ENTREPRENEURSHIP & CORPORATE VENTURING

From The Entrepreneurial Mindset

This book distills our observations of habitual entrepreneurs. The point is to show you how they think, how they behave, and exactly what it is that they do well. They capitalize on uncertainty rather than avoid it, they create simplicity where others see complexity, and they embrace the learning that comes from taking calculated risks. They recognize when opportunities are fleeting, it is sometimes more expensive to be slow than to be wrong. As a consequence, they will find solutions that are “roughly right” rather than consume time developing an analytically correct, but slow, answer. This special group has an immense amount of insight and experience to offer you. p.3.

From Corporate Venturing

We suspect that ultimately, all companies should venture... Venturing is an absolute necessity if business and strategic goals require innovation and the transformation of innovations into new businesses, related or otherwise. Furthermore, venturing is called for if desired growth cannot be achieved with a current less risky activity, and it is also a must if opportunities in an industry are not to be ceded to the competition. p. 29.

From Beyond Entrepreneurship

You too can build a company that stands for something, that sets a standard, not only for performance, but also of values. You too can build an organization that rises above the fray and shows by its success that greatness & fundamental decency and respect go hand-in-hand. You too can build a company that you can look back on at the end of your life, and say, ‘I'm proud of what I'm leaving behind, and I respect myself for the way I’ve gone about doing it. My life has been well spent.’ p. 220.

From The Essential Drucker
Any organization, however, that actually believes that management and entrepreneurship are different, let alone incompatible, will soon find itself out of business. (Peter Drucker).

Welcome!

Course Administration

Instructor: David Wilemon, Ph.D., Snyder Professor of Innovation Management & Entrepreneurship; Director, Innovation Management Program Program; 406 CHSM, Syracuse University The Martin J. Whitman School of Management, Syracuse, NY 13244-2130; 315-443-3443 (w/answering machine); 315-443-5457 (FAX); e-mail: dwilemon@som.syr.edu; Office Hours: Thursdays 10:00 - 12:00 and by appt.

Executive Co-Instructor: Bernard Kossar: Executive, entrepreneur, benefactor, & friend

Office Assistance: Mary Jo Chase 215 CHSM, 443-1379 (Tel.), 443-5457 (FAX)

Course Meetings: Wednesday 7:00 - 9:45 PM The Martin J. Whitman School of Management

Course Texts: The Entrepreneurial Mindset, Corporate Venturing, & Beyond Entrepreneurship and several case studies: [Available for purchase from the Follett College (Orange Student) Bookstore.]

Course Grading: 15% Constructive Class Involvement and regular attendance as detailed in a Self-Report, which follows and one page synopses of each of our case studies. Also, a briefing on our text, The Entrepreneurial Mindset, the MacKnight Food Case, and other learning opportunities. Active participation in a ‘class conference’ to be held on December 4.
15% Summary of The Entrepreneurial Mindset. A one-page summary (bullet format) of the major issues revealed in each chapter. Also reprise your major learning (one paragraph) from each chapter.
15% Team Case Analysis. A paper and 15-minute, professionally polished presentation are required. See instructions, which follow.
20% Semester Project. A 12-15 page paper and 5-minute class briefing are required. Topics include (a) the preparation of a business plan for a domestic or global venture of your own; (b) analysis of a venture from the past, present or future that interests you; (c) analysis of a franchise opportunity; (d) the preparation of a business plan for a new venture or business opportunity in your company, (e) a comprehensive analysis of a failed venture, e.g., a dot.com failure, or (f) a topic of your choice important to our course subject matter, e.g., a venture doing business as an alliance, network, ‘virtually,’ or in other ways new to our understanding of entrepreneurship and emerging enterprises.
15% Venture Assessment Workshop--The Wrangler Case. A venture-financing proposal will be given to your team for analysis/evaluation. Your team will evaluate the report, making note of its overall investment quality as well as your specific suggestions for improvement. A written & an oral report are required.
20% Summary of learning. A 3-4 page, single-spaced summary of your major learning from Corporate Venturing (10%) and a 3-4 page, single-spaced summary of the key company/enterprise building insights you’ve gained from the book, Beyond Entrepreneurship (10%).

Course Goals
a) Students will gain an understanding the economic, technological, societal, and global dimensions of entrepreneurship and intrapreneurship.

b) Students will understand the major differences between personal entrepreneurship and intrapreneurship, which often occurs in larger mature organizations.

c) Students will understand the relationships between personal goals, competencies, and experience to assess what they bring to all types of ventures.

d) Students will understand and practice idea generation and screening including opportunity analysis trends, feasibility and competitive analysis.

e) Students will understand the audiences, purposes, components and the processes of developing and evaluating business plans for new ventures.

f) Students will understand the issues and tasks involved in setting up a venture, marketing and financing the venture, and evaluating venture performance.

g) Student will understand how to monitor venture performance, manage growth, and sustain organizations.

h) Students will understand the basics of entrepreneurial finance: raising funds, growth financing, financial evaluation of opportunities, and acquisition financing.

i) Students will understand and appreciate the leadership skills necessary to successfully plan and launch a new venture in an established organization.

j) Students will understand how resources can be maximized for both personal and corporate ventures.

Skill Development: Students will practice cognitive, interactive, and teamwork skills including analysis, synthesis, evaluation, reflection, critical thinking, problem-solving, critiquing, and communicating.

Creativity and Innovation: The contribution of innovation and the creative process in entrepreneurship will be recurring themes throughout the course.

When the rate of change outside
exceeds the rate of change inside, the end is in sight.
Jack Welch, former CEO, General Electric

Course Details

W 8/28 Introduction and Overview
The Entrepreneurship and Emerging Enterprises Program. The Global Entrepreneurship MBA Curriculum Track. Student introductions. Syllabus review. Semester project options. Case team assignments.
Video: “The Entrepreneurial Revolution.” What factors are creating the entrepreneurial revolution? What qualities & characteristics do you observe among the different entrepreneurs depicted? What skills and competencies do you believe entrepreneurs need?

W 9/4 Personal Entrepreneurship: Theory and Practice
What is entrepreneurship and why is it important? What are the major challenges confronting entrepreneurs? Where do entrepreneurs get their ideas?
Case Discussion: “Howard Schultz & Starbucks Coffee” (Instructor-led Discussion).
Discussion: “The Questions Every Entrepreneur Must Answer.”
Briefing: The Entrepreneurial Mindset. Chs. 1-2. (Team 8)
Video: Fred Smith and Federal Express Questions: How did Fred Smith’s past influence the creation of Federal Express? What personal qualities does he demonstrate? How did “market and circumstances” influence the creation of Federal Express?
Assignments for Tonight: Read: The Entrepreneurial Mindset. Chs. 1-2 and be prepared to discuss the insights you’ve gained. Read and be prepared to discuss (no written report required), “The Questions Every Entrepreneur Must Answer.” Also read the “Howard Schultz & Starbucks Coffee” case. Identify the 10 most significant issues/critical incidents in the case and explain in one paragraph why you selected each issue. Turn-in your written “Starbucks” analysis for class participation credit.

W 9/11 Personal Entrepreneurship: Theory and Practice
Briefing: “How to Write a Great Business Plan.” (Team 2)
Briefing: The Entrepreneurial Mindset. Chs. 3 & 4. (Team 7).
Case Presentation: "At Play Productions." (Team 1).
Bernard Kossar: “Reflections on a Career as Executive & Entrepreneur and an Introduction to Ethics in Entrepreneurship & Business.”
Assignment for Tonight: Read the case, “At Play Productions,” and prepare a one-page, single-spaced analysis for submission. Read, The Entrepreneurial Mindset, Chs. 3 & 4.
Also, carefully read for class discussion (no written summary required), “How to Write a Great Business Plan.”

W 9/18 Personal Entrepreneurship: Theory and Practice
Briefing: “Some Thoughts on Business Plans” (Team 5).
Briefing: The Entrepreneurial Mindset, Chs. 5 & 6 (Team 6)
Venture Evaluation Workshop
Video: “Independence Marine”
Bernard Kossar: “What a Professional Looks for in Evaluating a Business Plan: Micro & Macro Issues”
Assignment for Tonight: Read, The Entrepreneurial Mindset, Chs. 5 & 6.

W 9/25 Personal Entrepreneurship: Theory and Practice
Briefing: The Entrepreneurial Mindset. Chs. 7 & 8 (Team 1)
Case Presentation: "The Domik Project" (Team 2).
Video: Cameron Sawyer
Assignment for Tonight: Read: The Entrepreneurial Mindset. Chs. 7 & 8. Carefully read, “The Domik Project Case” and prepare a one-page, single-spaced analysis of it.

W 10/2 Personal Entrepreneurship: Theory and Practice
Briefing: The Entrepreneurial Mindset. Chs.9 & 10 (Team 4)
Case Presentation: “Private Communications Corp” (Team 3)
Bernard Kossar: Venture Analysis Workshop—Part I: Introduction to the “Wrangler Case”:
Assignment for Tonight: Read: The Entrepreneurial Mindset. Chs.9 & 10. Read and prepare a one-page, single-spaced analysis of "Private Communication Corp.”

W 10/9 Personal Entrepreneurship: Theory and Practice
Discussion: The Entrepreneurial Mindset: Ch. 11, 12, & 13. (Team 3)
Bernard Kossar: Acquiring a Business: Due Diligence Fundamentals and Discussion/Analysis of the “MacKnight Food Case.”
In-Class Video Case: “A Tale of Two Restaurants.” (Time permitting).
Assignment for Tonight: Read: The Entrepreneurial Mindset. Ch. 11-13 and be prepared to lead a discussion of the “MacKnight Food Case.” Turn in your 13 page (one page for each chapter), single-spaced Entrepreneurial Mindset summary.

W 10/16 Personal Entrepreneurship: Theory and Practice
Case Presentation: Zaplet (A) Case (Team 4)
Bernard Kossar: Part II: Venture Analysis Workshop
Assignment for Tonight: Working with your team, prepare a 5-7 page written report and a 10-minute oral presentation for the Venture Analysis Workshop. Additional instructions will be given for this assignment. Turn in a one page, single-spaced analysis of the Zaplet (A) Case.

W 10/23 Entrepreneurs, Executives, Boards of Directors, Financial Analysts/Advisors, and Ethical Responsibilities
Bernard Kossar: What can we learn from Enron, Worldcom, Tyco, Qwest Communications and other companies who have admitted to “cooking their books?” What, if any, are the benefits & weaknesses/liabilities of the above behaviors? What are the implications for entrepreneurs, companies, & students of organizations regarding ethics & executive responsibility?
Assignment for Tonight: Working as a team, prepare an analysis of what went wrong with your assigned company and how/why it appeared to have happened. What are your specific team’s learning from your investigations. What insights have you gained about ethical behavior in all types of organizations? What are the remedies to the so-called “ethics-gap?” A 5-minute briefing and a 3-4 single-spaced page written analysis are required.

W 10/30 Introduction to Corporate Venturing and Intrapreneurship
Review: Corporate Venturing Ch. 1, “Corporate Venturing: What Is It? Why Do It?” and Ch. 2, “Getting Started.”
Team Presentation: “Corporate Ventures at P&G.” (Team 5).
Video: Guy Kawasaki on Entrepreneurship
Assignment for Tonight: Read Corporate Venturing Chapters 1 and 2. . Also, submit a one-page, single-spaced analysis of “Corporate Ventures at Proctor & Gamble.”

W 11/6 Corporate Venturing: Theory and Practice
Review: Corporate Venturing Ch. 3, “Framing and Managing the Venturing Process” and Ch. 4, “Identifying, Evaluating, and Selecting Opportunity.”
Case Presentation: “Business Teams at Rubbermaid.” (Team 6).
Assignment for Tonight: Read Corporate Venturing Chapters 3 and 4. Prepare a one-page, single-spaced analysis of the "Business Teams at Rubbermaid" case.

W 11/13 Corporate Venturing: Theory and Practice
Review: Corporate Venturing. Ch. 5, “Selecting, Evaluating, and Compensating Venture Management;” Ch. 6, “Locating the Venture in the Organization;” and Ch. 7, “Developing the Business Plan.”
Case Presentation: “Lucent Technologies” (Team 7).
Discussion: “Spinning Out a Star.”
Assignment for Tonight: Read Corporate Venturing Chs. 5, 6, & 7. Prepare a one-page, single-spaced analysis of the key issues presented in Lucent Technologies. Also, read the article, “Spinning Out a Star”—and be ready to lead a discussion of its contents—no written analysis is required for this article. Begin your reading of Beyond Entrepreneurship.

W 11/20 Corporate Venturing: Theory and Practice
Review: Corporate Venturing, Ch. 8, “Organizing the Venture,” Ch. 9, “Controlling the Venture,” and Ch. 10, “Survival Guide for Venture Managers.”
Case Presentation: Joline Godfrey & Polaroid (Team 8).
Video: “Joline Godfrey.”
Workshop on Corporate Venturing
Assignment for Tonight: Read Corporate Venturing Chs. 8, 9, & 10. Read and prepare a one-page, single-spaced analysis of the Joline Godfrey & Polaroid case.

W 11/27 Thanksgiving Recess

W 12/4 Corporate Venturing Conclusions/Class Conference
Review: Review of Corporate Venturing Ch. 11, “The Politics of Venturing” and Ch. 12, “Learning from Experience.”

Class Conference: The objective of tonight’s class is to examine what it takes to sustain an entrepreneurial venture and to create a healthy, high-performing organization capable of continuous innovation & renewal. We will focus on our final text, Beyond Entrepreneurship and Ernest Shackleton’s famous survival epic. Specific instructions will be given on 11/20.
The major sections of Beyond Entrepreneurship which we will discuss are: Ch. 1: Leadership; Ch. 2: Vision; Ch. 3: Strategy; Ch. 4: Innovation; & Ch. 5: Tactical Excellence.

Assignment for Tonight: Read Corporate Venturing Chs. 11 & 12. Complete your reading of, Beyond Entrepreneurship, and be prepared to discuss the major insights you’ve gained. Submit a one-page abstract of your semester project. The title of your project should be centered and the name(s) of the author/team members typed in the upper right hand corner of the page. Do not use a cover sheet for your semester project.

Video: “Shackleton”--The setting is 1914 and Sir Ernest Shackleton hopes to lead the first expedition to cross Antarctica. Unfortunately, his ship, the Endurance, becomes hopelessly trapped in a massive ice field. The ordeal to survive lasted nearly two years for Shackleton and his crew. From his diary:
“ During the night of the 3rd we heard the ice grinding from the eastward, and in the morning we saw that young ice was rafted 8 to 10 feet in high places. That was the murmur of danger that was to reach menacing proportions in later months.”
We will see how leadership, vision, faith, followership, stamina, hope, and caring all become the essence of a rare form of entrepreneurship. Shackleton’s actions represent, entrepreneurial leadership, in its finest form. Shakleton is the best example of authentic leadership that I can share with you.

W 12/4 Student Project Briefings, Course Summary, & Evaluations
Each student or student team will present an “Executive Summary” of their semester’s project. Depending on the number of presentations an extended class may be necessary

Summary of Course Deliverables

• A team briefing (see assigned dates) of the chapters in, The Entrepreneurial Mindset--no written report is required.

• A 3-5 page, single-spaced analysis of the “Starbucks Coffee Case” is due September 4.

• A one-page, single-spaced analysis of each case study is due the night of its presentation. Your summary should contain two major parts: 1) a very brief summary of the major issues/problems/opportunities described in the case, and 2) your very specific recommendations for the protagonists of the case.

• A written analysis of your team’s case study is due one week following your oral case presentation. A presenting team does not submit a one-page analysis of their case.

• A thirteen page, well-edited summary of the major issues presented in The Entrepreneurial Mindset. A bullet outline of each chapter’s main points as well as a short narrative of your major learning at the bottom of each page is recommended. Start each chapter’s summary on a new page beginning with the chapter’s title. This summary is due October 9.

• A 10-minute oral report and a 7-8 page written report are due October 16 for the “Wrangler Case” Venture Analysis Workshop. Additional instructions will be given in class.

• Your “Semester Project” is due December 13th by 4:00 PM.

• Your “Class Involvement Self-Report” is due December 13th by 4:00 PM.

• A three-page, single-spaced summary of Beyond Entrepreneurship is due December 13th by 4:00PM.

• A five-page, single-spaced summary of the major insights gained from Corporate Venturing is due December 13th by 4:00PM.

Academic Integrity Policy

Please Note: “The faculty of the The Martin J. Whitman School of Management has adopted an Academic Integrity Policy emphasizing that honesty, integrity, and respect for others are fundamental expectations in our School. The Policy requires all students who take The Martin J. Whitman School of Management courses to certify in writing that they have read, understand, and agree to comply with the Academic Integrity Policy. The Martin J. Whitman School of Management students should have already completed a certification statement. Completed statements will be kept on file in the Office of Graduate Programs.”

CASE ANALYSIS/PRESENTATION INSTRUCTIONS

I. Case analysis teams are responsible for presentations which address, but are not restricted to, the following issues:
a) Team member introductions and presentation overview
b) The most important facts of the case
c) The main issues facing the entrepreneur(s)/company
d) What the entrepreneur(s)/company should do, and why
e) Relationship between case issues and the contents of our texts/workshops/cases
f) Major team learning
g) Fielding post-presentation question

II. Presentations/written case analyses will be evaluated on:
a) Analysis completeness in terms of main points and support provided
b) Extent of team learning and opportunities for class learning in terms of presentational reasoning, relevance, credibility and accessibility
c) Performance professionalism in terms of evident preparation, quality communication and respect for the time, attention, and interests of others
d) Ability to generate & maintain audience interest
e) Analysis of the feedback, quantitative & qualitative, received from the class as well as a self-critique of your team’s performance

III. Class members are responsible for case team questioning and post-presentation class discussion participation. Performance of these responsibilities involves, but is not restricted to:
a) Comprehensive reading of the assigned case.
b) Evaluation of each case team.
c) Informed questioning to the case presentation team.

IV. Our Current Case Presentation Schedule is as follows:
Case Team 1: 9/11 At Play Productions
Case Team 2: 9/25 The Domik Project
Case Team 3: 10/2 Private Communications Corp
Case Team 4: 10/16 Zaplet (A)
Case Team 5: 10/30 Corporate Ventures at Proctor & Gamble
Case Team 6: 11/6 Business Teams at Rubbermaid
Case Team 7: 11/13 Lucent Technologies
Case Team 8: 11/20 Joline Godfrey and Polaroid

The goal is not to speculate on what might happen, but to imagine
what you can actually make happen.

Gary Hamel, Leading the Revolution.
Preparation and Learning Expectations

The design of MAR 600/BUA 600 requires that everyone come to class fully prepared to discuss the readings, case studies, and other handout materials. By carefully preparing for each class you will greatly influence your own learning as well as the learning of your classmates. Our learning approach encourages the sharing of your ideas and frameworks with other class members. With everyone contributing, energy is heightened and our learning environment will be synergistic.If you find contributing to the class personally difficult, please see me so that we can develop a process that can make participating more productive for you and perhaps less stressful.

To maximize your class preparation, you may find it useful to do as I do: 1) Read the assignment first for general understanding, 2) Reread to identify the major points or issues, and 3) Write the major points down for discussion and/or for further thought.

When you listen to a team’s case presentation carefully note how the team analyzes its case. Compare the team’s analysis to your own understanding and conclusions about the case. Note where you agree and disagree. If you have questions about a team’s case analysis be sure to ask your questions -- there is a high likelihood that others will have similar questions.When preparing for a case presentation it is important that you meet and discuss the issues of the case thoroughly with your team. Once you have decided on a course of action for the protagonists in the case, mindfully practice your presentation. If you don’t practice it will be very apparent to your classmates that you didn’t invest sufficiently in your work. Practicing also helps you deliver a focused, information-rich, credible presentation. Practicing is the only way you can ensure that you meet the time-limits placed on our case presentations. We each play a major role in making this a rewarding class.

Thus, it is important for you to be attentive and purposeful in all your work.Finally, you may find information beyond the scope of this particular course that is nevertheless relevant to the study of entrepreneurship and corporate venturing. When you do, I encourage you to share your discoveries, insights, and experiences. Each of us has a different network from which we encounter ideas and information. One of the great truths about learning is that when you become interested in a subject it is amazing what you will find -- information about a topic of interest will surround you. I look forward to a rich and rewarding learning experience with you. Summary of Selected Team Assignments

Case Team 1: 9/11 At Play Productions
Case Team 1: Entrepreneurial Mindset Chs. 7 & 8Case Team 2: 9/25 The Domik Project
Case Team 2: “How to Write a Great Business Plan”Case Team 3: 10/2 Private Communications Corp
Case Team 3: Entrepreneurial Mindset: Chs. 11, 12, & 13Case Team 4: 10/16 Zaplet (A)
Case Team 4: Entrepreneurial Mindset: Chs. 9 & 10

Case Team 5: 10/30 Corporate Ventures at Proctor & Gamble
Case Team 5: “Some Thoughts on Business Plans”

Case Team 6: 11/6 Business Teams at Rubbermaid Case Team 6: Entrepreneurial Mindset: Chs. 5 & 6Case Team 7: 11/13 Lucent Technologies
Case Team 7: Entrepreneurial Mindset: Chs. 3 & 4Case Team 8: 11/20 Joline Godfrey and Polaroid
Case Team 8: Entrepreneurial Mindset: Chs. 1 & 2