Geneone Problem Solution

Problem Solution: Gene One

Gene One entered the biotech industry with groundbreaking gene technology that impacts the methods used to control disease in produce as well as affording a chemical free product that will be positively received by the produce market. The company has moved quickly from a small start-up to a company that needs to go public to attract additional investment and capital to fund the new products, staffing, and innovations. The organizational culture has not grown as fast as the products and profits of the company. Don Ruiz, the CEO must provide transformational leadership competencies to lead his organization through the change management.

The leadership in Gene One needs to develop a plan that can align all the stakeholders with a shared organizational vision and a roadmap for success. In addition, the company will need to come up with a research strategic plan for developing new technologies and products to grow business, IPO expertise and a marketing infrastructure to meet the requirement of being a publicly treated company. It also needs leadership development in building a strong leadership team for a transformational organization to show its capability to Wall Street.

This paper will follow the nine step decision-making model to find the solution for Gene One to become a leader in biotechnology industry as a public company with floating an IPO, improving its profitability within 3 years.

Situation Analysis

Issue and Opportunity Identification

Gene One has grown to a $400 million company in eight years of business. In order to keep pace of demand, Gene One needs to continually grow 40% annually. The CEO Mr. Ruiz and the Board developed the strategy for the company to go public within the next 3 years. The time seems right, but the company needs to float an IPO. By doing so, Gene One needs IPO capital for new development, advertisement and marketing. However, the big challenge that Gene One faces is the leadership team does not have any experience with IPOs. In addition, Sarbanes-Oxley Act requires that IPO boards have directors who are independent, and at least one member must have financial experiences serving as a CFO or CPA in a firm. Obviously, Gene One has to develop a plan to meet the requirement. In order to become a publicly treated company, Gene One has not only to be with strong technology but also strong leadership and organizational capabilities to show Wall Street. (University of Phoenix Scenario).

Perceptibly, Gene One will need to find solutions to improve leadership ability to suit organizational transformation, develop adaptive organizational culture and reach the goals to become a leader in Biotechnology industry. In order to improve the leadership competencies, Gene One is very likely to have leadership team restructure, knowledge acquisition to ensure the strategy can be carried out and the SEC is able to be complied smoothly.

Stakeholder Perspectives/Ethical Dilemmas

The stakeholders face ethical dilemmas because of their different perspectives. From the perspective of Gene One's CEO and the Board, to grow business to become a leader in biotechnology industry while having the company gone public is the most important thing. To go public or not to go public is the dilemma that they face. However, from the employees' standpoint of view, a good work environment, expected benefits, strong competitive employer and job security are their interests. So, to stay or not to stay in Gene One will be their dilemma when organizational transformation occurs. Furthermore, the investors' interests are more likely to focus on the long-term effect. As long as they see the future benefit in the company, they will consider it is as a very sound investment. And the farmers as the customers of Gene One are interested in the products that can avoid using pesticides during growing plants, also their products can please the consumers. The consumers are more likely to buy the products that are good for their health without agricultural chemical contamination. So, customer satisfaction always plays an important role in the ethical dilemmas. With the win-win situation, the products will meet the customers' expectations, and Gene One will easily reach its goals. Moreover, the investors can be the company's customers as well. They are interested in the price of each share, to invest or not to invest is based on their trust of the company. Therefore, it is important to gain the trust from the investment community. In preparation of its upcoming IPO, the company will not only need to pay attention to its customers but also potential shareholders to build good public relations. (Welch, 2000).

Problem Statement

Gene One will become a biotech industry leader by going public with strong competitiveness and improved profitability while implementing the strategy with the support of key stakeholders.

End-State Vision

1. Become a publicly treated company within the next 3 years to obtain more opportunities for better growing business

2. Implement an IPO to realize a new business image, improved marketing and increased new technologies

3. Realize the strategy and comply with SEC requirements

4. Introduce innovative gene technologies and products to the market

Alternative Solutions

Alternative #1 - Implement renewal of leadership to better implement the strategy and comply with SEC and Wall Street requirement to go public

In benchmarking Motorola, Gene One has seen the opportunity to renew the leadership to apply the principles that Motorola has followed to succeed in business. Motorola, one of the best-managed companies in the US, is a global leader in wireless and broadband communications technologies and related electronic products with its annual revenue over $36 billion and 88,000 of employees since it was founded in 1928. (Business & Company Resource Center Database). The company achieved success because right from the start, it manages on the concept of renewal, willingness to renew technologies, and eagerness to renew the processes which the institution is run. Motorola holds on to three major principles, which are leadership of renewal, renewal of leadership and thinking the unthinkable which ensured the company's successes. And