Stott’s Colleges 163 Exhibition Street, Melbourne 3000 Cricos code 00197D Bachelor of Business (05075K) Semester 1 2017 UNIT OUTLINE UNIT TITLE MAN302 The Business Plan COURSE Bachelor of Business PRE-REQUISITE Nil DURATION One Semester CREDIT POINTS: 15 ___________________________________________________________________________ LECTURER DETAILS Alan Dymond 163 Exhibition Street, Melbourne, VIC 3000 Phone 03 9663 3399 Mobile: 0419 547 980 (text only) Email: [email protected] Preferred contact method:…Email or Text…………….. Description: This subject is a capstone subject which combines students’ knowledge from previous subject studies and introduces the student to the field of entrepreneurship and the requirements of business planning for new business initiatives in both new companies and in existing organisations. It analyses the nature of entrepreneurship, intrapreneurship and strategic policies in exploiting new venture opportunities.It overviews the processes of starting up and developing new ventures in small and large organisations by examining the role of effective market research for new ventures and products; looking at appropriate managerial and marketing strategies; devising business plans and their implementation; financing the venture; and the management of material, human and financial resources in successful enterprises Development of graduate attributes Graduates from the Bachelor of Business program are expected to have knowledge, skills and abilities (KSA) on three different dimensions. Each unit in your course contributes in some way to the development of the Stott’s Graduate Attributes which you should demonstrate by the time you complete your course Professional GA1 Graduates have an understanding of business that allows them to identify and develop business functions and understand their effect on business outcomes GA2 Graduates understand the professional working environment and have developed an awareness of business ethics that is consistent with the Australian business culture. GA3 Graduates can identify and solve common problems in business using tools available to them Personal GA4 Graduates can develop their KSAs to meet the demands of the workplace, their chosen career path and a changing environment GA5 Graduates have developed interactive skills to work well in a multicultural environment GA6 Graduates can successfully work in their chosen profession and have the necessary knowledge and skills for an entry/intermediate level position after graduation. Academic GA7 Graduates have developed academic skills and attributes necessary to undertake research, comprehend and evaluate new information, concepts and evidence from a range of sources; GA8 Graduates have recognised potential shortcomings in their KSAs and have developed the tools necessary to engage in self directed life long learning to address this. GA9 Graduates have an understanding in how to apply knowledge gained in university into the workplace Learning Outcomes: In this course students identify a strategic growth opprtunity, develop the strategic plan for the launch and growth for the business and the associated Financial, HR, Marketing and Operational plans and budgets. At the completion of this unit a student should be able to: LO1 Utilise a variety of key creativity, opportunity search, and innovation techniques to develop a strategic business plan. LO2 Critically analyse business opportunities in existing and new markets. LO3 Exhibit conceptual skills in market development, financial analysis, capital acquisition, and management of growth oriented and entrepreneurial firms. LO4 Examine the process of developing an idea into viable products/services to produce strong returns. LO5 Distinguish between viable and non-viable opportunities. LO6 Identify a viable business opportunity and develop a detailed business plan capable of bringing the opportunity to a successful conclusion. LO7 Examine the problems of working in and motivating the new venture team CONTENT 1. Entrepreneurship and the Entrepreneur 2. The Environment, the Economy and Entrepreneurship 3. The Opportunity: Creating, Shaping, Recognising, Seizing 4. Screening Venture Opportunities 5. Ethical, Environmental and Legal Challenges for Entrepreneurial Ventures 6. Structuring the Business Plan 7. Marketing Strategies for New Ventures 8. Leadership and team building for New Ventures 9. Managing Resource Requirements 10. Financing the New Venture and Valuing the Enterprise 11. Managing Growth and Crises, Exit Strategies LEARNING TASKS AND ASSESSMENT A range of assessment procedures will be used to meet the unit learning outcomes and develop graduate attributes: Assessment Weight Due Learning Outcomes Assessed Graduate Attributes Assessed Report & posting Presentation on Youtube – Opportunity identification, analysis and Proposal Group Activity but individual participation is marked(1500 words) 30% 4 May LO 1, 2, 3, 4 & 5 GA 1, 2, 3, 5& 7 Report & posting Presentation on Youtube – Final Business Plan proposal and detailed budgets and financial forecast Group Activity but individual participation is marked(2500 words) 30% 8 June 1, 2, 3, 4, 5, 6 & 7 GA 1, 2, 3, 5, 7 & 9 Final Exam 40% Exam Week 1, 2, 3, 4, 5, 6 & 7 GA 1, 2, 3 & 9 Total 100% In order to pass this unit, students are required to complete all assessment tasks and Students must achieve an aggregate mark of 50% for the three assessment tasks. Students must achieve 50% in their Final Exam to pass this subject. Students must achieve a COMBINED 50% in Assessments 1 & 2 WEEKLY OUTLINE Tutorial activity will consist of a mix of individual and group discussions and case study exercise topics which will be outlined during the lectures as well as workshops on the major assessments Week LectureTopic Textbook Chapters & Readings Week 1 Entrepreneurship and the Entrepreneur Timmons, J A, Gillin, L M, Burshtein, S L, & Spinelli, S , 2011 New Venture Creation: Entrepreneurship for the 21st Century – A Pacific Rim Perspective McGraw-Hill Australia, North Ryde, NSW. Ch. 1 & 2 (Bureau, 2013; Plehn-Dujowich, 2010) Week 2 The Environment, the Economy and Entrepreneurship Text Ch.3 (Tan, 1996) Week 3 The Opportunity: Creating, Shaping, Recognising, Seizing Text Ch. 5 (Roscoe, Discua Cruz, & Howorth, 2013; "Seizing global warming as an opportunity," 1997) Week 4 Screening Venture Opportunities Text Ch. 6 (Clark, 2008; Hamilton, 1974) Week 5 Ethical, Environmental and Legal Challenges for Entrepreneurial Ventures Text Ch. 4 & 7 (Wagner, 2012) Week 6 Structuring the Business Plan Text Ch. 8 (Vanston, 2003) Semester Break Week 7 Marketing Strategies for New Verntures Workshop Format (Evers, Andersson, & Hannibal, 2012) Week 8 Leadership and team building for New Ventures Text Ch. 9 (Darling & Leffel, 2010; Ming-Huei, 2007) Week 9 Managing Resource Requirements Text Ch. 11 (Chavan, 2011) Week 10 Financing the New Venture and Valuing the Enterprise Text Chs. 13, 14 & 15 (Chemmanur, Krishnan, & Nandy, 2011; Manchanda & Muralidharan, 2014) Week 11 Managing Growth and Crises, Exit Strategies Text Chs. 17 & 19 (Feldbaumer, 1977; Tan & Tan, 2004) Week 12 Presentations, Course Review and Exam Revision Prescribed Text Timmons, J A, Gillin, L M, Burshtein, S L, & Spinelli, S , 2011 New Venture Creation: Entrepreneurship for the 21st Century – A Pacific Rim Perspective McGraw-Hill Australia, North Ryde, NSW (available as a Vitalsource e-book) Required Weekly Readings Bureau, S. (2013). Entrepreneurship as a subversive activity: How can entrepreneurs destroy in the process of creative destruction? M@n@gement, 16(3), 204-235. Chavan, M. (2011). Framework Identifying the Heterogeneous Resource Constraints Faced by Women Entrepreneurs at the Planning and Managing Stages. International Journal of Interdisciplinary Social Sciences, 6(2), 1-22. Chemmanur, T. J., Krishnan, K., & Nandy, D. K. (2011). How Does Venture Capital Financing Improve Efficiency in Private Firms? A Look Beneath the Surface. Review of Financial Studies, 24(12), 4037-4090. Clark, C. (2008). The Impact of Entrepreneurs' Oral 'Pitch' Presentation Skills on Business Angels' Initial Screening Investment Decisions. Venture Capital, 10(3), 257-279. doi: http://www.tandfonline.com/loi/tvec20 Darling, J., & Leffel, A. (2010). Developing the Leadership Team in an Entrepreneurial Venture: A Case Focusing on the Importance of Styles. Journal of Small Business and Entrepreneurship, 23(3), 355-371. doi: http://www.tandfonline.com/loi/rsbe20 Evers, N., Andersson, S., & Hannibal, M. (2012). Stakeholders and Marketing Capabilities in International New Ventures: Evidence from Ireland, Sweden, and Denmark. Journal of International Marketing, 20(4), 46-71. Feldbaumer, W. C. (1977). THE MANAGEMENT OF GROWTH: AN ENTREPRENEURIAL CRISIS. American Journal of Small Business, 1(3), 38-38. Hamilton, H. R. (1974). Screening Business Development Opportunities. Business Horizons, 17(4), 13. Manchanda, K., & Muralidharan, P. (2014). CROWDFUNDING: A NEW PARADIGM IN STARTUP FINANCING. Global Conference on Business & Finance Proceedings, 9(1), 369-374. Ming-Huei, C. (2007). Entrepreneurial Leadership and New Ventures: Creativity in Entrepreneurial Teams. Creativity & Innovation Management, 16(3), 239-249. doi: 10.1111/j.1467-8691.2007.00439.x Plehn-Dujowich, J. (2010). A theory of serial entrepreneurship. Small Business Economics, 35(4), 377-398. doi: 10.1007/s11187-008-9171-5 Roscoe, P., Discua Cruz, A., & Howorth, C. (2013). How does an old firm learn new tricks? A material account of entrepreneurial opportunity. Business History, 55(1), 53-72. doi: 10.1080/00076791.2012.687540 Seizing global warming as an opportunity. (1997). Nature, 387(6634), 637. Tan, J. (1996). Regulatory environment and strategic orientations in a transitional economy: A study of Chinese. Entrepreneurship: Theory & Practice, 21(1), 31-46. Tan, J., & Tan, D. (2004). Entry, Growth, and Exit Strategies of Chinese Technology Start-Ups: Choosing Between Short-Term Gain or Long-Term Potential. Journal of Management Inquiry, 13(1), 49-54. doi: 10.1177/1056492603262014 Vanston, J. H. (2003). BETTER FORECASTS, BETTER PLANS, BETTER RESULTS. Research Technology Management, 46(1), 47. Wagner, M. (2012). Ventures for the Public Good and Entrepreneurial Intentions: An Empirical Analysis of Sustainability Orientation as a Determining Factor. Journal of Small Business and Entrepreneurship, 25(4), 519-531. doi: http://www.tandfonline.com/loi/rsbe20 Recommended references Frederick, HH, Kuratko, D &Hodgetts, R, 2010, Entrepreneurship: theory, process, practice, 2nd Asia-Pacific edn, Thomson Learning, Melbourne Journals Journal of Business Venturing Small Business Economics Entrepreneurship: Theory & Practice Journal of Small Business Management Entrepreneurship, Innovation and Change Family Business Review Websites for New Venture Creation http://ecorner.stanford.edu http://www.kauffman.org http://www.Entrepreneur.com/inspiration http://www.baylor.edu/business/entrepreneur/ Assessments Assessment for the course is divided into three parts 1. Group preparation and presentation of the first part of a Business Plan, the Opportunity Analysis, for a completely New Venture. This is divided into three assessment tasks which account for 30% of available marks 2. Group preparation and presentation of the final Business Plan incorporating feedback from the Opportunity Analysis, including Marketing, HR and Growth Strategy and associated budget detail, for the chosen completely New Venture. This task accounts for 30% of available marks 3. A Final Examination which accounts for 40% of available marks Assessment Item 1 Assessment Items 1 & 2 Preparation of a Business Plan, Report and Presentations for a New Venture The two assignments comprise the progressive completion of a business plan based on the identification and 5 year growth strategy for a new business venture to be discussed during the week 1 tutorial. This is a group assignment focusing on the preparation and presentation of a total Business Strategy for a new business opportunity which shows an understanding of the theory, definitions and concepts underlying Strategic Planning, Management of Growth, Entrepreneurship and New Venture Creation by applying them to a practical situation. Students will be allocated into groups of NO MORE THAN 3 and allocated one of the following industry sectors in which they are required to identify a viable and original new business opportunity and complete a business plan whose purpose is to seek Venture Capital funding from an arm’s length third party investor. The format of the Business Plan and Presentation will be given during the tutorial in Week 2 The Industry Sectors to which you may be allocated are 1. Tourism in Australia 2. Aged Care in Australia 3. Online retailing and App Development 4. Hospitality in Australia 5. A Socially Philanthopic Business Venture in Australia or Overseas The viability of the venture should be consistent with the criteria outlined by Timmons or with some other acceptable academically peer reviewed criteria. The venture must be capable of expansion either nationally or internationally and achieve a Profitable Return on Investment by at least year 3 and with a MINIMUM annual revenue of AUD$5 Million The undertaking does not have to be unique, but it must not be based on an existing venture e.g. Franchises for existing operations (such as McDonalds, KFC, Blockbuster, etc) are NOT acceptable examples Presentations will take the form of a video presentation which students will post to YouTube and must not exceed 10 minutes duration Assessment Item 1 Opportunity Analysis Students are required to undertake a detailed analysis of their chosen market in Australia and identify potential New Venture Opportunities. The analysis should cover market structure, segmentation, distribution channels and trends for the total market but students will be required to derive (and justify) their own estimates of the particular product segment specified. In addition to the market analysis students are also required to outline their proposed strategies for launching the product into the Australian market. • Word limit 1500 words • Due date During the tutorial 4 May • Weighting of marks 30% of Total Unit Marks • Penalties for late lodgement 5% per day past due date Assessment Item 2 Final Business Plan Report & Presentation Based on the feedback received from their first assignment students are required (if necessary) to amend their market analysis and proposed business strategy and to prepare the final, complete business plan which must include detailed implementation plans for proposed marketing, channel, pricing and growth strategies and detailed financial budgets and cashflow. • Word limit 2500 words • Due date During the Lecture, 8 June • Weighting of marks 30% of Total Unit Marks • Penalties for late lodgement 5% per day past due date Students are required to show progress in their Plan development at their individual or group SCHEDULED workshops, which will be timetabled. The timetable of workshops will be posted to moodle after week 2. ALL group members must attend the workshops unless previously exempted or on presentation of a valid medical certificate Final Examination Weighting 40% Due Date Exam Week Details of examination format and expectations will be advised during the lectures MAN302 Business Plan Assessment Item 1 Opportunity Identification, Development and Evaluation of alternative strategies Semester 2, 2016 Student Name…………………………………………………………………………………..….ID#................................................. Student Name…………………………………………………………………………………..….ID#................................................. Student Name…………………………………………………………………………………..….ID#................................................. Marking Criteria Comments Max. Mark Actual Mark Executive Summary & Introduction 20 Background Data External, Internal & Financial Analysis 20 Statement of Issues/Problems identified in market sector 10 Range of Solutions or Courses of Action considered 30 Final Recommendation 10 TOTAL 100 TOTAL 30 Assessment Item 1 Opportunity Identification, Development and Evaluation of alternative strategies Criteria High Distinction (80%+) Distinction (70-79%) Credit (60-69%) Pass (50-59%) Fail (0-49%) Max Mark Available Actual Mark Executive Summary & Introduction Extremely good introduction and clear, concise and compelling summary Introduction is excellent: it’s clear, engaging, and thorough. Introductory information is clear and professionally developed. Introductory information is adequate but needs more development and clarity. Does not provide adequate background and convey proposal’s purpose or form. 25 Background Data External, Internal & Financial Analysis Data and collection methods are explained & developed to extremely high standard. Analysis is very thorough pre-empting questions . Data and collection methods are explained and developed well. Analysis is thorough. Reader questions are anticipated and answered. Data and collection methods are explained clearly and developed well. Analysis is good. Reader will generally be satisfied. Explains data and collection methods, but explanations need development. Data analysis will leave readers with questions. Does not adequately explain data or collection methods; data analysis is minimal and lacking focus. 45 Statement of Issues/Problems identified in market sector Data and collection methods are explained and developed extremely well. Analysis is thorough. Reader questions are anticipated and answered. Data and collection methods are explained and developed well. Analysis is of a high order. Reader questions are anticipated and answered. . Problem and its implications are explained clearly and persuasively. Problem is explained adequately but more evidence is needed to understand its implications. Problem is not articulated clearly or presented persuasively. 10 Range of Solutions or Courses of Action considered Solution is articulated exceptionally well, realistic, and based on excellent evidence. Detailed Pros and cons are provided for each alternative and each is very convincing Solution is articulated well, realistic, and based on very good evidence. Pros and cons are provided for each alternative and each is convincing Solution is articulated clearly, realistic, and based on sound evidence. Good range of alternatives evaluated. Pros and cons are provided for each alternative and are, overall, generally convincing. Solution is articulated adequately, but its implementation needs more development and better evidence to gain approval. Only one or two adequate alternatives are offered Solution is not articulated clearly, unrealistic, and not based on sound evidence. Pros and cons are not provided for alternatives. Some are weak. 10 Final Recommendation Recommendations are excellent and induce cooperation from audience. Recommendations are very good and seek to induce action from audience. Recommendations are pertinent, realistic, evidence-based, and detailed. Recommendations are relevant and adequate, but need more development and clarity. Recommendations are insufficient, unclear, only marginally viable and not connected to the report’s data. 10 TOTAL MARK 100 TOTAL MARK / 30 MAN302 Business Plan Assessment Item 2 Develop Final Business Plan, implementation strategies, supporting budgets & forecasts Semester 2, 2016 Student Name…………………………………………………………………………………..….ID#................................................. Student Name…………………………………………………………………………………..….ID#................................................. Student Name…………………………………………………………………………………..….ID#................................................. Marking Criteria Comments Max. Mark Actual Mark Executive Summary & Introduction 10 Strategy Formulation 20 Functional Strategy Implementation 20 Financial Analysis and Budgets 20 Final Strategic Recommendations 20 Report Format and Presentation 10 TOTAL 100 TOTAL 30 Assessment Item 2 Develop Final Business Plan, implementation strategies, supporting budgets & forecasts Criteria High Distinction (80%+) Distinction (70-79%+) Credit (60-69%) Pass (50-59%) Fail (0-49%) Max Mark Available Actual Mark Executive Summary & Introduction Introduction is excellent: clear, engaging, and thorough. Introduction is very good,clear, quite engaging, and thorough. Introductory information is clear and professionally developed. Introductory information is adequate, needs more development and clarity. Does not provide adequate background and convey proposal’s purpose or form. 10 Strategy Formulation Three problems are described concisely in one sentence each and are actionable and excellently articulated. Pros and cons are provided for each alternative and each is very convincing. Problems are described concisely and are actionable and well articulated. Pros and cons are provided for each alternative and are convincing. Clearly distinguishes between symptoms and actionable problems; three problems are articulated adequately. Pros and cons are provided for each alternative and are, generally convincing. Distinguishes between symptoms and problems, and the latter is actionable and articulated adequately. Some problems identified. Pros and cons are provided for most alternatives. Some key points are convincing. Confuses symptoms and problems. Problems not related to purview of decision-makers. Pros and cons are not provided for each alternative. Some are weak 20 Strategy Implementation Thorough, articulate, and reasonable plan is offered including timeline and assignment responsibilities. Generally full, articulate, and reasonable plan is offered including timeline and assignment responsibilities. A good plan is offered including timeline and assignment responsibilities; however, a few more details are needed. An adequate plan is offered that includes a timeline OR assignment responsibilities. Plan is incomplete and doesn’t include a timeline and assignment responsibilities. 20 Analysis and Assessment Solution is articulated exceptionally well, realistic, and based on excellent evidence. Pros and cons are provided for each alternative and each is very convincing Solution is articulated well, realistic, and based on good evidence. Pros and cons are provided for each alternative and each is very convincing Solution is articulated clearly, realistic, and based on sound evidence. Good range of alternatives evaluated. Pros and cons are provided for each alternative and overall, generally convincing. Solution is articulated adequately, but its implementation needs more development and better evidence to gain approval. Only one or two adequate alternatives are offered Solution is not articulated clearly, unrealistic, and not based on sound evidence. Pros and cons are not provided for alternatives. Some are weak. 20 Strategic Recommendations Recommendations are directly responsive to problems and provide very effective, efficient, feasible recommendations. Responsibilities for actions are included. Recommendations are generally responsive to problems and give effective, efficient, feasible recommendations. Responsibilities for actions are included. Recommendations are actionable and responsive to problems. They’re effective, efficient, and feasible. Recommendations are adequate but need attention regarding who will implement them, how they’ll be implemented, and what needs to get done. Recommendations suggest simplistic solutions and are vague, unrealistic, expensive, too complex, or not related to problems. 20 Report Format and Presentation Excellent standard. Clear, concise and compelling. Very good standard. Clear, concise and compelling. Good clear report, persuasive and well presented free from errors Adequate report, reasonably clear & understandable. Presentation workmanlike but lacked real persuasiveness Basic and had some areas incomplete. Presentation was poor and unconvincing 10 TOTAL 100 TOTAL /30 30 IMPORTANT NOTES ON PASSING THIS SUBJECT Students are advised to acquaint themselves with the academic regulations regarding progress as outlined in the College Rules and Regulations. A deferred or a supplementary examination will be held at the end of the semester during the normal examination/testing period, and will be included on the official examination timetable. Supplementary information concerning teaching, learning and assessment may be provided from time to time. Announcement of these matters in classes and placement of a notice on the officially designated College Noticeboard shall be deemed to be official notification. It is recommended that students who have life circumstances or personal limitations which may affect their course of study, should contact the Program Coordinator as soon as possible. Group discussion in assignment work is encouraged. However, written reports must be the individual student's work. Any and all collaboration and help received must be clearly acknowledged. Permission to make a late submission of work must be obtained from your Head of Subject. The reasons for requesting an extension of time must be given in writing and must be received before the due date. Having ‘work in other subjects’ will not be accepted as reasonable grounds for granting an extension. Excuses involving computers or printers will not be accepted as valid reasons for late submission. It is your responsibility to organise projects so that work is submitted by the due date. Where your work is submitted after the due date, and compassionate or other grounds cannot be established, there will be a penalty of 10% of the total mark for each day the submission is overdue. In order to pass the subject, you must have satisfactorily completed all assigned work. If the subject lecturer questions any submitted work as wholly or partially plagiarised, you will receive a nil result for the assessment. If the subject lecturer is satisfied that two or more students have engaged in unauthorised collusion, those involved will be subject individually to the same penalties as those applied in individual cases. A duplicate copy of all work submitted must be kept by the student. Assessment grades are as follows 0-49 Fail (N) 50-59 Pass (P) 60-69 Credit (CR) 70-79 Distinction (D) 80%+ High Distinction (HD)