Save:
Favorite
Share:
Calculator Allowed: Yes

Question

Answer

Transcription of this question: 5.Gen Y LimitedGen Y Limited is an internet start-up business owned by Zack Johnson. Zack owns 80% ofthe shares and venture capitalists own the other 20%. Gen Y has specialist programmers andcoders who create innovative market research data reports for clients. These data reports haverevolutionized Gen Ys clients’ ability to understand and respond to customers in their markets.To retain the best programmers, employees are given cognitive training and are empowered tomake decisions and take risks. They are also regularly praised for the impact that their reportsare having on their clients’ decision making. One day a week, employees can work on their own”dream, but risky, projects”. Intrapreneurship is strongly encouraged at Gen Y. However, Gen Ylacks the capital to develop some of these projects into future revenue streams.Virtually all of Gen Y’s costs are fixed — salaries. As of 2017, Gen Y has not yet generated a profit.Without more revenue they will have to reduce the number of programmers. Petra, a new investor,is being considered to provide fresh capital to invest in Gen Y. Ownership of Gen Y will change to:ZackVenture capitalistsPetra40%Petra believes in intrapreneurship but is concerned that “dream” projects are not generating profits.She has said that if she is going to invest in Gen Y two conditions must be met:• Management at Gen Y will change to an autocratic leadership style.Programmers will be expected to meet sales targets.As a result, programmers will have no autonomy.(a)(b)(c)(d)Outline two features of an autocratic leadership style.Apply Daniel Pink’s motivation theory to the programmers at Gen Y.Explain one reason, other than increased sales revenue, why it is important thatGen Y generates new revenue streams.Discuss whether Zack should sell Petra half of his shares with her conditions.[2][2][10]

Leave a Reply