Innovative Hospitality Management
MASTER PROGRAMME IN
INNOVATIVE HOSPITALITY MANAGEMENT
Syllabus
2011-2012 Academic Year
Course title: ENTREPRENEURSHIP AND INTRAPRENEURSHIP IN
THE SERVICES INDUSTRY
Lecturers:
Joan Riera
Professor of Entrepreneurship, Business Policy Department, ESADE
Office: ACTIVE DEVELOPMENT - ESADE CREAPOLIS Building, ESADE- Sant
Cugat Campus.
Tel: 93 557 23 50
e-mail: joan.riera@esade.edu
Jordi Vinaixa
Professor, Business Policy Department, ESADE.
Academic Director, Entrepreneurship Institute.
Office: 306 in Building 1, ESADE-Pedralbes Campus.
Tel: 93 280 61 62 (ext. 2490)
e-mail: jordi.vinaixa@esade.edu
Publication for the exclusive use of TSI Turismo Sant Ignasi, ESADE- Universitat Ramon Llull; and
Hogeschool Zuyd, Hotel Management School Maastricht.
No reproduction permitted.
Innovative Hospitality Management
MASTER PROGRAMME – COURSE SYLLABUS
COURSE: Entrepreneurship and Intrapreneurship in the Services Industry
CODE: B2 EIS
COURSE TYPE: Compulsory
ECS CREDITS: 5
LECTURER/S: Joan Riera, Jordi Vinaixa
YEAR: 2011 - 2012
BLOCK: Barcelona
1. General description of the course.
The dynamics of business have changed fundamentally. Technological advances,
global interconnectedness, and societal changes among other factors create a new setting
for businesses. Large corporations experience hyper-competition and limits to growth due
to saturated markets for their traditional products. Markets converge or differentiate into
ultra-niche markets. The classical economics of capital and scale have turned into
economics of ideas and networks while the speed of innovation and change increases.
More than ever vast opportunities arise for aspiring entrepreneurs.
This course aims to inspire and empower you to become an entrepreneur. Through a
variety of cases, examples, readings, and hands-on experiences you can gain insights
how entrepreneurs start and grow ventures. You will experience different approaches to
becoming an entrepreneur taking into account high-opportunity costs, start-up costs, and
high risks of failure. We will focus on major aspects of the founding process including the
identification of promising business ideas, the evaluation of business opportunities, the
development of business models, the preparation of a business plan, the creation of an
entrepreneurial team as well as the financing and launch of the venture. In addition,
throughout the course we will examine the similarities and differences between starting a
new, independent venture and entrepreneurial efforts made within an established
organization.
The course is designed to present you with diverse insights and perspectives from
various entrepreneurs, your fellow participants and research. Empowering means placing
you in the driver seat and equipping you with the knowledge, skills, and experiences to
make your aspirations become reality.
2. Competencies developed within the course
Type
Name/Code
General
CC 1, CC 2, CC 5, CC6, CC 7, CC 8, CC6, CC 7, CC 8, CC 9, CC10
Specific
SC 1, SC 2, SC 3, SC 6, SC 7, SC 9, SC 10
Basic
BC 2, BC 3, BC 4
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3. Content
Session 1
Oct 3rd
The Process of New Venture Creation
Introduction to the Course and Entrepreneurship
Session 2
Oct 10th
The Process of New Venture Creation - II
Case discussion “Dr. John’s Products, Ltd.”
Session 3
From Idea to Business Model
The Entrepreneur & the Founding Team
Case discussion “The Knot”
Oct 17th
Session 4
Oct 25th
Pitching your business idea to experts and faculty
Session 5
Nov 7th
Entrepreneurs and their Investors
Case discussion “Startup.com”
Session 6
Nov 14th
Evaluating Business Opportunities:
The Business Plan – structure and contents
Case discussion “Chrysalis” and “How do VCs evaluate
business opportunities?”
Session 7
Nov 21th
Financing the New Venture
Case discussion “Spotfire”
Session 8
Nov 28th
Corporate Entrepreneurship
Case discussion “3M Optical Systems”
Session 9
Des 5th
Final presentations - I
Groups present their business plans
Session 10
Des 12th
Final presentations - II
Groups present their business plans
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4. Course objectives.
This course seeks to assist you in:

Developing a broad definition of entrepreneurship including independent
entrepreneurship, corporate entrepreneurship (intrapreneurship), and social
entrepreneurship.

Grasping and using a model that integrates four main dimensions of
entrepreneurship: the entrepreneurial team, the opportunity, the resources, and the
context.

Understanding milestones of the entrepreneurial process.

Identifying, developing, assessing, and pitching new ideas:
o Identifying ideas for new ventures.
o Assessing the potential of new business ideas to become business
opportunities.
o Developing your ability to present ideas in a concise, compelling way.

Developing an awareness of the possibilities and limitations of different business
models.

Integrating your previous knowledge in the development of a business plan.

Enhancing our sensitivity and skills in discussing the financial needs of a new
venture:
o Determining capital requirements of a new venture: how much/when.
o Negotiating with investors.

Identifying the challenges and opportunities of growth and harvesting.
5. Required readings
The required readings for each session are specified in section 7. Methodology and
Sessions Chart.
6. Exercises and assessments
Exercises and assessments are specified in section 7. Methodology and Sessions Chart.
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7. Methodology and sessions chart.
The learning experience is based on a range of teaching methods that seek to foster your
understanding of entrepreneurial processes and the development of your entrepreneurial
skills, such as case discussions, theoretical presentations, self-directed learning based on
recommended readings, role play, teamwork, experiences shared by invited
entrepreneurs and hands-on experiences. Further, the integrative nature of the course
allows connecting and reflecting concepts and insights you have learnt in other courses,
such as strategic management, marketing, operations, finance and human resources,
among others.
SESSION 1 and 2: THE PROCESS OF NEW VENTURE CREATION
This session will introduce you to the course and help you discover the actual process of
getting a new venture started, growing it, and – if and when necessary – exiting it.
Please read the case “Dr. John’s Products, Ltd.” (Harvard Business School 9-803-063)
and consider the following questions:
1. What do you think of John Osher’s process for identifying opportunities and building
companies?
2. What is the nature of the opportunity confronting Dr. John’s at the time of the case?
3. What should Osher and his colleagues do?
Required Reading
Keller, J.L. (2005). Manage Like an Entrepreneur. Harvard Management Update (Art.
Reprint U0501B).
Kim, W.C. & Maubourgne, R. (2000). Knowing a Winning Business Idea When You See
One. Harvard Business Review, Sept-Oct.
Recommended Reading
Stevenson, H. (1989). A Perspective on Entrepreneurship. In Stevenson, H., Roberts,
M.J. & Grousbeck, H.I. New Business Ventures and the Entrepreneur. Boston, MA. Irwin.
Timmons, J.A. and Spinelli, S. (2007). New Venture Creation, 7th ed., Irwin Mc. GrawHill. New York.
SESSION 3: FROM IDEA TO BUSINESS MODEL. THE ENTREPRENEUR
The first part of this session provides some insights into the discovery of new business
ideas and their development into robust business models and real opportunities. When
preparing for the session, please identify and bring to class examples of different
business models. We will also discuss how entrepreneurs really are and what makes (or
breaks) an entrepreneur, focusing on the challenges of establishing and running a new
venture.
The class discussion will be based on the case “The Knot” (Harvard Business School 9899-116, 2000), which describes an early stage company in need of financing that is
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developing online presence in the wedding space. While reading the case, please think
about and address the following questions:
1.
Who are the founders? What have they done in the past that would make you
believe they could succeed? Who is missing from the team?
2.
What is the nature of the opportunity? What is the business model? How/why
does it change?
3.
How much money should they raise? From whom? For what purpose? On what
terms?
Required readings
Magretta, J. (2002). Why Business Models Matter. Harvard Business Review, May, pp.
86-92.
Hamermesh, R.G., Marshall, P.W., Pirmohamed, T. (2002). Note on Business Model
Analysis for the Entrepreneur. Harvard Business School, 9-802-048.
Bricklin, D. (2001). Natural-Born Entrepreneur. Harvard Business Review, 122-127.
Osterwalder, A., Pigneur, Y., 2010: Business Model Generation: A Handbook for
Visionaries,
Game
Changers,
and
Challengers.
The
preview:
http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.
pdf
Recommended reading
W. Kuemmerle, A Test for the Fainthearted, Harvard Business Review, (May 2002), 122127.
Web of interest (in Spanish)
http://www.banespyme.org/Banespymes.do?prefix=/emprendedores&page=/archivoTV.d
o
SESSION 4: PITCHING YOUR BUSINESS IDEA TO EXPERTS AND FACULTY
In this session, we will practice one of the most important skills for entrepreneurs: the
presentation of an idea to partners and investors. You will receive feedback on the idea
potential and viability from students, faculty, and experts present in order to improve for
the final presentation.
Some guiding questions for the final presentation:

Description of the business idea:
 Which need are we fulfilling?
 Who is/are the target customer(s)?
 How are the target customers’ needs currently fulfilled?

Opportunity analysis:
 How attractive is the market?
 What are main competitors?
 What are the entry barriers?

Description of the business model:
 What is the value proposition?
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





Which channels will you be using?
How will the business generate revenues?
How will you build the customer relationship?
Which are the main cost drivers?
What are key success-factors of the business?
How will the venture assure its competitive edge?
Recommended reading
Elsbach, K.D. (2003), How to Pitch a Brilliant Idea, Harvard Business Review, 117-123.
SESSION 5: ENTREPRENEURS AND THEIR INVESTORS
One of the critical tasks of entrepreneurs is to secure resources for the venture. This
session is dedicated to learn about the experiences of entrepreneurs who started to
implement their business concepts and tried to obtain resources for their ventures. We
will focus on steps the entrepreneurs took and the reactions of resource providers. This
session will feature an entrepreneur who will explain the process he chose, the
challenges he was confronted with and how he overcame them. We contrast these
experiences with the perspectives of a venture capital investor who will explain how they
select their funded firms, how they work with the portfolio firms in the process and how
they exit their investments. This session will be giving you ample opportunities to interact
with entrepreneurs and investors and learn from their experiences.
The first part will be dedicated to the debate between entrepreneurs and investors. In the
second part we will experience the creation, financing, and subsequent evolution of a new
venture.
Material used
Case: Startup.com. A video case that will be presented during the session.
Preparation
Prepare yourself for the interaction with entrepreneurs and investors.
SESSION 6: EVALUATING BUSINESS OPPORTUNITIES: THE BUSINESS PLAN
In this session, we will learn how to differentiate between an idea and an opportunity, and
how investors and stakeholders evaluate the strength of a new venture to decide whether
to offer a deal to the entrepreneur.
The discussion will be based on the case “Chrysalis Limited” (London Business School
396-100-1, 2000) and on the case “How VCs evaluate business opportunities”. Please
read the Chrysalis case and the VC case and think about criteria Carl and VC use in
assessing the proposals. Which two proposals of the Chrysalis case would you select?
Why? Please be prepared to argument your choice.
In the second part of the session, we will focus on the content and structure of the
business plan and how it can help entrepreneurs present their ventures. We will also
discuss the scope and value of the business plan to investors, lenders, employees,
suppliers and customers.
Required readings
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Zacharakis, A. (2004). Writing a Business Plan. In Bygrave, W.D. and Zacharakis, A.
(Eds.) The Portable MBA in Entrepreneurship. John Wiley and Sons, Inc.
Kawasaki, G. (2001). The Top Ten Lies of Entrepreneurs. Harvard Business Review,
January, 2-3.
Recommended readings
Sahlman, W.A. (1997). How to Write a Great Business Plan, Harvard Business Review,
vol.75, nº 4.
SESSION 7: FINANCING THE NEW VENTURE
This session is dedicated to one of the most challenging and difficult activities that an
entrepreneur must encompass: the building of a financial strategy for the new venture.
The entrepreneur must prepare carefully the negotiation with investors, determining the
financial needs and valuing the new company.
Please read the case “Spotfire: Managing a Multinational Start-up” (Harvard Business
School 9-899-078) and consider the following questions:
1.
What is the nature of the opportunity for Spotfire? What strategy should the
company pursue in the next 3-5 years?
2.
Spotfire expects to raise additional capital in December 1998. How much capital is
needed? What is the valuation of the company? Under what terms should Spotfire
seek to raise capital?
3.
Spotfire’s development group and the rest of the firm work in geographically
separate locations (Göteborg, Sweden and Boston, USA). Is this strategy
sustainable? Why? Why not?
Required readings
De Clerq, D., Fried, V.H., Lehtonen, O., Sapienza, H.J. (2006). An Entrepreneur’s Guide
to the Venture Capital Galaxy. Academy of Management Perspectives, August, pp. 90112.
Roberts, M.J., Stevenson, H. (2005). Deal Structure and Deal Teams. Harvard Business
School 9-806-085.
Recommended readings
Stevenson, H., Roberts, M.J. (2004). New Venture Financing, Harvard Business School,
9-802-131.
Reinbergs, I.A., Crane, D.B. (2001). Note on Valuing Private Business, Harvard Business
School, 9-201-060.
Roberts, M.J., Barley, L. (2004). How Venture Capitalist Evaluate Potential Venture
Opportunities, Harvard Business School, 9-805-019.
Robinson, R.J., Wasserman, N. (2000). Venture Capital Negotiations: VC versus
Entrepreneur, Harvard Business School, 9-800-170.
Wainwright, F. (2003). Riding on Angels' Wings, Financial Times, August 15th.
SESSION 8: CORPORATE ENTREPRENEURSHIP
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During this session we will examine how innovative companies succeed in fostering an
entrepreneurial culture and how a company (big or small) can promote a particular
Corporate Entrepreneurship program.
Please read the case “3M Optical Systems: Managing Corporate Entrepreneurship”
(Harvard Business School, 9-395-017, 1999) and consider the following questions:
1. What are the elements that make 3M an innovative company?
2. As Andy Wong, how would you handle the authorization for expenditure (AFE) for the
re-launch of the privacy screen?
3. As Paul Gehler, would you approve the AFE if Wong sends it to you? Why?
When preparing for the session, think about the ways in which entrepreneurship is similar
and different in the context of established firms relative to independent ventures. Bring
examples of your favorite intrapreneurial companies.
Required readings
Rao, J. (2004). The Discipline of Corporate Entrepreneurship. ESADEAsociación, 111,
107-114.
Birckinshaw, J. (2003). The Paradox of Corporate Entrepreneurship. strategy + business
issue 30
Recommended readings
Dollinger, M. (1999). Entrepreneurship, Strategies and Resources. Chap.10, New York,
Prentice Hall.
Dess, G.G., Lumpkin G.T., McGee, J.E. (1999). Linking Corporate Entrepreneurship to
Strategy, Structure and Process: Suggested Research Directions. Entrepreneurship,
Theory and Practice.
SESSION 9 and 10: FINAL PRESENTATION
In this session, each team counts with 10 minutes to present its business concept for a
new venture in a concise, compelling, and convincing way.
This is an EXAM, so please make sure your presentation conveys well your idea, the
business model, and the essentials of your business plan.
As mentioned in the introduction to the course, this presentation has an important impact
on your final grade.
Some guiding questions for the final presentation:
 Description of the business idea:
 Which need are we fulfilling?
 Who is/are the target customer(s)?
 How are the target customers’ needs currently fulfilled?
 Opportunity analysis:
 How attractive is the market?
 What are main competitors?
 What are the entry barriers?
 Description of the business model:
 What is the value proposition?
 Which channels will you be using?
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




How will the business generate revenues?
How will you build the customer relationship?
Which are the main cost drivers?
What are key success-factors of the business?
How will the venture assure its competitive edge?
Recommended reading
Elsbach, K.D. (2003), How to Pitch a Brilliant Idea, Harvard Business Review, 117-123.
8.
Learning activities and distribution of work load (in student work
hours).
Workload distribution)
Lectures
Seminars
Assessments
Team work
Reading and study
Research
Oral presentations
Exam
Total
Hours (approx.)
30
2
25
20
44
25
2
2
150
9. Evaluation procedure.
Your final grade consists of three parts. To successfully complete the course, you must
have made the minimum required grade for passing in each of the parts.
Evaluation activity
Class Participation
% on grade
20%
Assessed competencies
Come to class ON TIME,
PREPARED to take part in the
case discussions and other
activities. You will be
assessed on the QUALITY of
your comments and your
ability to CONNECT with and
build upon the comments
made by your colleagues.
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Business Plan Final
Presentation
35%
Final Business Plan Write-up
45%
The participants will work
throughout the course to
identify a promising business
opportunity and develop a
high-potential business model
with a high degree of practical
relevance.
10. Lecturer (Short CV)
Joan Riera
He is currently managing partner of Active Development and professor in ESADE's
Department of Business Policy and at the ESADE Entrepreneurship Institute. He is also a
‘business angel’ investor and independent advisor for various business initiatives
(established company spin-offs as well as business start-ups), and an active writer and
lecturer in the field of innovation and entrepreneurship. Regarding ESADE's alumni
association, ESADE Alumni, he is president of the ESADE Alumni Innovation Club and
member of the Board of the ESADE Business Angels Club.
He holds a combined undergraduate degree and MBA in Management from ESADE
(Lic&MBA programme) and from Cornell University's Johnson Business School (Ithaca,
New York). He is a real estate agent, and has complemented his executive education at
ESADE (Real Estate Management) and at IESE (Developing Business Innovation). He
has broad experience in different fields in the UK, US and Spain. The latest stage in his
professional career has focused on the area of innovation and corporate
entrepreneurship. He was one of the founders of ESADE Creapolis, the world's first
innovation park to be backed by a business school, where he also assumed the position
as the park's first director general for the five years comprising its conception,
construction, launch and consolidation. His experience also includes consultancy in the
banking sector ("la Caixa"), setting up a new department in a multinational company
(GAMO), creating a technology company in the real estate sector when he was only 23
years old (newHabitat.com), launching a company in the tourism sector
(flatBarcelona.net), coaching over 400 entrepreneurs leading ESADE's technological
springboard and organising the ESADE's first Investors' Forum.
11. Literature.
In addition to the cases we will be discussing in class, the course binder provides a
number of required and recommended readings. Additional resources will be provided in
class. You may also be requested to search for particular readings in the library
databases.
Recommended Textbooks
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Timmons, J.A. and Spinelli, S. (2007). New Venture Creation: Entrepreneurship for the
21st century. Boston: Irwin/McGraw-Hill.
Mullins, J., Komisar, R., 2009: Getting to Plan B: Breaking Through to a Better Business
Model, Boston: Harvard Business Press.
Osterwalder, A., Pigneur, Y., 2010: Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers.
Kawasaki, G., 2004: The art of the start. New York: Portfolio.
Hisrich, R.D., M.P. Peters and D.A. Shepherd (Eds.) (2004) Entrepreneurship, 6th ed.
New York: McGraw-Hill.
Drucker, P. (1993). Innovation and Entrepreneurship. Collins (UK).
Other sources
http://www.banespyme.org – videos of Spanish entrepreneurs
http://www.barcelonactiva.es – the website of the Local Development Agency of
Barcelona City Council (Entrepreneur’s attention service)
http://www.evca.com – European Private Equity and Venture Capital Association
htpp://www.fastcompany.com – the internet home of Fast Company Magazine featuring
innovative ideas, people, and companies
http://money.cnn.com – the Internet home of Fortune, Business 2.0
http://www.bplans.com – resources on business plans
http://www.ted.com/talks - videos with inspiring ideas
http://ecorner.stanford.edu/ - Stanford University’s Entrepreneurship corner
12. Observations.
PUNCTUALITY (respect for your time and that of others!) and active PARTICIPATION
(of highest quality and building on the comments of your classmates) are two essential
requirements for this course.
Classes start and end on time. Please arrive and be ready on time, turn off your cell
phone, and do not leave the room during the class.
We can cold-call you, so if you happen to be unprepared for a class, please tell us in
advance (the reason doesn’t matter) so that we don’t call on you.
Identified cases of PLAGIARISM in individual or group submissions will lead to
suspending the course.