Geneone Solution

Problem Solution: GeneOne

University of Phoenix

Problem Solution: GeneOne

Gene One is at the threshold of a wonderful opportunity. Through leveraging a technology discovered by the Chief Technology Officer, Teri Robertson, Gene One has developed a way of growing vegetables without the use of pesticides and has successfully marketed this concept to its customers. As a result, Gene One has grown to become a $400 million company with the potential to become much larger. The Board of Directors along with the CEO, Don Ruiz has developed a plan to introduce an Initial Public Offering (IPO) within a three-year time frame. In order to accomplish this target, the Board along with Don Ruiz outlined a set of goals and targets including both technological and financial growth. The task ahead of the management team at Gene One is to determine how to work together to both actively support this direction and to achieve the targets and in the process, develop Gene One into a company which leads in technology as well as a rewarding place to work.

Situation Analysis

Issue and Opportunity Identification

The management team at Gene One consists of five individuals who founded the organization. Each of these individuals brings a well-developed skill set that seems to work very well in their respective functions. This team, however, does not work cooperatively with each other. There is open conflict between Teri Robertson and Michelle Houghton, the Chief Financial Officer. Charles Jones, the Marketing Officer has yet to implement a marketing infrastructure that supports the marketing strategy for Gene One. As Chief Executive Officer, Don Ruiz clearly does not have a well thought out strategy for leading the organization to achieving the goals as set forth by the Board of Directors. As strong individual contributors, this team has been extremely successful in leading Gene One to this point. This team has the potential to lead Gene One to the achievement of the interim targets as well as to position the organization to become a leading force in the field of bio engineered foods. In order to accomplish this, the team needs to act and work together as a team, supporting the efforts of each division with a well coordinated, well thought out approach. Each function is dependant on the others. Advances in technology are dependent on a well thought out marketing strategy as well as an infusion of the brightest people. All of this requires appropriate financial budgeting and capital in order to be successful. All functions must work together.

In order to achieve the infusion of money that Gene One requires, the management team must position the company to be attractive to investors. The Board of Directors and Don Ruiz developed a plan, which they believe will present a compelling story to potential investors. This plan consists of growing revenue by 40% in each of the next three years which is to be accomplished through the introduction of two new technological breakthroughs, developing new products based on the existing technology, building the brand image, increasing the customer base, and implementing a new marketing structure. Through the completion of these goals, the Board and Don expect to build the power base with which to influence investors to invest capital in Gene One through the offering of the Initial Public Offering (IPO). The accomplishment of these goals demands strong leadership and constancy of purpose in the coming years. Don Ruiz has the opportunity to demonstrate that he has the leadership ability to create this vision for the organization and the perseverance to see this plan through to completion.

This transformation in the company will also demand that several team members stretch their experiences and capabilities. Teri Robertson must work to develop new technologies, which have yet to be discovered. Michelle Houghton has not directed the finance team of a large corporation, and Charles Jones is being asked to develop a marketing plan in which he must be detail oriented вЂ" a skill that he has not demonstrated. Additionally, Gene One must become compliant with the Sarbaanes Oxley (SOX) law with which no current member of the management team has experience. Because these leaders are being asked to stretch themselves, there is a concern that the task may appear too large. Each of these team members must feel as though they are part of a larger picture, that their work is supported, and that there are others struggling to become successful. Don Ruiz can create the atmosphere throughout the organization of this sense of camaraderie.

Stakeholder Perspectives/Ethical Dilemmas

There are several stakeholders associated with Gene One. The current management team founded the company, and as such, has both a figurative and literal sense of ownership. They have a vested interest in seeing the company succeed. This interest goes beyond the potential financial rewards. Because most of this team built the company to the success the company has realized through their own hard work, they have a very real sense of loyalty and personal pride in the organization. Because of their position, the management team has the right to voice their opinions regarding the future of this company. There are signs that some members of the management team are not in complete agreement with the vision set forth by the Board of Directors. Michelle Houghton expressed concern about the timing of the IPO offering and the potential risk involved. Greg Thoman, Chief Human Resources Officer expressed concern about the compensation program in light of public scrutiny. Charles Jones voiced his concern with the demands of a new marketing strategy.

The Board of Directors also shares a financial interest in the company. It is their vision to begin the process for the IPO offering and as the Executive Board, they have the right and the capacity to set this direction. Although this vision may not be entirely aligned with those of the management team, the role of the Board of Directors is to establish a vision that they believe is in the best long-term interest of Gene One.

The Gene One employees have an interest in securing their jobs. With the news that the company has plans to go public comes uncertainty. These people deserve prompt communication about their own future as well as the future of the company. This communication needs to outline a credible, believable future state.

Potential investors in the company expect to receive a fair return on their investment. Additionally, these investors have the right to expect accurate, ethical, and complete financial reports and operations