Spring 2, 2011
Instructor: Jon Fjeld email: email@example.com
The Fuqua School of Business Phone: 919-660-8052
Duke University Office: A105F
Assistant: Nancy Gump, 660-7838
The class sessions are available for viewing here.
The focus of this course is the successful creation and early execution of a new venture. The course will concentrates on new enterprises based on substantial innovations with potential for high growth and funding by venture capitalists.
The course is primarily based on case discussion, with the intent of allowing students to derive practical lessons from experience (both successes and failures) in actual ventures.
The topics to be covered include:
· Understanding whether there is a market
· Competitive position
· Financing a new venture
· Building a team
· Early sales and marketing execution
· Building an operating plan
This course is a complement to the Entrepreneurial Strategy course.
The course will require three 2-3 page case analyses written up over the course of the term. The case write-ups may be done individually or in teams of up to 4 students.
You may hand in a write-up of any cases except Estee Lauder. The write-up must be turned in before the case is discussed in class.
The final project for this course is the identification and analysis of an opportunity for a new venture. The following elements should be included in your analysis:
· The problem to be solved or need to be addressed
· The target customer
· Some articulation of how widespread the need is (size of the opportunity)
· Elements of a possible solution
· An articulation of the value of a solution
· A brief statement of possible barriers to adoption.
Please note that the assignment is not to create a business plan.
Your write-up should be no more than 6 pages, single spaced. This assignment must be completed individually.
The final project is due on April 28.
Because every class will be based on a collective analysis of a case or reading, it is critical that you come to class prepared to participate actively in the discussion. The outline of the classes below should help you prepare for class. Learning for everyone in this class is enhanced through debate, different perspectives and new insights that come from you.
Keep in mind that your goal should be to contribute high quality comments, not high quantity. You detract from class discussion if you talk a lot and do not make a clear point. To contribute high quality comments, you must also listen carefully to the comments of your classmates. You should try to extend or qualify their comments while avoiding repeating them.
To keep class conversations interesting and widely distributed across students, priority will be given to those who have spoken less. Occasionally, students will be called on directly to contribute.
At the end of the class, you will be asked for feedback on the value to your learning experience of the contributions of your classmates.
Grading will follow the Fuqua grade distribution for elective courses.
(PLEASE COME TO THE FIRST CLASS PREPARED TO DISCUSS THESE READINGS.)
Topic: Elements of a new venture
· Course objectives and summary
· Class requirements
Case: Estee Lauder
Arthur Rock, “Strategy vs. Tactics from a Venture Capitalist.”
Topic: What is an opportunity for a new venture?
· Sources of opportunity
· Identifying opportunity: market research
· Characterizing the target customer
· What is a solution?
Case: Juniper Networks
Clayton M. Christensen & Michael Overdorf, “Meeting the Challenge of
Clayton M. Christensen, Scott Cook & Taddy Hall, “Marketing
Peter Drucker, “The Discipline of Innovation.”
Topic: The business plan
· Early planning and execution
· Framework for analysis
Case: Kate Spade
Case: “Why Wasabe Lost to Mint”
William A. Sahlman, “How to Write a Great Business Plan.”
Richard G. Hammermesh, Paul W, Marshall, Taz Pirmohamed, “Note on
Business Model Analysis for the Entrepreneur.”
Topic: Strategy & competitive position
· Vertical vs horizontal strategy
· Implications of strategy for marketing & selling
· “Crossing the chasm”
Case: Documentum, Inc.
Geoffrey A. Moore, “Darwin and the Demon.”
Jesko von Windheim
Topic: Growth and the market research process for a new venture
· What are the questions you need to ask?
· Identifying the right niche
· Managing growth
Case: Burt’s Bees: Leaving the Hive
Topic: Financing and acquisition scenarios
Case: RightNow Technologies.
Amar Bhide, “Bootstrap Finance: The Art of Start-Ups.”
Michael J. Roberts & Lauren Barley, “How Venture Capitalists Evaluate
Potential Venture Opportunities.”
Howard H. Stevenson & Michael J. Roberts, “New Venture Financing.”
Bob Zider, “How Venture Capital Works.”
Fred Hutchison, Hutchison Law Group
Topic: Financing a new venture
· How much money do you need?
· Implications of financing strategies
· Financing strategies and business model
In class case: HyTower
Topic: Team issues
· Hiring & retention
Robert B. Reich, “Entrepreneurship Reconsidered: The Team as Hero.”
Scot Wingo, Founder and CEO, ChannelAdvisor
Topic: Team issues, continued
Case: Visionary Design Systems
Case: Cypress Semiconductor (A)
James N. Baron & Michael T. Hannan, “Organizational Blueprints for
Success in High-Tech Start-Ups.”
John Hamm, “Why Entrepreneurs Don’t Scale.”
T. J. Rogers, “No Excuses Management.”
Topic: Sales & marketing execution
· Market launch
· Sales plan
Michael C. Mankins, “Turning Great Strategy into Great Performance.”
Topic: Building an operating plan
· Projecting demand
· Planning capacity
· Balancing growth and cash
Case: Align Technology, Inc.
Topic: Summary of elements of a successful venture
Case: Howard Schultz and the Starbucks Coffee Company
Final projects due