The University of Texas Dallas - School of Management

BA 4311: Entrepreneurial Strategy

Fall 2007 - Monday 7:00 -9:45 PM

Instructor: Darius Mahdjoubi, Ph.D.

Classroom: SOM2.103
Office: SOM 4.225
Email: darius@utdallas.edu
Phone (UTD office): 972-883-5817
Office Hours: Mon/Wed: 3-4 PM, or by appointment

Materials: Some of the readings for this course are available on-line through
http://www.study.net. Others are available through UTD Library’s On-lien database Business
Source Premier. All other readings, announcements, and lecture notes are posted to the class
Web-CT site.

Introduction: You are young, successful, rapidly climbing the corporate ladder and a friend
comes to you with a killer concept for a business. Do you pass it by – thereby staying with what
too many of your current colleagues will eventually learn is not a sure thing – or do you go for it
– and risk the benefits and opportunities that accompany corporate life?

The purpose of this class is to give you the tools needed to answer this question. We will draw
on concepts, theory and practice to develop a set of questions to assist you in reviewing a
proposed new venture and provide insight about the nature of competition in that industry. We
will then hone your skills through the use of case study, and finally, test your acquired
knowledge by challenging you to investigate, document, and evaluate a proposed (or developing)
new venture. I'm excited about the semester ahead, and look forward to working with you.
Course Requirements & Grading:

Component: % Total
Grade

1. Case Note 1 – 3 page maximum 10 %

2. Case Note 2 – 3 page maximum 10 %

3. In-Class Quizzes, assignments & projects (Best 5 of 8) 10 %

4. Team Project – 15 page written report & 30 minute presentation 30%

5. Mid-Term Exam 15 %

6. Participation (Includes Attendance) 15 %

7. Reflection Paper 10%

Total 100%

Reflection Papers: 2 to 4 days after each session, each students needs to write a synopses of the
learning of the session. Writing the reflection papers helps you to organize your learning of the
session and act as a feed back to the session as well. Your reflection paper should include the
whole discussion of the class, including other students’ comments that were interesting to you.
At the end of semester, each student will write a final reflection paper for the whole semester
that contains their learning for the whole class period.

Chapter Review: Prior to each session, you need to review the reading material for the sessions
and drop a digital copy of the chapter review in the WebCT. You need to bring a paper (hard)
copy of the chapter review to class to assist you in discussions that we have for each session.

The Case Method: Why We Rely on Discussion Learning

Much of our class time will be spent discussing business cases. We rely on the case-study method in this
class for a variety of reasons. First, case discussions generate a dynamic process of question and response
and examination and debate among students. This process is vital because entrepreneurial activities are
characterized by ambiguity, complexity and uncertainty. As will become evident, asking the right
question is often more important than knowing the right answers. The case method will help you refine
your question-asking skills. Remember, while the questions change, reasoning skills survive. Second,
discussion learning causes you to actively participate in the learning experience. This is essential because,
as Walter Wriston noted, “Good judgment comes from experience, but valuable experience comes from
making mistakes.” The case method allows you to make mistakes, but in a setting where careers (and
grades) are not at stake. Finally, the case-study method helps trains you to think as a manager and not as a

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scholar. We want you to: (1) see real problems, (2) focus on defining and prioritizing a maize of tangled
problems and to determine which one(s) to attack, (3) learn to appreciate differing agendas and points of
view, and (4) learn to take action, not just report findings.

That being said, by no means is this course “concept free.” Rather, our goal is to use the tools discussed
in class to break the situations presented in the case into readily interpretable components. We will then
assess each component of the case on its merits and re-assemble the whole in a way that makes the case
manageable and the key issues apparent. Since the cases are a critical component of the class, it extremely
important that you read, study and discuss with each other the assigned class materials. (A set of
questions about each case that you might use to help prepare for class is posted to the Blackboard site.)

Case Notes
Twice during the semester, you will prepare a one to three-page analysis of the assigned case. Your task is
to identify and summarize the facts and assumptions on which your recommendations are based, and to
make a recommendation that addresses the issues at hand. Your grade will be based on appropriate use of
the formal analytical tools or concepts that have been reviewed to date in class or in the assigned
readings, identification of the most strategically important facts presented in the case, and the quality of
the argument you present. Consistent with our belief that asking the right questions is more important
than getting the right answer, your grade will be based on the quality of your analysis, and not on the
“correctness” of your recommendation. Summaries must be typed, 12-point times roman font, one-inch
margins on all sides, and not more than 3-pages in length and are due at the start of class on the assigned
date. Late cases will not be accepted. (Please note, the case questions provided on Blackboard are
intended to start your thinking about the case. Case notes which merely respond to these questions will
receive a failing grade).

Team Project
The purpose of working in teams is to expose you to the demands of working in a group on a complex,
ambiguous task with a fixed deadline. We will form teams of three or four members at the start of the
semester. Each team will be held accountable for the preparation and presentation of your class project.
Your team will prepare a 10 to 15-page analysis of the problems and opportunities facing an existing new
venture, as well as a one-page synopsis of your case. The case is due at the end of the term. The synopsis
is due one week before your team presents.

You are free to choose from any number of companies and situations to evaluate, ranging from new
ventures run by friends or family acquaintances to larger startup whose challenges have been recently
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described in the press. (Please be sure to discuss your choice with me, especially since a poor choice will
greatly complicate your task). Your task is to research the assigned problem, sort fact from fiction, and
prepare a formal analysis and recommendations. The analysis and recommendations will be presented to
me in written form and to the class in the form of an oral presentation.

The challenge of the group presentation is to develop and present a carefully crafted analysis of the
assigned problem. In crafting your presentation, remember that, like an attorney, your goal is to present
your analysis of the case in an authoritative and persuasive manner. Your presentation should not exceed
30 minutes and should be carefully planned and rehearsed. You will be evaluated on the persuasiveness
of your presentation as well as the content of your analysis and recommendations. Materials that
facilitate communication are encouraged. Each group member is expected to participate in the
presentation. (I reserve the right to grant exceptions).

Class Participation: You are expected to actively contribute to this class. Active participation includes
the quality of your contribution and not merely how often you speak in class. You need to review the
cases related to each class, and make a case review document. Drop a digital copy of your case review in
the Web-CT and bring a hard (paper) copy with you to assist in active participation of the class.

Some of the specific things that will have an impact on effective class participation (and on which you
will be evaluated) include:
• Is there a willingness to take intellectual risks and test new ideas, or are all comments
“safe”? (For example, repetition of case facts without analysis or conclusions)
• Are you a good listener?
• Are the points made relevant to the discussion? Are they linked to the comments of
others and to the themes that the class is exploring together?
• Do the comments add to our understanding of the situation? Are they incisive? Do
they cut to the core of the problem?
• Is there a willingness to challenge the ideas that are being expressed?
• Do you draw on material from past classes or readings when appropriate?

I understand that participating in class can be an intimidating experience. Please check with
me if you have any concerns about your participation and/or grade.

Administrative Issues

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Peer Evaluation In an effort to mitigate potential “free-rider” problems, you may be asked to grade the
participation and contribution of each member of your group (including yourself) on group projects. I
may take these scores into account when calculating your project grade.

Academic Integrity
University policy on plagiarism and academic integrity will be rigorously enforced. I will not tolerate
cheating or plagiarism in any form. Cheating or plagiarism will result in a failing grade. Ignorance is not
considered an excuse. If you are not sure whether or not something you plan to submit would be
considered either cheating or plagiarism, please do not hesitate to ask the faculty. When in doubt cite the
source!

Electronic Submission All work must be submitted in a digital format.

Attendance: Since this is a lab class, absences will strongly affect your participation grade.

GRADE SCALE
A = 89% OR GREATER
B = 80% TO 88%
C = 70% TO 79%
D = 60% TO 69%

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Week Date Tuesday
1. 8/20 Class Introduction
• overview of course
• discussion of assignments
• assignment of teams
• introduction to topic
• Business Strategy: Administration vs. Entrepreneurial (Incumbents
vs. Insurgents)
2. 8/27 The Basics of Strategy
Readings:
• Porter “How Competitive Forces Shape Strategy”
• Porter “What is Strategy”
• Mintzberg “Crafting Strategy”
• Mintzberg: Fall and Rise of Strategic Planning
3. 9/3 What is entrepreneurship?
• Stevenson & Gumpert “The Heart of Entrepreneurship”
• R&R Case *
4. 9/10 Lessons from Entrepreneurial Success Stories
• Case “Henry Heinz”*
• Case “Howard Schultz and Starbucks”*
• Assignment #1: 1 page description of your group project
5. 9/17 The Basics of Strategy II
Readings:
• Barney “Looking Inside for Advantage”
• Case “Cocoa Pete’s”*
o What industry is Pete entering?
o Is it an attractive industry?
o How is Pete positioning against the competition? Why?
o Will Pete’s have a sustainable competitive advantage?
• Case Note #1 Due Before Class
6. 9/24 Business Models and Blue Oceans
• Magretta “Why Business Models Matter”
• Kim & Mauborgne “Blue Ocean Strategy
• Case “Marshall Field and the Rise of the Department Store”*
7. 10/1 A Primer on Business Opportunity Evaluation
• Kim & Mauborgne “Knowing a Winning Business Idea When You
See One”
• Stevenson “Pre-Start Analysis”*
• Assignment #2 – Use K&M’s Buyer Utility Map to analyze “My
Space.Com”. Als
8. 10/8 MIDTERM EXAM
9. 10/15 Change and Advantage
Readings:
• Christiansen “Skate to Where the Money Will Be”
• Case “On-line music in a post-Napster world”*
10. 10/22 Product Differentiation in Mature Industries
Readings:

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 • McMillan & McGrath “Discovering New Points of Differentiation”
• Chakrovarti “The New Rules for Bringing Innovations to Market”
• Case “TiVo2002”*
11. 10/29 Entry Strategy
Readings:
• Boulding & Christian “First- Mover Disadvantage”
• Case “TiVo in 2005”*
• Case Note #2 Due Before Class
12. 11/05 Standards Battles
Readings:
• Shapiro & Varian “The Art of Standards Wars”
• David “The Economics of Qwerty”
• Case “The Battle of Blue Lasers” – The Economist**
13. 11/12 Managing Risk & Uncertainty
Readings:
• Teisberg “The Strategic Response to Uncertainty”*
• Miller & Waller “Scenarios, Real Options, and Integrated Risk
Management”**
• 1 Page Project Summary Due Before Class
14. 11/19 Project Presentations:

Groups: 1. ___________________________
2. ___________________________
3. ___________________________
15. 11/26 Project Presentations:

Groups: 1. ___________________________
2. ___________________________
3. ___________________________

* These items are available at http://www.study.net

** These items will be posted on Web-CT