ICSM-10524 Entrepreneurship & Capitalism Syllabus (doc)

ENTREPRENEURSHIP AND CAPITALISM:ON INNOVATION, ENTERPRISE, AND DEMOCRACY

ITHACA COLLEGE SEMINAR ( ICSM-10524) FALL, 2013

Sec. 01, CRN: 23522 MWF: 09:00 – 09:50 a.m. Park Center for Business 202Sec. 01, CRN: 23524 M: 12:00 – 12:50 p.m. Park Center for Business 202

Sec. 02, CRN: 23523 MWF: 11:00 – 11:50 AM Park Center for Business 202SEC. 02, CRN: 23525 W 12:00 – 12:50 P.M. Park Center for Business 202

Professor: Alan Cohen ([email protected]) Office Hours: MW 8:30-9:00 a.m.Office: 415 Park Center for Business MW 10:00-11:00 a.m.Office Phone: (607) 274-3949 & by appointment

“Entrepreneurship rests on a theory of economy and society. The theory sees change as normal and indeed as healthy. And it sees the major task in society—and especially in the economy—as doing something different rather than doing better what is already being done. That is basically what the French businessman and economist Jean-Baptiste Say, two hundred years ago, meant when he coined the term entrepreneur. It was intended as a manifesto and as a declaration of dissent: entrepreneurs upset and disorganize. As the Austrian American economist and political scientist Joseph Schumpeter formulated it, their task is ‘creative destruction.’ The most successful entrepreneurs always search for change, respond to it, and exploit it as an opportunity. These principles and ideas define entrepreneurial capitalism.”

~Peter Drucker, Innovation and Entrepreneurship: Practice and Principles

TEXTS

Primary

Bryant, Keith and Henry Dethloff. A History of American Business. 2nd ed. (Prentice, 2000) Drucker, Peter. Innovation and Entrepreneurship: Practices and Principles. (Harper, 1993) Means, Howard. Money and Power: The History of Business. (Wiley, 2001)

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mailto:[email protected]

Secondary

Essays by Andrew Carnegie, Mary Parker Follett, Henry Ford, George Gilder, Richard Goldthwaite, Alexander Hamilton, Friedrich Hayek, John Lienhard, John Mackey, Michael Novak, Ayn Rand, John D. Rockefeller, Joseph Schumpeter, Alfred Pritchard Sloan, Raj Sisodia, Adam Smith, Robert Sobel, Ludwig von Mises, Max Weber, and others.

PURPOSE

HIS FIRST-YEAR SEMINAR will explore the evolution of entrepreneurial capitalism, from the early modern period

to today, and analyze its impact on Western culture, politics, and society, particularly in the United States.

TEntrepreneurship is more than an economic activity. It is a way of life. The same spirit of enterprise—the impulse to freedom and self-governance—that animates people to originate bold new products and services, to devote the fruits of their talents, energies, and acumen to improving the material well-being of their fellow citizens, most of whom are complete strangers, also guides their engagement in other workings of society.

The entrepreneurial spirit, however, does not emerge spontaneously, nor does it merely express the acquisitive desires of individual entrepreneurs. Rather, as such thinkers as Adam Smith, Joseph Schumpeter, Friedrich Hayek, and Peter Drucker have shown, entrepreneurship results from a fruitful convergence of political, economic, social, and technological forces, the same forces working to bring democracy and prosperity to the entire world.

“Throughout history, from Venice to Hong Kong, the fastest growing countries have been the lands best endowed not with things, but with free minds and private rights to property,” states George Gilder. Nowhere has this been truer than in the United States, which has produced a standard of living that continues to be the envy of the world. Because this country values and rewards aspiration and innovation, entrepreneurship is practically synonymous with the American Dream. Few Americans, however, understand how this concept has changed over time or appreciate the complexities and paradoxes of democratic capitalism itself.

This lack of understanding, observe business historians Keith Bryant and Henry Dethloff, is particularly pronounced among college students, many of whom pursue a degree primarily to enter the marketplace without any substantial knowledge of its internal dynamics, its role in the economy, or its impact on cultural and political institutions. This seminar hopes to awaken students to that complexity and to provide a basis for responsible criticism of business practices and a better appreciation of American enterprise.

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OVERVIEW

O PLACE THESE ISSUES in historical perspective, this seminar begins with the birth of proto-capitalism in Renaissance Europe, when merchants and bankers, once marginalized pariahs,

became the heralds and brokers of a liberating humanism. On the continent, centralized nation states, with an insatiable hunger for resources and colonies, contained, co-opted, and eventually exhausted the independence and prosperity of commercial city states and mercantile republics. Only England, protected by the sea and built on common law and strong property rights, valued, rewarded, and protected individual entrepreneurship.

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“Merchants,” declared Charles II, who chartered banks and companies and founded the Royal Society, “are England’s true nobility.” This liberal attitude, Adam Smith observed in the Wealth of the Nation (1776), encouraged upward mobility and technological advancement and made possible the English Industrial Revolution of the 18th century. Ironically, Smith’s economic treatise was published just weeks before Britain’s American colonies declared their economic and political independence. This new nation, conceived as a bold experiment, proved to be the perfect laboratory for entrepreneurship.

From its inception, the United States has embodied and celebrated the entrepreneurial spirit. Unlike Europe, America was never burdened with a rigid and stratified class system. It also was blessed with abundant natural resources, a dynamic economy, and prudent legislation, such as the Copyright Clause of the U.S. Constitution. For these reasons, America became a land of innovators and enterprises. Benjamin Franklin, printer, inventor, and self-help guru, remains our most beloved Founding Father because his gospel of success inspired even the poorest people to pursue their dreams and attracted ambitious and talented immigrants to these shores. Most of this seminar, therefore, will focus on the great American entrepreneurs of the 19 th and 20th centuries, many of whom have become folk heroes: inventors and manufacturers, such as Eli Whitney, Samuel Colt, Alexander Graham Bell, and Thomas Edison; retailers and marketers, such as Cyrus McCormack, Richard Sears, John Pemberton, and C. J. Walker; captains of industry, such as Andrew Carnegie, John D. Rockefeller, and Henry Ford; visionaries and communicators, such as Walt Disney, Ted Turner, and Steve Jobs.

This seminar, however, will not be a mere paean to the free market. American business is full of tragedies as well as triumphs, and the recent financial meltdown has caused what promises to be a prolonged economic and moral crisis. Can the entrepreneurial spirit survive in a world of corporate control, government regulation, phantom finance, and environmental limitations? John Mackey, founder and CEO of Whole Foods Market and Raj Sisodia, professor of marketing at Bentley University, have called for a more “conscious capitalism,” a return to fundamental principles of entrepreneurship. Through historical, political, and economic analysis, we will debate whether their proposed program has merit.

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GOALS, THEMES, PERSPECTIVES, AND STUDENT LEARNING OBJECTIVES

Goals and Themes

Our collective goal is to learn the history and evolution of entrepreneurship. Through course readings, class discussion, individual writing assignments, and group presentations we will address six crucial topics over the semester:

1. What defines and characterizes the entrepreneurial spirit?2. Why has it flourished particularly in the United States?3. What social, political, and economic forces cause

entrepreneurism to wither or to bloom?4. Which entrepreneurs best captured the spirit and

contradictions of their particular times?5. How can we learn from their successes and failures to

improve our present economy and to create a more just society?

6. Who should be the role models and folk heroes of the future?

These topics relate to our two designated ICC themes.

Inquiry, Imagination, and Innovation (How do we know what we know?) A World of Systems (How do people make sense of and navigate complexity?)

Course content and goals, therefore, will attempt to answer these themes’ respective queries:

INQUIRY, IMAGINATION, AND INNOVATION: ( How do we know what we know?)

“In an information society,” Fritz Machlup observes in his classic study The Production and Distribution of Knowledge in the United States, “entrepreneurship rests on a theory of economy, society, and innovation.” This theory sees change as normal and indeed as healthy to individual development and fulfillment. And it sees a democratic society’s major task—especially in the economy—as doing something different rather than doing better what is already being done. By recognizing, analyzing, and foreseeing political, economic, sociological, technological, legislative, and environmental trends, the most successful entrepreneurs always search for, respond to, and exploit change as an opportunity.

These principles and ideas define entrepreneurial capitalism. To contextualize and examine them, this seminar will borrow concepts from Adam Smith, Joseph Schumpeter, and Friedrich Hayek, three great economists who were also profound sociological and political philosophers: creative destruction, cultural capital, the division of labor and the division of knowledge, enlightened self-interest, the invisible hand, linkage, natural liberty, price signals, rule of law, spontaneous order, supply and demand, and technological feedback.

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A WORLD OF SYSTEMS: How do people make sense of and navigate complexity?

As avatars and catalysts of change, entrepreneurs—and, by extension, companies and organizations, consumers and regulators—must make sense of and navigate complexity in a capitalist democracy. This seminar will investigate this phenomenon theoretically and practically. Theoretically, this seminar will exposes you to the systems thinking of the above great economists (Smith, Schumpeter, and Hayek), as well as such sociologists and organizational and technological critics as Peter Drucker, George Gilder, and Max Weber. Their ideas will help you to appreciate and analyze the intricate and often dynamic relationship between human culture and institutions and human technology and economy.

Practically, the course will introduce you to two useful interpretive tools:

(1) PESTLE analysis: Pioneered by Albert Humphrey, a management consultant at the Stanford Research Institute, this method traces and evaluates the political, economic, sociological, technological, legal, and environmental factors that enable or disable any new enterprise.

(2) Modes of Innovation: Featured in Peter Drucker’s Innovation and Entrepreneurship: Practice and Principles, this elegant rubric identifies and analyze seven factors that lead to entrepreneurship:

a. Unexpected successes, failures, and outside eventsb. The incongruity between social and cultural expectations and realityc. Innovation based on process needd. Revolutions in industry and market structuree. Demographic shiftsf. Changes in perception, mood, and meaningg. New knowledge, both scientific and nonscientific

These ideas and tools will help you to research and write your own analyses of major entrepreneurs and to connect our seminar to its ICSM Perspective.

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Perspectives and Learning Objectives

For Social Sciences Designation (SS)

The history of entrepreneurship, and the economic, political, and sociological theories analyzing its causes and dynamics, clearly fit a Social Sciences perspective. Course learning objectives, therefore, closely parallel those of other SS seminars. By the end of the semester, you will:

understand how entrepreneurs and businesses analyze, investigate, or predict consumer taste, needs, and trends in the marketplace

recognize and articulate America’s often conflicted and contradictory values, beliefs, and behaviors regarding capitalism and trace the historical, social, and political forces behind these conflicts and contradictions

explain how American values, beliefs, and institutions help shape, and in turn are shaped by, entrepreneurs and businesses as well as individual and collective activities and decisions in the marketplace

For the Integrated Core Curriculum

Additional learning objectives contribute to the mission of the Integrated Core Curriculum. Accordingly, you also will:

develop and evaluate ideas and arguments by reading and discussing essays and case studies on entrepreneurial capitalism from major economists, historians, philosophers, political scientists, and sociologists

demonstrate a consideration of context, audience comprehension and purpose in written and/or oral communication through five critical papers and one group presentation on great entrepreneurs who revolutionized their respective fields and embodied the spirit and contradictions of their particular times

create an artifact suitable for your ICC e-portfolio from these written and oral assignments

reflect on quality peer-to-peer interaction through brainstorming sessions, class debates, one-on-one critiques, and group feedback sessions

use the resources and services on campus to achieve academic, personal, and career goals, including Academic Support Services, the Ithaca College library (both print and electronic), Media Services, Sakai, and the Writing Center

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COURSE ASSIGNMENTS , OUTCOMES ASSESSMENT, AND SEMESTER GRADES

THE FOLLOWING individual and group assignments will assess these outcomes and determine your semester grade:

1. Analytical Papers: You will research and write short analytical papers (2 to 3 double-spaced pages, not including reference page) on five major entrepreneurs of your choice. Profile their lives, summarize and explain their accomplishments, and place both within a specific social or economic context.

Consider these questions: How did these figures revolutionize their respective fields and represent the entrepreneurial spirit of their particular times? What political, economic, sociological, technological, legislative, or environmental conditions or trends contributed to or challenged their success? How did they exploit or predict unexpected successes, failures, and outside events, incongruity between social and cultural expectations and reality, innovation based on process need, revolutions in industry and market structure, demographic shifts, changes in perception, mood, and meaning, or new knowledge, both scientific and nonscientific?

Formulate a thesis, organize an argument, provide supporting evidence, integrate and cite sources, and observe formal conventions of grammar, punctuation, and spelling. Also tell a good story. These papers should be engaging as well as informative.

2. Oral Presentation: Working in a team of up to five students, give a ten-minute presentation on a contemporary entrepreneur. Follow the same content guidelines as above but address a general rather than an academic audience. You may deliver a group lecture, give a PowerPoint talk, stage an educational skit, or produce an instructional video. Whatever the format, frame your presentation, map and link its sections, integrate all audio and visual elements, and prompt feedback and discussion.

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IN SEARCH OF EXCELLENCE

LIKE TOM PETERS’ and Robert Waterman’s business classic, this seminar on entrepreneurism is in search of excellence. This quest encompasses not only great entrepreneurs, past and present, but also students. Hence these grading criteria for your papers and presentations:

D work is substandard. Poor effort, empty thinking, weak writing or delivery. The paper or talk is underdeveloped, incomplete, or marred by careless mistakes.

C work is competent. Average effort, standard thinking, conventional writing or delivery. While the paper or talk is complete and free of errors, it lacks originality, invention, and creativity.

B work is good. Genuine effort, sound thinking, solid writing or delivery. The paper or talk takes risks, shows promise, but still needs improvement.

A work is excellent. Enthusiastic effort, original thinking, distinguished writing or delivery. The paper or talk demonstrates expertise and style and balances creative and analytical thinking.

I will use tabulated rubrics to evaluate your work. You are allowed one revision for each paper, due one week after I return your evaluated first draft. The grade on the revision will be the final grade for the assignment.

PROFESSIONAL CONDUCT

1. Attend Class: Poor attendance will affect your final grade. Keep up with readings and participate in class activities and workshops. Should you miss class, contact a classmate for any missing assignments or lecture notes. Also, turn in work on time even if you cannot do so in person. Three absences are allowed without penalty, but each subsequent absence lowers your final average by half a letter grade. For freshman success (1 credit) one absence is allowed without penalty, but each subsequent absence lowers this grade by half a letter grade.

Please note the holidays listed in the Undergraduate Catalog’s academic calendar. In accordance with New York State law, students who miss class due to their religious beliefs shall be excused from class or examinations on that day. Such students must notify their course instructors at least one week before any anticipated absence so that proper arrangements may be made to make up any missed work or examination without penalty.

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2. Meet Deadlines: They are the bottom line in professional communication. Late papers will not be accepted. Assignment revisions are optional, due one week after receiving the evaluated first draft. No revisions for final dossier.

3. Save Work: Back up and save all work. This habit is both professional and the ultimate CYA strategy.

4. Don’t Plagiarize: This isn’t a course in industrial espionage. A plagiarized paper will receive an F, and you will be asked to withdraw from the course.

5. Seek Help When Necessary: First, visit the Writing Center (Smiddy 107)—a free resource facility where, at scheduled times throughout the week, you may consult with trained student and faculty tutors about your writing.

Second, in compliance with Section 504 of the Rehabilitation Act of 1973 and the American Disabilities Act, reasonable accommodations will be provided to students with documented disabilities on a case-by-case basis. Students must register with the Office of Academic Support Services (110 Towers Concourse) and provide appropriate documentation before any academic adjustment will be provided.

TRANSITIONING TO COLLEGE

LIKE OTHER Ithaca College seminars, this course’s fourth hour (W: 12:00 to 12:50 PM) helps first-year students with their transition to college. We will address and hold the following academic and social topics and activities:

Student Accountability: The management, billable hours, academic dishonesty, classroom responsibilities, academic tracking, midterm grades

Knowing Your Major: Reviewing published information, pro forma major sheets, understanding faculty, administrators and staff. Pre-plan to three semesters

The Library: Speaker from the Ithaca College Library

Multiculturalism at Ithaca College: Speaker from the Office of Student Engagement and Multicultural Affairs

The Health Center at Ithaca College: Speaker from the Hammond Health Center

Ithaca College Sports (Credit/Non-credit): Speaker from the Office of Recreational Sports

Spring Pre-registration: Speaker and Active Participation Registration Session

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Sustainability at Ithaca College: Speaker from Campus and Community Sustainability Program (Office of Civic Engagement)

Security at Ithaca College: Speaker from the Office of Public Safety Music and the Arts at Ithaca College: Speakers and handouts from the School of Music,

the Department of Art, and the Department of Theatre Arts Financial Aid and Scholarships: Speaker from the Office of Financial Aid Career Planning: Speaker from the Office of Career Services Volunteerism at Ithaca College: Speaker from the Office of Civic Engagement Students Clubs at Ithaca College: Speaker from Student Involvement Program (OSEMA)

These sessions are not add-ons. They contribute to a major theme in this seminar: the innovative application of knowledge in the marketplace of ideas. College provides many useful resources, but to make the most of them, students must be entrepreneurial. They must take responsibility and seize opportunities.

As Peter Drucker frequently noted, America’s capitalist democracy is “a Knowledge Society.” It expects its citizens to work smart as well as work hard. For this reason, America’s greatest entrepreneurs—from Benjamin Franklin and Andrew Carnegie to Lee Iacocca and Bill Gates—have been passionate about higher education. All contributed to or helped to found major American colleges and universities.

Invest the necessary time and effort in your education, therefore, and never sell your intellectual potential short!

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BUILDING INTELLECTUAL CAPITAL

APITAL, Michael Novak reminds us, comes from the Latin word caput, head. Ultimately, entrepreneurial

capitalism depends on good ideas and sound thinking. This seminar, however, is not a practical colloquium on entrepreneurship. Neither is a how-to guide on starting your own business nor a pep talk on the ten habits of highly successful people. Rather, it is a rigorous intellectual inquiry into the entrepreneurial spirit and a spirited ethical debate about its impact on our culture.

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Why do entrepreneurs invest their capital and exert their talents in an unpredictable and often cruel marketplace? How do we all benefit from their courage and creativity? We will spend the next fifteen weeks exploring these questions, but let us begin with a reflection from a great scholar of entrepreneurship.

“What drives entrepreneurs in their pursuit of excellence? First of all, there is the dream and the will to found a private kingdom, usually, though not necessarily, also a dynasty. Then there is the will to conquer; the impulse to fight, to prove oneself superior to others, to succeed for the sake, not of the fruits of success, but of success itself. Finally, there is the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity. This akin to an ubiquitous motive, but nowhere does it stand out as an independent factor with anything like the clearness with which it obtrudes itself in the marketplace. An entrepreneur seeks out difficulties, changes in order to change, delights in ventures. That, essentially, is the entrepreneurial spirit.”

~Joseph Schumpeter, Capitalism, Socialism, and Democracy

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CALENDAR

THE ENTREPRENEURIAL SPIRIT “Capitalism has poured a horn of plenty upon the masses of wage earners who frequently did all that they could to sabotage the adoption of those innovations which render life more agreeable.”

~Ludwig von Mises (1881-1973)

AUG 28: ORIENTATION.

AUG 30: Drucker, Innovation and Entrepreneurship Ch. 01: “Systematic Entrepreneurship,” 21-

29. Ch. 02: “Purposeful Innovation and the

Seven Sources for Innovative Opportunities,” 30-36.

Handouts George Gilder, “The Enigma of Enterprise” Michael Novak, “Three Cardinal Virtues of Business” John Mackey, “Awakenings”

SEP 02: LABOR DAY. NO CLASS.

SEP 04: Means, Money and Power “Introduction,” 1-14.

Bryant and Dethloff, A History of American Business Ch. 01: “The Business of America Is Business,” 1-17.

Handouts Joseph Schumpeter, “The Role of the Entrepreneur” Ayn Rand, “What is Capitalism?” Ludwig von Mises, “Capitalism Guarantees Human Freedom” John Mackey and Raj Sisodia, “Capitalism: Marvelous, Misunderstood,

Maligned”

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FROM MERCANTILISM TO CAPITALISM “Every individual continually exerts himself to find out the most advantageous employment for whatever capital he can command. It his own advantage, indeed, and not that of society, which he has in view. But the study of own advantage naturally, or rather necessarily leads him to prefer that employment which is the most advantageous to society.

~Adam Smith (1723-1790)

SEP 06: Means, Money and Power Ch. 01: “St. Godric: God and Profit,” 15-25. Ch. 02: “Cosimo de Medici: Putting Money to

Work,” 27-43.

Handouts Richard Goldthwaite, “The Wherewithal to Spend: The Economic

Background of Florence”

SEP 09: Means, Money and Power Ch. 03: “Philip II: Wealth without Wisdom,” 45-64. Ch. 04: “Tulipmania: Sharing the Greed,” 65-81.

Bryant and Dethloff, A History of American Business Ch. 02: “The Merchant Capitalists,” 18-36.

SEP 11: Bryant and Dethloff, A History of American Business Ch. 03: “The Colonial Merchants,” 37-55.

Handouts Max Weber, “The Spirit of Capitalism in Colonial America” Benjamin Franklin, “The Way to Wealth” and “On Those Who Would

Remove to America.”

SEP 13: Means, Money and Power Ch. 05: James Watt and Matthew Boulton: Turning Evolution into

Revolution,”

Drucker, Innovation and Entrepreneurship Ch. 09: “New Knowledge,” 107-29. Ch. 10: “The Bright Idea,” 130-32. Ch. 11: “Principles of Innovation,” 133-40.

Handouts John Lienhard, “The English Industrial Revolution” Adam Smith, “Of the Division of Labor” and “Aphorisms from The Wealth of

the Nations”

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PAPER 1:“FROM MERCANTILISM TO CAPITALISM”he hostility of the scribe toward the merchant,” said Eric Hoffer, “is as old as history.” As we learned, the emergence of entrepreneurship in Europe and North America was difficult

and often retrograde. But the scientific, industrial, and political revolutions of the 17th and 18th centuries overturned a millennium of tradition and entrenched church and state power to create the free market.

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For your first assignment, research and write a paper on a pioneering entrepreneur from these early days of capitalism. You may profile a merchant prince from the Northern Italian city states, the Dutch Republic, or the French League, such as Cosimo de’ Medici, Jan Pieterszoon Coen, or Jean-Baptiste Colbert, but it might be more useful to pick a figure from these two areas:

Colonial America: Great Britain’s American colonies proved fertile ground for what Max Weber calls “the spirit of capitalism.” Benjamin Franklin perhaps best embodies this spirit but so do other colonial entrepreneurs and future revolutionaries: John and Thomas Hancock, Henry Laurens, Jonathan Lucas, Sybilla Masters, Elizabeth Murray, Paul Revere, George Washington, and John Winthrop, Jr.

Early Industrial England: As Adam Smith observes in the Wealth of the Nations (1776), the English Industrial Revolution transformed the means of production and created the first mass market for consumer goods, which a generation of innovative entrepreneurs was eager to supply. Some were independent; others belonged to the Lunar Society of Birmingham: Richard Arkwright, John Baskerville, Matthew Boulton, Edmund Cartwright, William Murdoch, John Smeaton, Richard Trevithick, James Watt, and Josiah Wedgwood.

Find at least three sources, including course texts and handouts. Brainstorm with classmates using PESTLE analysis or Modes of Innovation (Page 5). Then use the questions on Pages 6 and 7 to formulate a thesis, create an outline, and write your report. This analytical paper should be 2 to 3 double-spaced pages, not counting reference page, and should follow MLA or APA format.

SEP 16: COLLECTIVE BRAINSTORMING.

SEP 18: COLLABORATIVE WORKSHOP.

SEP 20: COLLABORATIVE WORKSHOP.

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THE REPUBLIC OF COMMERCE “The spirit of enterprise, useful and prolific as it is, must necessarily be contracted or expanded in proportion to the simplicity or variety of the occupations and productions, which are to be found in a society. It must be less in a nation of mere cultivators, than in a nation of cultivators and merchants; less in a nation of cultivators and merchants, than in a nation of cultivators, artificers, and merchants.”

~Alexander Hamilton (1755-1804)

SEP 23: PAPER 1 DUE .

Bryant and Dethloff, A History of American Business Ch. 04: “Early American Manufacture,” 56-73. Ch. 06: “The Expansion of Commerce,” 92-111.

Handouts Alexander Hamilton, “Introduction to the Report on Manufactures” Meriwether Lewis and William Clark, “The Dalles to the Walla Walla River”

SEP 25: Bryant and Dethloff, A History of American Business Ch. 5: “Agribusiness,” 74-91.

Handout Robert Sobel, “Cyrus McCormick: From Farm Boy to Tycoon”

SEP 27: Bryant and Dethloff, A History of American Business Ch. 7: “Railroads and Business Expansion,” 112-30.

Means, Money and Power Ch. 6: “The Transcontinental Railroad: Rogues and Visionaries,” 103-24.

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PAPER 2:“THE REPUBLIC OF COMMERCE”oldness of enterprise is the foremost cause of the United States’ rapid progress, its strength, and its greatness,” Alexis de Tocqueville observes in Democracy in America (1832). He

was commenting on this young country’s rapid expansion, from a coastal republic of a dozen or so former colonies to a continental empire spanning three thousand miles.

BTrade, transportation, and technology were responsible for this phenomenal growth. The first 70 years of the 19th century saw the chartering of America’s first great companies, such as Colgate, DuPont, and Remington; the construction of the Erie Canal, the interstate turnpike, and the transcontinental railroad; and the invention of the cotton gin, the steamboat, and the telegraph. Even before the Gold Rush of 1849, Americans dreamed of becoming the world’s most prosperous nation. Ironically, the tragic crucible of the Civil War made that possible.For your second assignment, research and write a paper on a major American entrepreneur from 1790 to 1875. Choose your own figure or select one from the following areas:

Agriculture: John Deere, John Henry Manny, Cyrus McCormick, Eli Whitney

Communication and Transportation: P. T. Barnum, Dewitt Clinton, Peter Cooper, Charles Crocker, Robert Fulton, Horace Greeley, Collis Huntington, John Marshall, Samuel Morse, Leland Stanford, Robert B. Thomas, Cornelius Vanderbilt

Housewares and Retail: Jacob Bromwell, Henry Sands Brooks, William Colgate, Nathanael Currier, James Merritt Ives, R. H. Macy, Johann George Pfaltzgraff, Alexander Stewart, Levi Strauss

Manufacture and Trade: John Jacob Astor, Samuel Colt, Zenas Crane, Francis Deane, E.I. du Pont, Francis Cabot Lowell, Eliphalet Remington, Seth Thomas


SEP 30: COLLECTIVE BRAINSTORMING.

OCT 02: COLLABORATIVE WORKSHOP.


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ROBBER BARONS AND REFORMERS “The price which society pays for the law of competition, like the price it pays for cheap comforts and luxuries, is great; but the advantages of this law are greater still, for it is to this law that we owe our wonderful material development, which brings improved conditions in its train.”

~Andrew Carnegie (1835-1919)

OCT 07: PAPER 2 DUE .

Bryant and Dethloff, A History of American Business Ch. 15: “The Modern Corporate Image:

The Gilded Age,” 255-62. Ch. 10: “Giant Enterprise,” 169-85. Ch. 16: “Government and the Economy:

The Progressive Era,” 272-79. Ch. 19: “Multinational Corporations, Part I,” 340-47.

Drucker, Innovation and Entrepreneurship Ch. 05: “Process Need,” 69-75.

OCT 09: Bryant and Dethloff, A History of American Business Ch. 09: “The Energy Industries,” 151-68.

Means, Money and Power Ch. 08: “John D. Rockefeller: Organizing the Octopus,” 145-63.

Handouts John D. Rockefeller, “Free Enterprise Should Not Be Regulated” Andrew Carnegie, “The Gospel of Wealth” Meridel Le Suer, “Old Andy Comes to the North Star Country”

OCT 11: Bryant and Dethloff, A History of American Business Ch. 12: “The American Insurance Industry,” 200-18. Ch. 13: “Banking and Finance,” 219-37.

Means, Money and Power Ch. 7: “J. Pierpont Morgan: The Colossus,” 125-43.

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PAPER 3:“ROBBER BARONS AND REFORMERS”he way to make money,” said John D. Rockefeller, “is to buy when blood is running in the streets.” This quotation perfectly captures the audacity and ruthlessness of the Gilded Age,

the forty-year period following the Civil War that birthed the modern corporation and laid the foundation for the American century.

TDuring this Darwinian time of immigration, industrialization, and urbanization, captains of industry were simultaneously praised as “avatars of progress” and reviled as “robber barons.” Although public concern about graft and monopoly lead to government reforms, the swashbuckling capitalist had become an indelible American archetype.

For your third assignment, research and write a paper on a major American entrepreneur from 1875 to 1915. Choose your own figure or select one from the following areas:

Accounting, Banking, and Insurance: Arthur Andersen, John Dryden, A.P. Giannini, Andrew Mellon, J. P. Morgan

Advertising, Communications, and Media: Alexander Graham Bell, Edward Bok, Cyrus Curtis, George Eastman, William Randolph Hearst, Albert Lasker, Ivy Lee, Samuel Sidney McClure, Antonio Meucci, Joseph Pulitzer

Food, Games, and Retail: Philip Danforth Armour, Milton Bradley, Marshall Field, George Hormell, Minor Keith, John Harvey Kellogg, George S. Parker, John Stith Pemberton, C.W. Post, Alvah Roebuck, Richard Warren Sears, Isidor and Nathan Straus, Gustavus Swift, Madam C.J. Walker, John Wannamaker, Aaron Montgomery Ward

Engineering, Industry, and Transportation: Andrew Carnegie, Thomas Durant, Henry Clay Frick, B.F. Goodrich, Jay Gould, George Pullman, John and Washington Roebling, Frederick Winslow, Taylor, Wilbur and Orville Wright, Charles Yerkes

Power and Energy: Thomas Edison, John D. Rockefeller, Samuel Insull, Charles Proteus Steinmetz, Nikola Tesla, George Westinghouse


OCT 14: COLLECTIVE BRAINSTORMING.


OCT 18: FALL BREAK. NO CLASS.

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MASS PRODUCTION AND MASS CONSUMPTION “In the past the man has been first; in the future the system must be first. This in no sense, however, implies that great men are not needed. On the contrary, the first object of any good system must be that of developing first-class men. But it is only through enforced standardization of methods, enforced adoption of the best implements and working conditions, and enforced cooperation that faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone.”

~Frederick Winslow Taylor (1856-1915)

OCT 21: PAPER 3 DUE .

Bryant and Dethloff, A History of American Business Ch. 8: “Transportation and the Marketplace,” 131-50.

Means, Money and Power Ch. 9: “Henry Ford: Building Cars and the Markets for Them,”165-83.

Drucker, Innovation and Entrepreneurship Ch. 6: “Industry and Market Structures: The Automobile Story,” 76-87.

Handouts Arthur Pound, “Pouring Ideas into Tin Cans” Henry Ford, “What I Learned about Business” Alfred Pritchard Sloan, “Coordination by Committee”

OCT 23: Bryant and Dethloff, A History of American Business Ch. 11: “Advertising and the Mass Media, Part I,” 186-93. Ch. 19: “Retailing, Part I,” 321-33.

Drucker, Innovation and Entrepreneurship Ch. 03: “The Unexpected,” 37-56. Ch. 04: “Incongruities,” 57-68.

OCT 25: Bryant and Dethloff, A History of American Business Ch. 16: “Government and the Economy: The New Deal,” 279-97. Ch. 17: “War and Business,” 288-304. Ch. 18: “Government Regulatory Agencies, Part I,” 305-08

Handout Mary Parker Follett, “The Essentials of Leadership”

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PAPER 4:“MASS PRODUCTION AND MASS CONSUMPTION”onspicuous consumption of valuable goods,” joked Thorstein Veblen, “is a means of reputability to the gentleman of leisure.” The maverick Swedish American economist

coined this term to satirize the idle rich. Even at his most cynical, he never dreamed this propensity would become an ideal for the masses.

CThe five years before and after World War One marked a cultural watershed in U.S. history. The Second Industrial Revolution, based on Frederick Taylor’s principles of scientific management, had produced a cornucopia of goods, and the easy credit and slick advertising of the postwar boom enticed once thrifty Americans to buy them. Boundless optimism and manic speculation wed Main Street to Wall Street, until the Stock Market Crash lead to a bitter divorce. A major depression and another world war would pass before the country fully recovered its faith in American enterprise; but, for better or worse, we irrevocably had become a consumer society.

For your fourth assignment, research and write a paper on a major American entrepreneur from 1915 to 1945. Choose your own figure or select one from the following areas:

Banking and Finance: Jesse Livermore, Michael J. Meehan, Charles Merrill, Charles Mitchell, Dean Witter

Advertising, Communications, and Media: Edwin Howard Armstrong, Bruce Barton, Edward Bernays, Lee de Forest, Philo T. Farnsworth, B.C. Forbes, Samuel Goldwyn, George Washington Hill, Louis B. Mayer, Raymond Rubicam, David Sarnoff, J. Walter Thompson, Jack Warner

Food and Retail: Clarence Birdseye, Ettore Boiardi, Adam Gimbel, Milton Hershey, Barney Pressman, Julius Rosenwald, H.B. Reese, Andrew Saks, Clarence Saunders

Industry and Transportation: William Boeing, Walter Chrysler, Glenn Curtiss, William Durant, Harvey Firestone, Henry Ford, Herbert Henry Franklin, Alfred Pritchard Sloane, Clem and Henry Studebaker, Juan Trippe


OCT 28: COLLECTIVE BRAINSTORMING.


NOV 01: COLLABORATIVE WORKSHOP.

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THE AMERICAN WAY “As candidate for Secretary of Defense, I’ve been asked whether, given my $2.5 million stock options in General Motors, I could make a decision that would hurt my company. I can’t conceive of one. For years, I’ve thought what’s good for our country is good for General Motors and vice versa. The difference doesn’t exist. Our company is too big. It goes with the welfare of the nation.”

~Charles Erwin Wilson (1890-1961) NOV 04: PAPER 4 DUE.

Bryant and Dethloff, A History of American Business Ch. 15: “The Modern Corporate Image: The Cold War,” 262-71. Ch. 19: “Retailing, Part II,” 334-39. Ch. 20: “Multinational Corporations, Part II,” 348-60.

Means, Money and Power Ch. 10: “Robert Woodruff: The Brand’s the Thing,”185-203.

Drucker, Innovation and Entrepreneurship Ch. 07: “Demographics,” 88-98. Ch. 08: “Changes in Perception,” 99-106. Ch. 19: “Changing Values and Characteristics,” 243-52.

NOV 06: Bryant and Dethloff, A History of American Business Ch. 11: “Advertising and the Mass Media, Part II,” 193-98 Ch. 18: “Government Regulatory Agencies, Part II,” 308-20.

Means, Money and Power Ch. 11: “Time Warner: Turning Opposing Cultures to Common

Advantage,”185-203.

NOV 08: Means, Money and PowerCh. 12: “Bill Gates and Cyberspace: The Dematerialized Future,” 227-45

Drucker, Innovation and Entrepreneurship Ch. 16: “The Fustest with the Mostest,” 209-19. Ch. 17: “Hit Them Where They Ain’t,” 220-32.

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PAPER 5:“THE AMERICAN WAY”believe in God, America, and McDonald’s,” said Ray Kroc. “And in the office, that order is reversed.” Kroc’s brash creed perfectly captures American business during the Cold War.

From the descent of the Iron Curtain to the fall of the Berlin Wall, entrepreneurs not only sold goods and services but also the American way of life. The more messianic literally saw themselves as the world’s saviors and liberators. The public reaction was more mixed.

I

During the 1950s, when America’s companies dominated the global economy and created the security and prosperity of suburbia, workers and consumers pledged their allegiance to American enterprise. The violence and chaos of the 1960s and the malaise and stagnation of the 1970s shattered that complacency, but the Reagan Revolution of the 1980s—fueled by a bull market and an information technology revolution—rekindled America’s romance with free enterprise.

For your fifth assignment, research and write a paper on a major American entrepreneur from 1945 to 2001. Choose your own figure or select one from the following areas:

Accounting, Banking, Finance and Real Estate: Henry and Richard Bloch, Warren Buffet, Kenneth Chenault, Jerome Kohlberg, Charles Keating, Henry Kravis, Frank X. McNamara, Michael Milken, Donald Trump

Advertising, Communications, and Media: William Bernbach, Leo Burdett, Mark Cuban, Walt Disney, Jim Kimsey, Henry Luce, David Ogilvy, William Paley, Robert Pittman, Ted Turner, Oprah Winfrey

Energy and Transportation: Warren Avis, T. Boone Pickens, Lee Iacocca, Kenneth Lay, Robert McNamara, Jeffrey Skilling, Frederick W. Smith, Preston Tucker, Jack Welch

Information and Office Technologies: Paul Allen, Steve Balmer, Sergey Brin, Jomei Chang, Carly Fiorina, Bill Gates, Bill Hewlett, Steve Jobs, Charles Peter McColough, Dave Packer, Larry Page, Ray Tomilson, Thomas J. Watson, Steve Wozniak, Jerry Yang

Fashion, Food, and Retail: Wally Amos, Mary Kay Ash, Jeff Bezos, Perry Ellis, Tommy Hilfinger, Donna Karan, Victor Kiam, Ray Kroc, Phil Knight, F. Ross Johnson, Estee Lauder, Ralph Lauren, Ron Popeil, Orville Redenbacher, Harlan Sanders, Dave Thomas, Martha Stewart, Sam Walton, Robert Wegman, Robert Woodruff


NOV 11: COLLECTIVE BRAINSTORMING.



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CURRENT TRENDS AND FUTURE DIRECTIONS “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance. Stay hungry. Stay foolish.”

~Steve Jobs (1955-2011)

NOV 18: PAPER 5 DUE. Contemporary case studies in entrepreneurship

Handout Gary Hamel and C.K. Prahlad, “Strategic Intent”

NOV 20: ORIENTATION FOR GROUP PRESENTATIONS Contemporary case studies in entrepreneurship

Handout Steven Wheelwright and Earl Sasser, “The New Product Development Map”

GROUP PRESENTATION: “CURRENT TRENDS AND FUTURE DIRECTIONS”

hink different.” Created in 1997 by the Los Angeles office of TBWA\Chiat\Day, this advertising slogan for Apple, Inc. captures the spirit of entrepreneurship and sets the theme

for your sixth and final assignment. TWorking in a team of up to five students, give a 10-minute presentation on a contemporary American entrepreneur. Follow the same guidelines as those for your research papers. Find at least three sources, including course texts and handouts. Brainstorm with classmates using PESTLE analysis or Modes of Innovation (Page 5). Then use the questions on Pages 6 and 7 to formulate a thesis and create an outline. Address a general rather than an academic audience. You may deliver a group lecture, give a PowerPoint talk, stage an educational skit, or produce an instructional video. Whatever the format, frame your presentation, map and link its sections, integrate all audio and visual elements, and prompt feedback and discussion.

Please include a reference page, following MLA or APA format.

NOV 22: COLLECTIVE BRAINSTORMING.

NOV 25: THANKSGIVING BREAK.

NOV 27: NO CLASS.

NOV 29: Research topic and correspond by email with teammates.

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DEC 02: COLLABORATIVE WORKSHOP.DEC 04: COLLABORATIVE WORKSHOP.

DEC 06: GROUP PRESENTATIONS.



CONSCIOUS CAPITALISM “We can no longer be content with a simplistic approach to work, business, and capitalism—an approach that has become so deeply ingrained in our psyche and society. It is not serving us well; in fact, it is eating away at the fabric of our communities and stultifying our souls. It necessitates too much unsavory trade-offs and results in too much unhappiness and suffering for people. We must do what it will take to move collectively to the other side of complexity in the world of business and capitalism, for that is where we will find peace and prosperity, love and caring, money and meaning.”

~John Mackey (1953- )

DEC 13: Drucker, Innovation and Entrepreneurship Conclusion: “The Entrepreneurial Society,” 253-66. “The Educated Person” (handout)

Handout John Mackey and Raj Sisodia, “The Power and Beauty of Conscious

Capitalism”

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ICSM - 10524Course Schedule

(Subject to change)

Week On Course Chapter Sect 1 Sect 2On Course AssignmentsRequired 2 per Chapter

Plus Skills Plan

1 1 – Time Management 8-28 8-30 1 2 3 4

1 2 – Reading 9-4 9-6 5 6 7 8 Skills Plan

2 3 – Taking Notes 9-9 9-11 9 10 11 12 Skills Plan

3 4 – Org Study Habits 9-16 9-18 13 14 15 16 Skills Plan

3 5 – Rehearsing/Memorizing 9-16 9-18 17 8 19 20 Skills Plan

4 6 – Taking Tests 9-23 9-25 21 22 23 24 Skills Plan

5 7 – Writing 9-30 10-2 25 26 27 28 Skills Plan

6 8 – Management $ 10-7 10-9 29 30 31 32

(Health Center Speaker)

7 9 – Pre-registration 10-14 10-16 Open

8 10 – Sustainability (Speaker) 10-21 10-23 Writing

9 11 – Career Planning (Speaker) 10-28 10-30 Writing

Open 12 – Music/Arts* (Individually) 11-4 11-6 Writing

Open 13 – Museum Visit* (Individually) 11-11 11-13 Writing

Open 14 – Volunteerism (Speaker) 11-18 11-20 Writing

Group Event* Writing

Class will be allocated to course work

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ENTREPRENEURSHIP AND CAPITALISM Grading Rubric for Papers and Talks

AREAS + -Context and Purpose: Did your paper or talk address a specific audience and context, establish a clear purpose, and follow the assignment guidelines?

Paper or talk shows a thorough and complex understanding of audience and context, explicitly states its purpose, and responds to all elements of the assignment.

Paper or talk shows an adequate understanding of audience and context, hints at but does not fully establish its purpose, and responds to at least some elements of the assignment.

Paper or talk shows little or no understanding of audience and context, has no clear purpose, and ignores most or all elements of the assignment.

Methodology:Did your paper or talk use the methods of the social sciences to analyze, investigate or predict its subject?

Paper or talk effectively and consistently applies the methods of the social sciences to analyze, investigate, or predict its subject.

Paper or talk shows an understanding of the methods of the social sciences but does not consistently apply them to analyze, investigate, or predict its subject.

Paper or talk does not apply the methods of the social sciences to analyze, investigate, or predict its subject.

Content Development:Was your paper or talk substantive, organized, and coherent? Did it present a clear narrative and effectively integrate such design elements as headings, graphics, images, and video and sound clips?

Paper or talk contains appropriate, relevant, and compelling content, organized and presented clear and engagingly, and effectively and consistently integrates helpful design elements.

Paper or talk tries to use appropriate, relevant, and compelling content, though not always organized and presented clearly and engaging, and sometimes uses design elements

Paper or talk struggles to use or does not contain appropriate, relevant, and compelling content, is not clear or engaging, and omits design elements.

Sources and Evidence:Did your paper or talk include and properly integrate and cite primary and secondary sources?

Paper or talk always uses relevant sources and evidence to develop ideas and claims, integrates its own ideas with those of others, and properly cites and references all sources.

Paper or talk sometimes uses relevant sources and evidence to develop ideas and claims, tries to integrate its own ideas with those of others, and attempts to cite and reference all sources.

Paper or talk struggles to or fails to use sources and evidence to develop ideas and claims, does not integrate its own ideas with those of others, and fails to cite and reference sources.

Mechanics and Syntax:Did your paper or talk observe the formal conventions of grammar, spelling, and punctuation?

Strong usage effectively communicates paper or talk’s meaning with clarity and fluency.

Adequate usage communicates most of paper or talk’s meaning, but some errors distract readers or audience

Poor usage impedes paper or talk’s meaning and alienates or confuses readers or audience.

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Documents

ICSM-10524 Entrepreneurship & Capitalism Syllabus (doc)