Gene one - Problem Solving

Problem Solution: Gene One

Gene One is known for its groundbreaking gene technology that was introduced to the world in 1996. Since then it has gown to a $400 million company in just eight years (Scenario, 2007).

Don Ruiz, the DEO of Gene One is looking to move this company into the future with high profits, new and innovative technology and a place on Wall Street with an IPO offering. Don and his leadership team have the approval of the Board to move forward with their 36-month plan to capture growth of 40%, create new technology and introduce six new products, raise capital and set up the IPO. While this was approved by the Board this plan has already been faced with dilemmas and doubts form Board members, the leadership team and employees.

In this paper we will examine the problems of this plan, the risk and probability and consequences of this plan. We will discuss some alternatives to assist Gene One in their quest for the technology and the IPO. We will look at the end results that Gene One ultimately seek to achieve with this plan and within the analysis we can see key concepts that support the analysis.

Situation Analysis

Issue and Opportunity Identification

Biotechnology is growing increasingly among investors on Wall Street and Gene One’s CEO, Don Ruiz has found that it would be in the best interest of the company to go public with the business within the next 36 months. Don and his Board members have devised a clear plan to implement this process with the aid of the leadership team. The problems with this plan for the next 36 months will include all of the initial key points to have 40% growth target, raise capital and develop two new technologies and introduce six new products with current technology.

Gene One set up a leadership team meeting to discuss the plan and there were several concerns brought out from this meeting:

1. Article in Money section regarding investors will be cautious about biotech

2. SOA requirements for the IPO require additional Board members that are independent and one to have served as a CFO or CPA of a firm.

3. Other unknown SOA requirements

4. Having to disclose all financial statements to SEC.

5. Change Board compensation package

6. Concerns on how to capture the 40% growth

7. Possible internal problems with sharing this plan with employees

Don failed to address those issues from the board and in turn pushed the plan even harder by telling the team the plan was going to happen with our without them.

After a news release of the current plan the Angela Thomas, VP of Technology Research Labs resigned due to the information of Gene One going public. Once Angela resigned more talk at the water cooler began to with more reservations and doubt regarding Don’s plans. Teri Robertson, Don’s cousin, leadership team member and the CFO emailed Don to discuss Angela’s resignation and the company going IPO.

Don can still have the opportunity to turn this around. It’s clear that the initial plan was not well thought out before going to the Board members. Don has the ability to take steps to negation across all levels of the company. His first step will be to get his leadership back with building integrity and motivating the team. Don needs to do some research and increase his knowledge management by investing in meeting with people who’ve had a successful IPO transition for a biotech company. Then he’ll be able to address the issues of the team. He needs to consider the people that have been suggested to aid in the matter and start the process of implementing a platform team of key advisors and new members to start the IPO process. This process should then have a more reasonable time frame. It’s clear the search for the platform team could take another 12 moths to secure. While the process in for the platform team Don can secure this integrity by meeting with Angela and discuss his plan in order to negotiate with her. Don might be able to create a win-win situation with Angela and other employees once he’s gotten all information regarding how an IPO can be beneficial for Gene One. Gene One has a reputation for its technology that is to improve food and quality of living. If Don can show he is not compromising this he can bid for better negations with employees.

In order to place the IPO in effect Don will need to restructure the organizations design and structure. As Gene One moves from decisions being made on a centralization process