The Wallace Group

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The Wallace Group

The Wallace Group, Inc., is a diversified company divided in three groups, Electronics (microelectronics, electromagnetic sensors, antennas, microwaves and minicomputers), Plastic (electronic, automotive switches, knobs, keys, insulation materials), and Chemicals (supplies bulk chemicals to the Plastic Group). These products are principal sales in the government and the automotive industry, and also display system for the Navy-A and the Air Force-B programs. Lately managers feel that each company is independent from each other and that is why Hal Wallace, President of The Wallace Group, hires Frances Rampar for a possible consulting assignment.

It does not make any sense to run a business without Strategic Management and that is the most important problem facing the Wallace Group. They are running the business without goals or a plan. We can begin with:

• employees unhappy with the way the business is running by the President and requesting for his resignation

• the moral of the employees is really poor

• The need for and acquisition strategy is badly needly, but the idea was vetoed because it is an expensive program.

• They want to promote their technical personnel to management positions without managerial experience because they do not want to hire more employees..

• Union pay scales high, no-layoffs. To continue with the production equipment they need to cut 20% of the assembly positions

• Corporate management deman...

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