Problem Solution: Geneone

Running head: PROBLEM SOLUTION: GENEONE

Problem Solution: GeneOne

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University of Phoenix

Problem Solution: GeneOne

GeneOne is a biotechnology firm that is considering going public. There are many issues and opportunities that face GeneOne in this endeavor. To successfully implement the initial public offering (IPO), GeneOne must follow the nine-step problem-solving process to determine the issues, find the core problem, identify risks, and find the optimal solution.

Situation Analysis

Issue and Opportunity Identification

There are many opportunities facing GeneOne in the next three years. The CEO and the Board with the help of key members in the investment community have devised a clear strategy to take the firm public. All of these opportunities are chance for GeneOne to realize its goal of 40% growth over the next 36 months.

The lack of IPO experience of the board of directors and the key employees is the first opportunity for GeneOne. The Sarbanes-Oxley Act (SOA) is 66 pages of information. GeneOne needs to know this information to be in compliance with the act. Such rules include corporate disclosure, compliance, fraud, and accountability (Sarbanes-Oxley Act, 2002).

GeneOne's leadership is seeing personality conflicts. Teri Robertson feels that Michelle Houghton belittles her research and the work it takes (University of Phoenix, 2007). This issue could lead to further conflicts unless solutions are reached for the group begins to work as a team.

GeneOne's prospect of an IPO is becoming public knowledge (University of Phoenix). If not handled properly the release of this information could lead to high turnover among the employees. Potential shareholders could also view information negatively if not released in the proper manner.

Team building is another opportunity for GeneOne. The leadership group must build a bond. A team must believe in each other or there will not be success. GeneOne's senior leadership group must show cooperation, trust, and cohesiveness to be an effective team (Kreitner & Kinicki, 2004).

Don Ruiz is being pulled in different directions by is board of directors and his leadership group. Board members John Kirby and Susan Wells believe it would be better to replace some key employees with new employees. Their reasons are for more IPO experience and greater team cohesiveness as some key employees are not fond of the IPO idea (University of Phoenix, 2007). However, one of the people being recommended by John Kirby is a personal friend.

Stakeholder Perspectives/Ethical Dilemmas

Don Ruiz is the first stakeholder. Don Ruiz is the founder and Chief Executive Officer (CEO) of GeneOne. Mr. Ruiz wants to go ahead with the IPO for several reasons. One reason is the IPO is the best way for the firm to reach its growth goals and continue its climb to be the top firm in the biotech industry. Mr. Ruiz also would like to keep his leadership group the same. Dilemmas come about for Mr. Ruiz because his entire leadership group is not on board with the IPO. Also, some members of the board of directors do not feel the current group of leaders is the right group to lead GeneOne into the IPO and beyond (University of Phoenix, 2007).

GeneOne's Board of Directors is another stakeholder in this situation. The conflict arises in trying to do what is best for the future shareholders and what CEO Don Ruiz wants. Major duties of the Board of Directors include "accounting to the public for the products and services of the organization and expenditures of its funds. . ." (McNamara, 1999, 9).

GeneOne's employees are also stakeholders in GeneOne. Employees have differing opinions on the type of company they would prefer to work for. Some prefer the family feel of a private company while others prefer the anonymity of a large public corporation. Don Ruiz is already seeing this with the resignation of Angela Thomas, Vice President of technology research (University of Phoenix, 2007). Employees also want to know what is in it for them. An employee's key concern is what is best for him/herself.

Problem Statement

GeneOne will prepare for its IPO by learning the IPO process, hiring IPO experienced board members, and communicating the process effectively to its employees and the public.

End-State Vision

GeneOne will become a strong competitor and show Wall Street that it has the leadership and organizational capabilities to succeed as a public entity. The IPO will be a success and GeneOne will realize its future growth goals of 40 percent per year. GeneOne's leadership group will become a high-performance team with Don Ruiz as its leader. Through Charles Jones, Marketing Officer, and Greg Thoman, Chief Human Resources Officer, employees will realize that the IPO does not mean GeneOne will lose its family atmosphere and the majority of employees remain with the company.

Alternative Solutions

There are many solutions available to GeneOne for implementation. The first step for GeneOne should be to benchmark against other firms who have faced a similar situation. These firms can be other firms in the biotech industry or firms outside of the industry.

One such firm is Google. Google opened its doors in 1998 in California with the founders and one employee at the helm. The company continued its growth through new offerings such as AdSense, Local Search, and the Google toolbar. Management also took Google overseas to countries such as Tokyo and Ireland (Google, 2007).

In 1999 Google moved to its current location in Mountain View, California. The company continued to grow adding top employees and being named one of Time magazine's Top Ten Best Cybertech firms (Google Milestones, 2007). This rapid growth is continuing as more options are added and Google continues to develop partnerships domestically and overseas.

Also in 1999 Google obtained two backers who demanded that Google hire a CEO. Founders, Larry Page and Sergey Brin balked at the idea. Page and Brin felt that it was better to follow the lead of founders and CEO's such as Bill Gates and Michael Dell who were able to start the company and run it competently. It took two more years and much frustration from the backers before Google's founders would acquiesce to their demand (Heilemann, 2005).

2001 saw Google add Eric Schmidt as Chairman and CEO. Schmidt