SULLIVAN UNIVERSITY GRADUATE SCHOOL

COURSE SYLLABUS

MGT 464

BSBA UNDERGRADUATE BUSINESS CAPSTONE COURSE

INSTRUCTOR: WJ Patterson OFFICE HOURS: Friday 8am – 12 noon

EMAIL:wjpatterson@sullivan.edu

PHONE: (502) 456-6504 http://www.iluv2teach.com

I. COURSE DESCRIPTION

As the undergraduate capstone course, this course integrates the concepts of the student's BSBA training into a CEO-level examination of organizational competition. The student leverages models and ideas from those earlier courses into an examination of competing definitions, strategy formulations and implementation practices and problems. The tool for this course will be a computer simulation called "The Marketplace" You will be divided into teams from 3-6 members. You will run a company for the equivalent of a 2 year period (8 quarters) and make all the decisions for your company. This will be a real world experience which will make use of all of the courses you have had up to this point.

Prerequisites – LAST QUARTER COURSE or permission of the Chair

II. STUDENT OUTCOMES

The Marketplace simulation is a transformational experience. You will learn what it will be like to compete in the fast-paced, competitive market where customers are demanding and the competition is working hard to take away your business.

In The Marketplace, you start up and run your own company, struggling with business fundamentals and the interplay between marketing, human resources, operations, finance, and accounting. You are given control of a simulated business and must manage its operations through several decision cycles. Repeatedly, you must analyze the situation, plan a business strategy to improve it and then execute that strategy out into the future. You face great uncertainty from the outside environment and from your own decisions. Incrementally, you learn to skillfully adjust your strategy as you discover the nature of your real-life decisions, including the available options, linkages to other parts of the business, conflicts, tradeoffs and potential outcomes. Here is a list of what Marketplace players do:

• Analyze market research data;
• Design brands to appeal to different market segments;
• Devise advertising campaigns, sales force incentives, and price option;
• Allocate scarce funds to R&D, manufacturing, quality, advertising, and distribution;
• Select and prioritize R&D projects, leading to new product features;
• Negotiate strategic partnerships with competitors for new technology;
• Plan and roll out a marketing campaign;
• Initiate and defend lawsuits over false advertising;
• Hire employees and set competitive compensation packages;
• Schedule production and manage plant capacity;
• Initiate quality production programs;
• Manage cash;
• Negotiate equity and debt financing for new business development;
• Compete head-to-head with other business teams;
• Adjust strategy and tactics in response to financial performance, competitive tactics, and customer needs.

The specific goal of the exercise is to develop your management skills by giving you an integrated perspective of the entire business operation. In terms of specifics, the exercise can:

1. Develop strategic planning and execution skills within a rapidly changing environment.
2. Crystallize the linkages between business decisions and financial performance.
3. Instill a bottom line focus and the simultaneous need to deliver customer value.
4. Internalize how important it is to use market data and competitive signals to adjust the strategic plan and more tightly focus business tactics.
5. Develop teamwork across functions and locations, opening up new communication links
6. Promote better decision making by helping individuals see how their decisions can affect the performance of others & organization as a whole.
7. Facilitate learning of important business concepts, principles and ways of thinking
8. Build confidence through knowledge and experience.

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Requirements

III. REQUIRED TEXT

None-Students are required to purchase a software license for Marketplace. www.marketplace6.com

IV. ACADEMIC DISHONESTY

Sullivan University's policy on cheating and plagiarism is consistent with the definition of plagiarism provided by Webster's Ninth New Collegiate Dictionary:

to plagiarize is to;

w steal and pass off (the ideas or words of another) as one's own;

w use (a created production) without crediting the source;

w to commit literary theft;

w present as new and original an idea or product derived from an existing source.

Sullivan University also considers a student to be guilty of plagiarism if the student allows their original work to be used by another student for academic credit.

Note: Refer to the Student Handbook for complete details of the Sullivan University policy.

V. COMPUTER LAB POLICY / HOURS

Computer Science Tutors are available for all students
Monday - Thursday afternoon between 2:00 and 6:00 and at other times by appointment.
Consult the Student Scene or Night Scene Newsletter for daily schedules,
or ask your instructor for more information.

Computer labs will be available daily to students during the following hours:

Monday - Thursday.......... 7:00 a.m. to 10:00 p.m.

Friday & Saturday............ 8:00 a.m. to 5:00 p.m.

Sunday............................. 12:00 p.m. to 5:00 p.m.

Students are encouraged to use the computer labs when classes are not in session during the day, and at the following times:

Monday - Thursday................... 2:45 p.m. - 6:00 p.m.

Friday, Saturday & Sunday........ some labs available all day

When a class is in session, students may use any computer not used by a student in the class, as long as the scheduled class is not disrupted. The following rules apply during these times:

Ø Do not enter a computer lab while an instructor is lecturing to the class.

Ø Do not ask the instructor for assistance with an assignment or project.

Ø Sit in the back of the room, if possible.

Ø Allow students in the scheduled class to use their choice of computer.

Ø Notify the instructor if you are having a computer hardware problem.

** Food and drinks are NOT allowed in any carpeted area of the building**

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It is a Class C felony in the State of Kentucky to alter computer files without authorization. At Sullivan University, the following actions are considered a Class C felony and are subject to both criminal action and instant dismissal from school:

* Changing the "Welcome to Sullivan University" banner on a computer

* Changing any desktop setting or windows setting unless part of a class assignment

* Loading personal programs or games on a computer

* Intentionally modifying files not specifically assigned as part of a class assignment

* Using any computer for personal reasons

VI. EVALUATION

Quarter grades will be based on the schedule shown below.

GRADING SCALE:

A = 90 - 100

B = 80 - 89

C = 70 - 79

D = 60 - 69

F = below 60

Evaluation : Marketplace Pure Competition 30%

Marketplac Balanced Scorecard 30%

Final Paper 20%

MFT Exam (manditory) 20%

Total 100%

VII. WEEKLY SCHEDULE

Sequence of Simulation Activities

Quarter 1: Organize team to do the job

Focus on process of working as a team to achieve goals

assess team members' skills, personalities, & work styles

set organizational and personal goals

organize the work

determine how to manage the organization

establish leadership

Quarter 2: Evaluate market opportunities, setup operations

& prepare for test market

Analyze market opportunities -- evaluate segments, geographic markets & potential competition

Select target segments

Create customer value -- design initial brands for test market

match components to benefits desired (quality function deployment (QFD))

evaluate impact of different components on changeover costs & scale economies

Setup manufacturing operations -- evaluate financial tradeoffs

compare regional cost differences of labor and distribution on plant location

evaluate economy & liquidity of different capacity investments

Select test markets -- setup sales offices

Quarter 3: Go to market to test strategy and market assumptions

Marketing strategy -- evaluate tactical options and choose marketing mix

pricing & price promotions

sales force management - number employed, training, incentives

advertising -- ad copy design, media selection, ad frequency

Manufacturing -- plan production and inventory levels

forecast demand by brand

set 65-day production schedule

Market research -- budget collection of information

Quarter 4: Evaluate test market performance and revise strategy,

become a learning organization

Evaluate performance

financial performance -- financial statements, ratios, industry norms

market performance -- customer opinion of brand designs, prices, advertising, sales force

competitor tactics -- segments targeted, selection of marketing tactics

Revise marketing and manufacturing tactics as needed and continue test marketing

Quarter 5: Seek external funding -- prepare business plan, negotiate

equity investment

Evaluate performance - financial, marketing, & competitive

Develop two year business plan

goals - marketing, financial and ownership

marketing strategy

manufacturing strategy

financial strategy

tactical pert chart (show tactics over time)

pro forma cash flows and financial statements

size of equity request, number of shares offered and share price

Present business plan to venture capitalists and negotiate equity investment

Begin roll out of business plan

Quarter 6: Monitor, improve and execute

Evaluate team - self assessment of roles played, contributions made, & adjustments needed

Evaluate performance - financial, marketing, & competitive

Skillfully adjust strategy

marketing -- make incremental changes in tactics

use activity based costing (ABC) to evaluate profitability of brands, sales offices

conduct demand analysis to estimate brand, price, advertising, sales force elasticities

invest in R&D for new technology

manufacturing -- work on

quality improvements with statistical process control (SPC)

demand-- driven production scheduling

capacity utilization by reducing changeover time and costs

reducing pipeline whiplash by managing market stimulation activities

project cash flows & adjust strategy within financial capability

Quarters 7 - 8: Monitor, improve and execute (continue)

Manage strategy

skillfully adjust strategy to unanticipated competitive moves

continuously improve brand features (R&D), pricing, promotions, sales force,

product quality, production efficiency, & asset management

project cash flows & adjust strategy within financial capability

Note: This course schedule is subject to change at the discretion of the instructor due to time constraints or other extenuating circumstances.