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Problem Solution: Gene One Essay

4129 words - 17 pages

Problem Solution: Gene One PAGE 17
Running head: PROBLEM SOLUTION: GENE ONEProblem Solution: Gene OneUniversity Of PhoenixTransformational LeadershipMBA520Mike SawyerNovember 12, 2007Problem Solution: Gene OneA recent scandal was publicized through the media involving a company in the biotech industry. The information poses as a threat for Gene One. Gene One entered into the biotech industry with a breakthrough for ridding tomatoes and potatoes of harmful diseases. This breakthrough placed Gene One on the road to success. Many years and profits later, Gene One has reached another stepping stone with plans to transition from a private to a public owned company. To achieve this goal, Gene One requires IPO capital for new development, advertising and marketing. While trying to attract investors who have lost confidence in the biotech industry, they must also overcome several obstacles that could hinder their transition. The transition is expected to occur within three years. Like many companies, management's lack of vision would create new and difficult problems. This paper will analyze the problems and issues faced by Gene One and their stakeholders as well as provide possible solutions.Situation AnalysisIssue and Opportunity IdentificationMcShane and Von Glinow defines transformational leadership as "A leadership perspective that explains how leaders change teams or organizations by creating, communicating, and modeling a vision for the organization or work unit, and inspiring employees to strive for that vision." (McShane and Von Glinow, 2004, p. 428). Gene One has plans to change their organization by going public. They are presented with the opportunity to grow and establish themselves as a strong competitor while showing Wall Street investors that they can succeed as a public entity. The transition is set to occur within a three year time-frame.Don Ruiz, Gene One's Chief Executive Officer, envisions increasing revenue growth by at least 40%. His plan involves raising capital and developing new products. Members of the senior leadership agree with Don that there is a need to raise capital however, developing new products is a time-consuming process due to the amount of research that has to be done. Not having adequate research projects could pose as a problem, thus hindering the goal to increase revenue. Another issue faced by the company includes a lack of experience with IPO's and negative publicity for the biotech industry. Don Ruiz plans to address this issue by ensuring that the senior leadership team is well educated on IPO's and taking steps necessary to move forward with the IPO.Sometimes, when a company within an industry receives negative publicity, it has an affect on other companies within that industry. This could lead to potential stakeholder's reluctance to do business with the company. For example, there has been news in the media recently regarding Mattel recall of toys due to lead tainting. The toys were made in China."The...

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