MGT 3323 Entrepreneurship
Industry, Competitor & Market Analysis
DUE: Printed copy must be submitted Monday, March 5th no later
than 3:30 p.m.; Electronic copies must be submitted Tuesday, March
6th no later than 9 a.m.
No late assignments will be accepted.
You will conduct a detailed analysis of the industry, the competitors, and the market for
the business you are proposing. The reports (which are expected to be 20-25 pages)
should be based on the collection of primary and secondary data.
I will gladly provide you with constructive criticism as you develop your analysis so that
that improvements can be made (although I will not tell you the grade that a draft would
receive). As the final due date approaches, I cannot guarantee that time will allow me to
provide you with the preliminary feedback; so, you should submit papers for preliminary
feedback as early as possible.
It is very important for you to explain, in depth, exactly what you did and how you did it
for this assignment. Thus, I want to know where you looked for data, what data you
attempted to collect, how you collected and analyzed the data, and anything else
pertaining to the methods you used to complete this assignment. Source referencing
should also be provided (see constraints).
Demands
Each paper should include the following:
An executive summary that introduces the business, describes the company,
summarizes the industry information, and summarizes the market analysis. Consult
Barringer’s (2009) description of an executive summary (the discussion begins on p.
83). These pages (which should not exceed 2 pages) do not count toward the document
but must be present (i.e., a 10 point deduction if it is not included).
A detailed analysis of the industry. This includes:

A definition of the industry (see p. 103-104)
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
Industry size, growth rate, and sales projections (see p. 104-109) nationally and
locally (i.e., if you are operating in particular location like Starkville, you should
describe the size, growth rate, and sales projections in Starkville)

Industry characteristics
o Explain how the industry is segmented and where your business fits into
that segmentation
o Explain the portion or specific market within your broader industry that you
plan to target

Identify key financial benchmarks and ratios, interpreting the meaning of those
ratios (consult the sources from the library attached)

Identify industry trends (including those working in favor of the industry and those
working against the industry)
o Trends should be addressed nationally and locally (i.e., if you are
operating in particular location like Starkville, you should describe and
document the trends within the area)

An explanation of long-term prospects, identifying new products or services
emerging from the industry
A detailed analysis of competitors. This includes:

An identification of direct and indirect competitors (see p. 134-137).
o A description of where these competitors are located and how accessible
they are to customers
o A description of the products and services competitors offer (varieties,
inventories)
o Competitors’ prices and costs
o The types of customers competitors attract
o Competitors’ strengths and weaknesses
o Competitors marketing and distribution systems
o Barriers created by the competitors

A description of the methods for generating revenue in the industry

Your venture’s values and benefits directly compared to your competitors against
meaningful criteria that you define

A competitive analysis grid (p. 138)
A detailed analysis of the target market. This includes:
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
Clearly describe your individual customers (i.e., characteristics and
preferences)—narrow this to a meaningful segment (see p. 128-129)

Determine the number of customers that are available in your market area (and
present the process of that you used to arrive at this number); determine the
number that you can reasonably expect to purchase your product or service

Collect first-hand data from potential customers that are within your target market
to assess (see p. 70-71 and present a copy of the instrument that you use along
with the summary statistics for each item included):
o The benefits these individuals desire
o The similar products and services these individuals currently buy and how
much they pay for these similar products and services
o These individuals’ satisfaction with the competitors
o The trade-offs these individuals will accept between price and benefits
o The ways that these individuals find out about products and services
o How purchasing decisions are made for products and services like yours
o How much these individuals would be willing to pay for your particular
product or service
A conclusion that explains the feasibility of the venture based on the industry, the
competitors, and the customers.
Constraints
You are expected to adhere to the following:

You must collect first-hand data from potential customers within your target
market—any report not including such data will receive an automatic “F”

You must collect primary (i.e., discuss issues with business leaders) or
secondary data regarding the industry, (e.g., U.S. Census)

You must type the document, using Times New Roman—12-pitch font, doublespaced, with one-inch top, bottom, and side margins on a standard 8 ½” by 11”
sheet of paper (papers that are not typed will not be accepted).

You must include a title page that includes your name and, if appropriate, the
names of all team members (failure to include this will lead to a 5 point
deduction—this does not count toward your page count)
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
You must ensure your name is in the header of each page (failure to include this
will lead to a 2 point deduction).

You must spell out ALL acronyms that are used in responses (2 points off for
each acronym that isn’t defined).

You must use proper grammar, spelling, and punctuation (1 to 2 points off for
each error).

You must properly cite other authors work and provide a reference list at the end
of your plan (this does count toward your page count). To provide you with
concise guidance, you must use the format and style required by authors that are
submitting papers to the Academy of Management Review for your citations. The
current guidelines appear on line at www.aom.pace.edu/amr/style.html (site
verified on 23 Dec 2011). Feel free to ask me any questions as you prepare your
plan.

Your paper must be specific, clear, and concise.

You must not present Tables or Figures that are cut directly from websites (5
point deduction for each of these presented)

You must present a printed and electronic copy. The printed copy must be
presented in class on the date and at the time that is specified. The electronic
copy must be sent to me as specified.

You must ensure the document is stapled or secured with a clip in the top left
corner (a stapler is not provided in class and a failure to do this will lead to a 5
point deduction).

You must label your file as “Industry & Customers—Your last name followed by
your first and middle initial (or simply the last names of all team members”. This
refers to the document file name not the subject line of the e-mail. For example,
an assignment submitted by me would be titled “Industry & Customers —Holt
DT” (failure to do this will lead to a 2 point deduction)
Choices
To get the full benefit of this, I recommend that you spend considerable time thinking
and reflecting about the issues and concepts associated with your new venture. Thus, I
wouldn’t recommend that you sit down and try to complete analysis in one sitting.
Instead, I would encourage you to complete the associated reading; step away to think
about the issues and concepts; and, finally, sit down to write your thoughts. After this,
take breaks, exchange parts with others, improve and refine your thinking. By doing this
as you develop the assignment, the integration of the different parts into a final
document will be easier.
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I encourage you to consider options that will help you present your material in a concise
way (e.g., tables or diagrams; in fact the text explains where Tables and Figures should
be presented). Still, you should ensure that you explain the material clearly. Because
other’s Tables and Figures rarely address the issues that an author is trying to explain,
no Tables or Figures directly cut from websites are acceptable (see the constraint
above). Also, you should be judicious with the use of images (clip art is not
appropriate for this type of paper).
Consider using Barringer’s (2009) example from Prime Adult Fitness as a guide. If you
have questions on what to include please ask me.
In preparing your feasibility analysis, I recommend that you look at on-line and print
sources of information available in the library (a list of resources is attached). I also
recommend that you visit the Entrepreneurship Center (McCool Hall, Second Floor) for
assistance in developing your feasibility analyses.
I encourage you to complete a concept statement test and refine your idea before you
present it to customers (see Barringer, p. 70; include this and the analysis as an
appendix which will not count toward your page count).
I encourage you to take the time to have someone else review your work (even if they
are not enrolled in the class). Regardless of the person’s experience with the material,
almost anyone can provide you feedback concerning the clarity of your writing not to
mention grammar, punctuation, and spelling.
Involvement of Human Subjects
As you complete aspects of this you will collect first-hand data from other individuals (in
research parlance they are termed human subjects). All students are required to read,
sign, and return to me the Procedures for dealing with Human Subjects Agreement
found at the end of this assignment sheet and submit it with your assignment (this does
not count toward the requirements of the project, failure to submit this is a 5 point
deduction). In addition, a sample letter for explaining your project to people from whom
you seek data is also provided.
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Submission Requirements
No late assignments will be accepted. You are required to submit a paper and an
electronic version. Failure to submit the paper version at the appropriate time and
date will result in a zero. Failure to submit an electronic version at the time designated
will result in a 10 % deduction. The submission of an electronic version does not
eliminate the requirement for a printed copy to be turned in as required.
Network, e-mail, printer, or computer problems are not excuses for late work (for either
the printed or electronic versions).
DUE: Printed copy must be submitted Monday, March 5th no later
than 3:30 p.m.; Electronic copies must be submitted Tuesday, March
6th no later than 9 a.m.
No late assignments will be accepted.
Submit the electronic copy to Daniel.holt@msstate.edu
Evaluation
This assignment will be evaluated on a 100-point scale and then given the proper
weight at the end of the term (see the syllabus). You should consider me as the
customer for this work. As such, I will react to your work, in a way that a customer
reacts to products or services that they purchase. That is, they are delighted, excited,
satisfied, or disappointed by the product or service that they receive. In an analogous
manner, each section that you are required to submit will delight (i.e., exceptional work),
excite (i.e., exceeds expectations), satisfy (i.e., meets expectations) or disappoint (i.e.,
needs improvement) with points taken off if your work doesn’t meet expectations.
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GENERIC SAMPLE LETTER TO PROVIDE TO HUMAN SUBJECTS
I am a student at Mississippi State University in the Entrepreneurship class (MGT 3323)
taught by Daniel T. Holt (662-325-5101). The primary assignment in the class is the
preparation of the business plan.
I am requesting that you assist me in the work necessary to prepare my business plan
by providing me with certain data. To get an idea of the feasibility of my proposed
business and to determine how such a business should be set up, your input is
essential. Therefore, I would greatly appreciate your assistance. The data collection
procedure should take only ___ minutes to complete.
The data will only be used for papers pertaining to the Entrepreneurship class. Aside
from that, your responses will be kept strictly confidential. I, and the members of my
group, will handle data analysis and evaluation. The data in my possession will be
destroyed at the end of the semester.
The instructor is required to keep a copy of my assignments for a period of at least six
months. He might also decide to use the report in future classes for the purpose of
illustrating how to prepare a feasibility study or business plan. However, the instructor
will delete any data specific to you or your company contained in the report prior to its
further classroom use.
Please note that your participation in this research is voluntary. Should you
decide to participate your help in making my study a success is greatly
appreciated. Please do not hesitate to ask Dr. Holt or me any questions that you
might have about the assignment or the course.
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PROCEDURES FOR DEALING WITH HUMAN SUBJECTS
AGREEMENT
Completing the individual feasibility analysis and the integrated business plan may
involve collecting first-hand data data from human subjects. There are procedures at the
University for reviewing research projects that involve human subjects. According to the
Mississippi State University Institutional Review Board (IRB) Handbook, however, “The
collection of information from respondents for the purpose of class discussion or for the
purpose of training in research or research methods does not require IRB review.”
While your research does not have to be approved by the IRB, you should understand
the importance of dealing with any person from whom you collect data in an ethical
manner. This means that as a representative of Mississippi State University (1) you
should do no harm to the persons you deal with, (2) any interactions with persons from
who you collect data should be handled in a completely honest fashion, (3) the privacy
of subjects should respected and the confidentially of the information collected should
be maintained, and (4) you should provide full disclosure of what you need the data for,
how the data will be stored, used, and disposed of, and who will have access to the
data. A sample letter covering these key issues is provided for your use.
I have read the above statement and agree to adhere to its strictures in all activities
involving human subjects in the MGT 3323 class.
Signature
_________________________________________
Printed Name
_________________________________________
MGT 3323, 8
Entrepreneurship Research Resources
Mississippi State University Libraries
Industry Analysis
==========
NAICS/SIC Code United States Manual 1997
U.S. Industry and Trade Outlook
Encyclopedia of American Industries
Encyclopedia of Emerging Industries
Standard & Poor’s Industry Survey
Value line Investment Surveys
Encyclopedia of Associations
Mergent Industry Review
Occupational Outlook Handbook – Department of Labor
Trade Publications
===========
Ulrich’s International Periodical Directory
Wall Street Journal Index
Encyclopedia of Associations
Inc
Entrepreneur
Family Business Review
Statistics/Demographics
==============
Statistical Abstract of the United States - Census Bureau (for general demographics)
County and City Data Book – a Statistical Abstract Supplement
State and Metropolitan Area Data Book – a Statistical Abstract Supplement
Census Bureau – Business/Industry (http://www.census.gov/econ/index.html)
Census Bureau – by County or Zip code level (http://www.census.gov/econ/cbp/_
FedStats (http://www.fedstats.gov/)
American Statistics Index (ASI)
Market Share Reporter
Bureau of Labor Statistics – Department of Labor (http://www.bls.gov/)
Bureau of Economic Analysis – Department of Commerce (http://www.bls.gov/)
Mississippi
=======
Statistical Abstract of the United States - Census Bureau (for general demographics)
County and City Data Book – a Statistical Abstract Supplement
State and Metropolitan Area Data Book – a Statistical Abstract Supplement
The Book of the States (Mississippi Section)
Mississippi Business Directory
Mississippi Statistical Abstract
Academic Journals
===========
Entrepreneurial Business Law Journal
Entrepreneurship Theory and Practice
Entrepreneurship and Regional Development
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Journal of Business Venturing
Journal of Developmental Entrepreneurship
Journal of International Entrepreneurship
Journal of Small Business Management
Small Business Economics
Strategic Entrepreneurship Journal
Company Analysis
===========
Standard & Poor’s Register of Corporations
Ward’s Business Directory
Thomas Register of American Manufacturers (http://www.ThomasNet.com)
Disclosure SEC Filings: 10k, 8k, proxies, prospectuses, annual report
EDGAR (http://www.sec.gov/edgarhp.htm)
FreeEdgar (http://www.freeedgar.com)
Mergent Online database
Lexis/Nexis Academic database
Value line Investment Surveys
Directory of Foreign Firms operating in the United States
Directory of American Firms operating in Foreign Countries
Hoover’s Handbook of American Business
Hoover’s Handbook of Private Companies
Hoover’s Handbook of World Business
Hoover’s Handbook of Emerging Companies
Financial Ratios
=========
Almanac of Business and Industrial Financial Ratios (Troy)
Industry Norms and Key Business Ratio (Dun & Bradstreet)
Risk Management Associates Annual Statement Studies (RMA)
Mergent Online database
Lexis/Nexis Academic database
Value line Investment Surveys
EDGAR (http://www.sec.gov/edgarhp.htm)
FreeEdgar (http://www.freeedgar.com)
Best’ Key Rating Guide (by AM Best)
Market Analysis
==========
Please refer to a series of websites on Consumer Spending and Lifestyle on the library research guide
(http://guides.library.msstate.edu/content.php?pid=68841&sid=508952)
Trade Names/Trademarks
===============
Brands and Their Companies
Standard Directory of Advertiser
Thomas Register of American Manufacturers (http://www.ThomasNet.com)
United States Patent and Trademark Office (http://www.uspto.gov)
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Databases
======
Please refer to the “Business Databases@MSU Libraries web” handout
Internet Resources
===========
Score (http://www.score.gov)
US Small Business Administration (http://www.sba.gov)
U.S. Association for Small Business & Entrepreneurship (http://usasbe.org/)
Business Owner’s Tool Kits (http://www.toolkit.com/)
Library Research Guide
==============
Please refer to the virtual business library “Business Information Research Series” on the library website for more
websites.
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