Case 2: The Wallace Group

Research Problem

During the evaluation of the Wallace Group, it has come to my attention that several key factors
are obstructing the growth of the company. The main issue is determining how these factors can
be changed is by remoulding the company outlook. It is imperative that the Wallace Group
change their business perspective to a strategic choice perspective. This perspective utilize an
outlook such that the organization adapts to the changing world around them and maintain the
outlook that they, themselves, hold the power to make that change posibble.The most important
problem facing the Wallace group is leadership

Case Summary

There are employees who want to see him fired. The top managers are not listening to each other
in terms of the issues they are facing within their individual departments, and in turn Mr.
Wallace has not listened to his managers and does not appear to take any of the employees
seriously. The complaints from the Engineers lack validity in Harold Wallace’s perception
because of the potential contract for $56 million over the next five years with Lombard. Most
importantly, the company is not being managed for or open to change and growth. This is
reflected in Wallace’s dependency on defense-related contracts, in the financial highlights listed
in the study for the last two years, and in the focus on cost concerns when ideas are presented for
changes to the organization. Additionally, the organization lacks a human resources management
structure and suffers from managers who have not been trained, poor recruitment and retention
programs, inadequately defined hiring practices, insufficient union negotiating representation,
and a number of other issues. There appears to be very little flexibility in the organizational
strategy.

Objectives

To have a proper relation to the management. To have also a easiest and alternative way of hiring
process. It seems that the company is focused on cutting cost rather than looking for effective
employment solution.

Themes and tools used

The SWOT analysis was mainly focused on analysing the situation used as following for
strategic formulation, the SWOT distinctive competencies, the particular capabilities and
resources that a firm possesses and the superior way in which may in which they are used, also in
the identification of opportunities that the firm is not currently able to take advantage of due to
lack of appropriate resources.
SWOT ANALYSIS

STRENGTH

• The company is able to supply many of its component parts and raw materials because it
is well-integrated
• Solid performance from the plastic and electronics divisions in the past. The electronics
group has a good track record in developing and manufacturing countermeasure
equipment.
• Being a public corporation provides the firm with flexibility to attract equity capital vs
long or short term debt.

WEAKNESS

• Stage one management in stage three corporation

• Unprofitable chemical division needs new management or it needs to be analysed for sale
to someone else
• Poor organizational design creates span of control problems and results in poor operation
• Heavy dependence on government contracts could put the corporation in financial
difficulty if further sales diversification cannot be found

OPPORTUNITIES

• Technological developments by competency the tactical products project

• Trends of the demand of the other product
• Trying to solve the current problem by hiring an outside consultant

THREATS

• High return from the government brings strong competition

• Current management will limit the company’s future development

Target Audience

The Wallace group is devised from three sub-groups : Electronics, Chemical and Plastics. The
President is acquiring for all the plastic company.

Environment Analysis

Environmental analysis is a strategic tool. It is a process to identify all the external and internal
elements, which can affect the organization’s performance. The analysis entails assessing the
level of threat or opportunity the factors might present. These evaluations are later translated into
the decision-making process. The analysis helps align strategies with the firm’s environment.Our
market is facing changes every day. Many new things develop over time and the whole scenario
can alter in only a few seconds. There are some factors that are beyond your control. The
Wallace group may have a Board of Directors but lacks Corporate Governance because there
seems to be no transition from a single proprietorship to corporation thinking andmanagement
which very much evident in lack of cohesiveness between the three divisions. Rather than
operating as a team,the three are more like rivals competing for resources and personnel.

Alternative Courses of Action

ACA1: Address the strategic vision

ACA2: The organizational structure must be change

ACA3: Involve the entire staff in every stage of the evaluation project

Analysis of ACAs

Addressing the strategic vision helps the company and the employee to understand what the main
objective or the main goal. The organizational structure must be change. Communication is one
of the problems. Current management will limit the company’s future development most
important problems. Lack of communication with Harold Wallace about the management level
cause of the growth the company has been forces to promote technical people to the management
positions even they do not have any management experience. Involve the entire staff in every
stage of the evaluation project. In this alternative action also connected the good communication.
If they all agree in every change of evaluation the result is having a great idea about the company

Decision of Matrix

CRITERIA ACA1 ACA2 ACA3

Effectivity 4 3 4
Attainability 5 4 5
Ease of Implementation 4 5 5
TOTAL 13 12 14

The best Alternative Course of Action is ACA3. Legend: 5-Highest

4-Above Average
3-Average
2-Below Average
1-Low
Projected Outcome of chosen ACA

Involve the entire staff in every stage of the evaluation project. It show that when you involve or
get some opinions to other people mean you have a good communication. Internal
communication is vital to a successful company. The communication that occur between
the employer and its employees directly effects the company’s overall productivity. No
matter what kind of business it is, communicating with employees is essential to people
management. Establishing and maintaing effective lines of communication with
employees can help a business enormously in many ways. Good communication from
an employer can help motivate their staff, help deliver quality customer service and
help cultivate a strong team of workers.

Conclusion

The Wallace Group must reformat their corporate strategy as well. The corporate strategy
currently in place is one that is useless to the growth of the company. In order to maintain a good
performance in any of the three groups. The Wallace group must begin the new management
development program. Currently Mr. Wallace is president of all the three groups if change is
going to happen, Mr. Wallace need to bring in the new Vice President for each of these
companies.

Recommendation

The Wallace Group needs to have its organizational structure that is changed inside out to create
an environment that will attract, motivate and retain top-quality employees. The plan for change
should provide strong evidence that the change will make a very significant improvement in the
company's competitive position. The recommended strategy for Mr. Wallace to achieve this goal
is listed below in order of priority. Examine his personal management style, priorities, direction
for the company, and future goals for growth and development. Conduct meetings at each level
to get feedback regarding the concerns of the employees, their ideas, strengths and weaknesses
and any other issues. This should begin with the VPs, then the Directors, and so forth for each
department. Encourage a continuous flow for the exchange of information. Establish a mission
statement, goals and objectives with input put from the VPs and Directors. Complete a strategic
analysis and develop a strategic plan, to include everything from each area within the
organization and any other external and internal issues.