Dear Alex,
Here is an option to give students experience in both starting up a business
and working on a business plan. Try using a simulation where preparation and
presentation of the business plan is an integral part of the exercise.
I have created the Marketplace Venture Strategy simulation that is designed
for a new venture or entrepreneurship course. It has become very popular as a
way to give students experience in the start up and management of a new
enterprise. During 2006, more than 5000 students and 50 schools will have used
the simulation.
The students work within a full-enterprise business setting where they start
up and manage a new venture. The decision content includes the essential
elements of marketing, distribution, human resources, manufacturing, finance
and accounting. The game is set for 6 decision rounds, with each round taking
two to three hours to complete.
A key ingredient of this simulation is the preparation of a business plan at
the mid-point of the exercise. Student teams must formulate a business
development strategy, along with a tactical plan and a set of pro forma
financial statements. The software provides templates for the completion of
these tasks. The preparation of the business plan is rather extensive and an
entire week is dedicated to the task.
A favorite pedagogical option of the simulation is to have the students
present their business plan to a group of outside investors and then negotiate
with these VCs for an equity investment in their firm. This experience is
highly realistic and gives the students experience in selling their ideas to
independent, outside investors.
Another advantage of a simulation is that after the students prepare and
present their business plan, they must then execute it for an additional three
decision periods. Very seldom is it possible to execute the plan as
formulated. There is generally a need to make skillful adjustments in response
to surprises in the market or ones own ability to make good decisions.
At the end of the exercise, the students must make a report to the investors
regarding their performance following the infusion of new equity. This report
is to underscore the students accountability to an investment group. They
review their plan, deviations from the plan, justification for the deviations
and how well the team has prepared the firm for the future.
In the end, the student teams are graded based upon the business plan, report
to the investors and their performance on a balanced scorecard. The balanced
scorecard includes measures of financial performance, market performance,
customer satisfaction, human resource management, investments in the future,
asset management and creation of wealth. The balanced scorecard emphasizes the
need to achieve strong performance in all areas of the business.
Obviously, there are many ways in which to give students experience in
starting up a company and preparing a business plan. A new venture simulation
is another option to consider.
Ernie Cadotte
University of Tennessee
>===== Original Message From "Stewart, Alex" <
alex.stewart@MARQUETTE.EDU>
=====
>Hi. On behalf of our Entrepreneur-in-Residence I am soliciting your
>recommendations for simulations to use in graduate level
>entrepreneurship courses. It's been quite a while since I've used
>simulations (and in Strategy at that). Are there good ones to look at?
>Thanks very much!
>
>Alex
>
>
>
>Alex Stewart, Ph.D.
>
>Coleman Foundation Chair in Entrepreneurship
>
>Marquette University
>
>Milwaukee, WI 53201-1881
>
>Phone 414 288-7188
>
>Fax 414 288-1965
>
>
>
>
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>Ventures HO!
**************************************
This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.
Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.
You can manage your subscription options, including joining or leaving the list here:
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If you have questions or need help, please contact Dr. John Bunch
jbunch@benedictine.edu.
Ventures HO!