MGT 582
Spring 2013
New Venture Development
Huntsville – Executive MBA
Friday January 4 (online),
Saturday, January 5 (online)
Friday, January 18 (4:00 – 9:00 pm)
Saturday, January 19 (8:00 am – 12:00 pm, 1:00 pm – 5:00 pm)
Friday, February 1 (4:00 – 9:00 pm)
Saturday, February 2 (8:00 am – 12:00 pm, 1:00 pm – 5:00 pm)
Craig E. Armstrong, Ph.D., carmstro@cba.ua.edu, Cell (205) 534-3352
Course wiki: http://profcraigarmstrong.wikispaces.com/hemba
Office Hours: By appointment and throughout breaks
REQUIRED MATERIALS
Cases and readings packet; I will also post supplemental materials to the wiki site for this course
(use above link to access site).
COURSE OVERVIEW AND OBJECTIVES
This section of MGT 582 presents special topics in entrepreneurship theory and practice by
introducing students to entrepreneurship and the entrepreneurial process. The course combines
traditional classroom activities with hands-on activities in order to provide students with a
foundation that is both conceptual and practical. This foundation facilitates future practical
training in other entrepreneurship courses and the practice of entrepreneurship in either new
venture or corporate contexts. This course is designed to be relatively “hands on” in the sense
that we will discuss how theories and ideas can be put to use in real corporations operating under
emerging market realities. As such, the goals of this course are to provide you with the tools and
concepts to:
1. Systematically analyze entrepreneurial situations from a strategic viewpoint.
2. Understand the opportunity recognition and evaluation processes.
3. Analyze the competitive environment and devise effective strategic initiatives in response
to this environment.
4. Identify potentially profitable market segments and create new products, new services, or
new features to existing products to pursue those segments.
5. Think of entrepreneurship as a process and to understand the stages of the entrepreneurial
process
6. Continue developing skills needed for an entrepreneurial career, such as selling, market
analysis, and financial analysis.
A combination of readings, guided discussion, casework, and a marketing plan project will be
used to reinforce analytical and decision-making skills and to deliver key “take-aways” in critical
entrepreneurship areas such as understanding what entrepreneurship is, opportunity recognition
and evaluation, heuristics and biases in decision making positioning, market analysis, financial
analysis, and strategic differentiation
.
COURSE GRADING AND REQUIREMENTS
Deliverable
Class participation
$9 Bike Project
Team Cases
Case 1:
Case 2:
Quizzes:
Quiz 1:
Quiz 2:
Opportunity register
Weight
10%
20%
15%
15%
15%
15%
10%
Class Participation
Attendance and class participation are critical to achieve the learning objectives of this course.
You will be evaluated on the extent to which you add value to the class in the form of insightful
comments and input relative to the readings and cases. You should be willing and able to present
your analyses and viewpoints to the class when the opportunity presents itself. You are strongly
encouraged to do so. At the same time, you should listen carefully and objectively to your
classmates. Class discussion should be constructive and take place in a professional atmosphere.
Differing opinions and viewpoints are encouraged since they provide an opportunity for learning.
By probing, challenging, and defending points of view, we may find where one individual has
weighed certain factors more heavily, made different assumptions, or interpreted facts from a
different perspective. Identifying such sources of conflict can lead to a clearer understanding of
the situation and the benefits of alternative courses of action.
The first weekend of this course will take place completely online. Class participation online is at
least as important as participation in the lecture setting. Please do your best to contribute to
conversations and posting online for this portion of the course.
In order to participate at this level, you are expected to come to class having read all of the
assigned materials and having prepared the case for the day when applicable. Below are some
guidelines:
A. Text and Harvard Business Review (HBR) readings: The text and HBR readings are
designed to provide a framework for discussion and understanding. The text is more
likely to present conventional wisdom on a topic, while the HBR articles are more likely
to challenge it. In reading these materials I strongly encourage you to critically analyze
their content. Think about examples in your own industry/company that either confirm or
dispute the views put forth in these readings. You are strongly urged to document these
thoughts as you go through so you will be able to talk about them during class
discussions.
B. Cases: We will analyze at least 4 cases. Two are team cases that you will complete in
class. Regardless of type of case, you are expected to have thoroughly prepared the case
prior to class and be prepared to participate and contribute critical analyses in class
discussions. On the discussion cases, you need to type up a set of “case notes” which
address the key case issues I assign for the case. Make sure you have these with you
during the case discussions. I reserve the right to collect (and grade) these case notes if I
sense that the quality of preparation is less than desirable.
Throughout the course, quality of participation will be emphasized. Quantity is not a substitute
for quality. It is entirely possible to ‘participate’ frequently but ineffectively. Participation of
superior quality means that you are well-prepared, contribute in a manner that adds value to the
discussion, and listen carefully to other's contributions. It also means not simply regurgitating the
facts of the case, but moving forward to evaluate those facts and their implications for possible
courses of action. That is, you should not only suggest a recommended course of action, but also
defend your analysis and course of action against the criticism of other members of the group.
Although the discussion of many cases may lead to a decision accepted by a majority of the class
(or group) members, the discussion is not necessarily intended to culminate in any one approved
solution. This is because there is not necessarily one correct answer. However, there are better
and worse analyses and defenses of a given position, and putting forth a decision that is based on
tenuous facts/assumptions/logic will be judged as weak even if the decision itself has
considerable merit.
Team Cases
You will form teams of 4 people with whom you will work on your team cases. Team cases will
involve a written component due on the day the case is discussed in class. More direction on
content and format information will be provided subsequently.
Opportunity Register
The opportunity register is a journal of business ideas to which students add one entry according
to the deadlines on the course schedule. The purpose of this activity is to help students improve
their ability to recognize and evaluate opportunities. The textbook and class discussions will
cover the knowledge underlying these skills, but - like much of entrepreneurship - these skills are
best learned by doing.
Detailed instructions for completing the opportunity register are provided on the course wiki.
IMPORTANT COURSE INFORMATION AND COMMENTS
Communication
We will rely heavily on email in this class. Your teams will likely coordinate via email and I will
often communicate with you via email. It is critical that you frequently check your email for
relevant class information/updates/materials. My email address and cell phone number appear on
the top of the first page of this syllabus.
Academic Integrity
You have an obligation to maintain high personal standards of integrity. Cheating, plagiarism,
fabrication, and misrepresentation are, as in the business world, unacceptable. Acts of academic
misconduct will be pursued as outlined in the Academic Misconduct Disciplinary Policy of the
University’s Student Affairs Handbook.
TENTATIVE COURES SCHEDULE AND ASSIGNMENTS
Session
Topic
Readings and Assignments
Weekend 1
1/4, online
A process view of
entrepreneurship and
opportunities
1/5, online
Markets for entrepreneurial
ventures
1/18, 4:00 – 9:00 pm
1/19, 8:00 am –
12:00 pm
1/19, 1:00 – 4:00 pm
Readings
 Identifying venture opportunities
 Note on decision making, emotions
and entrepreneurship
 Disciplined entrepreneurship
 Facebook case
From supplemental readings on HEMBA
page of course wiki:
 Framing the Challenge, Chapter 2 of
McGrath & MacMillan, The
Entrepreneurial Mindset
Assignments
 View online lecture modules
(presented on course wiki)
 Complete and submit questions and
answers associated with modules
 Complete and submit Opportunity
Register (instructions on wiki)
Weekend 2
Business Models and Business
Read before class
Model Generation
 Business Model Generation Preview
(PDF file in course materials)
The Business Model Generation
canvas
 Value proposition
 Customer segments
 Customer relationships
 Channels
Business Model Generation
 Revenue model
 Cost model
 Key resources
 Key activities
 Key partners
Readings
 Zipcar: Refining the business model
In class
 Team Case 1
 Quiz 1
Assignment
The $9 Bike Project. Create a business model
generation canvas for introducing a
cardboard bike to the Huntsville market. You
should approach this as an experiment that
determines how successful the cardboard
bike might be if distributed and sold
nationwide.
Due January 25, 2013
2/1, 4:00 – 9:00 pm
2/2, 8:00 am – 12:00
pm
2/2, 1:00 – 4:00 pm
Weekend 3
Differentiation and strategy
Reading before class
 Autoshop business plan
 Other assigned readings from wiki
Entrepreneurial finance
Read before class:
 How venture capitalists evaluate
potential venture opportunities
 KidSmart Business plan
 Momentex business plan
In class

Two-Bit Coffee Financing to 50

Building pro forma financials

Autoshop pro formas

Team Case 2

Quiz 2
Strategic entrepreneurship
Readings
 A note on corporate
entrepreneurship: Challenge or
opportunity?
 Strategic entrepreneurship: Creating
competitive advantage through
streams of innovation