All companies clearing the transition from private to public confront a high degree of risk. A solid organizational structure, firm transitional leadership, and effective communication play a predominant role in the changeover. Organizational structures today often deal with a drastic and far-reaching change in thinking and ways of behaving to achieve objectives more effectively--like the strategic plan of an IPO. "Organizational structure refers to the division of labor as well as the patterns of coordination, communication, work flow, and formal power that direct organizational activities" (McShane & Von Glinow, 2005, p.1). Patterns of effective communication play, perhaps, the most instrumental role when making such a dramatic conversion. While informal communication may be a coordinating mechanism in all organizations, coordination through effective communication to reach public status reigns paramount. All researched companies supported effective communication by forming efficient cross-functional teams and moving team members toward a common goal. Just like Gene One as each individual company grew, they developed a "second coordinating mechanism in the shape of a formal hierarchy.
[...] El Pollo Loco In comparison to Kentucky Fried Chicken, El Pollo Loco is one of the company's competitors throughout California. Famous for its Spanish name The Crazy Chicken, El Pollo Loco stirred up curiosity when it entered the market place. The company was founded in Guasave, Mexico in 1975. El Pollo Loco's secret is its fresh chicken marinated in a signature of herbs, spices and citrus juices flame-grilled and served hot off the grill with warm tortillas (El Pollo Loco, 2007). [...]
[...] “Responding to Wall Street's concerns, the genetic engineering firms began hiring employees who wore business suits instead of lab smocks brought in a new president, Robert Fildes, who had been vice president of operations at Bristol- Myers Fildes quickly recruited a cadre of experienced managers with M.B.A.s including some of his old colleagues from Bristol-Myers” (Alexander p. 1). Additionally, Genetech relied on its functional structure to trim back previous rambling research to focus on more attractive projects with commercial potential. [...]
[...] The combination of all these concepts—organizational structure, effective communication, and transformational leadership-- proved integral in permitting Gene One and each researched company to reach a point that it could even consider the transition from private to public. Analysis of Gene one's Concept Applications Gene One's groundbreaking technology resulted in sharply rising stock indices on Wall Street signaling a developing concern in biotechnology. Since Food and Drug Administration leadership changes now enhance future confidence in the biotech field, Gene One's CEO and Board believes that Gene One better go public within the next three years to keep up with demand and actualize conservative annual growth targets of 40 percent. [...]
[...] In 1993 Raymond Perry, chief operating officer of Carl Jr.'s burger chain, joined El Pollo Loco to turn the brand around. Immediately, Raymond held roundtable discussions with his employees and customer to listen and understand what needed to happen in order for El Pollo Loco to be successful. After doing many roundtable discussions and brainstorming sessions, Raymond started to focus on lunch sales rather than only focusing on dinner. He started an aggressive remodeling campaign to refurbish the exterior and interior of the company owned restaurants. [...]
[...] Management was able to gain insight about the concerns of the investment community by meeting with industry analysts. They also used professional advisers, auditors, attorneys, and others to provide research and counsel in order to make their plans a success. Adding to their success was the dedication and cooperates of their independent CPA who helped research SEC practices and counseled them. Even with the much needed help from outsiders, Allstate's executives worked very hard traveling to seven countries and 22 cities in the US and Europe to meet with investors and selling themselves. [...]
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