The Wallace Group
Essay Preview: The Wallace Group
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Question #1
The Wallace Group Inc. has many obvious problems, but the most apparent problem is with the President, Harold Wallace. The company is no longer the same company that Mr. Wallace once ran independently where it was strictly electronics and dealt entirely with defense-related customers. Since the original electronics company, the Wallace Group has become a more diversified company which now includes a chemical and plastics company. Consequently, the company has grown beyond Harold Wallaces sole control. Although, each business unit has a Vice President, they have very little control over vital functions within their businesses that would allow them to grow. The organizational structures are not consistent among the business units and strategic departments such as sales and marketing are not in place which further hinder their production and growth capabilities. All of the business unit Vice Presidents are struggling to merely maintain their current businesses rather than trying to grow and improve business.
Question #2
Business at the Wallace Group has seemed to have stalled in the developmental stage under Harold Wallaces control. The Wallace Group is in the stages to grow the company, and it is time to sell the product and gain a better position within the marketplace. (Roberts, 2005) Sales and marketing organizations need to be created, company policies need to be revised and a strategic organizational structure needs to be implemented that would allow the company to function more efficiently and create a team working environment. To implement this type of change within the current company the following steps should be taken:
1. Harold Wallace should retire as President but hold a temporary position on the Board to assist and groom a newly elected CEO.
2. Divisional Vice Presidents of the Electronics, Plastics and Chemical business units should be promoted to President of their respective business units where they assume responsibility and accountability for their businesses.
3. The business unit Presidents along with the new CEO should develop a Mission Statement for the Wallace Group stating the purpose and reason for the organizations existence. (Wheelen & Hunger, 2006)
4. Each business unit should have an organizational structure that includes an Industrial Relations, Administration and Planning, Operations, R&D, Engineering, IT and Sales and Marketing departments, and each should develop their own Strategic Plan that will show how they plan on growing their customer base and sales. Their Strategic Plans should also include the necessary personnel needed, desired hiring criteria and salary requirements to successfully implement their plan.
5. Current company policies should be reviewed and recreated to fit the direction of all the business units and should be consistent amongst all business units.
6. Current employees should be part of the restructuring process and be informed of the companys business strategy.
7. Current employees should be reviewed and recognized for their performance, those employees that are not meeting the performance levels needed for strategic growth should be released and the company should utilize their deep recruiting pool.
8. A public relations campaign should be developed to improve overall awareness of the company and its product line. (CPointe Business Consultants, n.d.)
9. Computer and communication systems should be upgraded for all business units and retiring Director, Matthew Smith should make sure that the individual replacing him has experience with developing and implementing corporate sized communications and computer networks. This will be vital for the Wallace Groups successful growth by tying all business units together through technology and focusing on the opportunities available through the Internet so that the Wallace Group can possibly enhance their business globally.
Question #3
The most successful managers that transition from an entrepreneurial structure to a more sophisticated, complex organizational structure are those who look at a growing company as an opportunity to be “Rich” versus the “King”. (Roberts, 2005) Those managers who want to be “Rich” are more involved with the continuing growth of the company