Keuka College Bachelor of Science in Management Syllabus MGT 351 Small Business Management Professor: Dr. Chris R. Crumley Spring Semester 2015 Tianjin University of Science and Technology (TUST) All curriculum material protected by U.S. copyright laws. Unauthorized sale or reproduction is strictly prohibited. Keuka College 2013 1 Keuka College MGT 351 Small Business Management Professor: Chris R. Crumley, DBA E-Mail Address: crcdba@hotmail.com Office Hours: Students will be able to speak with the instructor before and following each class session. Appointments for additional meeting times may be made following each class session. Office Location: University of Science and Technology (TUST) Course Credits: 3 credits Course Prerequisites: none PROFESSOR: Dr. Chris R Crumley, Keuka College BIOGRAPHY: B.S., School of Management, George Mason University. (M.S.A.), School of Government & Business Administration, George Washington University. Doctor of Business Administration (D.B.A.), H. Wayne Huizenga School of Business & Entrepreneurship, Nova Southeastern University, More than 25 years experience in Financial Management, Budgeting, Accounting and Contract Administration COURSE DESCRIPTION This course includes a comprehensive review of the business problems typically faced by small businesses. These problems are studied via traditional, case study, and term project methods. Issues studied include business planning and implementation as well as day-to-day operations. Also studied are the alternative means of small business ownership and their benefits. Issues involving all the major functional disciplines will be studied. TEXTBOOK The following textbook is required: Essentials of Entrepreneurship and Small Business Management Authors: Thomas W. Zimmer, Norman M Scarborough Peking University Press, ISBN: 978-7-301-15177-8 2 COURSE RESOURCES Refer to the following Keuka College library resources for use in your studies: Introduction to the library for international students: http://libguides.keuka.edu/international http://libguides.keuka.edu/cat.php?cid=35791 Business and Management library guides: http://libguides.keuka.edu/business Additional resources you may find helpful: The US Small Business Administration: www.sba.gov/ Bloomberg Small Business News: http://bx.businessweek.com/small-businessadministration/news/ Inc. Magazine Small Business News: http://www.inc.com/topic/u.s.-small-businessadministration Entrepreneur Magazine - http://www.entrepreneur.com/ LEARNING OUTCOMES MGT 351 Small Business Management Student Learning Objectives How assessed? 1. Define and describe the characteristics of small business Exam 1 Daily graded assignments 2. Demonstrate understanding of key elements of a business plan Daily graded assignments Final Project 3. Demonstrate the use of specific problemsolving techniques and their applications to critical functional management issues Exam 2 Daily graded assignments Final Project 4. Demonstrate and practice assessing and resolving critical operational issues Exam 2 Daily graded assignments Final Project 5. Analyze, discuss, write about and make oral Daily graded assignments presentations on small business problems and Final Project solutions 3 COURSE REQUIREMENTS The following are the requirements for this course: 1. Daily Class participation (10%) Students will earn points during each class session by participating in the discussion or class activity. Students who are not present for any reason will earn zero for the day’s participation grade. 2. Homework/Daily written assignments (20%): Each day, there will be a written assignment based on the session’s lecture/class activity. Students will earn points during each class session for the completion of an assignment. Students who are not present for any reason will earn zero for the day’s written assignment grade. There is no possibility for make-up of missed daily assignments. 3. Exam #1 (20%) 4. Exam # 2 (20%) 5. Team Project – Development of a business plan for a new small business (30%): ALL STUDENTS WILL RECEIVE AN INDIVIDUAL GRADE FOR THIS PROJECT. WEIGHTING OF ASSIGNMENTS POINT VALUE Class Participation 10% Homework & Assignments 20% Exam # 1 20% Exam # 2 20% Team Project 30% Total 100% *** See “Appendix B” for rubrics indicating how each assignment will be graded. Outline of the Course All schedules in this syllabus are tentative and subject to change. Topic In-Class Activity Session 1 Introductions & Class Policies Introductions Individual assignment: 4 Homework – Reading and research for each session. Read Chapter 1. Foundations of Session 2 Introduction to Small Business Management Write a personal introduction of yourself and your interests. Also, answer the following question: If you could own any type of small business, what type of small business would you choose? Why? Entrepreneurship Pages 1-35 What does it take to own and operate a successful small business? In groups discuss how Tom and Sally used creativity to expand their line of products. By using the seven steps of the creative process, pg 62 what new products could you implement? Detail your findings for each step. Read: From Ideas to Reality Pages 41-74 In groups Discuss the difference in the business models of Blockbuster Video and Netflix. 8587 What is the difference in their strategic plans? Create a mission statement a small business Read: Beginning Considerat ions Pages 83121 Creativity Innovation Entrepreneurship Session 3 How do you start? Choosing a Business Model Creating a Strategic Plan 5 Write one paragraph on how you can be creative in your business. Write one paragraph on what business model you would choose for your company Session 4 that would compete in their market. Outline the nine steps in the planning process, pg 90 used to determine your statement. Are your choices In your feasible? groups The best way to Discuss put your plan in what made writing. Robert Byerley’s ideas feasible? Adapt his idea of “Standing behind your work” to a business your group would like to start. Outline it 6 Read: Conducting a feasibility analysis and crafting a winning business plan Pages 122-153 using the steps of a business plan. Session 5 What form of ownership is right for you? Sole Proprietorship Partnership Corporation Other Options Session 6 Based on the business you choose in our first session, what type of ownership would be best for you. Why choose that over the other types. Review for Exam 1 Exam 1 Read: Forms of Business Ownership Pages 159-179 Study for Exam Session 7 Ways to get into business: Purchasing a franchise What are the three types? What are the pros? Cons? What are the legal considerations? In your groups; discuss how franchisers have forged new ground in China. As a group, pick a type of business you would like to start; if purchasing a franchise was an option, would it be right for your group? Read: Franchising and the Entrepreneur Pages 188-215 Session 8 Ways to get into business: Acquire an existing business Do you know the business? What is the history? How to determine a real value? In your groups: How did the Freeman’s find success in running an acquired business when consumer products giant, Dial, could not? Do you see opportunities for your Get together as a group and determine which roles are best suited to each member. Ie, marketing, finance, production, leader. 7 group to purchase a business in your selected market? What are the pro’s and con’s in doing that over starting a business from scratch? Session 9 Session 10 Your Marketing Plan What is your target market? What are their needs and wants? What is the right marketing mix for you? Giving your ideas a virtual presence. Is online selling right for you? How do you plan for success? What attracts people to a site? 8 Read: Buying and Existing Business Pages 220-256 In your groups: Outline the marketing strategy for InN-Out Burger. P. 285 Can you relate it to your group’s company? What are the positive and negatives of a basic product line. Would it limit the target market for your business? What will your target market be? Create an online survey or one that you will ask potential customers face to face. There should be at least 10 questions regarding need, pricing and quality. In your groups: What are the 12 myths? Pg 317 What did the Elder group learn about Find a platform that will allow you to create a free website. Read: Building a powerful marketing plan Pages 263301 Session 11 Session 12 How do you keep track of it all? internet marketing? Either on one group member’s laptop or on paper, begin designing a layout for a website to promote your company. Determine if you are going to use it to sell online or as a way to attract people to your physical location? Read: E-Commerce and the Entrepreneur Pages 310-349 The Price is Right How is price related to image, competition and value? How is price determined for Service Firms, Manufacturers and Retailers? In your group: What is Majesco’s pricing strategy? Would it work for a company selling wedding pictures? How would discount pricing look to your target market? Determine the average markup you will assign to all of your products and services. Consider cost of goods, overhead and a safety net. Continue to work on your site, adapting it to display a business plan. Planning for Financial Success What are basic vs. projected financial statements? How interpret a financial statement through ratio analysis? What is your break-even point? In your groups: Create marketing and financial plan sections for your site. Why did Goltz and Wright page 396 choose slow growth for their respective businesses? Give an example of a Chinese company that 9 Read: Pricing Strategies Pages 355 379 Read: Creating a successful financial Session 13 has chosen the plan same strategy Pages 383and one that 417 chosen a low profit margin and high sales? What strategy does your group choose for it’s company? Determine a Net profit on sales ratio for your company. Calculate a break even point. Cash is King In your groups; Conduct the survey you have created. How does cash flow What caused Tabulate your findings. affect a small Henry Ford’s company’s success? Cash page 427 Read: Managing Cash Flow What is the difference Problems? Pages 424-459 between cash and For your profits? company; How do you manage; Establish accounts receivable, Monthly expenses Cash is King Forecast Sales How does cash flow Forecast affect a small Receipts company’s success? Prepare a cash What is the difference budget between cash and profits? Did you have to How do you manage; make changes accounts receivable, to your initial accounts payable figures? 10 Session 14 Session 15 Session 16 and inventory? How can you avoid cash flow problems? Can you trim fixed costs to improve cash flow? Did the results of your survey have any bearing on your projections? Planning a Financing Strategy What are the three types of Capital? Where can you get equity and debt capital? What government loan programs are available? How can you fund your growth internally? In your groups: What are Angel Investors and what company did they find a CEO for? Which type of startup capital works best for your company? What are creative ways you can self-fund your start up and any foreseen expansion. Add the findings of your market research to the finance and marketing sections of your site. Location, Location How does it provide a competitive advantage for, Manufacturing, retail and service industries? What benefits are there for each industry in creating a strategic layout? How do location and layout effect web based businesses? In your groups: What lead to Underground Coffee’s success in locating their new business in a place that had a record of business failure? Where do you intend to locate your business? How does it best serve your target market? How will you improve the location with layout? Provide a sketch of the layout. In your groups: Why did Lin Miao and Blake Liguori choose to sell globally from the offset? Can you relate their strategy to your company? What would the pros and cons of selling globally be for your organization? Outline a global Establish a financial strategy and post to your site. The World is Your Oyster How has going global impacted many small business strategies? What are options available? What are the barriers? 11 Read: Sources of Financing Pages 462-507 Read: Choosing the right location and layout Pages 514-547 Promote your location on your web site. Translate your layout strategy to the web design. Read: Global Aspects of Entrepreneurship Pages 559-593 Session 17 Session 18 Creating your team What qualities will you look for? How do you target job seekers suited to your organization? How will you foster employee growth? How do you move on gracefully? business strategy for your product or service? Does it suit your long or short term plans? In your groups: Why were older workers determined to be the best fit for CVS? Who will you look to hire? How do you plan to manage them? Will you promote from within? Will you sell or pass the torch. Exam and final project review Finalize a global strategy and work it into your marketing and finance plans. Read: Building a new venture team and planning for the next generation. Pages 596-634 Outline a leadership and HR Plan for your business on your website. Prepare questions for review. Session 19 Session 20 Exam 2 Presentations Session 21 Session 22 Presentations Presentations Exam 2 Grading Guidelines for Transfer Credit (International Programs) The chart below depicts how course points will equate to grades. KEUKA COLLEGE COURSE GRADING POLICY QUALITY POINTS Percentage Points Achieved 4.00 93-100 A- 3.67 90-92 B+ 3.33 87-89 3.00 83-86 2.67 80-82 A B B- SUPERIOR COMMENDABLE 12 C+ 2.33 77-79 2.00 73-76 C- 1.67 70-72 D+ 1.33 67-69 1.00 63-66 0.67 60-62 0 Below 60 C D SATISFACTORY DEFICIENT DF FAILING Outstanding work not completed in 30 days will result in a grade of “F.” Expectations English Language Skills This course and the Business Management degree program are focused on increasing English proficiency as well as business management skills. Students need to demonstrate strong English language skills to succeed in this course, it is suggested that students read any assigned readings carefully prior to class discussions. Here is one method: 1. First, print out the readings so there is a copy of the reading to work with. 2. Then, using a dictionary, look up and write out (on the copy) the Chinese definitions of key words in the assignment. 3. Work through the assignment before class, so there is a general understanding of what the reading is about. 4. Ask the instructor about phrases or statements in the assignment that still are difficult to understand. 5. Write down what the instructor says about the reading assignment on the sides, bottom, or on the back of the copy of the reading assignment. This will provide a good study guide for any exam on this material. IT IS THE STUDENT’S JOB TO ASK QUESTIONS! The instructor cannot guess what a student does not understand. The instructor expects and appreciates students’ questions. Students who ask the most questions in class often get the highest grades. COURSE ATTENDANCE and PROFESSIONAL BEHAVIOR 13 Attendance is mandatory. Being on time and prepared to do your job is a key business behavior. This is a business course and so it requires a business-like approach to attendance, fulfilling assignments, meeting deadlines, conducting respectful and professional conversations, and handing in homework. Attendance Students need to be in their seats ready to answer the roll call by the beginning of class. Each class in a business program is like a business meeting. Attendance will be taken during each session. Students who miss 4 hours of instruction in a course may have their grade lowered by one letter grade. For example, an A grade will be lowered to a B. Students who miss an additional 4 hours of instruction may have their grade lowered another full grade. For example, a B grade will be lowered to a C. Students who miss 12 or more hours of instruction will fail the course. Description of Assignments There will be a written, graded assignment due each day of this course. Sometimes, these assignments will be team-based, other times, they will be individual assignments. If you are not in class, you will receive a zero for both the daily assignment and class participation for that day. Make-up work is not permitted. Homework Unless otherwise noted, homework is due at the beginning of class when the instructor calls for it to be turned in. Late homework is not acceptable. The instructor may penalize late homework or may refuse to accept late assignments. Format for assignments All submitted papers should be include in the top left hand corner of the first page: your name (in Chinese and English) your Keuka ID number course title (MGT 351) Please Note: Assignments turned in after the last day of class will not be accepted without prior arrangement. Homework assignments are to be completed in your own words. (See section on “Academic Honesty” below.) 14 Class Participation The instructor expects students to focus on in-class exercises and lectures and make an effort to understand the point of the lecture or exercise. If the instructor finds students sleeping in class, chatting loudly with classmates, reading books from other classes, or spending class time to do something other than participating actively in what is planned for the class that day, the instructor may deduct points from the student’s final grade and/or expel the student from the class. Academic Honesty Academic honesty is very important to Keuka College. All written work must meet the standards of work for students at Keuka College, set by the faculty. Plagiarism (the use of another’s material without citation or reference) will not be tolerated. Cheating on exams or copying parts of other’s assignments will result in a ‘0’ grade for that assignment for all parties involved. That means both the person who copies from another student and the person who allows their work to be copied may receive a ‘0’ grade. Cheating on a final exam or final project can result in a student receiving an “F” for the course. The instructor may also officially notify the university that students were caught cheating and identify the names of the cheaters. Examples of cheating are: Having a tutor or friend complete all or a portion of an assignment Having any other person make revisions to a student’s final work Copying work submitted by another student Using information from online information services without proper citation Completing a test with answers other than the student’s own Using a cell phone to receive text answers during an exam Using a cell phone to text a friend about the questions on an exam Writing information on a desk to use in an exam Using an electronic translator to store information for an exam Bringing notes of any sort into an exam unless authorized by the instructor Attempting to buy an exam Other efforts to use other people’s work instead of one’s own work 15 Appendix A: College Vision, Mission & Program Outcomes KEUKA COLLEGE VISION STATEMENT To be renowned as a global leader in comprehensively integrating liberal arts, digital technologies, experiential learning, and professional practice. KEUKA COLLEGE MISSION STATEMENT To create exemplary citizens and leaders to serve the nation and the world of the 21st century. We provide a transformational liberal arts-based education, strengthened by experiential learning that challenges students to develop their intellectual curiosity and to realize, with purpose and integrity, their full personal and professional potential. STATEMENT OF PROGRAM OUTCOMES Students will be able to demonstrate that they possess: Management competencies 16 1. Knowledge of the functions of accounting, marketing, finance and management in a successful organization. 2. The ability to apply knowledge of business concepts and functions in an integrated manner. 3. Knowledge of the legal, social and economic environment of business. 4. Knowledge of the global environment of business. 5. Knowledge of the ethical obligations and social responsibilities of business. 6. The ability to work in a group. Decision making competencies 7. The ability to use decision support tools. Communication competencies 8. The ability to communicate effectively orally and in writing. This course, BUS 351 Small Business Management, addresses Program Outcomes numbered 1, 2, 5, 6, 7 and 8 and above. This course also addresses all of the student learning outcomes specified above for this course. 17 Appendix B Assignment Rubrics MGT 351 Daily Assignments Grading Rubric Aspects to be assessed Unsatisfactory 0 – 5 points Developing 6-10 points Satisfactory 11-15 points Organization and development of topic Answers all parts of question(s) asked Depth of Analysis General writing – originality of work, clarity of thought TOTAL (up to 100 points): 18 Good 16-20 points Excellent 21-25 points MGT 351 Small Business Management Project ALL STUDENTS WILL RECEIVE AN INDIVIDUAL GRADE FOR THIS PROJECT Complete this project with members of your assigned group. Tasks: Your group is to develop a business plan for a new business, submit a detailed written business plan, and give an oral presentation. Products : Oral Presentation – 45 minutes in length – ALL original content Business Plan – ALL original content Written Business Plan – MUST contain each of the following sections (see links at http://www.sba.gov/category/navigation-structure/starting-managingbusiness/starting-business/writing-business-plan/essential-elements-good-busines for details): 1. Business Plan Executive Summary 2. Market Analysis 3. Company Description 4. Organization and Management 5. Marketing and Sales Management 6. Service or Product Line 7. Funding Request 8. Financials 19 Oral presentation (MUST contain each of the following): Note: should be multi-media – i.e. not just words and charts, but photos, music, and video. ALL group members MUST actively participate in the oral presentation. 1. Explain the products and services that your group’s proposed business will sell 2. Explain the target market for your group’s proposed business 3. Present three advertisements that the business could use in its marketing campaign 4. Summarize projected financial data for the first twelve months of operation 20 Introductory Elements (10%) Table of Contents, Executive Summary Poor /Lacking Info Sufficient Proficient Advanced Poor /Lacking Info Introductory elements were omitted and/or contained errors. Sufficient Introductory elements were included but contained errors. Proficient Introductory elements were included and completed correctly, including an executive summary. Poor /Lacking Info An overview of the company is not provided. Sufficient An overview of the company is provided but is lacking significant pieces of the requested information. Proficient An overview of the company is provided which includes a large portion but not all of the requested information. Poor /Lacking Info Provides largely incomplete information regarding target market, industry size and maturity, opportunities & threats in the industry, overall outlook for the industry, major competitors. Explains how proposed product/service is distinct from others. Sufficient Provides somewhat complete information regarding target market, industry size and maturity, opportunities & threats in the industry, overall outlook for the industry, major competitors. Explains how proposed product/service is distinct from others. Sufficient Form of business ownership was chosen. No explanation of how things will be done. Proficient Provides fairly complete information regarding target market, industry size and maturity, opportunities & threats in the industry, overall outlook for the industry, major competitors. Explains how proposed product/service is distinct from others. Advanced Introductory elements were included and completed correctly, including a detailed executive summary that thoroughly summarizes the business. Advanced An overview of the company is provided which includes information regarding the reason for starting, basic activity, company focus, goods and/or services provided, primary customers, and location. Advanced Provides complete information regarding target market, industry size and maturity, opportunities & threats in the industry, overall outlook for the industry, major competitors. Explains how proposed product/service is distinct from others. Proficient Form of business ownership was chosen and defined. Some explanation of how things will be accomplished. Advanced Form of business ownership was chosen, defined, and reasoning was given for the choice of ownership. Thorough explanation of how things will be accomplished. Total Sufficient Product/Service mix was partially discussed and seemed to lack a complete line of product/service offerings. Explanation of how your products will be competitive was missing. Proficient Product/Service mix was clearly discussed and included a complete line of product/service offerings. Explanation of 21how your products will be competitive was unclear. Advanced Product/Service mix was clearly discussed and included a complete line of product/service offerings and included reasoning for the selection. Includes explanation of how your Total Earned: ______ out of 10 points Business Description (10%) Brief description of the Business (or Idea) Earned: ______ out of 10 points Market and Industry Analysis (20%) Earned: ______ out of 20 points Management Plan (10%) SP, partnership, corporation ownership Qualifications of MGT team & comp. pkg. Explanation of how things will be done. Poor /Lacking Info No form of business ownership was included in the plan. Permits/licenses/certifications omitted. No explanation of methods of doing things. Earned: Total (N/A) Total Total Total ______ out of 10 points Product &/or Services (10%) Identify and describe all products/Services, explain how your products will be competitive. Earned: ______ out of 10 points Poor /Lacking Info Product/Service mix was partially discussed or some was omitted. Explanation of how your products will be competitive is missing. MGT 351 Small Business Management Final Group Project (Oral presentation) Aspects to Poor Fair Good Excellent be assessed Organization Does not have Sections are Organizational Organizational any clear clear pattern (specific pattern (specific (15%) organization. Major sections introduction and introduction and are all presented. conclusion, conclusion, Audience may sequenced sequenced material Earned: not be told what material within within the body, will be covered. the body, and and transitions) is ______ out transitions) is clearly and of 15 points clearly and consistently consistently observable. observable. Organization is Organization is communicated to communicated to audience and audience. includes a recap at the end. Language Presenters read Presenters read Presenters speak Presenters speak (20%) aloud. Audience some of the time. from notes, and with or without has difficulty Audience may most have notes, with good understanding have some generally pronunciation and Earned: due to factors difficulty comprehensible grammatical such as understanding pronunciation, accuracy. Key ______ out pronunciation, some presenters rhythm and points are repeated of 20 points rapid speech, due to factors stress. with emphasis, and choppy rhythm such as Sentences are the audience has no and stress, pronunciation, clear and not trouble hearing or grammatical rapid speech, overly complex. understanding the errors, overly choppy rhythm Key points are speakers. Some complex and stress, repeated and speakers may sentences, or grammatical given emphasis. interact with the lack of errors, overly audience, using emphasis and complex humor or verbal repetition of sentences, or other techniques. key points. lack of emphasis of key points. Delivery Not all group Each group Each group Each group member (20%) members member member presents with equal participate in presents. May presents. Most professional skill. presenting. read from notes are Presentation is Earned: Presentation is or refer briefly to comprehensible, clear, thorough, and not succinct, text. Presenters thorough and well-rehearsed. ______ out clearly look at the clear. Most Presenters engage of 20 points organized and audience and presenters audience. All are spoken loudly delivery is loud engage the able to demonstrate and clearly. and clear enough audience and knowledge of the Answers to for audience to field questions. topic when fielding audience hear. One presenter questions. questions do not Professional may be dominant 22 demonstrate knowledge of topic. Supporting materials Content is lacking. Insufficient (10%) supporting materials. Materials may Earned: be used without citing sources. ______ out Information or of 10 points analysis minimally supports the presentation. Creativity (35%) Earned: Presentation lacks creativity and originality. attitudes are shown, when answering questions. One presenter may be dominant. Content is adequate. Supporting materials make appropriate reference to information or analysis that supports the presentation. Some gaps may remain-not every section of the presentation has enough support. Sources are cited. and demonstrate knowledge of the topic when fielding questions. Parts of presentation are creative and imaginative. Most of presentation is creative, imaginative, and interesting. Good content. Supporting materials make appropriate reference to information or analysis that generally supports each section of the presentation. Sources are cited. Content better than expected. A variety of types of supporting materials (explanations, examples, illustrations, statistics, analogies, quotations from relevant authorities) make appropriate reference to information or analysis that significantly supports the presentation. Presentation is given in a creative, highly energetic, and engaging manner. ______ out of 35 points TOTAL (100%) Adapted from: http://www.aacu.org/value/rubrics/OralCommunication.cfm 23