COURSESYLLABI ENTREPRENEURSHIP101:AnIntroductoryCourseonEntrepreneurship

CoursePhilosophyandObjectives Thiscoursewillexposetheparticipantstovariousdimensionsofentrepreneurship.With afocusoncases,fieldvisitsandsimulation,theexposurewillbepractical.Thecontent willbemultidisciplinarywiththeviewtocoverawholegamutofissuesrangingfrom economics to emotions of entrepreneurship. Consequently, the delivery will highlight howtosucceedoravoidfailureandwouldcovertheaspectofstartingandbuildingan enterprise. At the end of the course, participants are expected to be sufficiently aware of the excitement,problemsandsolutionsandapproachestoentrepreneurship.Thisshould equip them to pursue advanced courses in entrepreneurship, initiate selflearning activitiesandthinkofentrepreneurshipasagoodoptioneventually. Coverage Giventhebroadobjectivesandphilosophy,thecoursewouldcoverawholerangeof topics that facilitate understanding of the entire lifecycle of an enterprise: birth, challenges, earlysuccess, earlysustenanceandgrowth.Accordingly, thecoursewill cover issues relating to the identification & evaluation of new venture opportunities, developingaproperbusinessplan,appropriatefinancingstructureandsoon. Pedagogy Casediscussionwouldbetheprimary toolfor providinglearningopportunitiesinthe class.Thecaseswouldbedrawnfromavarietyofsettingsdomesticandinternational, successesandfailures,andstartupsandmaturedenterprisesandentrepreneurs.This would be supplemented by simulation exercises, visits to enterprises and interaction with entrepreneurs. Developing a business plan as a part of the course would also providesignificantinsightstothecourseparticipants. PleaserefertotheTeachingGuidelinesfordetailsonhowtoteachENTRE101. Evaluation Instructorscanevolvetheirownevaluationcriteriabutitisadvisedthatthefollowing allocationsareincluded: Classpresentationsandparticipation

Assignmentsonspecificissues/conceptscoveredinclass Examinationcanbeasubstituteforassignmentstotesttheknowledgeofkey concepts Business plan development where appropriate students can present their businessplanstoapanelofjudgesforfinalassessment

Contacthours Twoversionsofthiscoursecanbeconsidered:

Version1 :Forthosewhohavehadexposuretomanagementstudies(e.g.,as anelectiveinthesecondyearofanMBAprogram).Thisversioncanbeofabout 25sessionsof70minuteseach.

Version 2 For those who do not have management background (e.g., : engineeringstudents).Inthisversion,wewillneedadditionalsessionstodiscuss someconceptsoffinance,marketingetc.About3035sessionsof70minutes eachshouldbesufficient.

For both versions, class room contact will be supplemented by fieldtrips and interactionswithentrepreneurs.

ModuleI:

UnderstandingtheLandscapeofEntrepreneurship

Thismodulewillconsistofthreesessions.Usingcasesofoneortwoentrepreneurial firmsthathavegonethroughalifecycle,theparticipantswouldbeexposedtoavariety ofissuesrelatingtoentrepreneurship. These wouldincludeadiscussionondifferent types of entrepreneurship (e.g., innovation & imitation based), risks and rewards of entrepreneurship,stagesinthelifecycleofanentrepreneurialventureandtheroleofthe entrepreneur in each stage. The module should try to contrast the role of an entrepreneurvisvisthatofamanager. Session1:Broadoverviewofsettingupandbuildinganenterprise Thesessionwouldprovidesomeexposuretoinitialentrepreneurialdecisionsandtheir reasons. Case(Illustrative): ArunIcecream

ThecasedescribesthetrialsandtribulationsofMohan,anentrepreneurashemoves fromonephaseofentrepreneurshiptotheother.

Session2:Changesinthenatureofdecisionsoverthelifecycleofanenterprise Thissessionwouldhighlightthechangesinthenatureofentrepreneurialdecisionsas theenterprisestartstogrow. Case: KanpurConfectioneries(A)and(B)

This set of cases deals with the dilemma of becoming a subcontractor or not. The entrepreneurhasanestablishedbrandname.Goingforsubcontractingmightdestroy this.Thecompany,however,isnotdoingwell. Session3:Useoverviewofentrepreneurialissues Thissessionwouldbeusedtoprovideacontextualunderstandingofthetwofirmsin which a variety of decisions were taken and provide a birds eyeview of various entrepreneurialissueswhichwillbetakenupindetailinthesubsequentmodules. Readings: HStevenson(1983),PerspectiveonEntrepreneurship,October27. HStevenson(1988),TheStartupProcess,August23.

ModuleII: feasibility.

IdentifyingandEvaluatingOpportunities

Thismodulewouldcoverdifferentstagesofopportunityidentificationandassessingits

Session45: Ideageneration Using examples, the participants would be exposed to certain aspects of creative thinking.Totheextentfeasible,onecantryandexemplifyhowideascanbepursued initiallythroughsomesecondaryresearchandinteractionswithkeypeople. Case: GoodnightORGaryMueller

Goodnightpresentsacaseofanentrepreneurwhofoundanopportunitythatappeared obviousbutnobodypursuedit.GaryMuellerprovidesinsightonhowprivatizationof EasternEuropetriggeredinMuelleracoupleofideasforstartinganenterpriseand theevaluationprocessheputthemthrough.

Thecasediscussionwillbesupplementedbyexposuretosecondarydataonpatents, industry statistics etc. that can be used to pursue the idea in the initial stages and concretizeit.Asimulationexercisecanalsobeattemptedhere. Databases: Patentdatabases,Industrystatistics. Simulationexercise Iftheinstructoristeachinganaudiencewhoisnotfamiliarwithbusinessconcepts,23 extra sessions should be added here to provide additional conceptual input to participants about key issues relating to market segmentation, understanding the customersetc. Session6: Understandingthestakeholderneeds The participants would be exposed here to the backend work required before the business concept can be evaluated in some detail. Using a solutions approach, the participantswillbeguidedthroughaprocessofarticulatingtheproblemthatneedstobe solvedbyunderstandingthemarketneedsgapthatistobebridgedbytheproposed enterprise.Theexercisewouldalsofacilitatetheparticipanttoidentifyandunderstand thevariousstakeholders,especiallythecustomer. Case: Icedelights (The case can also be supplemented by an existing project proposal)

ThreesecondyearstudentsattheHarvardBusinessSchooldecidetobuyacompany. Thecasefocusesontheirthoughtsaboutanentrepreneurialcareer,theirsearch process,andtheevaluationofanIcedelights(anicecream/cafe)franchise. Readings: Areadingonhowafirminternallyunderstandsvariousstakeholderneeds.

Forthecoursedesignedfornonbusinessstudents,theenvironmentanalysisand businessplandevelopmentsessionswillbeprecededby34sessionsonkeyfinance relatedconceptsincludingexposuretofinancialstatements,financialplanningand managementrelatedissues.

Sessions7,8&9: Environmentanalysis&businessplandevelopment Thesesessionswouldbedevotedtothediscussionofvarietyoftasksthatarecriticalfor developingabusinessplan.Caseswouldbeusedtoexposetheparticipantstovarious concepts to analyze the market, seek preliminary validation from customer feedback (withprototype/pilot),andunderstanddifferentbusinessmodelsandprobablecostand

revenuestreams.Thesesessionswillexposetheparticipantstotheeconomiclogicof the enterprise. The discussion can be supplemented with a discussion of actual businessplans. Cases: EliteBreadORVimtalab

Thecasesdescribetheindustrialsituationstheentrepreneursfindthemselvesin.Since they are not alone seeking the attention of the customer it helps understand issues relatingtocompetitoranalysisandcompetitiveadvantage. Readings: A Chapter on Environment Scanning and Industry Analysis from any goodbookonStrategy.Thisistobesupplementedbyreadingsonthe essentialsandformatofbusinessplans. Sessions10&11: Financingtheventure These sessions would discuss the financing options available to a new venture and exposethemtotheissuesthatneedtobeconsideredwhileselectingafinancingroute. Thesessionswouldalsohelpparticipantsunderstandthecriticalityofcashflowsvis visrevenuesinastartup. Case: SecuritiesOnlineInc.OREInk

SOIisanelectroniccontentproviderofferingfinancialbusinessinformationonPoland andRussia.Theventurehasbeenthroughtheproofofconceptstageandisnow targetingventurecapitalistsforexpandingoperationsforwhichpurposetheBusiness Planhasbeendrawnup.Questionsraisedandansweredhereare,isthisareal opportunity?Whatwillittake?Howwillitbefinanced?Whatshouldthetwofoundersbe preparedtogiveuptoattractoutsidefunding? EInkfocusesonasetoffinancialandstrategicdecisionsconfrontingthemanagement ofacompanytryingtodevelopatechnologyforcreating"electronicink."Ifsuccessful, thecompanywillbeabletocreate"radiopaper,"essentiallyturningapieceofpaperinto acomputermonitorthathasallthecharacteristicsofpaperbutisdigitallycontrolled. Theteachingpurposeistoraiseissuesabouthowtofinancesuchahightechnology venture. Readings: HStevensonandMJRoberts(2002),NewVentureFinancing,Harvard BusinessReview,January8.

InteractionswithVCscanbeaddedaroundthistime. ModuleIII: GettingStarted

Thismodulewilltaketheparticipantsthroughthenittygrittyofsettinguptheenterprise. Sessions12,13&14: Understandinglegalissues Settingupofanenterpriserequiresanentrepreneurtodealwithavarietyoflegal issues.Thesesessionswillprovideabroadoverviewoftheseissues.Thecoverage wouldincludelegalissuesrelatingtoincorporatingacompany(constitutivedocuments, process),raisingcapital(termsheet,broaddealstructures,leversofnegotiation), raisingdebt(bankfinancing),customercontracts,intellectualpropertyrightsprotection (nondisclosures,noncompetes),employmentcontracts(compensation,non solicitation,confidentiality,stockoptions,etc.).Someexposuretoinstitutions(banks, otherschemes)providingsupportforsettingupnewenterpriseswouldalsobeprovided here. Case: LawyersandLeases+GuestLectures

Thecaseisdesignedtobeusedinanentrepreneurialmanagementorsmallbusiness coursetoillustratetheimportanceofearlynegotiationsinthelifeofabusinessventure. Ithighlightspotentialpitfallsnewentrepreneursexperienceinselectinganattorneyand negotiatingleaseagreements.ItprofilesRajathChaudhry,anaspiringentrepreneur,as heattemptstosecureofficespaceforhisgrowingteam,selectalawyer,andcontinues tobuildhisfledglingenterprise,eLearning.com. GuestlecturesneedtobeusedtohighlightIndiaspecificissues. Fieldvisitsandinteractionwithnewstartupswouldbeusefulatthisstageofthecourse astheentrepreneurscantalkabouttheirexperienceofstartupissues. Session15,16&17:Postentryentrepreneurialissues Immediatelyafterentrytheentrepreneurhastograpplewithavarietyofissuesincluding dealingwiththepilotcustomerandotherstakeholders. Cases: SymphonyAirCoolers/Indus/Dataprint(entry&entrepreneurship) ThrowawayBallpointPen/Nirdosh(startupmarketing) GujaratPharmaceuticals(nittygrittyfunctionalpolicies)

Thesecasesdealwiththeproblemsofenterprisesaftertheyhavereachedaspecific stageintheirgrowth. Readings: Hambrick,DandJFredrickson(2001),Areyousureyouhavea strategy?AcademyofManagementExecutive,15(4),4849. Block,Zand ICMacMillan(1985), Milestones for successful venture planning,HarvardBusinessReview,September1. Session18&19: Managingrisksandrewardsofentrepreneurship Thesesessionswouldhelpparticipantstounderstandthekeyriskfactorsandhow theseriskscanbemitigatedthroughresourceplanningandotherinnovativederisking techniques. Case: Reading: Amazon.Com2002(HBScase) Kuemmerle, W (2002), Test for the fainthearted, Harvard Business Review,May1.

Session20: Developingandmanaginganetwork Networks are critical for the success of an enterprise. This session would expose participantstothevalueofanadvisoryboard,strategicalliances,channelpartnerships etc.Theissuesrelatingtothesocialnetworkoftheentrepreneurcanalsobeexplored. Case: PatelBrassWorks

Describestheworldclassorientationofasmallenterpriseandhowdifferentalliances andlinkageswereusedtodevelopcapabilities. Reading: Hansen,MTet.al.(2000),NetworkedIncubators:Hothousesofthenew economy,HarvardBusinessReview,September1.

ModuleIV:

ManagingGrowth

Growthofanenterprisebringsinavarietyofnewissuesthatanentrepreneurneedsto grapplewith.Theseincluderecruitingtherightmanagementteam,changingroleofthe boardofdirectors,professionalizationofthecompany,buildingsystemsandprocesses

and developing strategies of growth including diversification and expansion. These issueswouldbecoveredinthismodule. Session21: Lifecycleandgrowthpangs Case: NoodlesandCo.ORKumarEnterprises

AaronKennedyhassuccessfullygrownNoodles&Co.fromasingleglobalnoodleshop toachainof58restaurantsspanningsixstatesinsevenyears.Inthefaceofincreasing competition,Kennedyhasplanstorollout240newstoresinthenextfouryears. Kennedymustdecideamongseveralalternativegrowthstrategies,withaparticular emphasisonthedecisionofwhethertofranchise.Kumaralsoraisesissuesofgrowth, declineandgrowth.Thesecasesexposetheparticipantstosomeofthelifecycleissues. Reading: Hamermesh,RGandJLHeskett(2004),Achievingprofitablegrowth andmarketvalue,HarvardBusinessReview,April5.

Session22: Successionandprofessionalization Case: KannagiMills

What does the entrepreneur do after he reaches a certain stage? When do professionalscomein?Whatdotheydo?Howdoestheentrepreneuradapt?Thiscase providesscopetodiscusstheseissues.

Session23: einventingandturnaround R Case: UnionSteelIndustries(A)and(B)

Thecasedealswithasituationwhereacompanyenteredintodiversemanufacturing activitiesandfacedavarietyofdifficultiesinmanagingthesituation.Itthenreinvented itselfandturnedaround. Reading: Greiner,LE(1998),EvolutionandRevolutionasOrganizationsGrow, HarvardBusinessReview,76(3),5563,May/June. Session24: Exitoptions

Herevariousexitoptionsliketradesale,promoterbuyback,acquisitions,publicoffer etc. would be discussed. Issues relating to the management of conflicts of financial investorsandfoundersaswellasthetimingofexitcanalsobecovered. GuestLecturesbyVCs Sessions25: PresentationofBusinessPlans ThesepresentationswouldbeevaluatedbyVCsandentrepreneurs. The cases and readings listed above can be supplemented by some good texts on entrepreneurship.Thefollowingcanbeconsidered:

EntrepreneurshipbyRobertD.HisrichandMichaelP.Peters,TataMcGraw HillPublishing

NewVentureCreationEntrepreneurshipforthe21 CenturybyJeffrey TimmonsandStephenSpinelli,6thEdition.

st

NOTE: Please review the Reading & Case list & Implementation note to get the comprehensivelistofcases,articles,andtextbooksandlogisticalinformationonhowto procurethematerial.