Strategic Management: The Wallace Group

Summary The Wallace Group is a $70 million companionship that deals in the development and manufacturing of electronic, plastic and chemical products. (Wheelen & adenylic acid; Hunger, 2006). Harold Wallace, the chairman and chairwoman of The Wallace Group, held 60% of the familys stock when it was dealing solely in the electronics industry. Since the skill of the plastics and chemical companies, his holdings slightly decreased to 45% (Wheelen & ampere; Hunger, 2006). However, he continues to serve as the organizations President and Chairman speckle separately group is individually run by a iniquity President (Wheelen & Hunger, 2006). Harold Wallace enlisted the help of Frances Rampar, President of Rampar Associates, to behave an organisational analysis and provide a prioritized list of strategic recommendations to disembowel out the direction of the company over the next course of instruction (Wheelen & Hunger, 2006). Problems A cargonful review of The Walla ce Groups history nd current blot identified a number of inwrought issues that must be addressed in order for the company to succeed in its goal of diversification and also remain competitive in a global business environment. The well-nigh prominent count facing The Wallace Group is the disproportionate apportioning of authority as it applies to corporate governance. The corporate governance construction specifies the distribution of rights and responsibilities among contrasting participants in the corporation (Cadbury, 2002, p. 15).

In the deterrent example of The Wallace Group, Harold Wallace acts as tw ain the President and Chairman of the board ! of directors, which gives him an immense amount of promise over the direction of the company. While this entrepreneurial mode of worry may have worked in an tireless electronics company, the acquisition of the two new companies has rendered this style impractical. (Wheelan & Hunger, 2006). Since Harold Wallaces interests are being shared out amongst the three operational divisions, none of them are... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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