Individual Project Unit 1.
A. What is the most important problem facing the Wallace Group?
There are several problems facing the Wallace Group, but it seems the most crucial problem facing the group is two-fold; the lack of vision and direction from the CEO, Harold Wallace and improper management.
a. His diversification program that resulted in the acquisition of the chemical and plastics divisions lacked forward looking vision. He simply required the companies to uphold a profitable operation without any direction to improve (Wheelen & Hunger, 2004, p. 2-5).
b. The company seems to have difficulty in the hiring process. It seems the company is focused on cutting cost rather than looking for effective employment resolutions. For example, instead of creating a management development program to train and recruit managers, the company relies on promoting technical staff. The cost cutting approach is also hindering the hiring of qualified engineers.
The company focuses on hiring employees at the least possible salary as an alternative to paying the required amount for qualified expertise.
c. Another concern that arises is un-standardized systems of collecting data and presenting information. For example, both managers are using different data and formats for essentially the same purpose, and therefore they create redundancy and higher workloads.
B. What recommendation(s) would you make to Mr. Wallace, and in what order of priorities?
Because I have given more than one important reason, I have several recommendations that will address each of the issues.
a. First, I would recommend that the Wallace Group execute a corporate governance policy familiar to a business of its size. This would require that the company adopt a board of directors, which has five responsibilities (Wheelen & Hunger, 2004, p. 27):
1. Setting corporate strategy, overall direction, mission, and/or vision--the company could implement a diversification...