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
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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.
As a director, I would choose some of the more seasoned staff members to meet with me as part of a task force to rectify the problems at the
ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to
1) Estimate the WACC that is appropriate for discounting the Collinsville plant’s incremental cash flows. You should estimate and present each component of the WACC separately, explaining briefly but clearly what assumptions you are making for each of them. In the same spirit, estimate the appropriate all-equity cost of capital for the APV-based valuation.
Common stockholders are the basic owners of a corporation, but few stockholders of large corporations take an active role in management. Instead, they elect the corporation’s board of directors to represent their interests. Board members seldom get involved in the day-to-day management of the company. They establish the basic mission and goals of the corporation and appoint
As Gill has stated “A committee's function is to bring the experience, expertise and judgement of a group of interested and informed individuals to bring a specific area of the corporation's responsibility,” (Gill, 2005). The boards would each research and gather informations, analyze data, come up with affirmative action plans and present these finding, plans and suggestions to the board, the board will then discuss the suggestions and decide on the best course of action. The three committees I would suggest would be financial and risk management committee. a fundraising committee and a program/ service committee that also handles quality assurance. Each of these committees would ensure that key areas of governing is constantly paid attention to. These committees would give board members a sense of purpose as it would utilize their best talents and have them focus their areas of expertise to create strategic plans for each
In January 2012, newly appointed CEO, Ron Johnson introduced a plan to rebrand the department store chain into a 21st century retail powerhouse. Launching of the new J. C. Penney brand identity was set to occur over four years and would include a new logo, a new in-store experience featuring new and transformed brands, and most importantly, it would change the way that the company priced merchandise. Unfortunately, J. C. Penney suffered a 25% sales decline in the first year and Johnson was fired after only 17 months.
I feel that involving the board in devising a new strategic plan and allowing them to communicate with the
HVN has expanded its market overseas, for instance, like New Zealand, Slovenia, Ireland, Singapore and Malaysia. It may earn more returns from oversea market in the future.
Vera Bradley was first inspired in 1982 and created by Barbara Bradley Backgaard and Patricia Miller, who first noticed in an airport that all of the travelers had the same bags. By the year 2014, Vera Bradley had a wide assortment of products that included backpacks, travel products, scarves, jewelry, and other accessories. After slowed revenue growth was seen by the company, in 2012 Vera Bradley implemented a new strategy that focused on a fewer number of flagship products and signature patterns. The quality of these products was a main focus of improvement, and poor selling patterns were quickly discontinued. Vera Bradley saw improved net income from this new strategy for two years until it slowed in 2014 due to the increased cost of goods sold. Higher quality and improved globalization and customer growth has been a focal point for Vera Bradley in these years and they hope to offset these higher costs by increased sales volume.
Joshua Kennon (2007), stated that “The board of directors is the highest governing authority within the management structure at any publicly traded company and is usually made up of the directors who are elected for a specific number of years by the shareholders”. According to Wikipedia,” A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization”.
This company in recent past was floundering under a leadership and management style that had become bloated and unproductive. The board of directors had swelled to more than 50 members with no clear lines of communication between the board, the CEO, and management. This created a void as directives and tasks became poorly understood and remained unfinished. The goals of
In this paper I will discuss Macy’s Incorporated by analyzing their business level strategies to determine which I think is the most important to their long term success and if I think it is a good choice. I will analyze their corporate level strategies to determine which I think is the most important and whether or not I believe it is a good choice. I will analyze the competitive environment to determine the corporations’ most significant competitor and compare the two companies’ strategies at each level and evaluate which company I think is most likely to succeed in the long term. Once the
There are three major economic factors that have combined contribution to FMG’s growth over the past 5 years, including the strong AUD , the amazing export feature due to the Chinese boom which drives up the commodity price and the interest rate decision by RBA. Australia dollar has appeared strong for the past 5 years and maintained at $6-$6.8 level for AUD/CNY at most time. It promised a high level of foreign income for Australia exporter. In 2009, China demanded almost 60% of the world’s iron ore to produce 47% of world’s steel production. It contributes the most to the price rocket from $31.78 to $180.6 US cents/mts in 5 years time. In addition, Australia borrowing cost remains high over the past few years which may alter the finance decisions of FMG.
a. The Wallace Group suffers from moving back and forth from an entrepreneurial mode to adaptive mode in its decision making. This can be clearly seen from the early days of Harold Wallace running all three businesses, reacting to existing problems as they arise, to the more recent events of settling unresolved disputes between Corporate
“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).