Gene One Problem Solution
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Running head: PROBLEM SOLUTION: GENEONE
Problem Solution: Gene One
University of Phoenix
March 26, 2007
Problem Solution: Gene One
Introduction
Gene One entered the biotech industry with groundbreaking gene technology that eradicated disease in tomatoes and potatoes. As a result, farmers no longer needed to use pesticides when growing these plants and consumers were pleased to buy homegrown products untainted by chemicals. The win-win situation helped Gene One grow to a $400 million company in just eight short years. Sharply rising stock indices on Wall Street indicate a growing interest in biotechnology and leadership changes at the Food and Drug Administration are further enhancing investor confidence in the industry.
At Gene One, the CEO and his Board believe that in order to keep pace with demand and realize conservative annual growth targets of 40 percent, Gene One is going to have to go public within the next three years. It is their hope that implementing it will help Gene One realize its growth targets, establish the company as a strong competitor and show Wall Street that Gene One has the leadership and organizational capabilities to succeed as a public entity.
In this paper I will analysis some issues and opportunities that Gene One is facing as well as present a situation analysis defining the problems that Gene One needs to address. I will also analysis alternative and optimal solutions as well as identify the risk that in involved. Once all alternatives have been clear I will recommend a strategy to implement the solution. Once the implementation process has occurred I will then discuss the results that concluded from the implementation process.
Situation Analysis
Issue and Opportunity Identification
Sharply increasing stock indices on Wall Street indicate a growing interest in the biotechnology arena. To keep up with the demand and realize annual growth targets the Chief Executive Officer (CEO) and Board at Gene One believes that the company must go public within the next three years. Gene One as a company needs initial public offer (IPO) capital for new development, advertisement and marketing to remain successful. The CEO and the Board has decided to implement the conversion process within a thirty-six month timeframe. It is their hope that by implementing this plan, Gene One will realize target growths, establish in the community as a strong competitor and show Wall Street that they have the leadership and organizational capabilities to succeed as a public entity.
However there are some issues that Gene One is going to have to face in order to achieve their strategy as well as some opportunities that go along with the issues that Gene One face. It is clear that Gene One does not have the experience it takes for the conversion into the IPO. The team needs a leader that will take a stand and lead Gene One into the right direction. According to McShane and Glinow “A leader sets challenging goals, expects employees to perform at their highest level, continuously seeks improvement in employee performance and shows high degree of confidence that employees will assume responsibility and accomplish challenging goals.”(2004). The lack of proper leadership within the organization could send the wrong message to key players as well as lower level employees. If the key players are not confident that the IPO conversion is what is best for the company lower level employees may see that, as there is no future for them with Gene One.
“Legitimate power depends on a mutual agreement from those expected to abide by authority”. (McShane & Glinow, 2004). The lack of agreement among the key players may lead to stagnation. This could further lead to other employees unwillingness to follow. If no one takes the right steps to get the team all on the same page then Gene One will not be able to implement the strategy within the timeframe. There are key players who are ready to throw in the towel and leave the company behind. This could help Gene One turnover rate within the organization and present other employees the opportunity to advance upward. On the other hand, this could also make employees feel uncertain about their futures with Gene One.
Since Gene One has no expertise in the IPO arena the research and development departments will be under pressure to come up with new and innovative products that may not meet the demands that the Board is looking for. The IPO process will affect the company as a whole and could require more out of the employees in different departments that what they are used to. In turn if all goes well and the conversion process is a success then the reputation and quality of Gene One will change dramatically. The company as well as their employees would be in a win-win situation enhancing the reputation of Gene One to company that has the leadership and organizational capabilities to succeed as a public entity.
Stakeholder Perspectives/Ethical Dilemmas
The main stakeholders involved in Gene One would be the CEO/Board, key players, employees, the community and consumers. Each one plays its own role in the success of Gene One. The CEO and Board have the biggest interest in the company. They are individuals that have invested in the organization and their main concern is to receive a profit from their return. All decisions and changes that need to be made concerning Gene One have to get approval from this group of people. Bottom line is what they say goes.
The key players main responsibility is to ensure that the demands of the CEO/Board are carried out. They are the ones that are in charge of how the strategy will be implemented as well as who is involved in the process. The employees are the people who ensure that the day-to-day activities of the company are accomplished. Although both groups has there own set of plans to get accomplished they still must work as a team to ensure that the strategies are implemented as well as the daily operations are completed in a timely manner.
The community and the consumers are the most important stakeholders to any company. Without the community and the consumers buying or believing in what you stand for as a company no company would exist. It takes a combination of the above to make sure the needs of the consumers/community are meet.
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