Lahore University of Management Sciences

MGMT 481 - Entrepreneurship

Spring 2014

Instructor Dr. Muhammad Shehryar Shahid

Room No. TBA
Office Hours TBA
Email muhammad.shehryar@lums.edu.pk
Telephone 042-35608425
Secretary/TA Saleem A. Khan/TBA
TA Office Hours TBA
Course URL (if any) LMS

Course Basics
Credit Hours 4
Lecture(s) No. of Lec(s) Per Week 2 Duration 1hr 20 mins
Recitation/Lab (per week) No. of Lec(s) Per Week Duration
Tutorial (per week) No. of Lec(s) Per Week Duration

Course Distribution
Core -
Elective Elective
Open for Student Category Junior/Senior (university-wide)
Close for Student Category

COURSE DESCRIPTION

Welcome to be a part of the entrepreneurial revolution that has literally ‘infected’ the contemporary global thinking! No other jargon has so
much in use in recent times as entrepreneurship, and it is certainly for a reason. That is, perhaps no other thing can be so powerful, sustainable
and thrilling as the phenomenon of ‘new venture creation’ for its ability to solve the prevailing problem of the mankind in its entirety. It is an
introductory course on entrepreneurship intended to enhance your ‘willingness’ to set out on an entrepreneurial journey and give you a chance
to think about alternative career options available to you in an economy so full of unmet needs and so short of innovative solutions. In this
semester we will assess, explore, critique and celebrate the phenomenon of entrepreneurship.

This course will approach entrepreneurship as a mindset, an attitude and a behaviour to undertake value-creating initiatives in situations with a
certain level of uncertainty that is expected to lead to the creation of a new business entity, be it a new start-up or a launch of new product or
service within a large corporation. The course is designed in six modules with almost equal focus on the students’ development of both hard and
soft entrepreneurial skills. The discussion in the first three modules will predominantly revolve around the cognitive part of the entrepreneurship
process, which will allow the students to understand and challenge the very ‘logic’ of how expert entrepreneurs usually make decisions as
opposed to a stereotypical manager working under a very different scheme of things. The last three modules of the course will then deal with
some contemporary analytical tools used in the entrepreneurship education, coupled with certain ‘tricks of the trade’, in order to generally
improve the students’ skills to develop a more innovative and sustainable business model for whatever entrepreneurial pursuit they ever plan to
undertake. This course, therefore, promises a unique form of logic, which might at times be antagonistic to the conventional principles of
management, but then it is what entrepreneurship is all about.

Given the nature of the subject, the curriculum of this course will also ensure a substantial exposure to the living practice of entrepreneurship
through certain assignments, case study discussions and the guest speaker sessions that will be organized in the university. Students will get an
adequate chance to interact with different practicing entrepreneurs at different points along the course in order to validate their classroom
learning and refine their business ideas. In short, this course promises a blend of fun and learning.
 Lahore University of Management Sciences
COURSE OBJECTIVES
The course attempts to:
1. Enhance the ‘entrepreneurial intentions’ of the students by improving their natural willingness to start a business or to
undertake new ventures in an existing firm
2. Inspire the students to seek ‘alternative’ career opportunities
3. Understand the process nature of entrepreneurship and learn the ways to manage it
4. Develop the analytical skills of the students with regard to various stages of the entrepreneurship process, starting from
opportunity identification and idea generation to business model development and managing venture growth
5. Educate the students about the theoretical underpinnings of the entrepreneurship subject with the aid of practical
assignments and projects

Learning Outcomes

Upon successful completion of this course, students should be able to:

1. Explain clearly the difference between two competing models of entrepreneurship and evaluate their application in the
Pakistani context
2. Describe the varying motives of being an entrepreneur and what it takes to be one particularly from the point of view
of starting a new business
3. Critically identify the key differences between the entrepreneurial and managerial thinking
4. Find a creative business idea and analyze how it is different from an opportunity
5. Use different analytical tools to translate a business opportunity into an integrative and sustainable business model
6. Perform a critical analysis of a given business plan and formulate their recommendations with respect to its
operational, market and financial feasibility

Grading Breakup and Policy

Source % of Total
Class Attendance 5%
Class Participation 15%
Assignments:
1. Interview with an entrepreneur 10%
2. Idea Pitch workshop 10%
3. Surprise assignment (TBA) 10%
Midterm Exam 15%
Group Project (report + presentation) 25%
Quizzes 10%
Total 100%
 Lahore University of Management Sciences
Class Participation and Attendance: Students are expected to attend all classes. If you arrive too late after the beginning of a class or leave the
class during the session without instructor’s prior permission, you will be considered absent for the day. You must review the assigned
readings/case studies in advance in order to contribute meaningfully to class discussions. A significant portion of the course grade depends on the
quality and level of your involvement and input in class discussions.

Quizzes: 2-3 announced or unannounced quizzes will be given on the assigned readings during the term. No request for make-up quizzes will be
entertained, unless there is a genuine reason for doing the needful. Only the top two quizzes of each student will be considered for the final
grading.

Group Assignments: There will be three graded assignments during the term the details of which will be shared by the instructor in the class. All
the assignments will be conducted in the form of groups comprising 3-5 students. All assignments must be submitted on the due date. Late
submissions will not be accepted, or would result in a deducted score.

Group Projects and The Idea Pitch Workshop: The group project is the most substantial part of this course. Students will work in the same groups
as they form for the group assignments. As the starting point, the groups will present their idea pitches on a prescribed template to a panel of 2-3
th
mentors in a workshop session tentatively planned in the 6 week of the semester. Incorporating the feedback of the workshop session, the
students will eventually present their complete business models and project reports in the last two sessions of the semester. The project report
MUST NOT exceed the maximum of 15 pages, excluding the appendixes. The format of the report will be discussed and distributed in the class.
th
Examinations: Midterm exam will be conducted in the 16 session from whatever content will have been covered by that time. And yes there is
NO FINAL EXAM!

Meet the Entrepreneur: To interact with practicing entrepreneurs is an integral part of this course. It is planned to invite at least three (may be
more) entrepreneurs from different fields to interact with the students during the course. Attendance in these sessions will be MANDATORY.

Film Session: Entrepreneurship is a fun subject and must be complemented with a variety of teaching instruments. A film session is therefore
planned in the 6th lecture that will help the students to further crystallize their understanding of the entrepreneurship process and the
entrepreneur. The instructor will subsequently put the learning of the film into a predefined theoretical framework to highlight some basic
concepts of entrepreneurship.

Examination Detail

Yes/No: Yes
Combine Separate: - N/A
Duration: 2 Hours
Midterm Exam Preferred Date: Week 8/9
Exam Specifications: TBA

There will be NO FINAL EXAM for this course!

 Lahore University of Management Sciences

COURSE OVERVIEW/SCHEDULE
Lecture/ Recommended Objectives/
Topics
Module Readings Application
Module 1: Entrepreneurship: An Introduction
• Overview of the course outline,
methodology and grading scheme
Session 1 • Benefits and pitfalls of entrepreneurship
• The “urgency” of entrepreneurship

• Who is an entrepreneur? • Steve Jobs: An
Entrepreneurial
• Characteristics of the entrepreneur? Snapshot
Session 2
• Entrepreneur Vs. Manager • Beyond Business
Instinct
The students will learn the basic
characteristics of an entrepreneurial
personality with special focus on what sets
them apart from a typical manager with
regards to their “motives” to pursue an
entrepreneurial career.

Session 3 FILM: Pirates of the Silicon Valley

• Competing strategies of entrepreneurship The students will learn the various strategies
of entrepreneurship by using examples of the
Session 4
o Fustest with the mostest firms that have used these strategies in
o Creative Imitation different situations to pursue different
growth objectives. The students will be able
Class discussion to understand the difference between two
very widely confused terms - invention and
innovation – in the context of
• Competing strategies of entrepreneurship entrepreneurship. Entrepreneurship does not
Session 5 (cont….) always mean invention; it is rather the rarest
o Hit them where they ain’t form of it.
o Ecological niche

Module 2: The Entrepreneurship Process

• What makes
• Competing models of entrepreneurship entrepreneurs To define entrepreneurship as a scientific
entrepreneurial, by Saras process as opposed to a particular individual
• Effectual vs. causal logic of entrepreneurship Sarasvathy or behaviour type. The learning of this
Session 6 session will help the students debunk a long
• Entrepreneurial thinking Vs. managerial • Process of standing myth that entrepreneurs are born
thinking entrepreneurship, by and would rather help them define
Micheal Morris entrepreneurship as a process that can be
learned and taught.

Session 7 Meet the Entrepreneur (1)

• Principles of effectual entrepreneurship
o The bird-in-hand principle
Session 9 o The crazy quilt principle
o The lemonade principle
o The affordable loss
principle
Drawing evidence from various mini case
• Mini case studies studies and empirical studies, this session will
of Pakistani particularly focus on some of the basic
entrepreneurs decision-making principles used by expert
entrepreneurs. Students will develop a
contrast between how decisions are made by
an entrepreneur and a manager.
 Lahore University of Management Sciences
To give students an opportunity to test their
classroom learning about the
entrepreneurship process in the field by
interviewing practicing entrepreneurs of
Session 10 Presentations: Interview with an entrepreneur their choice and share their learning with
other colleagues in the class. Bringing
together findings from different interviews in
the class will enrich the overall learning
process for each student.
Module 3: Opportunity Recognition and Feasibility Analysis
• Recognizing
• Idea vs. opportunity opportunities and This session will discuss the critical difference
generating ideas, by between an idea and an opportunity. Using a
• Essential qualities of an opportunity Barringer and Ireland mini case study, the students will learn about
the process of identifying a good business
Session 11
• Ways to ‘find’ a business opportunity • Mini Case Study: opportunity.
23andMe: Is this an
• Window of opportunity Opportunity or Just an
Interesting Idea

• Role of feasibility analysis in developing
successful business ideas
• Characteristics of attractive industries for
start-ups
Session 12
• Financial and commercial merit of the
business idea
• The venture opportunity profile
Session 13 • Screening feasible business opportunities
Session 14
• Screening feasible business opportunities
• Feasibility Analysis, by
Barringer and Ireland
• Class Exercise: Business
Plan Evaluation
• Class Exercise: Business
Plan Evaluation
The session will further delve on the process
of opportunity recognition and will help the
students develop an analytical framework to
judge the financial, organizational, market
and personal feasibility of a given business
idea. The same framework will be used by
them to develop ideas for their course
project.
The students will apply the framework
developed in the previous session in a real
life situation with the aid of a case study.
An alternative model of opportunity
recognition will be discussed with a thorough
debate on the dos and don’ts of different
models of opportunity recognition.

Session 15 Meet the Entrepreneur (2)

Business Idea Workshop

Session 16 Students will present their idea pitches using the Big Idea Sketch Pad
to a panel of mentors

Session 17 Midterm Exam

Module 4: Business Model Development and Innovation

• Value Innovation: A new mantra of value • Blue Ocean Strategy: In this session the students will learn about a
creation From Theory to Practice, new philosophy of competition that will
• The Strategy Canvas by Kim and Mauborgne stretch their current understanding of
Session 18 • Four-actions framework competitive strategy beyond the
conventional ‘beat the competition’
approach. It will help the students to
question the typical quality and cost tradeoff
 Lahore University of Management Sciences
• Creating sustainable competitive advantage
Session 19
through value innovation (VI)
• Business model vs. Business plan
• Definition of the basic components of a
Session 20
business model
• Business model analysis – finding a difference
Session 21 between a good and bad business model
• Business model analysis – finding a difference
Session 22 between a good and bad business model
Session 23
Module 5: Marketing and Financing a Start-up
• Building a brand and venture identity
Session 24 • “Guerilla” Marketing Principles
• Sources of funding for a new venture: equity
or debt?
Bootstrapping finance: The art of start-up
Session 25
• Financial objectives of entrepreneurial
ventures
• Pro forma financial statements
Module 6: Managing Venture Growth
• Expanding and scaling the venture
Session 26 • Stages of small business growth
• Challenges of growing a small business
Session 27 • Growth strategies for a small business
while they decide the competitive positioning
of their entrepreneurial ventures.
The concept of the Blue Ocean Strategy will
be analyzed using a start-up’s case study that
will enable the student to further clarify the
theoretical concepts discussed in the
• Case Study: Zappos.com previous session. Moreover, they will have a
chance to critically analyze a full-fledged
business plan from various perspectives and
form their recommendations in general and
the competitive strategy of the firm in
particular.
• How to design a winning The students will learn about the definition of
business model, by business model and that how it is different
Ramon Casadesus from a typical business plan.
Moreover, the session will also teach the
class about how to conceive and draw a
business model.
• Case Study: Aravind: A
Profile in Growing a
Health Care Industry
Using a case study, the objective of this
session is to develop the analytical skills of
• Case Study: Expresso the students with regards to their ability to
Espresso define the ‘characteristics of an effective
business model’. The session will conclude at
formulating an objective criteria to evaluate
any given business model.
Meet the Entrepreneur (3)
• Venture Identity: Build Students will be oriented with the
Brand, by S. Read and S. importance of creating a brand identify in the
Sarasvathy context of a new venture, and will also be
taught about some ‘cost-effective yet high-
impact’ marketing techniques to create one.
• Assessing a new This session will mainly introduce the
venture’s financial students with the key financial objectives of a
strength and viability, by start-up, i.e. profitability, liquidity, efficiency
B. Barringer and D. and stability. Consequently, they will learn
Ireland about judging the financial health of a given
business plan. The students will also learn
about how to make pro forma cash flow and
income statements of their business models.
Transformation from a start-up to a growth-
• The Five Stages of Small driven enterprise and its implications on
Business Growth, by various functional aspects of the business as
Churchill well as on the personal dynamics of the
entrepreneur.
Case Study: Restructuring
for Growth in Nishotech
(A) & (B)
 Lahore University of Management Sciences
Session 28 Submission of final project reports/ Final group presentations

Textbook(s)/Supplementary Readings

Required Text:
• All the recommended readings and case studies in the course outline will be available in the instructor’s course pack.

Other Reference Books:

rd
• Barringer, Bruce R. and Ireland, D. Entrepreneurship: Successfully Launching New Ventures, 3 Edition, Prentice Hall, 2010
st th
• Timmons, J., New Venture Creation – Entrepreneurship for 21 Century, 7 Edition, McGraw-Hill International, 2007

Business Idea Websites:

• http://www.springwise.com/
• http://www.kickstarter.com/
• http://smeda.org.gov

Supplementary Websites:
• http://www.sethgodin.com/sg/
• http://www.entrepreneur.com/
• http://www.effectuation.org/