University of Hong Kong School of Business
Starting and Managing a New Business
Professor Ali F. Farhoomand ali@business.hku.hk Description: Creativity, innovation, and entrepreneurial thinking are all necessary ingredients for starting and managing a new business enterprise. However, entrepreneurship remains the essence of business tenacity and achievement. This course, through three integrated modules, provides a comprehensive insight into different facets of entrepreneurial management. These include understanding the entrepreneurial challenge, strategic issues for emerging ventures and growth options for strategic impact. Through the use of lectures, assigned cases and review you will be exposed to the entire spectrum of activities in the entrepreneurial environment. You are expected to engage in participative class discussions to extract the maximum benefit from these interactions. Course Learning Outcomes: The course provides a holistic approach to entrepreneurship and new venture creation. Emphasizing opportunity assessment as the core, you will also learn about important dimensions of entrepreneurship such as franchise expansion, entrepreneurial leadership, venture capital, corporate entrepreneurship and the challenges confronting growing enterprises. Building on the theory of entrepreneurship, the course focuses on how business success patterns are related to clusters of entrepreneurial core competencies. The course will help you make analytic sense of the entrepreneurial realities, including: • • • • The nature of entrepreneurial work Typology of profit models Creative destruction and business evolution Entrepreneurial reality construction, mind-sets competencies development
formation
and
core
You will have an opportunity to examine various theories related to entrepreneurship and new venture creation to assess your own entrepreneurial potential. You will learn how to improve your analytical skills to evaluate business/management situations and develop actionable plans. You will also have an opportunity to enhance your communication skills through regular classroom participation.
1
University of Hong Kong
School of Business
Starting and Managing a New Business
Evaluation Scheme: Your assessment will be according to the following guidelines: Class participation Individual submission of two cases Business Plan 30% 30% 40%
You are expected to read the assigned reading(s) and analyze the cases before start of each module. Each student is required to submit a detailed written study of any two of the six cases before the start of the class. The report (approximately 5 pages) is to be presented in three parts: • • • The introduction, which highlights the key issues. Analysis of the salient issues Synthesis, recommendations and implementation
At the end of Module I you will be divided into groups of four students each. Each group will work together to complete the take home team assignment. These assignments are to be completed and submitted by the third module. Oral presentation of your proposal plus the accompanying written report will constitute your mark for this assignment. One of the best ways to learn necessary elements of managing business opportunities is to actually explore them. This project will allow you to do just that. Each group is to identify an entrepreneurial opportunity. And prepare a report of the proposed venture, including a feasibility study, detailed financial projections, marketing plan, operations plan and staffing plan. Your proposal should, at a minimum, answer the following seven questions: 1. What is your value proposition? 2. What is your product/service? 3. Who is your targeted customer? 4. Who are your competitors? 5. What are the required resources? 6. How much will it cost to design and build your product/service? 7. What is the sales price? 8. When will you break even? 9. How will you sell your product/service? 10. What is your growth plan?
2
University of Hong Kong
School of Business
Starting and Managing a New Business
Evaluation Scheme (Cont’d): The group-selected business (product or service) should be based on market research and should include the business; why was that business selected; and issues involved in the selection; how the business would operate. A key element of this project is the identification of competitors and how they would likely respond to the new venture entry in the market. The report is to include: • Title Page • Executive Summary • Value Proposition • Feasibility analysis, supported by: • An analysis of the industry and existing competitors • Macroeconomic factors influencing the organization • Relevant socio-political issues • Proposed organizational overview • Proposed financial overview • Proposed marketing strategy • References • Appendices and supporting information Measurement of Learning Outcomes: 1. Case analysis and class discussions sharpen students’ holistic view of major the issues surrounding starting and managing a new business; it allows them to ask the right question, design a credible course of action, defend the efficacy of their suggested recommendation and justify their implementation plan. 2. Two written case assignments further gauge individual students’ ability to “make a business case” and communicate their thoughts effectively. 3. The business plan sets the stage for students to get a hand-on experience in drafting a pan for starting a new business.
3
University of Hong Kong School of Business
Starting and Managing a New Business
IMBA 6036
Module I: Understanding the Entrepreneurial Challenge The first module will focus on developing the theoretical foundation. Cases will be used in conjunction with lectures to provide a rich and real-life platform to study strategic issues surrounding entrepreneurial management. Cases: 1. Teams and Concepts Limited: Managing the Growth of a Small Business (CABC Case Ref No. 04/204C) 2. Computer and Technologies: Managing High Growth (CABC Case Ref No. 00/87C) 3. Joint Juice (HBS Publishing) 4. AdM@rt: If You Build It Will They Come? (CABC Case Ref No. 99/62C) Reading: • Achieving Profitable Growth and Market Value By R.G. Hamermesh; J.L. Heskett (HBS Publishing)
Module II: Strategic Issues for Emerging Ventures The second module will dovetail the learning of the first module. This module will also include sessions from visiting industry experts. Cases: 5. Agency.com (B): Managing Rapid Growth (HBS Publishing) 6. Integral Vision Ltd. (A) (HBS Publishing) Readings: • How Venture Capitalists Evaluate Potential Venture Opportunities By M.J. Roberts; L. Barley (HBS Publishing)
Module III: Growth Options for Strategic Impact This module will focus on the analysis, discussion and presentation of the take home assignments. Each group will present their report to the class. Each presentation is expected to run about two hours, including Q&A. The concepts and learning issues should be highlighted through interactive discussions. Reading: • The Top Ten Lies of Entrepreneurs By G. Kawasaki (HBS Publishing)
4