Scenario one: Gene one

SCENARIO ONE: GENE ONE

Scenario One: Gene One

Beverly H. Owens

University of Phoenix

January 15, 2006

Gene One, a gene technology company, finds itself on the cusp a breakthrough after only eight years in business. Gene One was started by friends and family who invested their skills, passion, and money into gene technology. After eight years, Gene One realizes potential growth opportunity by becoming and IPO on the stock market. However, the challenge for the CEO is the somehow alter the culture of the company - maintain the skill level of the core team, while maximizing the opportunity for IPO.

The Situation

Gene One is a gene technology company that began to recognize $400 million in the first eight years of business. The CEO is contemplation becoming an IPO to enhance the opportunities of the company. Gene One has established a committed team who possesses the skills product new technologies that will help in the community by helping to eradicate disease in crops. Each member seems to bring a wealth of knowledge, skills, and experience to Gene One, but also offers opportunities for conflict. The core team includes Michelle Houghton, CFO, has a strong sense of ownership and emotional attachment to the company, and has been successful in obtaining private and government funding (2006). Charles Jones, Marketing Officer, is committed to creating a strong brand for Gene One. Teri Robertson, Chief Technology Officer, is one of the original team and Don's niece who is completed absorbed with Gene One. Greg Thoman, Chief Human Resource Officer, has been successful in making sure that Gene One has a more than capable staff. John Kirby, Executive Director Board Member, brings a wealth of influence in the technological community. Susan Wells, Executive Board Member, has great media and political connections, although can be a bit indecisive at times.

Challenges

Now that Gene One has the opportunities to advance in the gene technology field. However, there are several challenges including meeting SOA requirements, having capable employees, and employees resisting the possible change. One challenge that Gene One faces is not being able to meet the requirements of the Sarbanes-Oxley Act. Greg, the HR Officer, reminds the Board that the SOA "requires that IPO Board have directors who are independent, and at least one member must have financial experience serving as a CFO or CPA in a firm" (https://mycampus.phoenix.edu/secure/resource/resource.asp). No one on the Board meet those requirements.

Another challenge that Gene One faces is the lack of employee ability to handle such an organizational change. John, Director, tells Don that Charles, the Marketing Officer, "doesn't have the business know-how to design the infrastructure needed to support the IPO" (https://mycampus.phoenix.edu/secure/resource/resource.asp. It would critical that the organization is able to transform from a private company to a publicly traded company on the stock market.

Finally, Gene One is facing the major challenge of employees resisting the possible organizational changes. Since the beginning, Gene One has been primarily operating as a family business with an emotional culture. The atmosphere is now shifting with the talk of IPO. Some employees are beginning to feel that the company's focus is moving from serving the community to serving Wall Street. First, Angela, the VP of Technology Research resigns her position stating that her passion is centered on doing "pure and applied research, not pleasing Wall Street." In the same reference, Teri, who is the Chief Technology Officer, expresses her about just wanting to do research, "not keep Wall Street happy" (https://mycampus.phoenix.edu/secure/resource/resource.asp).

Opportunities

Certainly, Gene One is facing some challenges, but these challenges can be turned into opportunities. There is the opportunity to enhance Board member skills, and retain those employees who have proven true to the company. The SOA requires experience as CFO or CPA on the Board. Gene One has the chance to recruit a Board member