The Wallace Group
Background of The Wallace Group:
The Wallace Group, Inc., is a diversified company dealing in
the manufacture and development of technical products and systems. The company
currently consists of three operational groups and a corporate staff. The three
groups include Electronics, Plastics, and Chemicals, each operating under the
direction of a Group Vice President. The company generates $70 million in sales
as a manufacturer of plastics, chemical products, and electronic components and
systems. Principal sales are to large contractors in governmental and
automotive markets. With respect to sales volume, Plastics and Chemicals are
approximately equal in size, and both of them together equal the size of the
Electronics Group.
Electronics offers competence in the areas of
microelectronics, electromagnetic sensors, antennas, microwave, and
minicomputers. Presently, these skills are devoted primarily to the engineering
and manufacture of countermeasure equipment for aircraft. This includes radar
detection systems that allow an aircraft crew to know that they are being
tracked by radar units on the ground, on ships or on other aircraft. Further,
the company manufactures display s that provide the crew with a visual
“fix” on where they are relative to the radar units that re tracking
them.
In addition to manufacturing tested and proven systems
developed in the past, The Wallace Group is currently involved in two major and
two minor programs, all involving display systems. The Navy-A Program calls for
the development of a display system for a tactical fighter plane; Air Force – B
is another such system for an observation plane.
The Problem with The Wallace Group:
Presently, there is a mood of lethargy and drift within The
Wallace Group. Most managers feel that each of the three groups functions as an
independent company. And, with respect to group performance, not much change or
progress has been made in recent years. Electronics and Plastics are still
stable and profitable, but both lack growth in markets and profits. The
infusion of capital breathed new life and hope into the Chemicals operation but
did not solve most of the old problems and failings that had caused its initial
decline. For all these reasons Wallace decided that strong action was
necessary. His greatest disappointment was with the Electronics Group, in which
he had placed high hopes for future development. This he acted by requesting
and getting the Electronics Group Vice President’s resignation. Hired from a
computer company to replace LeRoy Tuscher, Jason Matthews joined The Wallace
Group a week ago.
QUESTIONS:
1. What is the most important problem facing the Wallace
Group?
2. What recommendation(s) would you make to Mr. Wallace, and
in what order of priorities?
3. How do you educate a manager to manage an organization as
it evolves over time from an entrepreneurial structure to a more sophisticated
and complex organizational structure? (2-3 pages)
