Mississippi State University



MGT 3323 EntrepreneurshipFirst screen & opportunity analysisAssignment DescriptionDUE: Printed copy must be submitted Monday, 13 Feb (i.e., no later than 3:30 p.m.); Electronic copies must be submitted no later than 9 a.m., 14 FebNo late assignments will be accepted.Using your “Bug reports” and the business ideas that emerged from it as a spring board, you should consider a business idea (this can be done in teams; see the rules for teams below) and conduct a First Screen as described by Barringer (2009, see Chapter 2). The First Screen provides a structure to quickly assess the merits of a business idea. A slightly amended worksheet based on the one presented by Barringer (2009) has been included on this assignment sheet.While this is not meant to be a lengthy process, Barringer (2009) notes that it is not meant to be a “shot-in-the-dark.” Accordingly, “the First Screen does take some research and analysis” which should be done by you (and, if appropriate, your team).Teams for this AssignmentAs noted, you may accomplish this assignment in teams. For this assignment, the following rules apply: This assignment can be completed with a team of up to 3 people enrolled in your particular section. As necessary, teams are encouraged to seek needed expertise outside of students registered for the class.You will not be assigned to a team. You must promote your skills and form your own team (the team contract should have been submitted previously).Teams are expected to manage their own internal conflict and interpersonal issues. If you have made attempts to resolve conflicts and are having trouble, make an appointment to see me—all team members must attend this meeting.All members of the team will receive a single grade for this project.DemandsTo fulfill the objectives of the assignment you must:Explain the concept you are pursuing (see Barringer, 2009, Chapter 3, p. 56-57). This includes:A description of the product or serviceThe intended target marketThe benefits of the product or serviceA description of how the product or service will be positioned relative to competitorsA description of how the product or service will be soldComplete a First Screen of a business idea (see Barringer, 2009, Chapter 2).Consider sound facts and data. While the first screen isn’t intended to be a lengthy process, it is based on sound reasoning, basic research, and plausible analysis.Explain your decisions regarding each rating, describing the information and facts you considered as decisions were made.ConstraintsYou are expected to adhere to the following:You must type the document, using Times New Roman—12-pitch font, double-spaced, with one-inch top, bottom, and side margins on a standard 8 ?” by 11” sheet of paper (Assignments that are not typed will not be accepted).You must ensure the name of each team member (when appropriate) is in the header of each page (failure to include this will lead to a 2 point deduction).You must spell out ALL acronyms that are used in responses (2 points off for each acronym that isn’t defined).You must use proper grammar, spelling, and punctuation (2 points off for each error).Your business ideas and explanations of ratings must be specific, clear, and concise.You include proper citations for others’ work and ideas you use (to include websites). Thus, you should provide a reference list at the end of your plan.You must ensure the document is stapled or secured with a clip in the top left corner (failure to do this will lead to a 5 point deduction).You must present a printed and electronic copy. The printed copy must be presented in class on the due date. The electronic copy must be sent to me no later than 9:00 a.m. the following dayYou must label your file as “FS—Last name of each person in the group”. For example, an assignment submitted by me and my colleague James Vardaman would be titled “FS—Holt Vardaman” (failure to do this will lead to a 2 point deduction)Submission RequirementsNo late assignments will be accepted. You are required to submit an paper and an electronic version. Failure to submit the paper version at the appropriate time and date will result in a zero. Failure to submit an electronic version at the time designated will result in a 10 % deduction. The submission of an electronic version does not eliminate the requirement for a printed copy to be turned in as work, e-mail, printer, or computer problems are not excuses for late work (for either the printed or electronic versions).DUE: Printed copy must be submitted Monday, 13 Feb (i.e., no later than 3:30 p.m.); Electronic copies must be submitted no later than 9 a.m., 14 FebSubmit the electronic copy to Daniel.holt@msstate.edu.EXAMPLES OF UNCLEAR RESPONSESIn the attached questions, you will be asked to describe and apply a number of issues that were discussed in the class readings or addressed in class. Because the length of your responses is constrained, you must ensure that your responses are clear and meaningful.EXAMPLES OF UNCLEAR RESPONSES ARE PROVIDED HERE TO HELP YOU UNDERSTAND WHAT INFORMATION IS EXPECTED:Consider a business to open a restaurant delivery service in Starkville, MS. This business acts as an intermediary, contracting with Starkville’s most popular restaurants, delivering their food hot and fast across the city and to the University. The target market are those members of the community that would like the convenience of delivery food and additional variety that isn’t currently available through food delivery that is limited largely to pizza and Chinese food.QUESTIONTimeliness of entry to marketUNCLEAR RESPONSE“It is a great time to open a restaurant delivery service.”COMMENTAlthough this answer does explain that the team feels that it would be timely to enter this market. It does not reveal what characteristics or describe what factors may be important as timeliness is considered. For instance, would the introduction of another restaurant with a delivery service impinge on the timeliness. For instance, the Jimmie John’s deli franchise is currently looking at the Starkville market would their entry expanding options beyond pizza and Chinese food change the timeliness?QUESTIONPurchasing power of customers.UNCLEAR RESPONSE“The target market has limited purchasing power—its poor college MENTAlthough this answer does describe the purchasing power to be low—it’s not clear whether the statement is actually correct. The overall income of college students may be lower. However, the proportion of that income that is discretionary may be relatively high. In fact, the students do eat out frequently, ordering delivery food frequently. You should consider the purchasing power relative to your product.First ScreenFrom “Preparing Effective Business Plans” by Bruce R. BarringerPart 1: Briefly explain the Business Idea with a concept statement. This should include the following:A description of the product or serviceThe intended target marketThe benefits of the product or serviceA description of how the product or service will be positioned relative to competitorsA description of how the product or service will be soldPart 2. Evaluation of the OpportunityFor each item, circle the most appropriate answer and make note of the (-1), (0), or (+1) score. Low Potential (-1)Moderate Potential (0)High Potential (+1)1.Extent to which the idea:Takes advantage of an environmental trendWeak Moderate StrongExplanation of the trends (consider social, economic, technological, & political trends) that are occurring: 2.Extent to which the idea:Solves a problemWeak Moderate StrongExplanation of the problems that are solved: 3.Extent to which the idea:Addresses an unfilled gap in the marketplaceWeak Moderate StrongDescription of the gap in the marketplace (if you have a particular location in mind, incorporate this into your discussion): Part 3. Other Aspects of the Business IdeaFor each item, circle the most appropriate answer and make note of the (-1), (0), or (+1) score. Low Potential (-1)Moderate Potential (0)High Potential (+1)1.Timeliness of entry to marketNot timelyModerately timelyVery timelyExplanation of rating:2.Extent to which the idea “adds value” for its buyer or end userLowMediumHighExplanation of rating:3.Extent to which the customer is satisfied by competing products that are already availableVery satisfiedModerately satisfiedNot very satisfied or ambivalent Explanation of rating:4.Degree to which the idea requires customers to change their basic practices or behaviorsSubstantial changes requiredModerate changes requiredSmall to no changes requiredExplanation of rating:4.Extent to which idea is durable (i.e., will endure for a long period of time)LowModerateHighExplanation of rating:Part 4. Industry-Related IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.Number of competitorsManyFewNoneExplanation of rating:2.Stage of industry life cycle Maturity phase or decline phaseGrowth phaseEmergence phaseExplanation of rating:3.Growth rate of industryLittle or no growthModerate growthStrong growthExplanation of rating:4.Importance of industry’s products and/or services to customers“Ambivalent” “Would like to have”“Must have”Explanation of rating:5.Industry operating marginsLowModerateHighThis involves the profits for such a business. Consult a source Explanation of rating:Part 5. Target Market and Customer-Related IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.Identification of target market for the proposed new ventureDifficult to identifyMay be able to identifyIdentifiedExplanation of rating:2.Ability to create “barriers to entry” for potential competitorsUnable to createMay or may not be able to createCan createExplanation of rating & barriers that would be created (if possible):3.Purchasing power of customersLowModerateHighExplanation of rating:4.Ease of making customers aware of the new product or serviceLowModerateHighExplanation of rating:5.Growth potential of target marketLowModerateHigh Explanation of rating:Part 6. Founder- (or Founders-) Related Issues (NOTE YOU SHOULD ASSUME YOU AND, IF APPROPRIATE, YOUR TEAMMEMBERS ARE THE FOUNDERS)Low Potential (-1)Moderate Potential (0)High Potential (+1)1.Founder or founders experience in the industryNo experienceModerate experienceExperiencedExplanation of rating:2.Founder or founders skills as they relate to the proposed new venture’s product or serviceNo skillsModerate skillsSkilledExplanation of rating:3.Extent of the founder or founders professional and social networks in the relevant industryNoneModerateExtensiveExplanation of rating:4.Extent to which the proposed new venture meets the founder or founders personal goals and aspirations WeakModerateStrongExplanation of rating:5.Likelihood that a team can be put together to launch and grow the new ventureUnlikelyModerately likelyVery likelyExplanation of rating:Part 7. Financial IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.Initial capital investmentHighModerateLowExplanation of rating:2.Number of revenue drivers (ways in which the company makes money)OneTwo to threeMore than threeExplanation of rating & a description of the revenue drivers:3.Time to break evenMore than two yearsOne to two yearsLess than one yearExplanation of rating4.Financial performance of similar businessesWeakModestStrongExplanation of rating5.Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrappingLowModerateHighExplanation of rating:Overall PotentialParts 3 through 5 each have five items. Scores will range from -5 to +5 for each part. The score is a guide—there is no established rule-of-thumb for the numerical score that equates to high potential, moderate potential, or low potential for each part. The ranking is a judgment call. Score(-5 to +1)Overall Potential of the Business Idea Based on Each PartSuggestions for Improving the PotentialPart 3:Other aspects of the Business IdeaHigh potential?Moderate potential?Low potential?Part 4:Industry-Related IssuesHigh potential?Moderate potential?Low potential?Part 5:Target Market and Customer-Related IssuesHigh potential?Moderate potential?Low potential?Part 6:Founder- (or Founders-) Related IssuesHigh potential?Moderate potential?Low potential?Part 7: Financial IssuesHigh potential?Moderate potential?Low potential?Overall AssessmentHigh potential?Moderate potential?Low potential?Summary—Take into account the trends that you have highlighted and the ratings on part 3-5 and provide an overall assessment and justify that assessment: ................
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