11/23/2019 Week 6 Discussion - BMGT 365 7981 Organizational Leadership (2198)

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Week 6 Discussion

BMGT 365 7981 Organizational Leadership (2198)

Discussion #1

Directions: Read the Case Scenario and answer the questions using course materials to support your reasoning and conclusions. Post the answers to your questions in the Week 6 Discussion by Thursday at 11:59 p.m. eastern time.

Respond to a minimum of three classmates by Sunday at 11:59 p.m. eastern time in the following manner: select ONE of the recommendations provided by your classmate and explain why you think this recommendation would work, or why it would not work. Use course materials to support your opinion, reasoning and conclusions.

Case Scenario

Mr. Barney, the CEO, has received your memo request to be considered for further leadership positions. He has decided to put you to the test! He assigns you to help his Director of Payroll, Loretta Cash with a problem.

You walk over to Payroll and visit Loretta. She is visibly upset. She has just received her annual performance review from her manager. This is a 6-month review, as Loretta was recently assigned to this role after working with great success for 10 years in another area of the Accounting Department. As part of this review, her manager interviewed the six members of the Payroll Department, who all answer to Loretta. Loretta shares with you some of their comments:

“Loretta marched in here thinking she knows everything. She doesn’t want to listen to any of our ideas. It’s her way or the highway.”

“We really don’t know Loretta all that well. She keeps to herself…except of course when payroll deadlines are due, and then she’s all over our backs.”

“She acts as if she is perfect. I’m scared of getting yelled at when I make a mistake.”

11/23/2019 Week 6 Discussion - BMGT 365 7981 Organizational Leadership (2198)

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“Most times, Loretta is fine, but when we have a deadline she micromanages us. I literally dread coming in to work on days payroll is due because I know Loretta will be watching over us like a hawk.”

Answer the following questions, and support your answers with the course materials:

1. What is the root cause of Loretta’s problem? 2. List three specific recommendations that Loretta can do today to turn this situation

around. Make sure the three recommendations are actionable (in other words, Loretta can take your advice and put it into practice immediately) and specific (in other words, not too general that it cannot be easily understood). For example, “improve communication skills” is not actionable today, and too general to be clearly understood. However, “give immediate feedback to demonstrate she is actively listening” can be put into practice today and is specific enough to be understood. (Do not use this example in your answer!).

Completing the Discussion

Read the grading rubric for the project. Use the grading rubric while completing the project to ensure all requirements are met that will lead to the highest possible grade.

Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.

Contractions are not used in business writing, so do not use them.

Paraphrase and do not use direct quotation marks. Paraphrase means you do not use more than four consecutive words from a source document, but put a passage from a source document into your own words and attribute the passage to the source document. Not using direct quotation marks means that there should be no passages with quotation marks and instead the source material is paraphrased as stated above.

Provide the page or paragraph number when using in-text citations. Note that a reference within a reference list cannot exist without an associated in-text citation and vice versa.

You may only use the course material from the classroom. You may not use books or any resource from the Internet.

11/23/2019 Week 6 Discussion - BMGT 365 7981 Organizational Leadership (2198)

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Rubrics

Week 6 Learning Activity Participation 10%

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Task: Reply to this topic Assessment

Week 6 Learning

Activity Participation

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Self-Plagiarism: Self-plagiarism is the act of reusing significant, identical or nearly identical portions of one's own

work. You cannot re-use any portion of a paper or other graded work that was submitted to another class even if

you are retaking this course. You also will not reuse any portion of previously submitted work in this class. A zero

will be assigned to the assignment if self-plagiarized. Faculty do not have the discretion to accept self-plagiarized

work.

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Activity Details

BMGT 365 Organizational Leadership Biotech Company Profile 1

Biotech Health and Life Products Company Profile

Welcome to Biotech! The assessment projects for this class will examine different facets of the leadership of Biotech Health and Life Products, Inc. You will be exploring leadership within Biotech with the driving question of “what skills does a Biotech leader need to lead the company now and in the future?”

History Wilford Barney was a young apprentice working for Peter Ulan, owner of a small apothecary shop in Yonkers, New York. During his apprenticeship, Barney created a general energy elixir that was based on a home remedy of his mother’s back in Ireland. The elixir was produced specifically for many of Ulan’s special customers. Made of all natural ingredients the elixir provided B12 and other vitamins to promote a healthy immune system. The energy boost was noticeable after only a week’s use. The reputation of the elixir grew.

In 1922, Barney took over Ulan’s apothecary shop renaming the business, Barney’s Apothecary. At that time, Barney decided to bottle his elixir and sell the formula to everyone rather than selected customers. Barney also gave bottles of the elixir to local peddlers who sold the product along with their wares receiving a commission on each bottle they sold. By 1929, the product was well known in Yonkers. Encouraged by the success in Yonkers Barney decided to branch out to New York City.

In 1932, Barney built a small manufacturing plant near the store where he mixed and bottled the elixir for sale. By 1934, Barney expanded sales by putting the elixir in a quarter of the apothecary shops in New York City. Sales were booming and customers inquired about other products that Barney’s had.

In 1936, Barney started a new product called Night Relief, another of his mother’s recipes. This product offered relief from night sweats and anxiety caused by menopausal symptoms or nerves. When this product proved a “secret success” with the ladies, Barney decided to bring his mother, Irene, from Ireland, and put her to work making new natural products. With his mother’s help, Barney grew the business into a small but successful manufacturer of natural “life products”. Barney coined “life products” because the products tracked natural life events in the human body and attempted to improve the customer’s discomfort in dealing with them.

The name of the company was changed to Barney’s Elixir and Life Products. The business continued to grow and with his mother’s death in 1938 the company had a gross revenue of $178,000 a year. The depression took a toll on company profits

BMGT 365 Organizational Leadership Biotech Company Profile 2

but people still needed the boosts to their health and were able to afford Barney’s products as opposed to the medicine offered by doctors and hospitals. During World War II the company supplied the troops with a natural caffeine (Stay Clear) product that would keep soldiers awake for long periods of time and heighten their mental alertness. Government contracts derived from Stay Clear boosted the revenue of the company considerably and ushered in a new wave of interest of natural products.

By 1950 Barney turned over the reins of the daily operations of the business to his children but remained on the Board of his family owned company. By this time, the company had expanded its manufacturing plants and sales nationally to include Detroit, Michigan, Los Lunas, New Mexico, Chicago, Illinois and Atlanta, Georgia. The revenue of the company was now close to 2.5 million dollars.

In the 1960’s the social climate in America had changed and pharmaceutical companies took on greater importance in the treatment of people’s health. The discovery of new drugs and better health care shifted the confidence in the American perspective away from natural products to traditional western medicine. Although the counter culture of America still supported natural supplements, popularity for Barney’s products waned.

In 1965, Wilford’s granddaughter, Geraldine, took over the Research and Development Department (R&D) after receiving a degree in chemistry from Harvard. She had been trained as a child by her grandmother, Wilford’s mother, and knew how the recipes should look. However, she had new ideas and with the approach of the 1970’s, was ready to join the “Anjolie perfume commercial” lifestyle depiction of a 70’s women that “they could bring home the bacon and fry it up too.”

Due to the downturn in sales by 1970, the company turned to other countries for its sales base. Starting in Germany and other European countries where natural products are highly credible, Barney began to license the sale of the company’s products to local manufacturers. The name recognition grew and by the 1980’s the company was grossing over 4 million dollars in gross sales. The company moved to overseas operations and manufactured in Germany. Wilford Barney died in 1981 shortly after seeing his first grandchild, Maximillian Barney, take over the President’s positon of the company.

Studying the trends in the 1990’s about the resurgence of natural health products “Max” as he liked to be called, decided it was time for Barney’s to focus on the new interest in homeopathic and natural products especially at home in America where sales were static. In 1996, Max, wanting to get a sleeker and more modern feel to the company’s products changed the company name and logo. No longer was Barney’s a mom and pop operation but now were part of the Biotech nutraceutical market. Barney’s Elixir and Life Products was now Biotech Health and Life Products. While the products would continue to show the old Barney logo, for name recognition the new logo would take prominence on the packaging.

By 2000 the company was grossing about 1.1 billion in sales with an increase in market share. By 2012, Biotech had a 20% market share of the supplement business

BMGT 365 Organizational Leadership Biotech Company Profile 3

with approximately $20 billions of sales. The growing interest in the bio-nutraceutical marketplace was catching the attention of the big pharmaceutical companies. Glaxo, Merke and Dupont began a massive shift to the new biotech business products.

Currently sales for the company are at $35 billion. Maximillian Barney is still President and CEO. The stock is still held by the family and all senior management positions are held by family members.

Current Company Vision: To help provide everyone with the healthiest life possible in the most natural of ways.

Current Mission: To develop products that are safe, effective, affordable and natural with the customer’s health always their primary goal.

Current Fact Sheet

Headquarters Yonkers, New York Worldwide web address www.biotechlife.com President Maximillian Barney 2016 Gross Sales US$ 35 billion Employees 35,000 in 6 countries worldwide

Manufacturer Operations

United States Detroit, Michigan, Los Lunas, New Mexico, Chicago, Illinois and Atlanta, Georgia

Europe Wittllch, Germany, Baltimore, Ireland Asia Pacific Melbourne, Australia Latin America and Caribbean Sao Paulo, Brazil Canada

Product Lines

Major Competitors

Alberta, Canada

Protein and Fitness; Personal Care, Nutraceuticals, Vitamins and Food Supplements

Protein and Fitness-GNC, Personal Care- Nestle Skin Care- Galderma, SA; Glaxo, Merke, General Mills. Vitamins and Food Supplements- GNC, Natures Plus, Natrol, Nature’s Way, Nature’s Bounty, Hain Celestial Group, Inc, Schiff Nutrition International, Nestle, General Mills, Now Foods and New Chapter

BMGT 365 Organizational Leadership Biotech Company Profile 4

BIOTECH BUSINESS PHILOSOPHY AND STRATEGY

Biotech has determined its long-term goal planning pattern should be no longer than 3 years. Three years seems more flexible than the seven-year planning pattern previously used as change in the business climate is making it imperative to be more flexible. The need for innovation and competitive advantage ideas are the main focus for the next two years along with the company’s commitment to becoming a triple bottom line company. Sustainability both for profit and planet is foremost in the minds of the leadership. The development of a triple bottom line company is in the best interest of the company because of the need to keep a strong natural product image link to the community and the desire for the company to be socially responsible. Protection of the suppliers and control over product quality is critical to the development of a sound “life product.”

Current Growth Plans

Business and Sales Biotech is looking to expand to Saudi Arabia in the next year. Currently products sold through European division but demand is great in the Arab countries. Although the company would like to sell in Israel as well, Arab countries are seen as a more lucrative expansion opportunity. Expansion of the production capacity in Sao Paulo is being considered as company can no longer keep up with sales projections.

Product Development Biotech is looking to develop its cosmetic and food lines. Currently have lip balms but seeks to make a line of lipsticks, foundation, powder, eye makeup and cleaners from natural ingredients. Development of natural flavorings and whey products are under consideration.

BMGT 365 Organizational Leadership Biotech Company Profile 5

BIOTECH’S CORE VALUES The leadership of Biotech has identified four core values. These values are used as guidance in strategy, mission, and vision creation. They are: Customer-Centricity, Innovation, Knowledge, and Sustainability. Customer-Centricity Currently there is a company-wide accountability to the customers and the entire workforce is expected to provide an extraordinary customer experience in every product made. Customer relations are considered to be both internal and external; for those located at central Headquarters, those employees “out in the field” are considered just as much a customer as the person buying Biotech’s products.

Innovation Development of organizational structure and culture changes are being made to introduce more collaborative decision making as well as bringing the divisions closer together in the area of shared resources and communication. Emphasis is to encourage the exchange of ideas, create an environment that fosters new ideas and makes change easier in implementation.

Knowledge Biotech is a firm whose foundation and history is deeply rooted in research and development. Using knowledge to lead change is at the heart of Biotech’s value system. Another aspect to knowledge is the “tribal knowledge” that is inherently known by the Barney family that lead the company, and their long-time loyal employees. Sustainability Currently, Biotech has commitments to build housing for several communities in Brazil and India where natural pharmaceutical ingredients are produced. The program reflects the company’s strong commitment to become a triple bottom line company by the year 2021, and its core value of sustainability. Biotech defines sustainability as both “for profit” and “for planet”.

BMGT 365 Organizational Leadership Biotech Company Profile 6

BIOTECH’S CURRENT CORPORATE CULTURE

Barney’s new image of a sleek, less clan-like organization has resulted in a family that is less than cohesive. Still, the family leaders are committed to maintaining the businesses’ cultural heritage because of the sense of unity and belonging, and to provide employees with a better understanding of the previous generations and to show how far the company has come. It is believed that the cultural heritage of the business demonstrates support for collaborative decision making something the company has successfully promoted throughout the organization. The family sees its employees as being customers and therefore encourages a customer-centric culture. Employees are encouraged to look at their work through the perspective of the customer and to make decisions using the customer’s viewpoint. Biotech is concerned that the stateside organization is driving the overseas divisions and that new ideas are being encouraged because of the cultural differences in staff. Customer innovation workshops ran by the various divisions have highlighted that R&D in Europe and Australia are differences in customer preferences from US customer preferences. It is believed that US controlled resources are ignoring these product preferences and are thus impeding sales overseas. Corporate leaders are examining the matter in an attempt to answer this cultural gap. Current Organizational Structure

The company has a geographical division structure. However, within each division is a functional structure with production and sales at the hub. R&D, HR, IT and Finance have small staff in each division whose primary job is to liaise with headquarters to implement the decisions made.

Executive Director South America

Division

Executive Director North American

Division

Executive Director European Division

Executive Directive

Asia Division

President and CEO Maximillian Barney

Housed in headquarters is the R&D, Purchasing, HR, IT, and Finance Divisions