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 Wallace's 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 Wallace's 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 ...