Companies clearing transition from public to private: Confront high degree of risk
Summary :
Table of Contents
- Introduction
- Analysis of gene one's concept applications
- Genetech
- Cleveland BioLabs, Inc
- First Choice Airways
- Allstate
- Kentucky Fried Chicken
- El Pollo Loco
- Conclusion
- References
Abstract
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.
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