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Recommendation Report: The Wallace Group

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Recommendation Report:

The Wallace Group



Global Strategic Management

Mrs. LaBoore Terrell

September 2, 2006

Recommendation Report: The Wallace Group

This paper will address the issues with the management style of the Wallace Group.

The Wallace group started as the single proprietorship of Harold Wallace and produced electronic countermeasure and other devices for aircraft and ships. Eventually Mr. Wallace diversified and acquired two other companies, plastics and chemicals, both of which had been single proprietorships. He incorporated into The Wallace Group. Currently Mr. Wallace acts as president, and has directors to care for the other two divisions.

The most apparent difficulty with the management of the Wallace group is the lack of transition from a single proprietorship to corporation thinking and management. Since good management must start at the top, this is the most important issue to face. There is also a serious lack of cohesiveness between the three divisions. Rather than operating as a team, the three are more like rivals competing for resources and personnel.


First, the corporation needs a clearly defined mission statement and goal. A mission statement "defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of the company's operations in terms of products...offered and markets served" (Wheelen and Hunger, 2006).

All division directors need to be involved in formulating this statement so that, starting at the top, the company can begin to head in a direction that all understand and agree with. Does everybody in the company understand the mission and purpose of each division? At this point, it is obvious they do not.

Once a mission statement has been established, the team must move on to establish objectives. What is the goal of each division? Of this there is no lack of input from the various directors. Some have expressed need for more qualified personnel, better communication, and cost effective production, to name a few. Clearly, some aggressive and comprehensive communication must take place, and it must begin with the top, Mr. Wallace. It will be important for him to understand the need for initiating some serious brainstorming, with no threat of reprisal.

The resolution and vote on the part of stockholders for the resignation of Mr. Wallace, may be the "triggering event" (Wheelen and Hunger, 2006) to effect change in the company. Mr. Wallace was definitely shaken by this action. Stressing the significance of this action may be a good beginning to encourage Mr. Wallace that it is time to take action, and be open to change.




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