Wallace Group Inc.
THE WALLACE GROUP
I. TIME CONTEXT There was no mention regarding the specific time context on both cases but the time context can be assumed to have occurred during the 1990s. The company has a diversified operation and it was during that period where diversification , acquisition and mergers prevalently took place.
II. VIEW POINT Frances Rampar, President of Rampar Associated, a management consultant, who conducted a management survey into the problems facing the Wallace Group. Her task is to develop a series of priorities for Wallace’s consideration. She had to make an effective sales representation to Harold Wallace. Harold Wallace was the president of the Wallace Group. He has asked Rampar to conduct a series of interviews with some key Wallace Group employees, in preparation for a possible consulting assignment for Rampar Associates.
III. CENTRAL PROBLEM At a glance the central problem seems to be the absence of cooperation between each group. Since the group is consisted of three independent outfits that are not keen to share information and cooperate with each other. The thorough examination of the case reveals that the main problem is not only the absence of it’s but a worse the group is out rightly affected by negative synergy. Synergy is the cooperative interaction among groups, especially among the acquired subsidiaries or merged parts of Wallace group that creates an enhanced combine effect is the central problem. Top management should understand the difference in organizational cultures, and understand of how diversification activities will “fit” or to be coordinated with the existing business. The problem regarding the cooperation between the groups was a result of the diversification strategy. The Wallace group attempted to vertically integrate plastics production but Wallace cannot manage the acquisition, so he instead opted to attract equity capital and formed a closed corporation. Prior to this acquisition,
I. TIME CONTEXT There was no mention regarding the specific time context on both cases but the time context can be assumed to have occurred during the 1990s. The company has a diversified operation and it was during that period where diversification , acquisition and mergers prevalently took place.
II. VIEW POINT Frances Rampar, President of Rampar Associated, a management consultant, who conducted a management survey into the problems facing the Wallace Group. Her task is to develop a series of priorities for Wallace’s consideration. She had to make an effective sales representation to Harold Wallace. Harold Wallace was the president of the Wallace Group. He has asked Rampar to conduct a series of interviews with some key Wallace Group employees, in preparation for a possible consulting assignment for Rampar Associates.
III. CENTRAL PROBLEM At a glance the central problem seems to be the absence of cooperation between each group. Since the group is consisted of three independent outfits that are not keen to share information and cooperate with each other. The thorough examination of the case reveals that the main problem is not only the absence of it’s but a worse the group is out rightly affected by negative synergy. Synergy is the cooperative interaction among groups, especially among the acquired subsidiaries or merged parts of Wallace group that creates an enhanced combine effect is the central problem. Top management should understand the difference in organizational cultures, and understand of how diversification activities will “fit” or to be coordinated with the existing business. The problem regarding the cooperation between the groups was a result of the diversification strategy. The Wallace group attempted to vertically integrate plastics production but Wallace cannot manage the acquisition, so he instead opted to attract equity capital and formed a closed corporation. Prior to this acquisition,