The word "hobbit" can be used for many puns involving the word "habit" and its derivatives. See how many students can invent. These puns can be used for slogans in posters about The Hobbit or in encouraging people to read the book (e.g. "Tolkien is hobbit-forming!")
Use the information given about Smaug in The Hobbit to create an encyclopedia entry about dragons: their habitat, appearance, behavior, diet and so forth. Don't forget to include a picture!
Dwarf runes are used for the map to make it look more authentic. These are dwarf-runes that Tolkien invented, basing them on Anglo-Saxon or Viking runes. Make messages for each other and solve them using either Tolkien's dwarf-runes or "real" Anglo-Saxon runes.
A copy of the dwarf rune alphabet can be found in the Appendices of The Lord of the Rings, but if you are particularly keen, you...
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