Aronhime@jhu - Edu: Johns Hopkins University Entrepreneurship (660.460) Fall 2008

Johns Hopkins University
Entrepreneurship (660.460) Fall 2008

Instructor:
Lawrence Aronhime
Aronhime@jhu.edu
104 Whitehead Hall
Office hours: Tue 1pm 3pm
Wed 1pm 3pm
Time and Room:
Tue and Thu: 10:30 to 11:45
Shaffer 3
Course Description:
This course provides students with a solid introduction to the entrepreneurial
process of creating new businesses. Students will gain an appreciation for the different
perspectives of entrepreneurs, investors, and corporate managers in assessing
opportunities, evaluating strategies, market analysis, and operational and financial
planning. The course will cover the principle components of building a successful venture
including the creation, development, and protection of competitive advantage. Course
work will include case studies and the development of ideas for actual entrepreneurial
ventures.
.
Required Materials:
Entrepreneurship, By William Bygrave and Andrew Zacharakis
Low Risk High Reward by Bob Reiss
The New Business Road Test, by John Mullins
Supplemental Readings on electronic reserve at:
http://reserves.library.jhu.edu/access/reserves/findit/articles/aronhime/aronhime.php
Password: ARO460

Course Objectives:
This course seeks to provide the undergraduate business student with a foundation
in planning and organizing new business ventures. Upon completion of this course, the
student will be fully cognizant of what is required to create, fund, operate, and harvest a
new venture. Specifically, a student who successfully completes this course should be
capable of analyzing:
entrepreneurial opportunities
business plans
financial projections
business valuations
Student Responsibilities:
This is a rigorous course. At a minimum, prior to each class session, students are
expected to have completed the assigned readings and case.
Students are expected to be able to present the case as required before their peers.
It is the responsibility of the student to obtain notes and assignments from colleagues
for any classes that were missed.
Cases will be done individually.
No Senior Options will be offered.
Evaluations:
A
90-100
B
80-89
C
70-79
Plusses and minuses will be used at the discretion of the instructor.
Assignments:
Cases
Projects
Final Exam
Readings (including unannounced quizzes)
40%
40%
10%
10%
Cases must be submitted in hard copy on time, without exception.
The instructor reserves the right to change topics, readings, cases, and assignments in order
to further appropriate course outcomes.

Cases:
During a case course, you may find it hard to measure how much you are learning from the
cases. This contrasts with lecture and/or problem courses where experience has given you
an intuitive feeling for how well you are acquiring substantive knowledge of theoretical
concepts, problem-solving techniques and institutional practices. But in a case course
where analytical ability and the skill of making sound judgments are less apparent, you
may lack a sense of solid accomplishment, at least at first. Admittedly, additions to ones
managerial skills and powers of diagnosis are not as noticeable or as tangible as a binder
full of lecture notes. But this does not mean they are any less real or that you are making
any less progress in learning how to be a manager.
In the process of searching for solutions, very likely you will find that you have acquired a
considerable knowledge about types of organizations, the nature of various businesses and
the range of management practices. Moreover, you will be gaining a better grasp of how
to evaluate risk and cope with the uncertainties of enterprise. Likewise, you will develop a
sharper appreciation of the common and the unique aspects of managerial encounters.
Such is the essence of management, and learning through the case method is no less an
achievement. If throughout the course you can remain open to the diverse views found in
your community of students while developing your own skills of critical reasoning and
decision making, your learning will climb to heights accessible to a select few.
Excerpted from "Case Preparation for the Beginner: A Nudge Toward an Open Door",
written by Associate Professor William F. Crittenden of Northeastern University, Jan.
1998, p. 41 .

Date
Day
Lecture Subject
9/4
Thu
9/9
Tue
9/11
Thu
9/16
Tue
9/18
Thu
9/23
Tue
9/25
Thu
9/30
Tue
10/2
Thu
10/7
Tue
Finding Markets and

Customers
10/9
Thu
10/14
Tue
Guest Lecturer:
Heather Tapager (M-Level in
Electronic Resource Center)
Acquiring a Business and
Franchising
10/16
Thu
10/21
Tue
Introduction to
Entrepreneurship
Defining Entrepreneurship
Readings
Harold Livesay: Entrepreneurial Dominance
The Nature of New Ventures
Bygrave: ch. 1 and 2

Robert Reich: Entrepreneurship Reconsidered
Opportunity Recognition

Bhide: The Question Every Entrepreneur Must
Answer
Bower and Christensen: Disruptive Technologies
Screening Opportunities
The New Business Road Test
Assignments Due
R&R (appendix in Low Risk High

Reward)
Group Assignment 1
Malincho
Alison Barnard
Group Assignment 2
Jim Poss
Opportunity worksheets
Business ideas
Adam Aircraft
Seven Dimensions Model 1
Bygrave: ch. 5
Bhide: How Entrepreneurs Craft Strategies that
Work
ClearVue
BetterLiving Patio Rooms

Group Assignment 3
The Business Plan

Sahlman: How to Write a Great Business Plan
Rich and Gumpert: How to Write a Winning
Business Plan
Ajay Bam
Pkolino

Date
Day
Lecture Subject
Readings
Assignments Due
10/23
Thu
10/28
Tue
10/30
Thu
11/4
Tue
11/6
Thu
11/11
Tue
11/13
Thu
11/18
Tue
11/20
Thu
11/25
Tue
Valuation
11/27
Thu
Thanksgiving Break
12/2
Tue
Social Entrepreneurship
12/4
Thu
Summation
Group Assignment 6
12/19
Fri
Final Exam (2pm 5pm)
Business Plan
Group Assignment 4
Preparing Financial Plans
Bygrave: ch. 8
Sahlman: The Financial Perspective
Financial exercises
Financing a New Venture
Bygrave: ch. 9, 10, and 11

Bhide: Bootstrap Finance
DayOne
Legal Issues and Intellectual

Property

Ridley: Preliminary Legal Considerations
Cadence Design Systems and Avant! (A

and B)
Group Assignment 5
Growing a Business
Harvesting a Business
Bygrave: ch. 14
Low Risk High Reward
Roberts: Managing Growth
Von Krogh and Cusumano: Three Strategies for
Managing Fast Growth
Petty: Harvesting Firm Value
Nancys Coffee

Jon Hirschticks New Venture
Prahalad and Hammond: Serving the Worlds
Poor Profitably

Group Assignment 1
1. You and your team have $50 to start a business
2. Prepare a plan explaining how
a. you will spend the money
b. you will attract customers
c. much to charge them
d. much money you will make
3. Assemble data from potential customers
4. Prepare a formal presentation
Group Assignment 2
1. You and your team have 100K to start a retail business
2. Define the opportunity
a. Location
b. Operational details
c. Pricing
d. Customers
e. Simple financial forecast
3. Assemble data from potential customers
Group Assignment 3
1. You and your team have 100K to acquire a franchise
2. Prepare a formal customer interview and assemble the data
a. Location
c. Pricing
d. Customers
4. Develop a customer profile for your idea
6. How large is the market for this product
a. How fast is it growing
7. Who are the key players
b. Market share
c. Key products
8. What are the barriers to entry

Group Assignment 4
1. You and your team have 100K to start a food business
a. Location
c. Pricing
d. Customers
7. How fast is it growing
a. Market share
b. Key products
Group Assignment 5
1. Devise a business idea for a leading edge technology
2. The idea must be realistic, but there are no resource limitations
3. Define customers, product, timeline, and resources needed
7. How fast is it growing
a. Market share
b. Key products
10. Prepare a formal presentation and elevator pitch
Group Assignment 6
1. Devise a venture in social entrepreneurship that will have a positive impact on the world
2. You have startup capital of 100K
3. Your plan should include
a. the idea
b. how the customers will benefit
c. how the money will be used
d. how the venture can become self-sustaining

Questions on Readings
1. For biographical readings:
a. Summarize the story.
b. Describe the origins of the new venture idea.
c. Describe the factors that determined success or failure.
d. What personal attributes of the entrepreneur mattered to the success or failure of the
venture?
e. With hindsight, what might have changed or improved the outcome?
f. What are the implications for young entrepreneurs?
2. For articles:
a. Summarize the article
b. What are the implications for young entrepreneurs?
Seven Dimensions Model

Each category in the seven dimensions model must be addressed. Below are examples of the
kinds of information that might be helpful in analyzing the opportunity.
1. Description of target market segment
o Can you identify any customers?
o what customer pain will your business idea resolve
o evidence that your idea is superior (better, faster, cheaper) enough to get
customers to change what they are doing now
o evidence that customers will buy
o list of initial customers
o Defining a targeted market segment
o who, in terms of demographics or psycho-graphics
o where, in terms of geography
o benefit expected
o Will this segment lead to others?
2. Market attractiveness
o What sort of business do you want?
o niche or promising
o How large is the market?
o number of customers
o How much do they spend?
o How fast has the market grown, and will it continue to grow?
o large markets offer the chance for multiple players and for segmentation
o What economic, demographic, socio-cultural, technological, regulatory, or fashion trends
will affect your market positively or negatively?
3. Industry attractiveness
o What industry are you competing in?
o How difficult is it for others to enter this industry?
o Do suppliers have the power to set terms and conditions?
o Do customers have the power to set terms and conditions?
o What are the substitute products and services to yours?
o How difficult is it for them to steal your customers?

o How intense is the competitive rivalry in the industry?
o How attractive is this industry?
4. Sustainable advantage
o Do you possess proprietary advantages that other firms cannot duplicate?
o What is the evidence?
o Can your business develop and deploy superior organizational resources, processes, or
values that other companies will have difficulty in matching?
o What is the evidence?
o Is your business model viable?
o Can it be expanded to new markets?
o How much time do you have till you run out of cash?
5. Team domain
o Are you clear about your mission, aspirations, and risk propensity?
o How much do you care about this business?
o How focused are you?
o Can you identify the few critical success factors, the ones that really make a difference?
o Can you and your team really do this?
o Where is the evidence?
o Do you have the experience and drive?
o Can you sell this product/service?
o Who do you know up, down and across the value chain?
o How well do you know this business, the customers, the key suppliers, other key
players from whom you will need support?
6. Overall assessment
o Should you pursue this opportunity, or not?
o Why? Be specific.
o Weight all the categories.

Final Project: Business Plan
Purpose: To write a thorough business plan for a new venture, including marketing, financial
and operational plans. Although any model is acceptable, it is suggested that the plan include the
following topics as appropriate:
1. Cover page
2. Executive summary
Opportunity
Context
Risks and rewards
The deal
3. Product or Service
Description of product or service
Origin of the opportunity
Description of market/industry
Sources of competitive advantage
Current status
Future milestones
4. Market Analysis
Business environment
Surveys of market size
Interviews with suppliers and customers
Evidence of market research
Competition both companies and products/services
List of likely customers
Pricing and revenue strategy
What will be sold, to whom, and how
What are the risks and how will they be dealt with?
Market launch and selling strategy
Sales and promotional plans, including timelines
5. Operational Plans
Location
Employees
Facilities
Equipment
Who will do what, when will they do it, and how
What are the risks and how will they be dealt with?
6. Projected Financial Plans
Income statements for five to eight years
Cash flows

CVP analyses
Required start-up capital and usage
Returns to investors
7. The Proposed Deal
Management team, including open positions
Capital and ownership structure
Who gets what and gives up what?
Sources of start-up capital the combination of equity and loans
Cost of equity and loans
8. Project plan
9. Appendices
10. Final Presentation overheads
11. FINAL PROJECTS MUST BE SUBMITTED IN A PROFESSIONAL BINDER
Additional Case Questions

1) R&R
a) What combination of factors created the opportunity?
b) What risks and obstacles had to be overcome? How did Bob Reiss accomplish this?
c) Would this approach have worked for a large corporation?
d) How successful was Bob Reiss? How much money did he make? Include a detailed
schedule.
e) Why was Bob Reiss so successful? What lessons are there for all entrepreneurs?
f) What should Bob Reiss do about Whoozit?
Ethics Policy
The strength of the university depends on academic and personal integrity. In this course,
you must be honest and truthful. Ethical violations include cheating on exams,
plagiarism, reuse of assignments, improper use of the Internet and electronic devices,
unauthorized collaboration, alteration of graded assignments, forgery and falsification,
lying, facilitating academic dishonesty, and unfair competition.
Report any violations you witness to the instructor. You may consult the associate dean
of student affairs and/or the chairman of the Ethics Board beforehand. See the guide on
Academic Ethics for Undergraduates and the Ethics Board Web site
(http://ethics.jhu.edu) for more information.

Aronhime@jhu - Edu: Johns Hopkins University Entrepreneurship (660.460) Fall 2008

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Aronhime@jhu - Edu: Johns Hopkins University Entrepreneurship (660.460) Fall 2008

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Hak Cipta:

Format Tersedia

Johns Hopkins University

Entrepreneurship (660.460) Fall 2008

Johns Hopkins University

Cases must be submitted in hard copy on time, without exception.

Johns Hopkins University

Johns Hopkins University

Finding Markets and

Harold Livesay: Entrepreneurial Dominance

The Nature of New Ventures

Bygrave: ch. 1 and 2

Bygrave: ch. 3 and 4

The New Business Road Test

R&R (appendix in Low Risk High

BetterLiving Patio Rooms

The Business Plan

Bygrave: ch. 6 and 7

Johns Hopkins University

Final Exam (2pm 5pm)

Financing a New Venture

Bygrave: ch. 9, 10, and 11

Legal Issues and Intellectual

Bygrave: ch. 12 and 13

Cadence Design Systems and Avant! (A

Seven Dimensions Model 3

Johns Hopkins University

Johns Hopkins University

Johns Hopkins University

Seven Dimensions Model

Johns Hopkins University

Johns Hopkins University

Johns Hopkins University

Additional Case Questions

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