ENGINEERING TRIPOS PART II
Leader Dr E Garnsey
LENT 2004
MODULE 4E7 ENTERPRISE AND BUSINESS DEVELOPMENT
Four lecture-based sessions of three and a half hours + coursework briefing
START: WED 28 Jan
Aims
To increase your understanding of high tech enterprise, how firms are started and
develop, what it is like to work in them, opportunities for technology-based enterprise
and the challenge of managing their growth. The aim is to enable you to understand the
process of start up and growth in a technology based enterprise, and to provide
knowledge that will outlive the short term business conditions of today. You will find
out how to locate and analyse relevant information and learn from the experience of
others through case studies and speakers from industry.
Lecture material will be presented as a basis for further group activities in preparation for
coursework. Lecture notes and case studies will be distributed. It is important to read the
relevant case studies for the next class. Background notes and additional short cases are
available as a guide to further work and to help in the preparation of coursework.
Assessment is by Coursework
The coursework will provide an opportunity to apply knowledge of the course sessions
and materials. Students will produce a report of about 3000 words from a choice of
topics which will include preparing a case study of a live high tech business and research
for a report based on course material. The official hand-in date is Monday 15th March,
with an extension until 31st March. Reports must be handed in by the author for sign-off
by administrative staff at the MET Office in the Institute for Manufacture, Mill Lane.
SESSION ONE Wednesday Jan 28 2 - 5.30 pm
ENTREPRENEURS AS INNOVATORS - FROM LAB TO MARKET
Many high-tech companies have been created by attempts to turn research and inventions
into marketable products. Such start-ups benefit from their close links with university
research but face substantial problems in attracting adequate funding and developing
business expertise. The unique nature of high-tech start-ups has contributed to the
growth of Science Parks and Innovation Centres designed to provide supportive
environments for such companies. This session examines start-up and the early
experience of a new business, with a focus on entrepreneurial problem solving. Oxford
Instruments, Psion and Hotmail provide cases studies in problem-solving. Dr Tony
Robinson, ex-CUED will describe the early life of a company he founded, SoftSound.
Useful Reading
Slatter S, 1992, Gambling on Growth, How to Manage A High Tech Company, Wiley,
New York, Chapters 1 and 2
Roberts, E., 1991, Entrepreneurs in High Technology, Lessons from MIT and Beyond,
Chapter 1, High Technology Entrepreneurs
Case Studies
Oxford Instruments Case
BioRobotics Case
Psion Case
Hotmail case
Further Optional Reading:
Roberts, E., Entrepreneurs in High Technology, 1990, Oxford University Press Chapter
1: the case study of Digital (DEC)
Timmons, JA, 1997, Opportunity Recognition, in Bygrave, WD (ed), 1997, The Portable
MBA in Entrepreneurship, John Wiley, New York
Hills, GE, 1997, Market Opportunities and Marketing, in Bygrave, WD (ed), 1997, The
Portable MBA in Entrepreneurship, John Wiley, New York
SESSION TWO
Wednesday 4 February 2-5.30 pm
GROWING A HIGH TECH COMPANY - OVERVIEW
The session provides an overview of growth of a new venture in a dynamic environment.
Turning from theory to practice, the founder of high tech company will provide a first
hand account of business growth as experienced by participants. We will examine
different types of business model and how they influence the experience of growth.
Reading
Slatter, S, 1992, Gambling on Growth, How to Manage A High Tech Company, Wiley,
New York, Chapter 1
Case studies
BioRobotics case (essential reading)
Micromuse case
The Ink Jet Printing Sector and Domino Printing Sciences case study
Datapaq
Further optional reading:
Greiner, L, (1972) "Evolution and revolution as organisations grow", Harvard Business
Review July/Aug.
SESSION THREE Wednesday 11 February 2 - 5.30 pm
GROWTH IN A DYNAMIC ENVIRONMENT: IPO AND ACQUISITION
As a technology-based business grows, it has to overcome not only internal pressures but
rapid changes in its environment. Technologies are continually evolving, products have
short life cycles and markets alter as they mature. Firms do not operate in isolation and
success can depend on a firm's ability to become an effective player in a wider global
network of knowledge and capital.
As the company becomes established, its investors look for returns. The decision has to
be made as to whether to remain an independent private company, to launch on the stock
market (make an Initial Public Offering) or sell the company. We will review the
experience of IPO and acquisition and examine case studies which reveal the dynamics of
these processes. The choice of an exit route crucially affects the early experience of new
companies. A case study of growth through acquistion will be presented.
Case studies
Acorn Computers
Ionica
TechnoDoc
Reading
Roberts, E. Entrepreneurs in High Technology, Chapter 6 esp. p.165 ff.
Slatter S, 1992, Gambling on Growth, How to Manage A High Tech Company, Wiley,
New York, Chapters 2 and 3
Davidow, W., 1986, Marketing High Technology, an Insider's View, Collier Macmillan,
London, Ch 9
SESSION FOUR Wednesday 18 Feb
PLANNING FOR GROWTH AND THE INVESTORS’ PERSPECTIVE
You are now in a position to understand some of the financial problems faced by new
ventures. The business plan is much more than a presentation package for would-be
investors. It is a statement and rationale for the Business Model selected to sustain
growth and returns. We will examine types of funding, outlining the benefits and costs of
each, and why small UK firms face severe constraints on finance. We will consider
criteria used by investors assessing prospects for new ventures, with students taking on
the role of investors in case study work.
Reading
WJ Herriot - Raising Finance: How to Write a Good Business Plan
OR/
Gumpert, DE, 1997, Creating a Successful Business Plan , in Bygrave, WD (ed), 1997,
The Portable MBA in Entrepreneurship, John Wiley, New York
Rich, SR, & Gumpert, DE, 1999, How to Write a Winning Business plan , in Sahlman et
al, 1999, The Entrepreneurial Venture, HBS Press, Boston, Mass.
Lucey, T, 1996, Management Accounting, DP Publications, London
Petty, 1997, Harvesting, Chapter 14, Bygrave, WD, (ed), 1997, The Portable MBA in
Entrepreneurship, Wiley, New York
SESSION FIVE Wednesday 25 Feb 2pm
COURSEWORK BRIEFING
Review of the course and briefing on coursework assignment (separate document)
Other Resources (more will be provided in class)
http://www-mmd.eng.cam.ac.uk/ctm/teaching/4e7.html.
http://www-mmd.eng.cam.ac.uk/ctm/TEG/cambridgecompanies.html
Resources for starting a business - http://www.bizhot.co.uk/
CU Entrepreneurs (business start-up competitions) - http://www.cue.org.uk/
www.entrepreneurs.jims.cam.ac.uk
British Venture Capital Association - http://www.bvca.co.uk/