MHR 722 - Entrepreneurial Management

Phil Greenwood
Fall 2013
Office: 5252 Grainger Hall
E-mail: pgreenwood@bus.wisc.edu best way to reach me.
Time: 2:25pm 3:40pm, Tuesday and Thursday
Office Hours: by appointment, will usually be in office prior to class. 1-2:00pm,
T/Th
READINGS:
1. Course website: www.learnuw.wisc.edu.
2. Readings and cases either at website or Harvard Business School site.
a. For the Harvard material, instructions:
i. Course link:
https://cb.hbsp.harvard.edu/cbmp/access/19990237
ii. You need to register on the site to create a user name if you
do not already have one.
iii. Some course materials are PDF documents and you can open
them with Adobe Reader.
iv. eLearning materials include a link you can use to gain access
to them.
v. Some course materials may not be available in digital format
and these will be shipped to you.
vi. You will have access to the course materials for 6 months.
vii. After you register, you can get to the coursepack at any time
by doing the following:
viii. Visit hbsp.harvard.edu and log in.
ix. Click My Coursepacks, and then click EntrepMgmt _ Fall
2013
COURSE OBJECTIVES:
1.
2.
3.
4.
5.
6.

To identify the role of entrepreneurial ventures in the U.S.

economy.
To identify the processes involved in starting a new venture.
To identify the processes involved in funding and investing in a
new or growing entrepreneurial venture.
To understand methods for organizing and managing an
entrepreneurial venture.
To understand methods for advising owners/managers of
entrepreneurial ventures.
To suggest small business ownership, advising or financing as a
possible career course.

Course Assignments:
Possible points
1. New Venture Feasibility or Strategic Plan Written Portion(Group)
300 points
2. Presentation(s) (Group)
100 points
Elevator Pitch 10 points
Business Model Presentation: 15 points
Mid Semester Pitch 25 points
Final Presentation 50 points
3. Mid-term Exams Two (Individual)
300 points
4. Case Analyses (5) (Individual)
200 points
5. Attendance and Participation (Individual)
100 points
1000 points
Average of top 3 scores will represent 100%. The following curve will be applied:
Grade
Grade
Grade
Grade
Grade
Grade
Grade

of A =
93%
AB =
88%
B=
80%
BC =
75%
C = 65 74%
D = 50 64%
F = Below 50%

to 100% of the top score

- 92% of Top
to 87% of Top
to 79% of Top

Examinations. Two in-class examinations will be given. The examinations will

cover the content of readings, lectures, and cases with short answer and essay
questions.
Attendance/Discussion /Participation
Your grade will be based on your
contribution to the class culture. Since entrepreneurship, unlike some of the
functional classes you have taken or will be taking, is a group-participant and
highly interactive sport, it is helpful for you to think about your level of
contribution in the class or in your groups.

Major Project Option 1: New Venture Feasibility

The major project is to conduct a New Venture Feasibility that evaluates the
potential for a new venture idea. Using the New Venture Feasibility paper on the
course website as a guideline for the idea, your major objective is to create an
idea, evaluate the market feasibility of the idea, develop potential strategies for
the venture, prepare a three year financial feasibility estimate and to provide an
overall conclusion as to the feasibility of the idea resulting from the analysis. This
is NOT a business plan but the foundation for a plan, you are only to conduct the
feasibility of the idea. Other info:

Idea can come from one of the group members (no more than 3 per group),
a related party to a group member (relative, friend, etc.) or an existing
organization that has a new venture idea.
This is NOT simply a product/service feasibility analysis but an evaluation of
a new venture (products/services offered, team, marketing, resources, legal,
etc.).
There will be three presentations for the New Venture Feasibility an
elevator pitch, a mid-term summary, and a final presentation. Details below.
Report should be minimum twenty pages (not including appendices).

See course website for a more detailed description for the written Feasibility
Analysis.
Presentations
1. Elevator Pitch your group will be required to develop and present a short
Elevator Pitch An elevator pitch is a short summary used to quickly and
simply define your idea and its value proposition. The name "elevator pitch"
reflects the idea that it should be possible to deliver the summary in the time
span of an elevator ride, or approximately thirty seconds to two minutes. The
term itself comes from a scenario of an accidental meeting with someone
important in the elevator.
The pitch should as best you can the following questions in less than 90 seconds:
1.
2.
3.
4.

An opening to hook the pitchee.

Who is the target customer? What is the customer need?
What is the product name? What is its critical benefit?
Who or what is the competition? What is the products unique
differentiator?
5. Whos involved in the venture idea?
6. A closing to seek a course of action with the pitchee.
The following statement is an example of a condensed elevator pitch:
For (target customer), who has (customer need), (product name) is (market
category) that (one key benefit). Unlike (competition), the product (unique
differentiator).

2. Business Model Canvas Presentation

3. Mid-Semester Summary a three minute summary of the first half of your
venture feasibility analysis. The presentation should include the following
points:
Company Overview
Product/Service Description
Industry and Marketplace Analysis
Marketing Strategy

4. Final Presentations 6 minutes, cover all areas of the Feasibility Analysis, with
a final recommendation whether Venture is feasible or not with summary
analysis supporting your conclusion. If you present that it is not feasible, think
of what would have to be done to make it feasible. If your group states the
idea is feasible, discuss the future steps needed to move the idea to reality.
OPTION 2 - Strategic Plan Project. The members of the class are required to
work as a team with an area entrepreneurial venture and write a
comprehensive Strategic Plan for them. The STRATEIC Planning Guide on the
course website provides details as to the plan.

a.

The Strategic Plan is a carefully prepared, cohesive document of no

less than 20 pages (not including appendices), loaded with facts and
figures.

b.

The Plan should provide a framework for the systematic and

comprehensive evaluation of the venture that will enable the
owner/manager to take an objective and critical view of the entire
business. The plan should help the owner/manager deal with
uncertainties, evaluate risks, and prepare contingencies enabling
them to anticipate events, rather than react to them.

c.

The Strategic Plan should also be designed to provide a guide to help

manage and control the business during developmental and
operational stages.

d.

A team presentation of the plan to management is required.

e.

Completion of the paperwork (on website) is a necessity for

completion of the class.

f.

Presentations

Elevator Pitch your group will be required to develop and present a short
Elevator Pitch An elevator pitch is a short summary used to quickly and
simply define the organization and its value proposition. The name
"elevator pitch" reflects the idea that it should be possible to deliver the
summary in the time span of an elevator ride, or approximately thirty
seconds to two minutes. The term itself comes from a scenario of an
accidental meeting with someone important in the elevator.
The pitch should as best you can the following questions in less
than 90 seconds:
1.
2.
3.
4.

An opening to hook the pitchee.

Who is the target customer? What is the customer need?
What is the product name? What is its critical benefit?
Who or what is the competition? What is the products
unique differentiator?
5. Whos involved in the venture idea?
6. A closing to seek a course of action with the pitchee.

The following statement is an example of a condensed elevator pitch:

For (target customer), who has (customer need), (product name)

is (market category) that (one key benefit). Unlike (competition), the
product (unique differentiator).

Business Model Canvas Presentation

Mid-Semester Summary a three-minute summary of the first half of your

strategic plan. The presentation should include the following points:
a. Company Overview
b. Product/Service Description
c. Industry and Marketplace Analysis
d. Marketing Strategy

Final Presentations 6 minutes, summarize the organization, discuss

analysis (SWOT), present recommendations.

SCHEDULE
Date

Topic/Class Activities

Sept 3

Introduction and Class Overview

Sept 5

The Entrepreneurial Process

Case Study

Sept 10
Sept 12

Sept 17
Sept 19

Topics

A Perspective on Entrepreneurship reading at HBSP Site

Bricolage article, CW (Course Website)
Case 1: RnR Practice Case Analysis (nothing due)

Startups- Feasibility and Business Planning

The Timmons Approach to Feasibility Analysis

First Cut

Evaluating New Ideas

Business Plans Some Thoughts on Plans, HBSP

New Venture Feasibility Reading, CW
ToughMudder Reading CW

Case 2 College Couriers HBSP Website

Business Plans Review

Sept 24

Elevator Pitch New Venture Idea

Sept 26

Business Model Analysis

Oct 1

Business Model Presentation

Oct 3

Design Issues of Entrepreneurial Firms

Oct 8

Oct 10

Organizational Typologies and Operating

Strategies Case/Review for First Exam
Exam 1

Oct 15

Legal Issues Structure and Intellectual

Property

Oct 17

Marketing Issues in Entrepreneurial Firms

Review for Presentations on 10/22

Oct 22

Oct 24

Presentations First Half of Feasibility

Analysis (3 minutes)
Key Financial Ratios

Oct 29

Survival Strategies Johnson/Ebben article (CW)

Case 5: Boston Ducks Tour HBSP

Nov 5

Key Financial Ratios

Financial Forecasting
Financial Evaluation of Entrepreneurial
Firm
Financing Strategies

Nov 7

Nov 12
Nov 14

Nov 19
Nov 21

Oct 31

Case 3: Room for Dessert HBSP

Pitch Reading CW
PRESENTATION: 90 Seconds each group on Major New Venture
Idea
Biz Model Reading Website;
Case 4 Study Blue: HBSP
PRESENTATION: Using the Biz Model Canvas, present a short 3
minute presentation about the Business model for your New
Venture Idea.
Organizational Characteristics Reading - CW
The Value of Customization CW

Legal Organization Structure Reading at HBSP site

Legal Protection of IP Reading at HBSP site

Case 6 Mason and Shepherd HBSP

RadioHead Article CW

Why Startups fail at Marketing - CW

Case 7: Scalix HBSP

PRESENTATION

Reading: Financial Backgrounder, website

Reading: Financial Backgrounder (website)- continued

Case 8: Pack ItS

Financial Strategies Case

Business Valuation

New Venture Financing HBSP Reading

Crowdfunding reading CW
Case 9: Gordon Biersch website
Business Valuation reading on course website

Entrepreneurial Valuation Issues

Case 10 Power Beverages HBSP

Purchasing a Business HBSP

Buying a Business
Dave Lohrentz, Co-Owner of Madison
Sourdough Baking.- Guest Speaker
The Search Process

Case 11: Jim Southern Case HBSP

Exam 2

EXAM

Nov 26

Work on Final Project

Nov 28

Thanksgiving

Thanksgiving Holiday

Dec 3

Harvest Issues The IPO

Dec 5-12

Final Presentations

PRESENTATIONS

No Formal Class

Case 12: Gilead Science, Website

Confidentiality Policy
Throughout the Weinert Center for Entrepreneurship classes and events, students
will be exposed to proprietary information from other students, guest lecturers
and faculty. It is the policy of the Weinert Center that all such information is to be
treated as confidential.
By enrolling in and taking part in the Weinert Centers classes and activities,
students agree not to disclose this information to any third parties without specific
written permission from students, guest lecturers or faculty, as applicable.
Students further agree not to utilize any such proprietary information for their own
personal commercial advantage or for the commercial advantage of any third
party.
In addition, students agree that any legal or consulting advice provided without
direct fee and in an academic setting will not be relied upon without the enlisted
opinion of an outside attorney or consultant, without affiliation to the Center.
Any breach of this policy may subject a student to academic integrity proceedings
as described in the University of Wisconsin - Madison University Governance
Policies and procedures and to any remedies that may be available at law.
The Weinert Center, the School of Business, and the University of Wisconsin Madison disclaim any responsibility for the protection of intellectual property of
students, guest lecturers or faculty who are involved in Entrepreneur Program
classes or events.
Receipt of this policy and registration in our classes is evidence that you
understand this policy and will abide by it.

Case Analysis Guidelines

Cases. Case analysis is used to simulate the role of one who initiates,
manages, or advises a small or medium size venture. Study questions will be
provided, but you should start with your own analysis and then frame your
answers within the questions.
Cases assigned for class discussion only
should also be analyzed before the class. Due prior to the start of class.
Review the Questions by the instructor prior to reading the case
Each case is a potential 40 points.
o 40 points you've done an exceptional job of putting in the extra time in
answering the questions thoughtfully, concisely, and in a well-written
fashion (grammar, logic, typos). Your analyses clearly draw on class
material, show good analyses of key strategic issues and offer strong
ideas about how to take action. Generally is consistent with an A grade
o 34-36 points You've read the case and answered the questions well.
Your comments reflect basic understanding of key material, and your
effort to apply them to the practical setting. (Similar to an AB).
o Below 34 you've read the case but put modest thought into answering
the questions or thinking how to use the strategic ideas. (B or lower)
Take the point of view of the protagonist as you read the case put yourself in
the place of the character identified in the case or study questions as the
decision maker.
Dont repeat the facts of the case, use the facts to complete your analysis
providing support for your argument. Take a definite stance and support it.
ONLY use the information in the case.
There is not a right answer but there is usually a better answer than others.
More important is to provide your answer and provide support for it.
USE BULLET points for each question. With each point, provide the supporting
case facts with it. Also, be concise, the grades for cases will not be provided
based on how much the analysis weighs or how many words are in it.
Dont be afraid to ask questions in class.
Have fun with them.

Case Questions
RnR (PRACTICE CASE)
1. What factors created the opportunity for Reiss?
2. What were the factors or barriers that Reiss faced and how did he overcome them?
3. Was Reiss and the R&R venture successful on a financial basis?
College Couriers
1. As Dwayne Leslie, perform the analyses you deem appropriate in order to
decide whether to purchase College Courier Inc. (Hint: Use POCD or other
similar method to evaluate).
2. What, if anything, would you change about CCI to improve its performance?
Room for Dessert
1.

Using the POCD framework, prepare an analysis of Room for Dessert using the info
in the case. Evaluate their strategy vs. the results of your analysis.
2. Who are the core customers for the business and why might they value the RFD
offering as compared to alternatives?
3. Evaluate the written quality of the plan (1 is excellent to 5 poor). How would you
improve it?
Study Blue
1. Using the Business Model Canvas framework, evaluate the StudyBlue business
model by identifying the key components of the framework.
2. Breakdown the economics of the business model. What are the critical elements or
drivers of the economics in their original plan and how did this compare to actual
operations?
Boston Ducks
1. What appears to be the predominant Organizational Typology for Boston Ducks?
Why?
2. Identify the predominant Operating (aka Survival) Strategy for the Ducks?
Why? What are the long-term implications of this strategy?
3. Recommend changes for Boston Ducks in regards to Typology and Operating
Strategy.
Mason and Shepherd
1. Evaluate the situation in which Mason and Shepherd find themselves with
respect to their existing employers. What legal and ethical issues do you see
and how would you advise them to proceed?
2. Evaluate the Non-Disclosure agreement and its potential impact on venture
capitalists considering an investment in Intelisoft? If you were a venture
capitalist, why would or wouldnt sign?
Scalix
1. In 2003, ... Scalix delivered zero revenues against what was believed to have
been a modest target. What do you think is wrong here? Why isnt the product
selling?
2. Describe the sales model for Scalix as of May 2003. Be as specific and as
complete as possible. What are the resources required by the model (both
initially and at maturity)? What are the assumptions regarding deal success rate

10

and time to close? What are the economics of the solution currently in place?
What are the critical factors that will affect the viability of this model?
3. You are Glenn Winokur, making your first presentation to the Scalix board of
directors in July 2004. What are you going to say, and how are you going to say
it?
Pack ItS
1. Is Pack-iTS a feasible venture?
2. Should the lunch program be positioned as a fundraising initiative? How should
Pack-iTS be positioned against the competition?
3. How much financing is required? If the financing requirement exceeds the
$25,000 available, what is the likelihood the partners will receive external
financing?
4. How risky is the venture?
Gordon Biersch

What factors have made GBiersch successful to date? What risks exist?
Evaluate the strengths and weaknesses of GBs financing strategy?
Which investor should they choose? Why?
1.
Powerwater Beverages
1. Any valuation of PWBI will be based on the firms financial projections. Provide
an analysis of the pro forma financial statements and comment on PWBIs
forecasted future performance relative to peers. Use common size statements
to help with analysis.
2. PWBIs CPA has estimated that the company needs to raise $950,000. Examine
the financial projections and comment on the companys financial needs. How
will PWBI use the financing? Perform a sustainable growth analysis on PWBIs
financial projections; compare PWBIs sustainable growth to its actual projected
growth for the next three year
3. Using the peer valuation statistics in Exhibits 8 and 9, estimate the equity value
of PWBI as of June 30, 2007. If the company raises $950,000 in new equity at
the end of June 2007, how much of an ownership stake will the current owners
give up?
Jim Southern
1. Evaluate Southerns search strategy looking at its strengths and weaknesses?
2. What is the financial opportunity for Southern and his investors?
Gilead Sciences
1. Evaluate the options available to Gilead as outlined towards the end of the case
(IPO vs. Private Equity)
3. What should Gilead do? Why?
Late Policy
Assignments handed in late will receive a grade reduced by 2% per day after
the initial deadline.

11

New Venture Feasibility Grading Guideline

Presentation
1
Poor
Visual Aid:
Clear, Concise, Professional. Limited Text
Presentation Style:
Stayed within time, enthusiastic, shows
practice and preparation, knowledgeable of
subject.
Overview:
Summary of venture, unique benefit, clarity of
purpose demonstrated. Sets up the rest of
presentation effectively.
Problem/Opportunity:
Clarity in presenting problem(s)/needs along
with opportunity. Demonstrates Target Market,
Market Size/Growth, Competition.
Solution:
Clarity of offering demonstrating, fit with
problem/opportunity,
How
will
solve?
Features/Benefits clearly explained.
Value
Proposition identified.
Business Model:
How will this make money? Explains revenue
model and associated costs. Describes any key
assumptions.
The Team:
Demonstrates people involved and their
background why they will enhance chance for
success, key advisors, key future management
employees needed.
Financial Projections:
Three Year Profit and Loss, Cash Needs,
Economics of the business. Financing strategy.
Summary:
Closes with effective summary of key reasons
for success and why unique. Mantra reinforced.
Overall Ranking compared to Other
Presentations.

12

2
Fair

3
Good

4
Very
Good

5
Excelle
nt

Written Report
University of Wisconsin Madison School of Business
Venture Feasibility Evaluation Form
Written Plan

Poor
1
1

Fair
2
2

Adequate
3
3

Good
4
4

Excellent
5
5

1
1
1
1

2
2
2
2

3
3
3
3

4
4
4
4

5
5
5
5

Ranking vs. Other plans

1
2
3
(clear and concise presentation of amount, timing,
type and use of funds required for venture)
Overall
1
2
3
(Logic, Grammar, presentation quality, brevity,
passion, etc. as compared to the other plans)
Please use this space for any additional comments you wish to offer to the authors:

1. Executive summary
(clear, exciting, and effective as a stand-alone
overview of the plan; includes brief description of
each succeeding section of the plan; can be read
in 5 minutes)
Each Section will be rated 1 to 5

13

Strategic Planning Grading Guideline

WRITTEN Portion
Objective: The objective of the Strategic Planning Project is to provide students
with the experience of facilitating and developing a five-year strategic plan for an
entrepreneurial organization. The project follows a process outlined in the
Strategic Planning Guide which assists an organization in developing its
mission/vision, evaluating its operating environment, and outlining a series of
specific tactics to achieve their plan. There are numerous copies of the previous
projects in Business School Library.

1 point
Poor

2 points
Fair

Conforms to standards for

written work in recognized
style manual (e.g., no
typos, proper footnotes,
subheadings
Mission, Vision, and Values
Strategic Lessons
Competitive,
Environmental and Market
Analysis
Operations Analysis
Include Ratings forms
Strategic and
Development Objectives
Plans to meet SWOT
Marketing and Operations
Plan
Profitability Plan
Revised Mission Statement
Rank as compared to
other class Strategic Plans
Total

14

3
Adequate

4
Good

5 points
Excellent