SAIGONTECH Course Syllabus BUSG 2309 - SMALL BUSINESS MANAGEMENT 1. Class : SBM Semester : Fall 2015 2. Instructors Instructor: Office: Tel: Mobile: Email: Lâm Hữu Hoàng Phúc Room 604 – SaigonTech Tower (08) 3715 5033 (ext. 1619) 0943 77 83 86 phuclhh@saigontech.edu.vn 3. Campus and Room Location with Days and Times Venue:Room 203 – SaigonTech Tower Time: Thu 13:00 – 16:45 4. Course Semester Credit Hours (SCH): 3 5. Total Course Contact Hours: 48 6. Type of Instruction: Lectures 7. Course Description This course provides specialized instructions on both theory and practical application of the small business principles necessary for the starting up and managing of a successful small business. The course is designed for students who want to evaluate going into business for themselves or working for a small business. Course content introduces students to a wide range of theories and good practices in such areas as sales and marketing, accounting and finance, human resource management, and various aspects of operation management. 8. Course Prerequisite(s): Though there are no prerequisites to this course officially, students could learn better if they have previously taken Principles of accounting, Principles of marketing and Plagiarigm awareness. 9. Course Student Learning Outcomes (SLOs) Program Students’ learning Outcomes 1. Identify essential management skills necessary for career success. 2. Describe the relationships of social responsibility, ethics, and law in business. 3. Construct a business plan 4. Examine the role of strategic human resource planning in support of organizational mission and objectives 5. Describe the impact of corporate culture and atmosphere on employee behavior Students’ learning Outcomes 1. Formulate a marketing plan for a small business Program 2. Describe various techniques used in the management of the major operations of a small business 1 Learning Objectives 3. Describe the relationship of social responsibility, ethics and law in business 4. Construct a business plan Program SLO # 3 All chapters 5 Describe the importance of HR planning, and its influence on the company culture to support the entrepreneur's mission and goals 5. Explain how to build the kind of company culture and structure to support the entrepreneur's mission and goals and to motivate employees to achieve them. 1. Formulating a marketing plan for a small business: 1.1 Describe the components of a guerrilla marketing plan and explain the benefits of preparing one. 1.2 Describe the guerrilla marketing strategies on which a small business can build a competitive edge in the marketplace. 1.3 Discuss the “four Ps” of marketing—product, place, price, and promotion—and their role in building a successful marketing strategy. 1.4 Define your company’s unique selling proposition (USP). 1.5 Explain the differences among promotion, publicity, personal selling, and advertising. 1.6 Describe the advantages and disadvantages of the various advertising media. 2. Describing various techniques used in the management of the major operations of a small business: 2.1 Explain the process of selecting a location for a retail, manufacturing, and service firm. 2.2 Explain the principles of effective layouts for retailers, service businesses, and manufacturers. 2.3 Understand the components of a purchasing plan. 2.4 Explain the principles of total quality management (TQM) and Six Sigma and their impact on quality. 2.5 Conduct economic order quantity (EOQ) analysis to determine the proper level of inventory. 2.6 Differentiate among the three types of purchase discounts that vendors offer. 2.7 Calculate a company’s reorder point. 2.8 Explain the various inventory control systems and the advantages and disadvantages of each. 2.9 Describe how just-in-time (JIT) and JIT II inventory control techniques work. 2.10 Describe methods for reducing losses from slow-moving inventory. 2.11 Discuss employee theft and shoplifting and how to prevent them. 3. Describing the relationship of social responsibility, ethics and law in business: 3.1 Define business ethics and describe the three levels of ethical standards. 3.2 Define social responsibility. 3.3 Understand the nature of businesses’ responsibility to the environment. 3.4 Describe businesses’ responsibility to employees, customers, investors, and the community. 4. Constructing a business plan 4.1 Develop a strategic plan for a business using the nine steps in the strategic planning process. 4.2 Discuss the characteristics of three basic strategies: low-cost, 2 differentiation, and focus. 4.3 Understand the importance of controls such as the balanced scorecard in the planning process. 4.4 Describe the various methods used in the valuation of a business. 4.5 Describe the elements of a solid business plan. 4.6 Explain the “five Cs of credit” and why they are important to potential lenders and investors reviewing business plans. 4.7 Describe how to use financial statements to manage a small business. 4.8 Create projected financial statements. 4.9 Conduct a breakeven analysis for a small company. 4.10 Construct a cash budget 4.11 Describe the various sources of debt capital and the advantages and disadvantages of each. 4.12 Describe the various sources of equity capital available to entrepreneurs, including personal savings, friends and relatives, angels, partners, corporations, venture capital, and public stock offerings. 4.13 Describe the process of “going public,” as well as its advantages and disadvantages. V. Describe the importance of HR planning, and its influence on the company culture to support the entrepreneur’s mission and goals 5.1 Describe the importance of hiring the right employees and how to avoid making hiring mistakes. 5.2 Discuss the ways in which entrepreneurs can motivate their employees to achieve higher levels of performance. VI. Explain how to build the kind of company culture and structure to support the entrepreneur’s mission and goals and to motivate employees to achieve them. 6.1 Explain how to build the kind of company culture and structure to support the entrepreneur’s mission and goals and to motivate employees to achieve them. 6.2 Understand the potential barriers to effective communication and describe how to overcome them. 10. Textbook Entrepreneurship - Effective Small Business Management - An entrepreneurial approach, 11th Edition (2014) By Norman M. Scarborough, Doug Wilson, Thomas W. Zimmerer, Pearson Prentice Hall. ISBN: 978-0-13-350632-7. 11. Course Requirements Make-up policy Make-up test is not allowed. If any class session is canceled, the instructor will discuss with the students to arrange a make-up class. Attendance and Withdrawal Policies Please read information about attendance and withdrawal policies on SaigonTech website: http://www.saigontech.edu.vn/saigontech/english/general_academic.jsp?subid=37#6 12. Instructor’s Requirements Classroom policy 3 Please be seated before lecture begins, and don't leave early without prior permission since it is very distracting to me and your classmates. Arriving late or leaving early will count as half of an absence. Because it is distracting to other students and to me, you should keep mobile phones off/silent, and not carry on private conversations. Being active in class discussions and asking questions are highly encouraged. To make best use of our scarce time, do NOT study for another exam, work for another class, play games, or surf the Internet. If you are caught red-handed, you will be dismissed from the class and your attendance for that class will be ABSENT. It also reduces your participation grade. Do not close your books or rustle your papers to signal the end of class. Pack up only when I say I have done. Academic Honesty Students are responsible for conducting themselves with honor and integrity in fulfilling course requirements. Zero will be given to student accused of scholastic dishonesty and plagiarism while an “F” will be given in severe case. Please read my PowerPoint on “Cheating and Plagiarism” and the following policies for more details about Academic Dishonesty Policy: Acts of plagiarism include but are not limited to: Submit other people’s works to get points (Nộp bài làm của người khác để lấy điểm cho mình). Copy words or ideas without citing source and author’s name (Sao chép từ hoặc ý tưởng củangười khác mà không nêu nguồn tài liệu và tên tác giả được trích dẫn). Do not use quotation marks for direct citation (Không đặt dấu ngoặc kép trong các trích dẫn nguyên văn). Cite the wrong source (Đưa thông tin sai về nguồn của một trích dẫn). Change the wording but sentence structure without citing author’s name (Thay đổi từ ngữ nhưng vẫn giữ nguyên cấu trúc câu của một nguồn tài liệu mà không nêu tên tác giả). Borrow words/ phrases from a source without using quotation marks or with making negligible change (Vay mượn từ/ cụm từ của một nguồn tài liệu mà không đặt dấu ngoặc kép hoặc chỉ thay đổi chúng một cách qua loa). Copy too many words or ideas that make up the most of personal work, regardless of whether source and author’s name are cited (Sao chép quá nhiều từ ngữ hoặc ý tưởng từ một nguồn tài liệu làm cho các ý tưởng đó chiếm phần lớn bài làm của mình, bất kể có nêu tên nguồn hoặc tác giả hay không) Copy information from Internet such as company information, market information etc. (Sao chépthông tin từ Internet (thông tin công ty, thông tin thị trườngv.v) Copy completely or partly from the text translated by translation tool such as Google translation etc (sao chép nguyên văn, hoặc một phần từ các công cụ dịch thuật, chẳng hạn Google Translation) Cooperate with other students to do the exams, tests and other assignments without permission of the Instructor (Cộng tác với sinh viên khác trong lúc làm bài thi/kiểm tra hoặc trong các bài tập mà không được phép của giáo viên) Use one assignment to submit for different classes without permission of the Instructor (Sử dụng hoặc nộp cùng một bài làm cho nhiều lớp khác nhau mà không được phép của giáo viên môn học) Have other people do the exams, tests and other assignments for you (Đi thi hộ hoặc nhờ người khác thi hộ mình trong kỳ thi/ kiểm tra hoặc làm giúp hay nhờ người khác làm bài tập cho mình) 4 Other Student Information: Refer to SaigonTech’s website at www. saigontech.edu.vnfor other students rights and responsibilities at the school 13. Grading Policies An Incomplete may be given only for extenuating circumstances (i.e. family illness, accident, and an unforeseen event occurring at exam time). The grading policy is summarized below: Course Grading 1) Quiz (quantity: 12, mode: individual) 2) Participation 3) Mid-term exam 4) Final exam 5) Presentation Total 24% 10% 20% 30% 16% 100% Grading Scale A 90 – 100 B 80 – 89 C 70 – 79 D 60 – 69 0 – 59 F The passing grade of this course is D. 1) Quiz (individual, closed book, only calculator accepted) Each student must attend the class to take the quizzes. If he/she is absent, there is no other opportunity to make up. Mark of 0 will be given if not taking the quiz. Specific time and date for the quizzes are specified in the course calendar. The duration of each test is 10 minutes. There are 12 quizzes in total. The quizzes will be provided in order to test students’ knowledge about the materials provided in the previous lectures and to help students be prepared before mid-term and final examinations. The results and feedbacks will be received at the next class. 2) Examination Format (individual, only calculator accepted) Exam Midterm Endterm Type MCT Application No. of questions 60 2 MCT Application 60 2 Points 60 40 Chapters Mode Duratio n Reading time 1, 2, 3, 4, 5, 7, 8, 9, 10 Closed -book 120 mins 5 mins 11, 12, 13, 14, 15 Closed -book 120 mins 5 mins 60 40 90 3) Participation (individual): Participation mark depends on your diligence and activeness. To get full mark (10%), you have to attend all 24 class-sessions and be very active in the class. 4) Presentation (individual): Choose your business and make the plan. 14. Course Calendar: Week Chapter 1 Course introduction – Assignments Chapter 1: Entrepreneurs: The Driving Force Behind Small Business Chapter 2: Ethics and Social Responsibility: Doing the Right Thing Item/Description 1. Define the role of the entrepreneur in the U.S. economy. 2. Describe the entrepreneurial profile. 3. Explain how entrepreneurs spot business opportunities. 5 2 Chapter 4: Strategic Management and the Entrepreneur Chapter 7: Buying an Existing Business 3 Chapter 8: New Business Planning Process: 4. Describe the benefits of owning a small business. 5. Describe the potential drawbacks of owning a small business. 6. Explain the forces that are driving the growth in entrepreneurship. 7. Put business failure into the proper perspective. 8. Explain how small business owners can avoid the major pitfalls of running a business. 9. Define business ethics and describe the three levels of ethical standards. 10. Determine who is responsible for ethical behavior and why ethical lapses occur. 11. Explain how to establish and maintain high ethical standards. 12. Explain the difference between social entrepreneurs and traditional entrepreneurs. 13. Define social responsibility. 14. Explain the nature of business’ responsibility to the environment. 15. Describe business’ responsibility to employees. 16. Explain business’ responsibility to customers. 17. Discuss business’ responsibility to investors. 18. Describe business’ responsibility to the community. Chapter 4 1. Understand the importance of strategic management to a small business. 2. Explain why and how a small business must create a competitive advantage in the market. 3. Develop a strategic plan for a business using the ten steps in the strategic planning process. 4. Discuss the characteristics of three basic strategies: low-cost, differentiation, and focus. 5. Understand the importance of controls such as the balanced scorecard in the planning process. Chapter 5 1. Understand the advantages of buying an existing business. 2. Understand the disadvantages of buying an existing business. 3. Explain the four steps involved in the right way to buy a business. 4. Describe the five steps of the deal stage for buying a business the right way. 5. Understand the transition stage for buying a business the right way. Chapter 8 6 Feasibility Analysis, Business Modeling, and Crafting a Winning Business Plan Business Plan Project Report – Step 1 (10 points) - Describe your products & services: what are your value propositions? - Perform Industry / sector analysis using Porter's Five Forces Model - Performing SWOT analysis 4 Chapter 14: Creating a Solid Financial Plan (Students should bring laptops and/or calculators) Chapter 15: Managing Cash Flow 5 Chapter 16: Sources of Equity Financing Chapter 17: Sources of Debt Financing 1. Present the steps involved in conducting a feasibility analysis. 2. Identify the components of the business model canvas and explain how to use them to develop a viable business model. 3. Explain the benefits of an effective business plan. 4. Describe the elements of a solid business plan. 5. Explain the three tests every business plan must pass. 6. Explain the "five Cs of credit" and why they are important to potential lenders and investors reading business plans. 7. Understand the keys to making an effective business plan presentation. Chapter 14 1. Understand the importance of preparing a financial plan. 2. Describe how to prepare financial statements and use them to manage the small business. 3. Create projected financial statements. 4. Understand the basic financial statements through ratio analysis. 5. Explain how to interpret financial ratios. 6. Conduct a break-even analysis for a small company. Chapter 15 1. Explain the importance of cash management to the success of the small business. 2. Differentiate between cash and profits. 3. Understand the five steps in creating a cash budget and use them to build a cash budget. 4. Describe fundamental principles involved in managing the “Big Three” of cash management: accounts receivable, accounts payable, and inventory. 5. Explain how bootstrapping can help a small business avoid a cash crunch. Chapter 16: 1. Explain the differences among the two types of capital small businesses require: fixed and working. 2. Describe the various sources of equity capital available to entrepreneurs, including friends and relatives, crowdsourcing, accelerators, angels, corporations, venture capital, and public stock offerings. 3. Describe the seven sources of funding that the founders can contribute to their new business. 4. Describe the types of businesses that attract venture capital financing and explain the 7 6 Business Plan Project Report – Step 2 (10 points) Review for Midterm 7 Mid-term examination Solution and Revision 8 Chapter 9: Building a Bootstrap Marketing Plan Chapter 10: Creative Use of Advertising and Promotion 9 Chapter 11 Pricing and Credit Strategies criteria that venture capitalists use to decide on their investments. 5. Explain the process, the advantages, and challenges of making an initial public offering. Chapter 17 1. Describe the various sources of debt capital and the advantages and disadvantages of each. 2. Explain the types of financing available from nonbank sources of credit. 3. Discuss other possible methods of financing growth. 4. Explain how to avoid becoming a victim of a loan scam. - Estimating your initial investment requirements: fixed and long-term assets; working capital; capital expenditure. - Projecting monthly cash flow for the first 1 year. - Evaluating the financial feasibility of the project using Break-even point analysis, NPV, IRR, payback period, and profitability index. - Estimating SG&A, and major balance sheet items Chapter 9 1. Describe the components of a bootstrap marketing plan and explain the benefits of preparing one. 2. Explain how small businesses can pinpoint their target markets. 3. Explain how to determine customer needs through market research. 4. Outline the steps in the market research process. 5. Describe the bootstrap marketing strategies on which a small business can build a competitive edge in the marketplace. 6. Discuss the “four Ps” of marketing— product, place, price, and promotion—and their role in building a successful marketing strategy. Chapter 10 1. Define your company’s unique selling proposition (USP). 2. Explain the differences among promotion, publicity, personal selling, and advertising. 3. Describe the advantages and disadvantages of the various advertising media. 4. Identify four basic methods for preparing an advertising budget. Chapter 11 1. Explain why pricing is both an art and a 8 Chapter 21: Staffing and Leading a Growing Company 10 11 Business Plan Project Report – Step 3 Management Team and Marketing Plan (10 points) - Describe how you will address the following management issues: Who are the key executives and what are their skills / experiences? What are the benefits of each executive to the company? How the team is qualified to operate the business? What are the external management resources (if any)? What are your human resourec need? - Describe how you will address the following marketing issues: What are your sales strategy? What are your product strategy? What are your price strategy? What are your promotion strategy? What are your distribution strategy? Chapter 18: Location, Layout, and Physical Facilities Chapter 19: Supply Chain Management Chapter 20: Managing Inventory science. 2. Discuss the relationship among pricing, image, competition and value. 3. Describe effective pricing strategies for both new and existing products and services. 4. Explain the pricing techniques used by retailers. 5. Explain the pricing techniques used by manufacturers. 6. Explain the pricing techniques used by service firms. 7. Describe the impact of credit on pricing. Chapter 21 1. Explain the challenges involved in the entrepreneur’s role as leader and what it takes to be a successful leader. 2. Describe the importance of hiring the right employees and how to avoid making hiring mistakes. 3. Explain how to build the kind of company culture and structure to support the entrepreneur’s mission and goals and to motivate employees to achieve them. 4. Understand the potential barriers to effective communication and describe how to overcome them. 5. Discuss the ways in which entrepreneurs can motivate their employees to achieve higher levels of performance. Chapter 18 1. Explain the stages in the location decision. 2. Describe the location criteria for retail and service businesses. 3. Outline the basic location options for retail and service businesses. 4. Explain the site selection process for manufacturers. 5. Discuss the benefits of locating a start-up company in a business incubator. Chapter 19 1. Understand the components of a purchasing plan. 2. Explain the principles of total quality 9 12 13 14 Business Plan Project Report - Step 4 (10 points) Operating Plan Describe your operating plan in addressing the following issues: How do you plan your physical location? What are your plan for facilities and equipment? What are your inventory requirement and who are the your suppliers? What are your manufacturing processes? Review for Final Exam Final examination Solution and Feedback management (TQM) including Lean, 5S, and Six Sigma and their impact on quality. 3. Conduct economic order quantity (EOQ) analysis to determine the proper level of inventory. 4. Differentiate among the three types of purchase discounts vendors offer. 5. Calculate a company’s reorder point. 6. Develop a vendor rating scale. Chapter 20 1. Explain the various inventory control systems and the advantages and disadvantages of each. 2. Describe how just-in-time (JIT) and JIT II inventory control techniques work. 3. Describe some methods for reducing loss from slow-moving inventory. 4. Discuss employee theft and shoplifting and how to prevent them. - Chapter 12: Product and Promotion: Creating and Communicating Value - Mini Video case Chapter 14: Management Motivation and Leadership: Bringing Business to Life - Mini Video case Presentation and Final Submission (60 points) 10