Situattion Analysis And Problrm Statement

SITUATION ANALYSIS AND PROBLEM STATEMENT: GENE ONE CORPORATION

Situation Analysis and Problem Statement: Gene One Corporation

University of Phoenix

MBA 520: Transformational Leadership

Situation Analysis and Problem Statement

"Transformational leaders are rigorous leaders who challenge the status quo and drive change within their organizations" (Newcomb, 2005, p. 34). Every organization needs a leader who can change as fast as market conditions do to continuously add greater value. The leaders must able to lead their organizations so that they adapt and improve in an environment of continuous change" (Newcomb, 2005, p. 34). Although Gene One is experiencing immense success, the organization feels that it is important to implement changes to keep up with the pace of the demand in its industry. This paper will address the issues and opportunities that Gene One is facing in its pursuit to stay on top. Any ethical dilemmas rising from the issues and opportunities will also be discussed and analyzed. To bridge the gap between the current state and the desired end state goals, a problem statement will be defined. The goals will be defined in a specific, measurable, attainable, realistic, and timely manner. Gene One's situation will give a clearer picture as to why and what changes are taking place.

Situation Background (Step 1)

Gene One is a $400 million biotech company that was established in 1996 by Don Ruiz, the Chief Executive Officer (CEO), and four colleagues. Don contributed a substantial part of the two million dollar start-up investment. His primary objective is to go public within three years and grow 40% annually. Michelle Houghton, the Chief Financial Officer (CFO), is also a founding member who invested all she had into the company. Charles Jones, the Marketing Officer, joined Gene One two years after its start-up. He was recruited for his reputation of smart risk-taking and biotechnology connections. Teri Robertson, Don's niece, who also is a founding member, is the Chief Technology Officer (CTO). Her doctoral research led to the genetic breakthrough discovery that Gene One's success is built on. She also holds a number of patents pertaining to her research. Greg Thoman who came to Gene One six years ago is the Chief Human Resources Officer. He has staffed Gene One with talented researchers and innovative product developers. The Executive Director Board Member, John Kirby, is also CEO of Nuke, Inc., a nuclear medicine company. John has more than 30 years in the science and technology industry and has become an influential member of the industry community because of his expertise. Susan Wells, an Executive Board Member, is serving her second term. She is a well-respected board member who has myriad of connections in the media and political communities. As a leading biotechnology firm, Gene One wants to remain a competitive force in the industry. In order to achieve this, the CEO and his Board have decided to make some changes.

Gene One grew to a $400 million company in just eight years with the help of its groundbreaking gene technology that eliminated disease in tomatoes and potatoes. Farmers no longer needed to use pesticides when growing tomatoes and potatoes. Consumers were happy to purchase homegrown products untainted by chemicals. There is a growing interest in biotechnology indicated by rising stock indices on Wall Street. The CEO and his Board believe that going public within the next three years will help to keep up with demand and realize conservative annual growth targets of 40%. In order to remain successful, Gene One needs Initial Public Offering (IPO) capital for new development, advertisement, and marketing. In order to reach their three year deadline, Don and his Board have devised a clear plan with the help of key members in the investment community. They hope to help Gene One realize its growth targets, establish the company as a strong competitor and show Wall Street that the organization has the leadership and capabilities to succeed as a public entity by implementing their plan. Although Gene One has come up with ideas for reaching its goals, the leadership team is at odds as to what changes should take place and how to execute the changes. Some of the senior leaders feel that making changes may not be in the best interest of the corporation and its stakeholders.

Issue Identification

Gene One is working toward a 36-month maximum deadline. The organization wants to offer an IPO at the end of this deadline. There are various critical issues to a successful IPO execution of the organization's business strategy that need to be addressed. "For biotechnology companies, the initial public offering is not what it once was" (Krasner, 2006, p. B.1). Gene One has no experience with IPO's and will have to get educated on them by doing research. There are new rules and high risks associated with the Sarbanes-Oxley Act (SOA) which was enacted after the Enron and WorldCom collapses. Gene One must also meet the Securities and Exchange Commission (SEC) requirements prior to offering the IPO and be personally accountable for the accuracy of the financial statements submitted to the SEC. Since Gene One is not familiar with IPO's, the Board thinks Don should replace Charles as Marketing Officer since he does not have the business know-how to design the infrastructure needed to support the IPO. Since Teri has yet to develop a second breakthrough technology, the Board also thinks she should be replaced. As a result of going public, internal problems could arise. Gene One might lose employees because the employees may have doubts about the direction in which the company is headed or do not want to be part of a publicly traded organization. The company might not farewell in the public eye due to the human genome sequencing scandal. According to an article, investors are being more careful about biotech investments because of the scandal. Although Gene One is not involved, it is negative publicity for the industry. Despite the issues that face Gene One, there are opportunities for Gene One as well.

Opportunity Identification

Gene One has the opportunity to develop two new technology breakthroughs and six new and innovative products based on current technology. By doing so, Gene One can maintain or elevate its current standing in the biotech industry. As a result, Gene One can attract more customers which will help realize its minimum of 40% revenue growth annually