Implementing a Leadership Change
Team C: Leslie Drake, Lyle Schoeneck, Rinat Kravicas
University of Phoenix
LDR531 Organizational Leadership
Instructor: William Wider
October 28, 2010
Introduction Although employees are likely to express resistance to extreme changes in the organization, most companies are forced to go through corporate restructuring because of financial and environmental reasons (Robbins & Judge, 2007). Issuing initial public offerings (IPO) and becoming a public company is a significant change that may cause turmoil throughout the organization. Hellerman (2000) stated that the leadership should prepare the employees to the IPO move, as the risk of losing focus from the core business to satisfying the stockholders is often too big and can cause major changes in the organizational culture. Gene One is a biotechnology company based in Phoenix, Arizona. The company main business is agriculture development and research. The current ownership wants to meet the goal of 40% growth by raising funds from issuing public stocks (University of Phoenix Scenario, 2005). The key stakeholders have a variety of opinions in what changes must be made for a successful IPO. The paper will address how Gene One must adopt changes and address all stakeholders for an optimal solution.
The Current ownership and the Board of Directors The late Don Ruiz was the former CEO who was responsible for setting the goal of 40% annual growth. Ruiz was excited about the IPO move, and saw the change as an opportunity to develop new strategies (University of Phoenix Scenario, 2005). Ruiz’s successor and siblings, together with the board of directors are strongly supporting the former CEO’s ideas, as both the board and the current ownership have a personal interest in the move. Both will gain a large sum of money if the IPO becomes a reality.
The Chief Financial Officer (CFO) Michelle
References: Emery, D. R., Finnerty, J. D., Stowe, J. D. (2007). Corporate Financial Management, 3e. Upper Saddle River, NJ: Pearson Education, Inc. Green, A. (2010). The Unseen Benefits of Going Public. Retrieved October 23, 2010 from http://ezinearticles.com/?The-Unseen-Benefits-of-Going-Public&id=78666 Lander, G Plunkett, J. W. (August 19, 2010). Domestic & Foreign Pharmaceutical Sales, PhRMA Member Companies: 1975-2009. [Electronic version]. Biotechnology, Drugs & Genetics Industry. Retrieved October 24, 2010 from http://www.plunkettresearchonline.com Robbins, S University of Phoenix Scenario (2005). Gene One. Retrieved October 24, 2010 from University of Phoenix, Course materials, LDR531 – Organizational Leadership. U.S. Security and Exchange Commission (2010). Spotlight on Sarbanes-Oxley Rulemaking and Reports. Retrieved October 24, 2010, from http://www.sec.gov/spotlight/sarbanes-oxley.htm Yukl, G (2010)