SEMINAR IN NEW VENTURE MANAGEMENT

MBA 272 Fall 1999 Timothy M. Stearns 519 Peters Building and CVBI 278-2326 278-5914 timothys@csufresno.edu www.craig.csufreson.edu/idea/ Office Hours: Tuesday 1100-1230; Thursday 1100-1230; Thursday 1800-1925; and by appointment

Course Syllabus General Course Objectives To develop your understanding of the complex tasks faced by entrepreneurs and managers of new ventures and provide opportunities to apply managerial skills to the initiation, formation, and management of a new firm. Course Description Phenomena associated with entrepreneurship and new firms are among the most complex, unexplored, and significant in an economy. This course is designed to provide the participant with both (1) an understanding of this phenomena from a wide range of perspectives on new firm activities and (2) the practicum of managing and growing a new firm. Achievement of these objectives will be obtained by providing the student with a systematic overview of the entrepreneurial management literature, case analysis, use of simulation, and an opportunity to study and evaluate new ventures. Specific Course Objectives Development of an entrepreneurial perspective on decision making. Development of an understanding of the impact that environmental and industry forces have on a new firm's success. Sharpening and integrating skills useful in coordinating objectives of the venture with its strategy. Learning techniques for evaluating a new firm's strengths and weaknesses. Gaining skills in problem solving by use of deductive and inductive reasoning.

 Materials 1. Inc. 2. 3. 4. 5. Grading

Development of a knowledge base that will prepare you for the creation and/or management of a new venture.

Collins, James C. and William C. Lazier. 1995. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Bygrave, William D. 1997. The Portable MBA in Entrepreneurship (Second Edition). New York, NY: John Wiley and Sons, Inc. Kathleen R. Allen. 1999. Growing and Managing an Entrepreneurial Business. Boston, MA: Houghton Mifflin Company. Course Readings, Kennel Bookstore. Fast Company Magazine.

Case Analyses.......................................... Value Added ............................................ Assignment ............................................. Class Participation ....................................

40% 15% 30% 15%

Course Outline

August 26, 1999

Introduction to New Venture Management

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 1. 2. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapter 1.

I. Understanding New Venture Creation and Growth

September 2, 1999 Conceptions of Entrepreneurship

1. Gartner, William T. 1989. ""Who is an Entrepreneur?" Is the Wrong Question." Entrepreneurship: Theory and Practice 13 (4): 47-68. 2. Shaver, Kelley G. and Linda R. Scott. 1991. "Person, Process, Choice: The Psychology of New Venture Creation." Entrepreneurship: Theory and Practice 16 (2): 23-46. 3. Kirchhoff, Bruce and Bruce Phillips. 1988. "The Effect of Firm Formation and Growth on Job Creation in the United States." Journal of Business Venturing 3: 261-272.

September 9, 1999

New Ventures and Entrepreneurship

1. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapter 15. 2. Katz, Jerome and William B. Gartner. 1988. "Properties of Emerging Organizations." Academy of Management Journal 13 (3): 329-441. 3. Reynolds, Paul D. and Brenda Miller. 1991. "New Firm Gestation: Conception, Birth, and Implications for Research." Journal of Business Venturing, 7: 1-14. 4. Bates, Timothy. 1995. "Self-Employment Entry Across Industry Groups." Journal of Business Venturing, 10 (2): 143-156. Case: Afterglow Lighting Company

September 16, 1999 The Context of New Venture Foundings

1. Aldrich, Howard. 1990. "Using an Ecological Perspective to Study Organizational Founding Rates." Entrepreneurship: Theory and Practice 14 (3): 7-24. 2. Reynolds, Paul D. 1992. "Predicting New Firm Births: Interactions of Organizational and Human Populations." Chapter 11 in Sexton, D. and J. Kasarda (eds). The State of the Art in Entrepreneurship. Boston, MA: PWS-Kent, 268-300. 3. Timothy M. Stearns, Nancy M. Carter, Paul D. Reynolds, and Mary L. Williams. 1995. "New Firm Survival: Industry, Strategy, and Location," Journal of Business Venturing 12: 22-42. Case: Giro Sport Design (A)

II. Basic Tools of New Venture Growth

September 23, 1999 Identifying Opportunities for Growth 1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapters 2, 3. 2. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapters 2, 3. Case: Wyatt Technology Company

September 30, 1999 New Venture Strategies for Growth 1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapters 4, 5. 2. Bhide, Amar. 1994. "How Entrepreneurs Craft Strategies that Work." Harvard Business Review March-April: 150-161. 3. Nancy M. Carter, Timothy M. Stearns, Paul D. Reynolds, and Brenda Miller. "New Venture Strategies: Theory Development With An Empirical Base," Strategic Management Journal Vol. 15, 1994: 21-41. 4. Donald L. Sexton and Forrest I. Seale. 1997. "Leading Practices of Fast Growth Entrepreneurs: Pathways for High Performance," National Center for Entrepreneurial Research. Case: L.L. Bean, Incorporated (A) and L.L. Bean, Inc., 1974

October 7, 1999

Product/Market Strategies for Growth

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 7.

2. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapter 4. Case: T/Maker: The Personal Publisher Decision Building Core Competencies of the New Venture Through Planning

October 14, 1999

1. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapter 5. 2. Bhide, Amar. 1996. "The Questions Every Entrepreneur Must Answer." Harvard Business Review November-December: 120-130. Case: Lost Arrow Corporation/Patagonia (A) (B) (C) Financial Planning for New Venture Growth

October 21, 1999

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 6. 2. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapters 6-8. 3. Timothy M. Stearns, Nancy M. Carter, Paul D. Reynolds, and Amir Jassim. "Financial Problems of New Firms and Their Impact On Survival," paper presented at the Academy of Management Meetings, August 1997, Boston, MA. Case: Aquanautics (A) Designing the New Venture for Growth

October 28, 1999

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 8. 2. Churchill, Neil and V. Lewis. 1983. "The Five Stages of Small Business Growth," Harvard Business Review 61 (3): 30-50. 3. Greiner, Larry E. 1972. "Evolution and Revolution as Organizations Grow," Harvard Business Review July-August: 37-46. Case: University National Bank & Trust Company Effective Decision-Making for New Venture Growth

November 4, 1999

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 9.

Case:

Weston Finishing New Venture Management and Technology

November 11, 1999

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 10. Case: Granite Rock Company Family Businesses and Franchising

November 18, 1999

1. James C. Collins and William C. Lazier. Managing the Small to Mid-Sized Company: Concept and Cases. Chicago, Il: Richard D. Irwin, Inc. Chapter 11. 2. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapter 12. Case: Joan Fabrics Corporation (A) Thanksgiving Recess Exit Strategies

November 25, 1999 December 2, 1999

1. William D. Bygrave. 1997. The Portable MBA in Entrepreneurship. New York, NY: John Wiley and Sons, Inc: Chapter 14. Case: Haemonetics Corporation

December 16, 1999 Project Due

GUIDELINES FOR VALUE ADDED PROJECT AND COURSE PROJECT Value Added Project Each student will be responsible for the creation and delivery of an innovative product/service that adds value to the class and/or the field of entrepreneurship. The innovative product/service may be created by a team of students of unlimited number. However, the evaluation of the product/service created will be directly influenced by the number of participants. In general, 1+1=3 (or 2+2=5; 3+3+7, etc.). You are responsible for determining what the product/service will be. You are to present in some form to the class the product or service. I will be responsible for the evaluating the degree of added value by the product/service. What might such a product/service be? It must be related to entrepreneurship. Some examples: make a movie, organize a field trip, start an entrepreneurship student organization, locate and provide a speaker, make a meal, create a color, fly to Vegas, write a song, build a house, develop a home page, design a new course.... Keep in mind that the project must add value to the course or entrepreneurship. You are wise to discuss your idea with me ahead of time. If your idea includes expenses that are not available, I would consider reimbursing the cost if I am convinced it will accomplish the goal of value added. Keep in mind several constraints. Namely class schedule. If you want to use the class time near the end of the semester, someone else may be using it for their project. First come, first served. I encourage you to act sooner rather than later. The value added project is worth 15% of your grade.

Course Project You are required to complete one course project. The project can be of three types and can be done in a group or individually. The quality and detail of a group project, of course, will have a higher benchmark when evaluated than the benchmark set for an individual project. One option for the course project is to select a local small company and write a "case" on the company that can be used for educational purposes. The case should follow the format of the cases in the Collins and Lazier text. I will be happy to work with you on setting up meetings and working with a local entrepreneur to complete the project. A second option for the project is to write a business plan for a local small company that would provide a strategy for growth. A third option is to write a business plan for the launch of a business. You should only go down this path if you have a serious interest in getting a business up and running within the next year or two. For the first two options, you should try to have a local small company willing and committed by mid-September to allow enough time to complete the project by December 17, 1998. I expect all submitted work to be professional. That means each submission will be clean and typed double-spaced. I will downgrade a project severely if it contains multiple typographical errors and/or misuses of language. More than three errors in a submitted assignment will result in my returning the assignment to the student to be redone and resubmitted at a cost of one half grade each time. Proofread several times! The assignment is worth 30% of the overall grade. No late work will be accepted.

CLASS PARTICIPATION Class participation consists of three activities: (1) select one case for class presentation and discussion; (2) select one journal reading (not from the textbooks) for class presentation and discussion; and (3) come prepared to class to discuss the material. Failure to come prepared will result in a large loss of class participation grade. Class participation is worth a total of 15% of your grade. I recognize that some students are more comfortable than others in discussion settings. Many students tell me they would like to participate more, but feel that the discussion has moved passed their point or they were not ready to articulate a position. To accommodate this situation, I allow students to submit on paper at the end of each class session, thoughts or ideas that they believe would add to the analysis of the case or material being presented. I do read these comments and they do count towards the participation grade. All such submissions should be on clean paper and written legibly. CASE ANALYSES
I will provide a list of questions for each case that will serve as the basis of your case analysis write-ups. You are required to complete 8 case analyses. Each analysis is worth 5% of your grade. You may select any 8 cases. Analysis is due at the end of the class period. No exceptions. Do not ask for any.