Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
The Wharton School of the University of Pennsylvania
Wharton Evening School
MANAGEMENT 010 – ENTREPRENEURIAL ORGANIZATIONS
Spring 2000
COURSE DESCRIPTION AND SYLLABUS
Instructors:
Office:
Tel:
Email:
Phanish Puranam & Sendil Ethiraj
2061 SH-DH (Management Dept. Suite)
898-1231
puranam@management.wharton.upenn.edu
sendil@management.wharton.upenn.edu
Office Hours: By Appointment
Class Hours: Mondays 6:30 to 9:10
Course Overview
Successful entrepreneurship calls for skills at innovation, strategy making, organization, financial
management and a sophisticated understanding of the legal and business environment. These skill
requirements hold, regardless of whether the entrepreneur is located in a small start-up firm, or in
the New Business Development department of a large Fortune 500 firm. This course will lay the
foundation for you to build and refine your skills in these areas; in addition, it will try to enhance
your understanding of the various entrepreneurial opportunities opening up in today’s economy
because of radical changes in technology. In particular we will focus on the Information
Technology (computing, internet and communications) and Biotechnology sectors. While this
course will in effect, be focused around entrepreneurship in High Technology domains, the
lessons learned will be shown to be applicable to a wide range of industry settings.
After an introduction to the core ideas behind innovation and entrepreneurship, we will take stock of
some of the key elements of our tool kit- industry analysis, basic economics, accounting, finance,
and business plans. After this class, (the second) you should begin thinking seriously about your
own project plans. In the third session we take an intensive look at a software start-up company, to
identify the range of problems that entrepreneurial organizations are likely to face. A look at the
venture capital industry concludes Part I. Part II begins with an examination of technological
change, and its role in throwing up opportunities for entrepreneurship. We then focus on
understanding the industry dynamics of the so called “internet space”, and of the biotechnology
sector. After the mid–sem exam (March 6th), we return to these two industries to examine
entrepreneurial business models which have succeeded in these settings.
Finally, in Part III we examine entrepreneurship within a corporate setting, emphasizing the fact that
start-ups are not the only kind of entrepreneurial organizations. The course concludes with the
presentation of individual business plans, which will be assessed by us, as well as fellow course
participants.
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
Readings
Readings for this course are in the bulk pack. While we will seldom refer to the textbook in our
classroom meetings, you are strongly advised to have a copy to guide you in your project
preparation. The bulk-pack is available at Wharton Reprographics. The textbook for this class is
The Business Planning Guide: Creating a Plan for Success in Your Own Business (8th Ed)
by David H. Bangs Paperback - 240 pages 8th edition (June 1998) Upstart Pub Co; ISBN:
1574100998 .The readings include both conceptual material and cases. The reading list provides
detailed information on the readings to be used in each class session. Assignment questions for each
of the cases will be distributed in class. In addition to thinking about the answers to the specific
questions for each of the cases, students should try to identify the reasons why the organization has
or has not prospered, and the critical issues facing management. You are not required to bring a
formal case write-up to class, but should bring your notes on the case with you for your use in class
discussion.
Preparation questions for each session (except session 1) will be handed out a week in advance.
Course Requirements and Evaluation
This is a preparation- and reading- intensive class. We will assume that the essential readings have
been, indeed read, and will seldom spend much time re-stating what is in them. Additionally, there
are several optional readings (which you are not expected to have read for class) that may prove of
interest either now, or later in your careers, as references. At any rate, you will need to have
thoroughly read the case before coming to class, and also have familiarized yourselves with the
analytical frameworks provided in your readings. Please make appropriate time allowances for
preparing every session!
Being adequately prepared for class discussion is a key part of this course. Some class discussions
may be organized in adversarial format with groups of students assigned to support different points
of view. Specific responsibilities for particular questions may be assigned, and students will be
asked to participate if they don’t volunteer. Finally, the instructor may ask for brief in-class written
appraisals of the case specifics, which will be graded and will count towards the participation grade.
As for grading, the course requirements consist of class participation, an in class mid-term
assignment and a final project which will be a business plan for a new entrepreneurial venture.
The course grade will be based on the points you get for these three components, weighted 25%,
25% and 50% respectively. Part of your project evaluation will come from how you evaluate a
classmates’ business plan.
Class participation: Since this course uses cases extensively, the success of the course depends on
effective student participation in class discussions. In evaluating class participation, we shall be
asking ourselves first of all, whether the student is well prepared and interested. Beyond that, we
shall be concerned with the following questions: (1) Is the student considerate of other class
members? (2) Is the student responsive to the contributions of other class members and to the
general flow of the discussion? (3) Do the student's comments reflect careful analysis of the case?
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
(4) Do the student's comments contribute to a clearer formulation of the issues in the case? Both
instructors will contribute to the participation grade. (The sessions each instructor will teach are
designated “PP” for Phanish Puranam and “SE” for Sendil Ethiraj in the syllabus).
In Class Exam: An in class exam covering material from the first half of the course will be held on
March 6th.
Should I be taking this Course (now)?
A few final notes are due in order to help you make a choice on whether you should take the course,
and if you should take it now. We do expect you to have familiarity with several key business
issues, and to have fared well in the introductory management course. Also, some fundamental
principles of corporate finance, accounting and economics are assumed. You should be able to
understand business statistics, and interpret financial information. If you feel that you have
weaknesses in these areas, feel free to consult with one of us and we will try to find the best way of
dealing with them.
Finally, the pace will be quick and the class will require your undistracted attention. We will cover a
wide range of topics in a relatively short time. If you think that you will have a very tight schedule
and might have to miss classes, it may be hard for you to catch up. Also, as much of the course is
based on cases, missing classes will not be without consequences. Even though the instructor will
make any effort to accommodate legitimate individual problems, the course structure leaves little
leeway for maneuvering. Up to two (justified) absences will be allowed. If, for any reason, a student
has to miss more than two, his or her class participation score will be reduced accordingly. So please
take these factors into account when deciding whether to take this course!
Other resources:
*Jenkins, Michael, “Starting and Operating a Business in (your state)”
(basically a start-up kit for new ventures in each state)
*Tiffany, Paul, “Business Plans for Dummies”
*Inc magazine (lots of hands on information)
*See also Research Guide 19 at Lippincott Library
*Small Business Support Center (215) 790-5004
1315 Walnut Street, 5th floor
*Levinson and Godin, “The Guerilla Marketing Handbook”
http://www.library.upenn.edu/resources/subject/busines/entrepren.html
* The entrepreneurship club http://dolphin.upenn.edu/~eclub/
*www.sba.gov (Small Business Administration)
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
COURSE OUTLINE
PART I : ENTREPRENEURSHIP -THE FUNDAMENTALS
Session I January 17
Introduction and Course Overview
PP & SE
Invention, Innovation, and Entrepreneurship
Readings (To be handed out in class):
1.One key or two for the car? Innovation is unwanted.
Optional Readings
1.The anatomy of successful innovations
Discussion Preparation:
1. Are you currently involved in an entrepreneurial venture? Do you plan to be in the near
future/have been in the past? Come prepared to describe this venture to your classmates in
about 5-10 minutes.
2. Think through what the terms entrepreneurship, innovation and invention mean to you. How
are they distinct?
Session II January 24
Taking stock of our toolkit
PP
Industry Analysis, Accounting & Finance, Business plans
Readings:
1.Interpreting Financial Statements
2.Analyzing the Industry Environment
3.Guide to Case Analysis
Optional Readings:
1.Textbook, introductory chapters.
Session III January 31
SE
Case:
Conceiving and Managing Entrepreneurial Organizations
Vermeer Technologies A, B, & C
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
Session IV February 7
Venture capital: Financing entrepreneurial organizations
PP
Guest Speaker
(One page project outline due today)
Part II: ENTREPRENEURSHIP IN HIGH TECHNOLOGY INDUSTRIES
Session V February 14
SE
Technological Change & Entrepreneurial Opportunity
Readings:
1. Disruptive Technologies: Catching the Wave, Bower and Christensen
2. Increasing Returns and the New World of Business. W. Brian Arthur
Case:
Plus Development Corp. (B)
Session VI February 21
SE
The Internet
Readings:
1. The Worldwide Web and Internet Technology, Technology Note
2. Internet-based Electronic Commerce in 1997: A Primer
Case:
Excite Inc.
Session VII February 28
PP
Biotechnology
Readings:
1. Biotechnology strategies in 1992
2. What you can learn from managers in Biotech
Optional Readings
1. Genzyme Genetics
Session VIII March 6
Mid Semester Exam (in class)
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
March 13
Spring 2000
Wharton Evening School
NO CLASS (Spring Break)
Session IX March 20
On-line Retailing
SE
Readings:
1. Note on Marketing and the World Wide Web
2. Retailing: Confronting the Challenges that Face Bricks-and-Mortar Stores
Case: Leadership Online: Barnes & Noble vs. Amazon.com (A)
Session X March 27
Entrepreneurial Research Organizations
PP
Readings:
1. Profiting from technological innovation: implications fro Integration, Collaboration,
Licensing and Public policy
2. Technology Partnerships between Smaller and Larger Firms: Some Critical Issues
Case : The Genetics Institute
Optional Readings
1.Cooperative Strategies for Emerging Technologies
PART III: ENTREPRENEURSHIP IN A CORPORATE CONTEXT
Session XI April 3
SE
Managing growth in hi-technology businesses
Case: Infosys Technologies Limited (A)
Session XII April 10
PP
Corporate venturing strategies
Reading:
1.Managing the internal corporate venturing process.
Case: Cisco Systems Inc.
Optional readings:
Innovation & Corporate Strategy: Managed Chaos.
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
Session XIII April 17th
PP & SE
Project Presentations
Session XIV April 24th
PP & SE
Project Presentations (contd.) and course wrap-up.
Projects Due today.
NO FINAL EXAM-ENJOY YOUR SUMMER!
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Management 010 – Entrepreneurial Organizations
Instructors: Phanish Puranam & Sendil Ethiraj
Spring 2000
Wharton Evening School
BULK PACK LIST: Management 010 – Spring 2000
Entrepreneurial Organizations– Wharton Evening School –
Phanish Puranam & Sendil Ethiraj
1. Syllabus and Course Description
2. The anatomy of successful innovations
3. Interpreting Financial Statements
4. Analyzing the Industry Environment
5. Vermeer Technologies A, B, & C
6. Disruptive Technologies: Catching the Wave, Bower and Christensen
7. Increasing Returns and the New World of Business. W. Brian Arthur (96401)
8. Plus Development Corp. (B).
9. The Worldwide Web and Internet Technology, Technology Note
10. Internet-based Electronic Commerce in 1997: A Primer
11. Excite Inc
12. Biotechnology strategies in 1992
13. What you can learn from managers in Biotech
14. Genzyme Genetics
15. Note on Marketing and the World Wide Web
16. Retailing: Confronting the Challenges that Face Bricks-and-Mortar Stores
17. Leadership Online: Barnes & Noble vs. Amazon.com (A)
18. Profiting from technological innovation: implications fro Integration, Collaboration,
Licensing and Public policy
19. Technology Partnerships between Smaller and Larger Firms: Some Critical Issues
20. The Genetics Institute
21. Cooperative Strategies for Emerging Technologies
22. Infosys Technologies Limited
23. Managing the internal corporate venturing process.
24. Cisco Systems Inc.
25. Innovation & Corporate Strategy: Managed Chaos.
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