Problem Solution: Geneone
Problem Solution: GeneOne
Gene One is a biotech company that has determined that the long-range viability of the company is dependant on moving from a private company towards an initial public offering (IPO). When a company makes the move from a private firm to an IPO changes are needed to promote a successful transition. According to an article written by Penn Post in the Financial Executive, "Companies going public through IPOs face two challenging and concurrent transformations. First, the business evolution required to add profitable growth, positive cash flow, and shareholder value to their technology and product focus; and second, a cultural transformation from a private company or internal division of a large company to a stand-alone public company (Post, 2007, p. 49)." In order to address these changes successfully, Gene One will have to transform their current leadership culture, create an IPO team and institute a formal communications procedure. By addressing these changes and incorporating them into the business culture, Gene One will be positioned to have a strong IPO.
Situation Analysis
Issue and Opportunity Identification
Gene One is a privately owned company in the process of moving towards an IPO. After the announcement of the approval to move towards the IPO several negative events occurred, which left unaddressed could negatively affect the company in the long range. The first event, which transpired directly after the announcement, dealt with concerns of the key executives. These concerns were related to the timing of moving towards an IPO when the market was unsure of biotech companies. Another event involving a key executive was their concern in regards to the corporate ethical standards and its change when becoming publicly traded. A third issue that occurred was the behavior of the CEO as a transactional leader as opposed to a transitional one. All three concerns, which occurred after the announcement, identifies...
View Full Essay