MGMT 481 Entrepreneurship Fall Semester 2016 Instructor Dr Muhammad Shehryar Shahid Room No. 310 Office Hours TBA Email Muhammad.shehryar@lums.edu.pk Telephone +92 42 35608425 Secretary/TA Bilal Alvi TA Office Hours TBA Course URL (if any) suraj.lums.edu.pk/~ro/ COURSE BASICS Credit Hours 3 Lecture(s) Nbr of Lec(s) Per Week 2 Duration 1 hr 15 mins Recitation/Lab (per week) Nbr of Lec(s) Per Week Duration Tutorial (per week) Nbr of Lec(s) Per Week Duration COURSE DISTRIBUTION Core Elective Elective Open for Student Category SDSB(Juniors and Seniors), Open for All in phase II Close for Student Category COURSE DESCRIPTION Welcome to be a part of the entrepreneurial revolution that has literally infected the contemporary global thinking! No other jargon has so much in use in recent times as entrepreneurship, and it is certainly for a reason. That is, perhaps no other thing can be so powerful, sustainable and thrilling as the phenomenon of new venture creation for its ability to solve the prevailing problem of the mankind in its entirety. It is an introductory course on entrepreneurship intended to enhance your willingness to set out on an entrepreneurial journey and give you a chance to think about alternative career options available to you in an economy so full of unmet needs and so short of innovative solutions. In this semester we will assess, explore, critique and celebrate the phenomenon of entrepreneurship. This course will approach entrepreneurship as a mindset, an attitude and a behaviour to undertake value creating initiatives in situations with a certain level of uncertainty that is expected to lead to the creation of a new business entity, be it a new start up or a launch of new product or service within a large corporation. The course is designed in six modules with almost equal focus on the students development of both hard and soft entrepreneurial skills. The discussion in the first three modules will predominantly revolve around the cognitive part of the entrepreneurship process, which will allow the students to understand and challenge the very logic of how expert entrepreneurs usually make decisions as opposed to a stereotypical manager working under a very different scheme of things. The last three modules of the course will then deal with some contemporary analytical tools used in the entrepreneurship education, coupled with certain tricks of the trade, in order to generally improve the students skills to develop a more innovative and sustainable business model for whatever entrepreneurial pursuit they ever plan to undertake. This course, therefore, promises a unique form of logic, which might at times be antagonistic to the conventional principles of management, but then it is what entrepreneurship is all about. Given the nature of the subject, the curriculum of this course will also ensure a substantial exposure to the living practice of entrepreneurship through certain assignments, case study discussions and the guest speaker sessions that will be organized in the university. Students will get an adequate chance to interact with different practicing entrepreneurs at different points along the course in order to validate their classroom learning and refine their business ideas. In short, this course promises a blend of fun and learning.
COURSE PREREQUISITE(S) NA COURSE LEARNING OBJECTIVES 1. 2. 3. 4. 5. The course attempts to: Enhance the entrepreneurial intentions of the students by improving their natural willingness to start a business To Inspire the students to seek alternative career opportunities by enabling them to address their respective fears of entrepreneurship To understand the process nature of entrepreneurship and learn the ways to manage it by working individually and as a team both inside and outside the class through multiple field assignments. Develop the analytical skills of the students with regard to various stages of the entrepreneurship process, starting from opportunity identification and idea generation to business model development Educate the students about the theoretical underpinnings of the entrepreneurship subject with the aid of practical assignments and projects UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES General Learning Goals & Objectives Goal 1 Effective Written and Oral Communication Objective: Students will demonstrate effective writing and oral communication skills Goal 2 Ethical Understanding and Reasoning Objective: Students will demonstrate that they are able to identify and address ethical issues in an organizational context. Goal 3 Analytical Thinking and Problem Solving Skills Objective: Students will demonstrate that they are able to identify key problems and generate viable solutions. Goal 4 Application of Information Technology Objective: Students will demonstrate that they are able to use current technologies in business and management context. Goal 5 Teamwork in Diverse and Multicultural Environments Objective: Students will demonstrate that they are able to work effectively in diverse environments. Goal 6 Understanding Organizational Ecosystems Objective: Students will demonstrate that they have an understanding of Economic, Political, Regulatory, Legal, Technological, and Social environment of organizations. Major Specific Learning Goals & Objectives Goal 7 (a) Program Specific Knowledge and Understanding Objective: Students will demonstrate knowledge of key business disciplines and how they interact including application to real world situations. Goal 7 (b) Understanding the science behind the decision making process (for MGS Majors) Objective: Students will demonstrate ability to analyze a business problem, design and apply appropriate decision support tools, interpret results and make meaningful recommendations to support the decision maker Indicate below how the course learning objectives specifically relate to any program learning goals and objectives. PROGRAM LEARNING GOALS AND OBJECTIVES Goal 1 Effective Written and Oral Communication COURSE LEARNING OBJECTIVES Develop the analytical skills of the students with regard to various stages of the entrepreneurship process, starting from opportunity identification and idea generation to business model COURSE ASSESSMENT ITEM Business model presentation and report Idea pitch workshop Class participation
development and managing venture growth. Goal 2 Ethical Understanding and Reasoning Goal 3 Analytical Thinking and Problem Solving Skills Goal 4 Application of Information Technology Goal 5 Teamwork in Diverse and Multicultural Environments Goal 6 Understanding Organizational Ecosystems Goal 7 (a) Program Specific Knowledge and Understanding Goal 7 (b) Understanding the science behind the decision making process Develop the analytical skills of the students with regard to various stages of the entrepreneurship process, starting from opportunity identification and idea generation to business model development and managing venture growth. Understand the process nature of entrepreneurship and learn the ways to manage it by working individually in the class and in the form of groups outside the class to conduct multiple field assignments. Enhance the entrepreneurial intentions of the students by improving their natural willingness to start a business or to undertake new ventures in an existing firm. Inspire the students to seek alternative career opportunities by making them evaluate their respective social and economic environments. Educate the students about the theoretical underpinnings of the entrepreneurship subject with the aid of practical assignments and projects Educate the students about the theoretical underpinnings of the entrepreneurship subject with the aid of practical assignments and projects Develop the analytical skills of the students with regard to various stages of the entrepreneurship process, starting from opportunity identification and idea generation to business model development and managing venture growth Interview with the entrepreneur Business model report and presentation Class participation Idea pitch workshop Group project Surprise assignment (TBA) Interview with an entrepreneur Business model group project Class participation Midterm exam Quizzes Class participation (case studies) Group project presentations Idea pitch workshop LEARNING OUTCOMES
Upon successful completion of this course, students should be able to: 1. Explain clearly the difference between two competing models of entrepreneurship and evaluate their application in the Pakistani context 2. Describe the varying motives of being an entrepreneur and what it takes to be one particularly from the point of view of starting a new business 3. Critically identify the key differences between the entrepreneurial and managerial thinking 4. Find a creative business idea and analyze how it is different from an opportunity 5. Use different analytical tools to translate a business opportunity into an integrative and sustainable business model 6. Perform a critical analysis of a given business plan and formulate their recommendations with respect to its operational, market and financial feasibility GRADING BREAKUP AND POLICY Component % of Total Class Attendance Class Participation 5% 15% Assignments: 1. Interview with an entrepreneur 5% (Due date: Session 9) 2. Business assignment (Due date: Session 20) 20% Midterm Exam 15% Group Project 1. Idea Pitch (Due date: session 15 or 16) 5% 2. Qualitative survey results (Due date: session 24) 10% 3. Final report and presentation 15% Quizzes (4 5) 10% No Final Exam Total 100% ATTENDANCE AND CLASS PARTICIPATION POLICY Attendance: Please be on time. You will be allowed to attend the session, but marked absent for the day if you enter after 10 mins. You will be marked absent for the day if you remain away from the class for more than 10mins at any point during the session. You can have up to 3 absences throughout the course without losing any attendance points. For more than 5 absences in the course, you will get a zero in attendance points. Class Participation: For every session, each student will be graded between 0 5 points depending on the quantity and quality of his/her contribution In order to score a CP please wait for instructor s call by raising your hand, uncalled for CPs will not be counted for grading at all and may lead to negative marks. Failure to respond to cold calls may result in negative marks. Not every student is guaranteed a chance in every CP session. In case, you are not given a chance for CP in 2 consecutive sessions, you shall mention it to the instructor at the start of the next session to secure a chance on that day. COURSE PROJECT:
1.Idea Pitch Presentation: Each group will present for 30mins outlining the following aspects of their business idea: o Unique Value proposition: What is your product/service (the business concept)? What pain or problem does it solve for the customers? What is different and valuable about your product/service? How is it better than similar businesses? o Type and size of target market: Demographic, psychographic and geographic profile of the customer segment(s)? Size estimates of the target market (TOM, SOM and SAM)? o Competitors analysis: Who are the top 3 main competitors/substitutes for your product/service? What is your relative positioning in the market with regards to the critical success factors, i.e. Competitive Profile Matrix (CPM)? o Anticipated risks: Identify any anticipated critical risks that may hinder this business at any stage o Team Profile: What made you think of this business idea? How is it compatible with your team profile? No excuses permitted: it is a MANDATORY session for each group member. All those who are unable to attend will be marked zero in this component. 2.Business Model Presentation: Each group will be assigned a slot of 30 40mins to present their business model in front of a panel using the Business Model Canvas The template of the presentation will be distributed in the class by the instructor No excuses permitted: it is a MANDATORY session for each group member. All those who are unable to attend will be marked zero in this component. 3.Business Concept Test: Five in depth face to face interviews with: 2 interviews: Similar businesses 3 interviews: Industry experts, regulatory authorities (if required), suppliers and/or other important partners Your evaluation will be based on the interview transcripts & recordings submitted on the given deadline The aim of this survey is to get your business idea validated by people who are somehow practically involved in similar ventures and can share with you on ground insights related to the feasibility of your idea. In particular, you need to thoroughly investigate the potential risks and pitfalls that you might face in the execution of your idea. EXAMINATION DETAIL Midterm Exam Yes/No: Yes Combine Separate: Combine Duration: 75 90 mins Preferred Date: TBA Exam Specifications: Short analytical questions/mcqs/case study Final Exam Yes/No: No Combine Separate: Duration: Exam Specifications: COURSE OVERVIEW/SCHEDULE
LECTURE/ TOPICS MODULE Module 1: Entrepreneurship: An Introduction Overview of the course outline, methodology and grading scheme Ideology of the course: The Entrepreneurial Intentions Model Session 1 Imperatives of entrepreneurship in Pakistan Importance of entrepreneurship in your eyes? RECOMMENDED READINGS/ACTIVITIES OBJECTIVES/ APPLICATION Session 2 FILM/DOCUMENTERY SESSION TBD: Inventory of Means Forms Session 3 Session 4 History of Entrepreneurship in Pakistan Who is an entrepreneur? What is the Entrepreneurial DNA? How entrepreneurs are different from managers? Case Study: Hunting the Heffalump: The case study of four inspirational Pakistan entrepreneurs TBS: Inventory of Means Forms Videos Steve Jobs: The commencement speech The students will learn about the different phases of business development in Pakistan in the postpartition era and the various political/regulatory factors that played an important role in shaping the landscape of entrepreneurship in the country. The students will learn the basic characteristics of an entrepreneurial personality with special focus on what sets them apart from a typical manager with regards to their motives to pursue an entrepreneurial career. TBD: Book Review Module 2: The Entrepreneurial Mindset Session 5 Entrepreneurial Vs. Managerial Thinking Effectual Vs. Causal logic of entrepreneurship Principles of effectual entrepreneurship o The bird in hand principle Reading: What makes entrepreneurs entrepreneurial, by Saras Sarasvathy Videos Myths of entrepreneurship This session will help students to learn the underlying principles of entrepreneurial thinking and that how it contrasts with the conventional logic of managerial thinking. Understanding these principles can help students address many of their typical fears with regards to entrepreneurship.
o o o The crazy quilt principle The lemonade principle The affordable loss principle Session 6 Fears of entrepreneurship Videos Salman Khan, Founder, Khan Academy TBD: Facing Your Fears (handout) Students will be asked to spell out their personal fears with regards to starting their own business and also to offer suggestions through which such fears can be addressed in the light of the principles of effectual thinking. Session 7 Meet the Entrepreneur TBD: Surprise Assignment (last 15 mins) Session 8 Competing strategies of entrepreneurship Fustest with the mostest Creative Imitation Hit them where they ain t Ecological niche Module 3: Idea Generation and Feasibility Analysis Lecture slides & Class discussion The students will learn the various strategies of entrepreneurship by using examples of the firms that have used these strategies in different situations to pursue different growth objectives. The students will be able to understand the difference between two very widely confused terms invention and innovation in the context of entrepreneurship. Entrepreneurship does not always mean invention; it is rather the rarest form of it. Session 9 Lateral Vs Linear Thinking Creativity and innovation Sources of Innovation Types of innovation Principles of innovation Chapter 5: Innovation: the creative pursuit of ideas Video: Lateral thinking by Edward De Bono (optional) This session will discuss the critical difference between an idea and an opportunity. The students will learn about the characteristics of a good business opportunity and the ways of identifying one. TBS: Interview with an entrepreneur Session 10 Why businesses fail? Product Feasibility Market Feasibility Organizational Feasibility A brief slideshow on research about why new businesses fail before the start of feasibility analysis Class discussion and lecture slides These sessions will further delve on the process of opportunity recognition and will help the students develop an analytical framework to judge the financial, organizational, market and personal feasibility of a given business idea. The same framework will be used
Reading 1: Feasibility Analysis, by Barringer and Ireland by them to develop ideas for their course project. Industrial Feasibility Reading 1: Industry and Competitor Analysis, by Barringer and Ireland Session 11 Session 12 Financial Feasibility Feasibility Analysis Reading 2: Assessing a New Venture s Financial Strength and Viability, by Barringer and Ireland TBD: Feasibility analysis checklist Case study: Gardeners (Product and Market Feasibility) Session 13 Feasibility Analysis Case study: Pack ITs (Product and Market Feasibility) The students will apply the framework developed in the previous sessions in a hypothetical situation with the aid of case studies. Session 14 Feasibility Analysis Case study: Elite Personal Training (Financial) Reading: Note on Breakeven and Contribution Analysis Video: Jessica Jackley TBS: Book Review Session 15 Idea Pitch Presentations Each group will present a 20 25 mins idea pitch to a panel of judges in their assigned slot Session 16 Midterm Exam (MCQs from readings & lecture slides) Module 4: Business Model Development and Innovation
Session 17 Value Innovation: A new mantra of value creation The Strategy Canvas Four actions framework Paths to create blue oceans (cont..) Lecture slides TBD: Concept Test Assignment In this session the students will learn about a new philosophy of competition that will stretch their current understanding of competitive strategy beyond the conventional beat the competition approach. It will help the students to question the typical quality and cost tradeoff while they decide the competitive positioning of their entrepreneurial ventures. Session 18 The Lean Startup Model Guest Lecturer Reading: Hypothesis Driven Entrepreneurship The students will learn the fundamental principles of the lean startup model Session 19 The Lean Startup Model Case Study: Rent the Runway The principles of the lean startup model will be applied in the context of a real life startup Session 20 Business Assignment Presentations Session 21 Video: Guy Kawasaki: The Art of Startup TBD: Zara and Tata Nano case studies Session 22 Business model vs. Business plan Theoretical characteristics of a business model Reading: How to Design a winning business model Mini Case studies: Zara & Tata Nano The students will learn about the definition of business model and that how it is different from a typical business plan. Moreover, the session will also teach the class about how to conceive and draw a business model. Session 23 Business Model Canvas 1 Session 24 Business Model Canvas 2 Session 25 Business Model Canvas 3 Module 5: Special Topics in Entrepreneurship TBS: Business concept test (session 24) Students will learn about the building blocks of a business model with the aid of a latest tool business model canvas that they will use to design their respective business models in the course project. Session 26 Bootstrapping: The art of conserving cash Cash flow management in small businesses Lecture slides & Class discussion Chapter 12: Managing Cash Flow by Zimmmerer and
Techniques for avoiding a cash crunch in a small company Scarborough Session 27 Guerilla Marketing Lecture slides & Class discussion Video: Seth Godin Students will be oriented with the importance of creating a brand identify in the context of a new venture, and will also be taught about some cost effective yet high impact marketing techniques to create one. Session 28 Types of entrepreneurial ventures o Starting a new venture o Franchising o Buying an existing business Lecture slides & Class Discussion TBS: Interview with an Entrepreneur TEXTBOOK(S)/SUPPLEMENTARY READINGS Required Text: All the recommended readings and case studies in the course outline will be available in the instructor s course pack. Other Reference Books: Barringer, Bruce R. and Ireland, D. Entrepreneurship: Successfully Launching New Ventures, 3 rd Edition, Prentice Hall, 2010 Timmons, J., New Venture Creation Entrepreneurship for 21 st Century, 7 th Edition, McGraw Hill International, 2007 Business Idea Websites: http://www.springwise.com/ http://www.kickstarter.com/ http://smeda.org.gov Supplementary Websites: http://www.sethgodin.com/sg/ http://www.entrepreneur.com/ http://www.effectuation.org/