Geneone Problem Solution

Problem Solution: GeneOne

Gene One is a cutting edge biotech company that has grown into a $400 million company in just eight years. Accordingly, sharply rising stock on Wall Street has indicated a growing interest in the biotechnology industry. Leadership changes at the Food and Drug Administration has also increased the confidence many investors have in the industry. In order to remain successful the Chief Executive Officer, Don Ruiz, and the Executive Board believe that in order to obtain the capital needed for development, advertising, and marketing, they will need to go public. They feel the time is right go public within the next 36 months and their goal is to continue to grow at 40% per year.

Situation Analysis

Issue and Opportunity Identification

The decision to go public has created many opportunities for Gene One, including increased brand recognition and market potential, increased capital for cutting-edge research and development, the potential to reward loyal employees and executives for their commitment to the company, and the ability to grow into a bio-tech industry leader. However, in order to realize these opportunities, certain problems also come up and must be addressed.

Don Ruiz and his current core management team have been with the company since Gene One was founded. They have many strengths; including a Chief Technology Officer (CTO), Teri Robertson, who has developed the core technology that has made the company successful. They have been working together for many years, and they have a very personal stake in Gene One and its future.

Gene One has been experienced considerable growth over the past eight years after developing a new gene technology that eliminated disease in tomatoes and potatoes. As a result, farmers no longer need to use pesticides when growing these plants and consumers were pleased to buy homegrown products uncontaminated by chemicals. This growth has led to the hiring of new employees, and in the Chief Human Resources Officer, Greg Thoman, focusing almost exclusively on current staffing needs, and virtually ignoring development of future talent or the creation of a corporate culture conducive to growing the business.

Finally, Gene One has spent the last eight years creating a brand image that is identified with innovative technology and the potential for major economic returns through marketing. However, the infrastructure details are not in place, the focus has primarily been on the technology and not developing their management.

Although the past eight years have been very successful for Gene One, the company has arrived at a crossroads. Now that the ultimate goal is to have a successful IPO, Gene One must look hard at itself and determine what changes they need to make and what problems must be addressed in order to realize the many opportunities that a public offering could present.

Working toward their 36-month deadline, the Don Ruiz and the Board, with the help of key members in the investment community, have devised a strategy for their future. They 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 ability to succeed as a public entity.

Stakeholder Perspectives/Ethical Dilemmas

Don Ruiz wants Gene One to become a public company within three years. Despite having the approval of the board members, his management team does not seem to be as sure of the change. The Vice President of Technology Research has already resigned and Teri Robertson, Chief Technology Officer, is also thinking about leaving the company due to unrealistic expectations of Don and the Board. In addition, board members want to replace Charles Jones and Michelle Houghton does not have the Chief Financial Officer (CFO) experience required. These changes could in turn worry many of the other employees who may then look for new jobs as well.

By continuing the push to become and IPO Gene One could lose several important people and will not be able to maintain the group dynamics and team skills that helped build it into the company it has become.

Don’s willingness to replace management members who have been with the company since the beginning could be a sign of poor values and ethics. He may just be looking for his own financial growth and not thinking about what will happen to the other management members or employees.

In addition John Kirby is recommending a friend of his to take over an upper management position. Although he says he could be let go after they get the IPO, he may have underlying reason to have him brought into the picture. John may also be looking for the increased compensation that goes along with being a board member of a public company.

Despite their growth in the development of plants which do not pesticides additional revenue is need to continue doing research in other areas. Therefore Gene One must continue to look for ways to increase their financial standing. This too put Don Ruiz in a difficult position. Going public may increase the value of his company and bring in the money needed for additional research and allow them to hire more people, but it may not be the best decision for his company since Teri already resigned.

Both Teri Robertson and Angela Thomas resigned because they did not feel the direction of the company was one that they agreed with. Angela does not feel that a breakthrough will come by having to deliver on a schedule and Teri does not “want to keep Wall Street happy.” In his article even Thomas Evers says that the company the way it is now is about “making contributions to society.”

By changing the focus of the company they could be losing their most important employees вЂ" their researchers вЂ" and losing their credibility that she helped them get by being named CTO Of The Year.

Once again by changing the structure of the company without having some of the original management members on board, Don Ruiz trust could be called into question. If Don forces out or allows his current management team to leave, they will lose the cohesiveness, which has built them over the last eight years. Starting over with new management members who may be better suited to run an IPO may pay off in the long run, but it will take some time to rebuild that cohesive team.

Problem Statement

In order to meet the goals of future stakeholders and the company’s overall vision of a successful IPO, Gene