation: _________________________________

Student Agreement: I, the above-named student, have read this syllabus and agree to actively
contribute to class discussions, which are required both to enroll in and pass this course.
Furthermore, I understand that much of my grade is based on the quality of my contributions.

                                _________________________________                  _____________
                                      (Signature)                                  Date


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