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.
From the author’s perspective there are certain factors needed to build a strong team to overcome the obstacles the team faces. Davis, the author, thought that one of the factors necessary to build a strong team is to have a leader who can motivate the team to do their best. Another factor that the author thinks is necessary to have in the team is to have cooperation among the team
As a CEO I would want my company to be up to date in all aspects of technology so that we aren’t left behind. It seems that Atkins, the CFO, may have an old school way of thinking and wants to leave things as they are in working order. Atkins has the best interest of the company but will need to rethink certain things and accept that technology is a way of the future, and will not be going away. Vargo needs to identify that Devereaux is a risk taker, even at the expense of the company. Peterson, the Vice President of property and casualty, has said that the underwriters think that there’s too much judgment involved with their job, so the expert systems may not cut. The employees saying this may be valid reasoning, or a plea to keep from losing their jobs to artificial intelligence. More testing will be needed before the expert systems is fully in place.
William Evan and Edward Freeman, in their essay “A Stakeholder Theory of the Modern Corporation,” argue that the objective of a company and its managers is not only to maximize profit for its owners and stockholders, but also to balance the benefits received or losses incurred by other stakeholders—employees, suppliers, customers, and the local community, all of whom may be influenced by company decisions. As the owner of MSO, your aim is ostensibly to maximize profits for yourself, but unlike most other indicted CEOs, you have not tried to obtain personal gains at the expense of the stakeholders of your enterprise. Rather, the charges that have been brought against you are for your dealings with another company; in this day and age where investors bemoan the lack of ethics of CEOs who use the power of their position in the boardroom to achieve selfish gains at the expense of their own company and its stakeholders, the charges of insider t...
At first glance it is noticed that these companies are very different. Beginning with the fact that they are members of two different industries. () Genentech is biotechnology and pharmaceutical company that has an annual revenue of 16.3 billion dollars. The company’s primary function is to research and develop medications that save lives. (0)Genentech has approximately 12900 U.S. employs and 11 locations. The company was founded in 1976, has been on the Fortune 100 list 17 times. It currently ranks number nine on the list.
The reason that I chose to do this article is because in class I found the discussion of CEO’s
To support their growth and offset portfolio losses by their venture capital investors, management was ready to raise additional capital through a public equity offering.
Wendy Zomnir was hired and offered the position of COO and a stake in the company.
However, as proven by Genzyme’s roadmap to selling for $20 billion, it was clear that innovative approaches had to continually be pursued and considered. It was not enough to simply identify and enter this niche market, Genzyme also had to innovate the way a biotech firm would position itself within the market by not teaming up with larger pharmaceutical companies early on and by pursuing alternative means to obtain the necessary funds to finance their research and development costs, which was done by generating revenues though side
The recent trend of selling stock but attaching limited voting rights is being followed by Canada Goose. Investors should, therefore, examine carefully the voting rights of the stocks retained by Bain in comparison to the voting rights of their stock purchase. It is under Bain Capital management that Canada Goose has racked up $278 million in debt and this position limits its growth prospects. The IPO funds raised have been earmarked to be used to pay this debt. While necessary, it is not a good start for a company that wants to
Genentech has not only become a leading biotechnology company, it is noted as much for its human resources programs as for its development and commercialization of new products. The human resource programs contribute to the overall success of the company and provide a culture that enhances work/life balance for every employee. CEO...
.... Even further, in order for team to succeed it must know how to effectively communicate, envelop trust, have patience, encompass confidence and be efficient,
Effective teams must be developed, not just formed. A group is not a team. Members of a group may sometimes work together, but members of a team always work together. The team need not all be in the same place to be working together. “With a group, the whole is often equal to or less than the sum of its parts; with a team, the whole is always greater” (Oakley, Brent, Felder and Elhajj, 2004). A team, as defined above, has certain characteristics that make it effective. Not all of these traits are present when a team is in the forming stage. Tea...
What is gene patenting? Before you can investigate into gene patenting, one must understand what genes are and what the importance of genes. Genes are proteins and molecules that make up the DNA of everything around us. In essence, they are ingredients that complete everything we touch, feel, or see. We recognize genes as a part of the human DNA. Genes can determine a person’s race, sex, and even how healthy we are. Genetics have multiple purposes. The main purposes of commonly recognized genes are human genetics. Yet, we all do not know the facts about human genetics. The Health Research Funding Organization published a study in 2014 in where “99.5% of all humans do not know that we share a percent of each other’s DNA.”
Initial Public Offerings (IPOs) are common ways for small companies to grow and expand by increasing their availability of capital. The Initial Public Offering started seeing a strong increase in popularity in the late 1990's. As a result of the growing popularity resulting in the dot com explosion, the term "IPO" became a household name. In order to understand how IPOs work, its best to first know how IPOs are created.
The ultimate goal for the cooperation is to become a successful and trusted company, thus Biopure needs its first product launch, no matter which one they decide to market first, to be successful. A successful product will enhance its reputation, provide a source of revenue, and eventually allow them to take the company public. The immediate launch of Oxy will increase awareness among customers. This is essentially important because Biopure has not yet launched any products and is not a public company in contrast to their competitors. The success of Hemopure will largely depend on the awareness and image built by Oxyglobin. An up-and-coming brand image will not only help with future sales of Hemopure, but can also later generate more income by increasing investor interest in an initial public offering (IPO). Stockholders were also expecting a good product from Biopure; if they did not meet expectations there could be a dip in their stock. Moreover, launching Oxy first provides the company with experience needed to manufacture and market a product incorporating immense R&D. Their lack of prior experience could lead to oversights and thus should not be waited on till the launch of