BUSINESS ESSENTIALS FOR INNOVATORS (STRATHCLYDE)

SHE Level 5
SCQF Credit Points 10.00
ECTS Credit Points 5.00
Module Code MMH624497
Module Leader Peter Wallace
School School of Computing, Engineering and Built Environment
Subject Instrumentation and Control
Trimester
  • A (September start)

Pre-Requisite Knowledge

Entry requirements of the MSc in Oil & Gas Innovation

Summary of Content

This module maps on to the content of Strathclyde University's Module Z1944 'Business Essentials For Innovators', which is a core element of the pan Scotland MSc Oil & Gas Innovation sponsored by OGIC and lead by the University of Aberdeen. This module has been created to capture the details of the credit obtained by GCU registered students on this programme. The students will attend the Strathclyde module and will be subject Strathclyde's disciplinary, appeals and assessment procedures for the purposes of the completion of that module. The final module maek will be recorded by the GCU assessment board against this Module. The information contained in this module descriptor has been captured from the equivalent Strathclyde University Document. The aim of this class is to enable students to experience an entrepreneurial perspective on leading and managing innovative green field or corporate ventures. In addition to the distinct intellectual approach to entrepreneurial management and leadership, the class aims to transmit an understanding of cash flow management, viable financial structures, and access financial and human resources.

Syllabus

Session 1 Day 1 am Introduction. Key concepts: Entrepreneurial versus Administrative Management. Entrepreneurial Leadership. Managing risk in uncertain environments: Real Options theory. Session 2 Day 1 pm Key concepts in Entrepreneurial Finance. Staged financing, Bootstrapping, Investment readiness, deal structure Exit readiness etc. Current trends in entrepreneurial finance. Managing Advisors. Session 3 Day 2 am How financial transactions are recorded, summarised and presented. Session 4 Day 2 pm Financial forecasting for new ventures Bootstrapping. Managing cash flow in young ventures. Session 5 Day 3 am Raising equity, debt and grant finance. Session 6 Day 3 pm How to hire the best people.

Learning Outcomes

On successful completion of this module a student should be able to:1 Understand entrepreneurial management and leadership2 Understand entrepreneurial capital and how to leverage it3 Know how to access appropriate human capital for innovative ventures4 Know how to access appropriate financial capital for innovative ventures

Teaching / Learning Strategy

The 10 class-based interactive lectures (which will include some guest speakers)will develop understanding of entrepreneurial versus administrative management, entrepreneurial leadership, financial forecasting, management and valuation and recruitment best practices for innovative independent or corporate ventures, based on latest research findings and industry expert inputs. The following theoretical concepts and analytical tools will be covered: Entrepreneurial versus administrative management Entrepreneurial leadership Accessing appropriate human capital The role of human, social and symbolic capital inleveraging financial capital Building credible financial models of a new venture and cash flow management What different funders look for Structuring appropriate funding deals for new ventures Valuation Exit options computer lab sessions will be held to embed financial forecasting skills. A suite of new business scenarios have been created and students will be required to draw up pro-forma financial statements based on information provided. The level of complexity will be increased in the second practical, and students will get hands-on use of a complex excel tool. It is anticipated private study for the class lectures will be approximately 30 hours (3 hours per 1.5 hour lecture). This will include preparation of case study material provided in advance and readings, including journal articles and web-based material. The remainder of the homework time will be used to prepare for the two class tests, which requires proficiency in financial forecasting and a knowledge of topics covered in class (20 hours), prepare the detailed case analysis (20 hours) and in topical directed reading (9 hours).

Indicative Reading

Stevenson, H.H., and Gumpert, D.E. 1985. The heart of entrepreneurship. Harvard Business Review, 63(2): 85-94 Wolcott, R.C., & Lippitz, M.J. 2007, The four models of corporate entrepreneurship, MIT Sloan Management Review, 49(1): 75-82. Anthony, S. (2012) The New Corporate Garage, Harvard Business Review, 90 (9) September 2012: 45-53 Sawhney, et al. 2006. The 12 different ways for companies to innovate, MIT Sloan Management Review, 47(3): 75-81. Verganti, R (2011) Designing Breakthrough Products, Harvard Business Review, October 2011, 114-120

Transferrable Skills

-360b7 Assessing the competencies of others b7 Financial literacy and numeracy b7 Advanced computer spreadsheet manipulation Analysis of complex business situations and decision-making under uncertainty

Module Structure

Activity Total Hours
Lectures (FT) 15.00
Assessment (FT) 15.00
Independent Learning (FT) 64.00
Practicals (FT) 6.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 1.50 50.00 45% Class Test - True/False and multiple choice questions
Coursework 0.00 50.00 45% Case study - An individual case study analysis and recommendations must be handed in one week after the last day of class. This will be a detailed case, requiring use of entreprenurial leadership and management, human resource management and financial analysis skills.