Trident MGT403 case 1-4 2015

Module 1 - Case

Entrepreneurship and Entrepreneurial Traits

Assignment Overview

Two of the world’s best known entrepreneurs are Bill Gates, founder and chairman of Microsoft, and Sir Richard Branson, founder and CEO of the Virgin Group. While both have been extremely successful as entrepreneurs, their personal styles could not be more different. Richard Branson is known for his self-promotion and media savviness, whereas Bill Gates is relatively low key in spite of being the second richest man in the world.

For this assignment, first carefully review the background materials and study up on the key “textbook” traits of entrepreneurs that frequently come up in the readings. Common characteristics of an entrepreneur include such aspects as risk taking, self-confidence, future orientation, etc. Then do some reading on Richard Branson and Bill Gates. Here are some articles to get you started:

Specter, M. (2007, May 14). Branson’s luck; profiles. The New Yorker, 83, 114-125. [ProQuest]

Virgin galactic was a total punt, says Richard Branson. (2013, Oct 08). Telegraph.Co.Uk[ProQuest]

Crow, D. (2008, Jul). The real legacy of Bill Gates. Spectator Business,44-45

Cheng, Y., & Liu, Y. (2011, Dec 08). Bill Gates envisions nuclear future for China. McClatchy - Tribune Business News[ProQuest]

Case Assignment

Once you have finished reviewing the required background materials on entrepreneurial traits and finished your research on Gates and Branson, write a 4- to 5-page paper addressing the following questions:

1. Which key traits of entrepreneurs that you found in the readings do Richard Branson and Bill Gates have? Are there any key traits or characteristics mentioned in the readings that Richard Branson and Bill Gates do not seem to have? Refer to the specific entrepreneurial traits and characteristics discussed on pages 13-15 of Morris (2012) and the “Characteristics of an Entrepreneur” section from Chapter 1 of Gordon, et al. (2009).
2. What type of entrepreneurs are Richard Branson and Bill Gates? Refer to the “Classification/Types of Entrepreneurs” from Chapter 1 of Gordon, et al. (2009).
3. Overall what do you think the key similarities and differences are in the entrepreneurial styles and characteristics of Richard Branson and Bill Gates?

Assignment Expectations

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to summarizing general background materials.
• List supporting references and cite sources in proper format.
• Use appropriate writing style in essay form (organization, grammar, and spelling).
• Review our “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC Portal.

Opportunity Identification and Planning

Assignment Overview

For this assignment, you will be reviewing two sample business plans. One plan is for a fish market, the other is for a tour operating company. Take a look at these two plans, and focus mostly on the general idea of each plan and what kind of market and competition they will face. Don’t worry so much about the details of their financial projections. The two plans are:

Bangs, D. (2002). Financing proposal for Finestkind Seafoods, Inc. Business Planning Guide: Creating a Winning Plan for Success. Dearborn Trade, Chicago, pp. 149-155 [Ebrary]

Bangs, D. (2002). World Beat Tours business plan. Business Planning Guide: Creating a Winning Plan for Success. Dearborn Trade, Chicago, pp. 175-180 [Ebrary]

Case Assignment

Once you have finished reviewing the background materials for this module and have carefully reviewed the two business plans, write a 4- to 5-page paper addressing the following questions:

1. What do you think is the “unique selling proposition” or “competitive advantage” of each proposed new business? Use the Pearson tutorial on competitive analysis or the section on competitive advantage in Finch (2013) in your answer.
2. What is the precise market segment that each proposed company will be selling to you? Do you think it is a good segment to market to? Use the Pearson tutorial on market segmentation as part of your answer.
3. Based on your answers to Questions 1 and 2 above plus some SWOT analysis, which of the two business plans do you think is more promising? Use Friend and Zehle (2004) as your guideline on how to do a SWOT analysis.

Assignment Expectations

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to summarizing general background materials.
• List supporting references and cite sources in proper format.
• Use appropriate writing style in essay form (organization, grammar, and spelling).
• Review our “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC Portal.

Financing the Entrepreneurial Venture

Assignment Overview

One of the newest forms of financing available to entrepreneurs is something called crowdfunding. Instead of traditional routes of obtaining funding through banks, venture capital, or wealthy individuals a new breed of entrepreneurs are obtaining funding via numerous small donations using social media or new online platforms such as Kickstarter.com. A recent example of a crowdfunded venture is the movie Veronica Mars, which was funded by numerous small donations from fans of the TV show.

Until recently, crowdfunding has been limited to donations rather than actual investments. Individuals who help fund the business have not received a share of the profits of the new venture. Instead, they typically get some kind of alternative reward. For example, people who donate money to finance a new film might get a chance to meet some of the movie stars or be given a small role in the movie. The reason crowdfunding has been limited to donations rather than investments is that once you start offering a share of the profit to those who donate you are subjecting yourself to huge number of laws and regulations designed to protect investors. But these laws don’t apply if you provide alternative rewards in exchange for donations.

But in a very interesting new development, in 2012 Congress passed the JOBS Act which removed some of legal barriers to using crowdfunding and now allows entrepreneurs to offer investors actual shares in the profits of the ventures rather than the small rewards typically offered to donors. This will potentially lead to a dramatic growth of opportunities for entrepreneurial financing. However, the removal of regulation may also lead to lawsuits or allegations of fraud against entrepreneurs whose ventures fail to make a profit.

Carefully review the Pearson tutorials as well as Feldman (2013) and Seifert, et al. (2008) for an overview of traditional sources of entrepreneurial finance. Then review Strauss (2013) for a discussion of crowdfunding. Also take a look at the following articles on crowdfunding:

Mandelbaum, R. (May, 2014). Here comes everybody. Inc, 36, 110-114,120 [ProQuest]

ElBoghdady, D., & Harrison, J. D. (Oct. 24, 2013). SEC approves 'crowdfunding' plan. The Washington Post[ProQuest]

Tillotson, K. (Nov. 14, 2012). Crowdfunding gears up for a fresh start. McClatchy - Tribune News Service[ProQuest]

Case Assignment

After you’ve finished your research on crowdfunding, write a 4- to 5-page paper addressing the following questions:

1. Do you think the JOBS Act and its new regulations regarding crowdfunding will be beneficial in the long run? Or will it only increase fraud and lawsuits?
2. Under what circumstances do you think it would be preferable for an entrepreneur to use crowdfunding instead of more traditional forms of financing such as angel investors, bank loans, personal savings, or venture capital? Be specific in your answer regarding advantages and disadvantages of crowdfunding versus the other types of funding discussed in Feldman (2013) and Seifert, et al. (2008).

Assignment Expectations

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to summarizing general background materials.
• List supporting references and cite sources in proper format.
• Use appropriate writing style in essay form (organization, grammar, and spelling).
• Review our “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC Portal.

Exit Strategies and Legal Issues

Assignment Overview

Globoforce is a successful provider of online employee reward and recognitions using cloud –based technologies. Since its founding in 1999 they have received substantial investment from venture capital firms, and have experienced rapid growth as well as positive media coverage regarding their own positive workforce culture and their software designed to improve employee motivation for their clients.

Globoforce recently planned to take an exit strategy via an initial public offering (IPO). However, at the last minute they changed their mind and cancelled their IPO. This last minute cold feet by Globoforce’s management suggests a rethinking as to whether or not an IPO is their best exit strategy.

Review the background materials and do some research on Globoforce. Below are a couple of articles to get you started:

Alspach, K. (Mar. 22, 2014). Software firm cancels its IPO. Boston Globe

Denison, D. C. (Nov. 4, 2012). Just rewards. Boston Globe

Case Assignment

Once you have thoroughly read the required background materials on exit strategies and finished your research on Globoforce, write a 4- to 5-page paper addressing the following questions:

1. Do you think it is the right time for Globoforce to take an exit strategy, or should they wait longer? Explain your reasoning, and what kind of timeframe you propose for Globoforce’s exit strategy. Consider their current profitability and their current competition.
2. What kind of exit strategy should Globoforce take? Consider the main exit strategies discussed in Hawkey (2002) and the Pearson tutorials. Explain the reasoning for your choice.

Assignment Expectations

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to summarizing general background materials.
• List supporting references and cite sources in proper format.
• Use appropriate writing style in essay form (organization, grammar, and spelling).
• Review our “Writing Style Guide” for more detail on referencing and writing expectations. This guide is found under “My Resources” in the TLC Portal.