Ramon Magsaysay Memorial Colleges - MI

Purok Waling-Waling Arellano Street, Koronadal City

The Wallace Group

Case Study

Archie C. Lopez

Ana Marie S. Escorido

Jeansie A. Jumawan

September 10, 2019

 CHAPTER I

Executive Summary

The Wallace Group called in Frances Rampar of Rampar Associates to develop a

plan of action to assist the President, Harold Wallace in resolving the issues within his
corporation.

The Wallace Group Inc. deals in the manufacturing and development of technical
groups and system. Currently the company consist of three operational group:
Electronics, Plastics and Chemicals. Each of these groups operated under the direction
of a Group Vice President. Harold Wallace serves as the chairman and the President of
The Wallace Group. The Electronics group had been ran by LeRoy Tucker, who just
Resign. The Plastics group is currently being ran by Vice President M. Hampton and the
chemicals group by Vice President J. Luskins.

Above the individual group, Vice President, the corporation has a Vice President
of Finance, Vice President of Secretarial and Legal, Vice president of Marketing, and Vice
president of Relations. These are new positions to the group and their job accountabilities
have yet to be completely defined. This has cause problems on what their responsibilities
are and their relationship between corporate and group positions.

Top management responsibilities, and functions is usually defined by the CEO, or

president of the company. The problem is The Wallace Group is that Harold Wallace,
President has not define the responsibilities and functions of the newly developed Vice
President positions. These positions were developed to help the corporation to excel in
the production and orientated toward the welfare of the total organizations. “The CEO,
with the support of the rest of the top management team, has two primary responsibilities
when it comes to strategic management. The first is to provide executive leadership and
a vision for the firm. The second is to manage strategic planning process.

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 CHAPTER II

Statement of the Problem

Issue facing the Wallace Group is their need to evaluate current performance
results. According to the letter to the shareholders, the dividends are less than the year
prior, which were less than the year prior to that.

Another problem The Wallace Group needs to address is the Strategic vision.
Presently, there is a mood to the lethargy and drift within the Wallace Group Wheeled.
The Wallace Group wishes to lift this tiredness from the company.

How to manage people in their group also arises. They badly need a management
development program for their group. Because of their growth, they have been forced to
promote technical people to management positions who have had no prior managerial
experience. They have also a tremendous recruiting backlog, especially for engineering
positions and one of the biggest problem they were facing was the stems for corporate
policy regarding transfer pricing.

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 CHAPTER III

Causes of the Problem

The Wallace Group has maintained, for quite some time, Mr. Wallace as president
of each of the company’s entities. This, however, is leading to some problems. With Mr.
Wallace in charge of all operations he lost sight of problems and resolutions. He
attempted to expand his market through product development and line extensions entirely
within the electronics industry. However, because of initial problems, he drew back and
sought other opportunities. The first opportunity that seemed to satisfy his various
requirements was the acquisition of a former supplier, a plastic company whose primary
market was not defense-related.

Wallace’s debt structure was such that he could not manage the acquisition and
so he had to attract equity capital and because of his personal interests, the Plastic Group,
now under the direction of a newly hired Vice President, Martin Hempton, was left mainly
to its own devices except for yearly progress reviews by the President.

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 CHAPTER IV

Decision Criteria and Alternative Solutions

1. Identify personal management style, priorities, direction for the company, and
future goals for growth and development;
2. Restructure the departments based upon the need of the new organizational
structure and the company goals;
3. Utilize Rampar Associates to evaluate the strength and weaknesses of the existing
operation. The outsider will have fewer reasons to pull punches than staff members
that can be promoted of fired. Valuable criticism may come from specialized
consultants, owners or board members other that president or CEO, and even
customers;
4. Change and develop the personal services department into a fully operational a
HR department.

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 CHAPTER V

Recommended Solution, Implementation and Justification

The following are some Recommended Solutions, Implementation and Justification for
The Wallace Group:

 Develop new organization chart and clearly define job responsibilities.

 Establish a mission statement, goals and objectives with input put from the Vice
Presidents and Directors.
 Change management of chemical division or sell off based on cost/benefit analysis
to corporation.
 Conduct meetings at each level to get feedback regarding the concerns of the
employees, their ideas, strengths and weaknesses and any other issues. This
should begin with the Vice Presidents, then the Directors, and so forth for each
department.
 Encourage a continuous flow for the exchange of information.
 Involve the entire staff in every stage of the evaluation project.
 Make sure that all managers understand that it is a team effort. The overall
profitability of the corporation is what is important. This policy needs to be weighed
in terms of overall profitability to corporation and not individual departments.