The Wallace Group case analysis
The Wallace group is devised from three sub-groups as: Electronics, Chemicals and Plastics. Harold Wallace was the original owner of the electronics company, but now has 45% of the stock and runs the group as Chairman and President after acquiring the plastics company and then the chemical company. But each of the three groups is run by a Vice President. Recently, Hal Wallace asked Rampar to conduct a series of interviews with some key Wallace Group employees, in preparation for a possible consulting assignment for Rampar Associates. (Strategic Management and Business Policy, P 2-1)SWOT AnalysisStrengths:(1) Most of the sales are for the government, large quantity and stable.
(2) High technology products are very competitive.
(3) Chain supply from the internal groupsWeakness:(1) Profits mainly depend on the products which produced for the government.
(2) HRM & employee relation(3) other products rather than tactical equipments are not professional(4) Internal communication problemsOpportunities:(1) Technological development by competency the tactical productsprojects like Navy-A and OBT-37(2) Trends of the demand of other products(3) Trying to solve the current problem by hiring an outside consultant.
Threats:(1) High return from the government brings strong competition(2) Current management will limit the company 's future developmentMost important problemsFrom Frank Campell, Vice President of Industrial Relations, the problem is as the following: "moral is really poor here, Hal runs this place like a one man operation, when it 's grown too big for that. It took a palace revolt to finally get him to see the depths of the resentment. Whether he 'll do anything about it, that 's another matter." In his interview, he also mentioned about the lack of communication with Harold Wallace about the management level, cause of the growth, the company has been forced to promote technical people to the management positions even they do not have any managerial experience.
(2) High technology products are very competitive.
(3) Chain supply from the internal groupsWeakness:(1) Profits mainly depend on the products which produced for the government.
(2) HRM & employee relation(3) other products rather than tactical equipments are not professional(4) Internal communication problemsOpportunities:(1) Technological development by competency the tactical productsprojects like Navy-A and OBT-37(2) Trends of the demand of other products(3) Trying to solve the current problem by hiring an outside consultant.
Threats:(1) High return from the government brings strong competition(2) Current management will limit the company 's future developmentMost important problemsFrom Frank Campell, Vice President of Industrial Relations, the problem is as the following: "moral is really poor here, Hal runs this place like a one man operation, when it 's grown too big for that. It took a palace revolt to finally get him to see the depths of the resentment. Whether he 'll do anything about it, that 's another matter." In his interview, he also mentioned about the lack of communication with Harold Wallace about the management level, cause of the growth, the company has been forced to promote technical people to the management positions even they do not have any managerial experience.
References: heelen, Thomas L. & Hunger, David J. Strategic Management and Business Policy (11th edition)