"The Wallace Group" Strategic Management and Business Policy

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Strategic Management and Business Policy:

Case Study 2 "The Wallace Group"

The Wallace Group is devised of three operational groups which include Electronics, Plastics and Chemicals (Stybel, p. 2-1). Harold Wallace was the original owner of the electronics company, but now has 45% of the group after acquiring the plastics company and then the chemical company (p. 2-4). He also serves as the Chairman and President of the Wallace Group, but each group is run by a Vice President. Recently, Hal Wallace hired Rampar Associates to put together an effective sales presentation. Included in the presentation would be set of priorities to focus on over the next year, a clear plan and the expense (p. 2-6).

The Most Important Problem

Frank Campbell, the Vice President of Industrial Relations, sums up the Wallace Group problem in a simple statement. He said, "Morale is really poor here. Hal runs this place like a one man operation, when it's grown too big for that." (Stybel, p. 2-7) Frank also mentions that it took a the entire company revolting against him to finally make the President take action. Therefore, the most important problem facing the Wallace Group, is Harold Wallace himself. However, the problems do not stop there. In his interview, Hal mentions two key factors also contributing to his bad business etiquette.

First, Hal admits he never listened to his key people when they complained (Stybel, . This means there has been no communication and feedback taking place between the corporate staff and the groups. As such, there is a tug of war happening over corporate strategy demands and those strategy plans met for the groups themselves.

Another result of the communication collapse has been a rivalry between group departments. Phil Jones, Director, Administration and Planning says that he feels talks of expansion aren't serious. Not only are opportunities being passed up due to a lack of communication, but Jones's reputation was "damaged" due to lack of response to



References: Milton- Wilson, Inc. Top 10 Mistakes Small Businesses Make Today. Retrieved from http://www.milton- wilson.com/10Mistakes.html Stybel, Laurence J. (2004) Strategic Management and Business Policy: The Wallace Group. (Case 2) (pp. 2-1 - 2-10) Upper Saddle River, NJ. Pearson Education, Inc. Wheelen, Thomas L. and Hunger, J. David (2004) Strategic Management and Business Policy. (9th Ed.) (pp. 2 - 11 and Chapter 2). Upper Saddle River, NJ. Pearson Education, Inc.

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