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Implementing Leadership Change

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Submitted By dpend2005
Words 1601
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Implementing a Leadership Change
LDR/531
January 31, 2011

Options for Implementing Change In 1996, Gene One entered the biotech industry with groundbreaking gene technology that eliminated disease in tomatoes and potatoes. As a result, farmers no longer needed to use pesticides when growing these plants and consumers were pleased to buy homegrown products untainted by chemicals. Gene One grew from $2 million to a $400 million company in eight years (University of Phoenix, 2011). Gene One’s success also brought with it an increase of stock indices on Wall Street indicative of an augmented interest in the biotechnology field. Leadership changes at the Food and Drug administration increased confidence in investors in the biotechnology field. Don Ruiz and board members believed a 40 percent annual growth target would keep them competitive. Don Ruiz believed the way to acquire additional funding to maximize growth and remain successful would be an initial public offering (IPO) within three years. Upper management and board members varied leadership styles prove to be challenging when considering a replacement for the chief executive officer (CEO) Don Ruiz. Some members of Gene One management team was not in agreement with an initial public offering, expressed reservations. Some members of management expressed concern of managers being deficient in their leadership skills, experience to handle the next level, and suggested terminating these managers and replacing him or her with more experienced managers. The chief technology officer prefers to stay in research and development has some interest in marketing, is against an initial public offering, and does not want to explore other areas of genetic research. A recent non-related negative biotechnology scandal in the newspaper caused concern from some managers as to whether this is the

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