Read Case 2 – The Wallace Group found in the section titled “Cases In Strategic

Question

Read Case 2 – The Wallace Group found in the section titled “Cases In Strategic Management”. Be sure to read all the sections (Section 2-1 through 2-7). For the case you will need to write the following: a case abstract (discuss in your own words what the case is about), case issues and subjects (who is involved, who is impacted, etc.), and answer the discussion questions listed below in paragraph format. What is (are) the most important problem(s) facing the Wallace Group? What recommendation(s) would you (as a consultant) to become a Stage II or III professional manager? What impact does this problem have on this case? How you educate a Stage I manager (entrepreneur) to become a Stage II or III professional manager? What impact does this problem have on this case? If Mr. Wallace if found to be one of the major problems, should be be addressed directly or indirectly? Has the Wallace Group’s diversification strategy been effective? If you, please explain. If no, please explain. Your final submission should be 3-5 pages in length, APA format.

Explanation / Answer

The Wallace group

The Wallace Group, Inc., is a diversified company dealing in the manufacture and development of technical products and systems (see Exhibit 1). The company currently consists of three operational groups and a corporate staff. The three groups include Electronics, Plastics, and Chemicals, each operating under the direction of a Group Vice President. Hal Wallace was the President of The Wallace Group.

Area of operation-

In addition to manufacturing tested and proven systems developed in the past, TheWallace Group is currently involved in two major and two minor programs, all involving display systems. The Navy-A Program calls for the development of a display system for a tactical fighter plane; Air Force-B is another such system for an observation plane. Ongoing production orders are anticipated following flight testing. The other two minor programs, Army-LG and OBT-37, involve the incorporation of new technology into existing aircraft systems.

Important problem-

The most essential issue confronting the Wallace assemble is leadership. The Wallace gathering may have a Board of Directors yet needs Corporate Governance on the grounds that there is by all accounts no change from a solitary proprietorship to enterprise considering and administration which particularly obvious in absence of cohesiveness between the three divisions. As opposed to working as a team, the three are more similar to rivals vieing for assets and faculty.

1. There are no standard reports required by higher management.

2. There is no value chain or coordination in between departments.

3. Un-standardized methods of collecting

4. No consultation has been made to users as to what benefits they could get from the new system.

5. Cannot meet volume and profit targets when saddle with non competitive material costs. The corporate policy of transfer pricing needs to be addressed in terms of product cost and profit margin.

6. Heavy dependence on government contracts could put the corporation in financial difficulty if further sales diversification cannot be found.

Recommendation-

He must be approached directly clarifying the need of separation between owner ship and management..

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.