The Wallace Group Case Study

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The Wallace Group Case Study

Introduction This paper will address the most important problems facing The Wallace Group. Recommendations to Harold Wallace, President and Chairman of the organization will be formulated, in an effort to begin the process of restructuring the company for development and growth. Finally, a description of how to educate a manager to manage an organization as it evolves over time from an entrepreneurial structure to a more complex structure will be discussed.

The Most Important Problem Facing the Wallace Group The Wallace Group continues to operate as three independent companies…Plastics, Chemicals and Electronics. In addition, Harold Wallace serves as the Chairman and President of the Wallace Group and appears to be controlling all of the three entities. Mr. Wallace thinks the issues within the organization revolve around a personnel problem and how people are managed. While his assumption is partially correct, there are other factors contributing to this problem. First of all, Mr. Wallace is not a well thought of individual. 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



References: Maurer & Associates. (2002). Does Dealing with Change Give You a Headache? Retrieved September 22, 20005 from http://www.beyondresistance.com/ Wheelen, T., Hunger, D. (2004). Strategic Management and Business Policy [Ninth Edition], Upper Saddle River, New Jersey: Prentice Hall/Pearson. Whitley, R., Casper, S. (2003). Managing Competencies in Entrepreneurial Technology Firms. Retrieved September 22, 2005 from http://www.business.auc.dk/loc-nis/workshop3/Casper%20and%20Whitley.pdf.

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