University of Phoenix
Gene One Benchmarking
Gene One entered the biotech industry in 1996 with groundbreaking technology that helped the company grow to $400 million dollars in just eight years. CEO Don Ruiz and the Board believes that Gene One needs the IPO to reach aggressive strategic objectives of 40% annual growth rate, introduce six innovative products, and develop two technological breakthroughs. Of utmost importance to Gene One is assembling the senior leadership team in a collaborative effort toward super ordinate goals rather than personal goals. In order to minimize mistakes and to ensure a smoother transition towards the IPO, Gene One must benchmark other organizations that faced similar circumstances, situations, and goals. Two such organizations are Apple Computers and Google. Both Apple Computers and Google were young, high-tech firms with similar organizational strategic IPO objectives. Analysis of Apple Computers and Google, along with organizational comparisons and contrasts are discussed to further aid Gene One in their IPO efforts. Analysis of Key Findings
Apple Computer opened in 1976 and went public in 1980 with the largest IPO since 1956. Like Gene One Apple grew quickly. From Apple's earliest days, they were industry leaders controlling the largest share of the market through research and development and their leaders ability to anticipate market and demand changes. Apple increases sales, revenues and market share through new products such as Apple TV, iPods, iTunes, iPhones and opening retail stores for more sales and distribution. These ideas put Apple in business and have kept Apple ahead of its competition. Gene One projects a 40% increase in annual sales based primarily on new products and technology. This is precisely what Apple Computer did in the 80s. Apple's decline began in the 90s with competition reducing market share and revenues. The main problem, however, was dissention and turmoil at the senior management level ultimately forcing founder and leader, Steve Jobs, out. Apple foundered through the 90s posting dismal numbers and losing enormous amounts of money. This turmoil at the senior management level led directly to Apple's problems. Apple tried to manage itself through the 90s, but what was needed was the charismatic leadership of Steve Jobs. Don Ruiz must be careful not to manage the company through an IPO but rather lead his company and let senior management manage. Steve Jobs is back at the helm of Apple and is the leader and visionary that has Apple back on top. With the introduction of the iPod, sales have increased tremendously. Apple owns the majority of this market having sold the 100 millionth iPod this year with the competition merely playing for leftovers. Fueled by sales of 10.5 million iPods and 1.5 million McIntosh Computers, Apple's sales for the period ended 3/31/07 were up 88% to $770 million with revenues up 21% to $5.6 billion. Good planning and communication from senior management coupled with Steve Jobs leadership and market savvy have Apple on top again. New product development and introduction in the competitive computer and technology markets drives Apple's success now just as the lack of leadership and new products was close to Apple's demise in the 90s.
Everyone knows the word Google. It is a verb, a noun, and the world's largest search engine. In 2004 the Google's owners took the company public with an initial public offering (IPO). The road to the IPO was bumpy and there were many missteps before the IPO was completed.
Google is a young company. The company opened its doors in 1998 in California with the founders and one employee at the helm. The company continued its growth through new offerings such as AdSense, Local Search, and the Google toolbar. Management also took Google overseas to countries such as Tokyo and Ireland (Google, 2007).
In 1999 Google moved to its current...