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Wallace Group Strategic analysis Essay

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The Wallace Group is a company that manufactures and develops technical products and systems. It has three primary operational groups consisting of electronics, plastics, and chemicals. By far the largest asset of the Group is the electronics. This asset is approximately the size of both the plastics and chemical groups of the corporation. It also contributes the most to the net income at approximately 70%. The plastics and chemical divisions were acquired for the purpose of diversifying the income of the corporation from the original electronics group.
The Wallace Group currently faces some problems with it company in relation to improper management. To begin with, the company seems to have difficulty in …show more content…

For example, the company could implement a diversification in customers. Instead of relying mainly on the Dept. of Defense the group could expand into the civilian sector or even foreign governments. The board of directors could also manage the CEO or in this case Mr. Wallace. It would give him performance requirements and if not met they could seek out a replacement. Currently nobody can challenge Mr. Wallace because of his position and holdings in the company. The review and approval of resources would be another helpful aspect that a board of directors would bring. In this case the company could evaluate whether to continue to purchase their raw materials from sister Wallace groups or seek outside sources. Finally, a board of directors would take the shareholders into interest. They would seek to increase the bottom line of the investors rather than the current policy of just maintaining a profit.
After a board of directors has been established I then try to solve some of the hiring problems that the company is now facing. I would take the suggestion of Industrial Relations VP and implement a management development program.

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