Benchmarking: Gene One

Benchmarking: Gene One

Length: 1919 words (5.5 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Benchmarking: Gene One

Gene One made a name for itself in the biotech industry with its breakthrough gene technology that eradicated disease in tomatoes and potatoes. It was a benefit to farmers who no longer need the use of pesticides and consumers that like organic produce. This successful discovery helped Gene One grow to a $400 million company in a short span of eight years.
Gene One hopes to capitalize on the growing interest in biotechnology as the stock prices on Wall Street continue to rise. The CEO and the Board at Gene One believe that becoming a public entity will help the company keep up with growing demand and realize their target annual growth of 40 %. Gene One has a strong leadership team to begin with but none of the members are familiar with the IPO process.
As the team continued to do its research on the IPO process, they realized that the Board isn’t aligned with the Securities Exchange Commission’s Sarbanes-Oxley Act requirements. Financial statements and internal controls are part of the SOX compliance as well. Some of the Board members are concerned that the current leadership team might not have the qualifications to pull off an IPO transformation. Going public isn’t cheap and Gene One needs capital for new development, marketing and advertising. It also needs to increase interest in the stock by finding multiple firms to make the initial offering. The stock price has to be right to ensure a return on investment for initial investors.

Build-A-Bear Workshop

From the beginning Build-A-Bear’s longterm plans were to become a public company. Prior to the IPO process the company had seen store sales drop as much as 16 % over three years. The executives knew something had to be done to get sales up in order for the company to be well-positioned for its planned $125 million initial public offering. (Jackson, 2004) To ensure the success of its IPO, Build-A-Bear made efforts to establish relationships with multiple investment banking firms. Stock pricing was also an issue. A main concern that the company had was being in compliance with the Sarbanes-Oxley Act as well. Staff changes had to be made prior to going public to help the process along. (Thomson Financial, 2006)
IR Director Molly Salky stated, “From the founding of BBW in 1997, the long term plan was to become a public company; therefore, from day one the company structured and grew its infrastructure with that goal in mind.

How to Cite this Page

MLA Citation:
"Benchmarking: Gene One." 05 Dec 2019

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Analysis of Benchmarking at TNT Express Essay

- 1. SUMMARY The article has the subject “Benchmarking at TNT Express” and it offers a clear explanation of the way in which TNT has demonstrated dedication in their services to the customers and their quench to achieve high echelons of excellence in their endeavors. It is clearly indicated in the article that the formula used in TNT to achieve success is keenly listening to the opinions of the customers in an attempt to capture a clear understanding of the logistic problems that they face and offer logistic solutions to the problems identified....   [tags: benchmarking and customer satisfaction]

Research Papers
1855 words (5.3 pages)

Lester Scenario: Investment Alternatives Benchmarking Essay

- Investment Alternatives Benchmarking for Bernard Lester Whether it’s a strong competitive market or the effectiveness of shareholders maximizing shareholders wealth has become the norm for the global production market. Companies have found different operational strategies to convert less than profitable corporation into long-term profit maximizing corporation. Corporate CEO’s and financial manager must distinguish between growth or operational wealth, which will determine the possibilities of growth maximization, defining current and projected values to shareholder, examining growth opportunities, and increase market values....   [tags: Investment Alternatives Benchmarking Bernard Leste]

Free Essays
1979 words (5.7 pages)

Bechmarking: Riordan Essay

- Abstract Benchmarking intends to discover the best practices of companies that have solved issues comparable to Riordan Manufacturing's concerns. It's the best way to find solutions involving companies in the same industry, and then finding solutions to similar issues faced by companies in other industries. General Motors and Verizon are companies that have faced decreased sales and employee concerns over employee reward issues. In Riordan Manufacturing case, they have developed a new business strategy and provide new strategies with their employee reward systems....   [tags: Business Benchmarking]

Research Papers
1123 words (3.2 pages)

Essay about A Research Study On Gene Therapy

- Researchers are becoming more proficient at using genes to help change the effects of some diseases, potentially opening the door to curing diseases that have ravaged humankind for centuries. Holden Gowan is an undergraduate student at the University of North Carolina at Chapel Hill with a plan to major in chemistry with a focus in biochemistry Introduction Imagine living in a world where diseases like hemophilia, cancer, cystic fibrosis, and AIDS did not exist. This particular world might not be as far away as one might think due to a relatively new type of treatment known as gene therapy....   [tags: DNA, Gene, Gene expression, Genetics]

Research Papers
939 words (2.7 pages)

Being Treated With Gene Therapy Essay

- Holden Gowan is an undergraduate student at the University of North Carolina at Chapel Hill with a plan to major in chemistry with a focus in biochemistry Introduction Imagine living in a world where diseases like hemophilia, cancer, cystic fibrosis, and AIDS did not exist. This particular world might not be as far away as one might think due to a relatively new type of treatment known as gene therapy. All of the aforementioned diseases deal with problems concerning genes. Gene therapy is able to correct the problems that have forced one to develop these medical problems....   [tags: DNA, Gene, Gene expression, Genetics]

Research Papers
878 words (2.5 pages)

Gene One Essay

- In 1996 Don Ruiz and a group of colleagues founded Gene One, after discovering gene technology that eradicated diseases in tomatoes and potatoes, Gene One entered the biotechnology industry competition. Their innovation was well received by the customers, as they would not be buying chemical contaminated vegetables. Over eight years the company became a $400 million corporation. In order to continue growing as successfully as they had, their executive team considers they should go public; with investment money they would obtain capital for new studies, marketing strategy and advertising campaign....   [tags: Diseases, Vegetables, Chemicals]

Research Papers
1871 words (5.3 pages)

Gene One Essay

- One of the main functions in today’s business management is the effective analysis of each situation, the identification of the correct problem, the consideration of possible solutions and the application of the correct procedures to facilitate that the organizations prospers. Al though is not always easy in order to accomplish business goals managers should make crucial decisions. When the proper judgments are made, and changes are implemented a corporation will enter in a process of healthy grow....   [tags: COmpany, Business Management]

Research Papers
1243 words (3.6 pages)

Gene One Leadership Analysis Essay

- Gene One Leadership Analysis Open Systems Gene One is anchored by open systems organizational behavior. Gene One’s research focus depends primarily on regulation and leadership of Food and Drug Administration; furthermore, the company’s growth depends heavily on how well the public reacts to their products. For instance, their groundbreaking gene technology that eradicated disease in tomatoes and potatoes eliminates the need for pesticides when growing these produces, and as a result, Gene One grows from a $2 million start-up to a $400 million company in just eight years....   [tags: Business Analysis]

Free Essays
1127 words (3.2 pages)

Essay on Gene One Problem Definition

- To grow or not to grow, that is the dilemma. Many companies are often faced with this challenging decision. The consequences of this decision may be the overall success or failure of the organization. Change is often necessary to create opportunities for growth and profitability. In fact, change is required for companies looking to grow the business (Andersen, 2005). Such changes may include modifying the existing culture of the organization and the company's leadership philosophy. McShane and Von Glinow (2004) define organizational culture as the set of core values, beliefs and behaviors shared by the members of an organization....   [tags: Business Strategy Analysis]

Free Essays
671 words (1.9 pages)

Essay on Gene One Analysis

- Introduction Gene One has built an organization that has developed a gene technology that eradicates disease in tomatoes and potatoes. The gene technology has helped many farmers and aided in the success of Gene One achieving 400 million in eight years of business. The Chief Executive Officer (CEO), Don Ruiz and the Board of Directors (Board) believe that to continue to grow 40 percent in each of the consecutive years, the organization will need to do an initial public offering (IPO). Gene One has a goal of meeting the IPO deadline within 3 years of beginning the process....   [tags: Business Analysis ]

Free Essays
1711 words (4.9 pages)

Strategic planning, finance, and accounting systems, IT infrastructure, etc. were in place.” (Thomson Financial, 2006, p.13) Build-A-Bear started behaving like a public company before its October 2004 launch.
Where sales were concerned, executives spent millions of dollars on advertising each year leading up to the IPO. It included a national television advertising campaign on children’s cable programs, direct mail, and e-mail promotions. “The company also entered into licensing agreements with manufacturers to develop a collection of Build-A-Bear brand products, including greeting cards, scrapbook supplies, shoes, books, toys, bedding, fabric, and bath accessories.” (Jackson, 2004) This help build up brand awareness with consumers.
Build-A-Bear held several meetings with investment banking firms with sell-side analysts at each of these firms. Sell-side analysts can gauge a company’s market awareness and help management better understand what information interests analysts in the company’s industry. Stock price was also determined with the help of sell-side analysts. To comply with the Sarbanes-Oxley Act, outside resources were hired to assist with the documentation process and testing and evaluation of internal controls. (Thomson Financial, 2006)
Build-A-Bear didn’t fill in the CEO position until six months prior to the IPO. An executive with Wall Street experience was selected for this position. Key personnel including general counsel, IR director, and SEC reporting officer were brought on board in addition to the CEO in relation to the IPO. The company established relationships with five investment banking firms: AG Edwards, Citigroup, CSFB, JP Morgan and T. Weisel. The investment firms introduced the company to more investors by providing an IPO roadshow. The stock was priced at $20 after the entire offering was upsized by over 10%. With increased revenue and capital, the company was able to move forward with plans to open more stores. More importantly, Build-A-Bear was in compliance with SOX. (Thomson Financial, 2006)
Course Concepts
Some course concepts covered in this company benchmarking are adaptive culture, corporate social responsibility, and knowledge acquisition by grafting. Gene One and Build-A-Bear had to adopt an adaptive culture when both companies decided to go public. Adaptive culture occurs when employees focus on and support initiatives to organizational change in keeping up with changing needs of customers and other stakeholders. (McShane & Van Glinow, 2005) Corporate Social Responsibility is a company’s moral obligation toward its stakeholders such as shareholders, customers, suppliers, or any group that has a vested interest in the organization. (McShane & Van Glinow, 2005) After becoming a public company, there’s an obligation to all investors and shareholders to make an effort to have a return on their investment and that the company’s practices have their best interest at heart. Grafting is acquiring knowledge by simply hiring an individual or company to provide expertise or service. (McShane & Van Glinow, 2005)
Best Practices for Gene One
Based on what Build-A-Bear has accomplished, Gene One is on the right track. The proposal to the Board listed all the elements that need to be implemented in order for the IPO process to be a success. These include the development of breakthrough technologies to increase revenue, adopting an adaptive culture and a new business model, developing a public company infrastructure, complying with the SEC and SOX, establishing relationships with investment firms, and determining the optimal stock price for these investors. Gene One is loyal to its current staff but senior leadership team cannot be afraid to make staff changes necessary to make the IPO transformation a success. The company should also consider joint venture and licensing agreements with other companies to raise capital. Gene One should also start acting like a public company prior to its IPO launch.

MasterCard had the same concerns as Gene One and Build-A-Bear. The company was concerned about having the right staff to ensure compliance with the Securities Exchange Commission and the Sarbanes-Oxley Act. Pricing stock was a challenge for MasterCard because of the current market conditions prior to launching their IPO. Building relationships with investment firms was also on the agenda.
Alternative Solution
What MasterCard did that was different from Build-A-Bear in acting like a publicly owned company prior to the IPO transformation is it became a private share company. They achieved this by merging with Europay International, its European counterpart. The merger made the company more global and in line with the interests of management. As a private share company, MasterCard had more than 300 shareholders consisting of its Member Banks. This resulted in the company having to register with the Securities Exchange Commission. (Thomson Financial, 2006)
In establishing relationship with potential investors, an investor relations professional was hired to work closely with the vice president of investor relations. MasterCard also sought advice from chief executive officers and chief financial officers of other companies that have gone public and received firsthand feedback on the IPO process. Stock price was changed numerous times because of a combination of down market performance and peer evaluation declines. Vonage had began trading the around the same time the stock was priced and this overshadowed any IPO’s pricing. (Thomson Financial, 2006)
Since Mastercard had already been filing with the SEC when it became a private share company, it was in compliance with SOX two years ahead of the deadline for companies in the same category. In its effort to reach out to investment community prior to going public, MasterCard worked with investment bankers whom they’ve worked with before as customers or advisors. With the help of the bankers and the IR professional the company held a roadshow in 20 cities over 13 days and met with over 800 potential investors. Stock was priced at $39 per share and closed up $7 the first day. The stock did so well that the underwriters increased the share count by 7.5%. (Thomson Financial, 2006)
Course Concepts
Similar course concepts in the Build-A-Bear benchmarking were also covered in MasterCard’s benchmarking such as adaptive culture, corporate social responsibility and knowledge acquisition by grafting. MasterCard changed its organizational culture to an adaptive on that mirrored a public company. Corporate social responsibility should be high in priority for any company going public. They hired an IR professional to help with handling publicity and finding investors and that’s an example of grafting. Cross functional teams were formed with members of different departments prior to MasterCard’s first earnings release as an IPO to address any issues that might be of concern of the investment community before they come up. There was also knowledge acquisition by learning about the external environment as the CEO and CFO did by interviewing their counterparts from other companies. (McShane & Van Glinow, 2005)
Best Practices for Gene One
Benchmarking MasterCard’s IPO process proves that it take months, years, or even longer to implement a successful IPO transformation. MasterCard didn’t replace staff but hired outside sources with experience the company sought to work closely with their current staff. For instance, an investor relations professional with previous IR experience who dealt with companies such as Ford, Lucent was brought on board to work with the VP of investor relations of the company. Both of their experiences worked well together.
Another thing that MasterCard did differently was involving the Chief Executive Officer Robert Selandar and Chief Financial Officer Chris McWilton in the IPO process. Instead of just listening to the advice of the investment bankers, both gentlemen took the time to talk to their counterparts of other companies to get feedback on their IPO processes. What they learned was that there was a time commitment away from the office and plenty of patience was required for a successful IPO. It was also to MasterCard’s benefit to involve the CEO and CFO when reaching out to the investment community. Who better than these two men to ensure these investors are informed of the company’s strategy, business model, and plans to uphold MasterCard’s reputation and credibility. It would only increase the investor’s confidence in the stock. Gene One hopes to launch within a 36 month span but they should take in consideration that it could take longer for it to be successful. Patience is a virtue and Gene One executives should do their homework and seek advice from their counterparts.
What I learned from this benchmarking assignment that companies regardless of size have the same concerns and similar methods in succeeding in an IPO transformation. MasterCard might have had an easier time then Build-A-Bear because of brand recognition. Increasing revenue and capital, complying with SEC regulations and SOX requirements, finding investors were similar goals both companies had. Timelines in implementation of such goals vary but rushing the process would be a disadvantage. Important things could be overlooked when there’s a time constraint. Companies can learn a great deal from each other and should share knowledge that would help others succeed in their IPO endeavors.

Jackson, M. (2004, August 20). St Louis Business Journal. Retrieved April 11, 2008, from

McShane, S. L., & Van Glinow, M. A. (2005). Emerging Realties for the Workplace Revolution.

(3rd ed.) The McGraw-Hill Companies.

Thomson Financial. (2006, September). Retrieved April 11, 2007, from
Return to