MGT482-582+Syllabus+August+25

**Management 482/582-001, New Venture Development, Fall 2011** **Bidgood 17** **12:30 pm - 1:45 pm, Tuesday and Thursday**
 * Syllabus **


 * Instructor **
 * Craig E. Armstrong, Ph.D.**
 * Department of Management and Marketing**
 * 155 Alston Hall, 205-348-8919**
 * carmstro@cba.ua.edu**
 * For course communications: NVDfall2011@gmail.com**
 * Office Hours: Wednesday 1pm – 4 pm or by appointment**

“Entrepreneurial Finance”, 4th Edition, by Phillip Adelman & Alan Marks, Pearson Prentice-Hall, Upper Saddle River, NJ. ISBN 0-13-184205-6
 * Texts **

Course wiki: http://profcraigarmstrong.wikispaces.com (click on New Venture Development)

All students seeking to enroll in 300-or 400-level courses in The Culverhouse College of Commerce and Business Administration must have attained junior standing, which is defined for purposes of this policy as having earned 55 semester hours. All C&BA students must, prior to seeking to enroll in any 300-or 400- level C&BA course, complete or be enrolled in the following prerequisites: EC 110 and EC 111; MATH 112 and MATH 121, or MATH 115 and MATH 125; CS 102; AC 210; ST 260; and LGS 200 (or their equivalents). Failure to fulfill all prerequisites prior to enrolling in a 300- or 400- level C&BA course will result in administrative disenrollment from that course.
 * Prerequisites **

The purpose of this course is to introduce you to the fundamentals of starting and running your own business, with an emphasis on the financial requirements. The course will include elements of accounting, finance, organization structure and design, selection and training, management, business plans and personal finances. At the end of this course you should have the foundation needed to determine the viability and prospect of starting your own small business or growing a small business you may already be a part of. There will be a large volume of work and intense learning. We will fully utilize the textbooks and the course wiki. Be prepared to work both inside and outside of the classroom.
 * Course Description and Learning Outcomes **

The primary classroom activity is class discussion that builds on the readings assigned in the course schedule. Most of the readings are textbook chapters, but other readings - usually short ones - will also be assigned. Students are expected to read and study these readings prior to class using whatever techniques work for them, e.g., taking notes from the textbook or discussing the readings in study groups. Entrepreneurship is social; I strongly encourage you to work and study together in groups. Students are also expected to contribute to class discussions based on their knowledge of the readings and their analysis of these readings. Students are encouraged to ask questions during class in order to resolve any confusion about the course material.

As a result of taking this course, students will understand how to:
 * // Specific learning outcomes //**
 * 1) Use and relate financial and economic concepts
 * 2) Read and analyze financial statements
 * 3) Critically evaluate the feasibility of an entrepreneurial opportunity
 * 4) Prepare and analyze financial forecasts and pro forma statements for a small business
 * 5) Perform profit, profitability, and break-even analyses
 * 6) Determine the time value of money


 * Assignments and Grading **


 * 1) Exams (3) 15% each………………………………….………………………..45%
 * 2) Participation and attendance……………………………….………..………...10%
 * 3) Homework……………………………………………………………………..15%
 * 4) Individual Project……………………………………………………………...15%
 * 5) Team project…………………………………………………………………...__15%__
 * 100% **

** 1. Three exams (45% of grade) **
I will offer three exams during the semester. These exams will synthesize the materials from the course wiki and the Adelman/Marks text. Each exam will be non-cumulative, though your command of topics presented later in the semester will depend in large part on concepts introduced early in the semester.

2. Class Participation and Attendance (10% of grade)
Every student is expected to attend class. The classroom lectures and discussions are an integral part of the course and necessary for your full understanding of the subject. You are expected to read all assigned material prior to class. Additional reading assignments will be distributed in class or through the course website. Preparation of all assigned readings and cases will enable you to be an active participant in classroom discussions and increase your comprehension and ability to think strategically. We will end most lectures with an ungraded “practice quiz” to help reinforce in-class learning. I will use these quizzes to assess how well you have prepared for each lecture and to take attendance. If you miss a class you will miss out on the opportunity to see what types of questions I might ask on an exam as well as the discussion of the day’s topic.

I keep a count of absences throughout the semester to help determine your class participation grade. If you know that you are going to miss a particular class, you must notify me //before// class that you will not be there. You can do this by sending me an e-mail at nvdfall2011@gmail.com or by leaving me a voice message (x8-8919). An unexcused absence from class counts as one missed class; an excused absence counts as half of a missed class.

3. Homework (15% of grade)
I will offer several homework assignments throughout the semester. You are expected to give your best effort to complete the assignments and to turn them in at the beginning of class on the day I assign them to be due. //I will not accept late homework assignments//. You are welcome to do your homework on your own, but I encourage you to do homework assignments in groups so that you can help each other learn outside the classroom.

4. Individual project (15% of grade)
You are responsible for developing and “pitching” an idea for a new venture to your fellow students. Your new venture idea will be evaluated in terms of the extent to which it represents an opportunity that is //attractive, timely, durable, and grounded in a product or service that customers will value//. You have two deliverables for the individual project. First, you will write a one-page, single-space memorandum (12-point, Times New Roman font) in which you will attempt to convince me of quality of your new venture idea (see criteria in previous sentence). Second, you will pitch your idea for a new venture to your classmates. The format for your presentation will follow the elevator pitch approach that we will discuss in class. The goal of your pitch is to convince as many of your classmates as possible to join you in turning your idea into a polished, written business plan. Students will form into teams of no more than //four// members to complete the team project assignments for the most promising new venture ideas.

5. Team project (15% of grade)
You and a team of your classmates will prepare a written business plan for your new venture idea. Your team will be responsible (1) for presenting your business plan in a 15-minute pitch to prospective investors (i.e., your classmates and me) and (2) for writing a polished business plan. I will provide you with details on the format of the presentations and written plans. Business plan presentations will take place during the last week of the semester. **Written plans are due at the end of the final lecture day (Thursday, December 8)**.

Your final grade will be determined by your overall accumulation of points (out of a possible 100) in each of the above criteria.
 * Final Grade **

|||| **Graduate Students**
 * **Undergraduate Students** ||
 * **A** || ≥ 90 || **A+** || ≥ 97 || **B+** || ≥ 87 || **C+** || ≥77 || **D+** || ≥ 67 ||
 * **B** || ≥ 80 || **A** || ≥ 93 || **B** || ≥ 83 || **C** || ≥73 || **D** || ≥ 63 ||
 * **C** || ≥ 70 || **A-** || ≥ 90 || **B-** || ≥ 80 || **C-** || ≥ 70 || **D-** || ≥ 60 ||


 * Disability access statement **

To request disability accommodations, please contact the Office of Disability Services at 348-4285. I can offer you accommodations related to disabilities **//only after//** you have contacted and made arrangements with the Office of Disability Services.

We will follow this schedule as closely as practicable. I reserve the right to change the schedule, lecture topics, and dates for turning in deliverables.
 * Schedule – MGT 482/582 – Fall 2011 **

Class introduction
 * Thursday, August 25**

Finance chapter 1, Financial and Economic Concepts
 * Tuesday, August 30**

In-class exercise
 * Thursday, September 1**

Finance chapter 2, Financial Management and Planning
 * Tuesday, September 6**

In-class exercise
 * Thursday, September 8**

Finance chapter 3, Financial Statements
 * Tuesday, September 13**

Finance chapter 3, Financial Statements; in-class exercise
 * Thursday, September 15**

Review and catch-up day
 * Tuesday, September 20**


 * Thursday, September 22**
 * EXAM ONE*

Individual presentations
 * Tuesday, September 27**
 * Turn in written individual project memos***

Individual presentations
 * Thursday, September 29**

Individual presentations
 * Tuesday, October 4**

Finance chapter 4, Analysis of Financial Statements
 * Thursday, October 6**

Finance chapter 4, Analysis of Financial Statements (continued)
 * Tuesday, October 11**

In-class exercise
 * Thursday, October 13**

Finance chapter 5, Profit, Profitability, and Break-Even Analysis
 * Tuesday, October 18**

In-class exercise
 * Thursday, October 20**

Finance chapter 6, Forecasting and Pro Forma Financial Statements
 * Tuesday, October 25**


 * Thursday, October 27**
 * Fall Break**

Finance chapter 7, Working Capital Management
 * Tuesday, November 1**

In-class exercise
 * Thursday, November 3**

Finance chapter 8, Time Value of Money: Using Lump Sum Finance chapter 9, Time Value of Money: Using Annuities
 * Tuesday, November 8**

Team project work
 * Thursday, November 10**


 * Tuesday, November 15**


 * Thursday, November 17**

Finance chapter 10, Capital Budgeting
 * Tuesday, November 22**


 * Thursday, November 24**
 * THANKSGIVING HOLIDAY**

Review for Exam Three, Preview of team presentations
 * Tuesday, November 29**


 * Thursday, December 1**
 * EXAM THREE*

Team presentations
 * Tuesday, December 6**

Team presentations
 * Thursday, December 8**
 * Written team business plan projects are due on the last day of lecture** *