Gene One Comparison Paper

Running head: SIMILAR PROBLEMS TO GENE ONE

Similar Problems to Gene One

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University of Phoenix

Abstract

Gene One, which is a company who is struggling on methodology to achieve growth, has announced they will pursue an initial public offering (IPO) of the company’s stock in effort to raise capital to achieve growth and success.

During this process, Gene One will face dilemmas similar to which Vonage and Google had to face during their struggle to take the company public. Many other companies, both big and small, deal with similar problems on a daily basis, aside from the expansion of their companies. Internal issues, such as teamwork, leadership, and problem management continue to cause many companies to fail.

Vonage

Issued Identified In the Scenario Also Facing Vonage

Just like Gene One, Vonage is a company facing some new challenges for growth. In 2006, Vonage announced a strategical plan to raise $250 million dollars as part of an IPO. This plan was revealed in a filing with the Securities and Exchange Commission (SEC). The cash will be used to fund the continued marketing of the service, which currently consists of approximately 1.4 million subscribers.

Vonage is a broadband telephony outfit which lost $190 million dollars in the first 9 months of 2005, which was on the back of revenues exceeding $174 million dollars. This loss has Vonage in red numbers and they desperately need this IPO to help boost the company.

Vonage’s Response to the Issue

In response to Vonage’s plans of the IPO, Vonage announced that the founder of the company, Jeffrey Citron, will step down of the CEO position and take on the new role of chairman and chief strategist. This role consists of developing new product areas and technologies while looking after employee culture. Like Gene One, executives realize the need to focus on employee culture to maintain growth and to focus on the destiny of the company.

Outcome of Vonage’s Response to the Issue...