Strategic Management Case Study Wallace Group
Strategic Management Case Study- Wallace Group 1. Case Overview The Wallace Group, Inc. ... Among the three groups, Electronics group, which generated 50% sales and 70% net income in the last year, is the most important unit of the whole Wallace group. Presently the group is involved some important research program for the government. There is a mood of lethargy and drift within the Wallace Group presently. ... And, with respect to group performance, not much change or progress has been made in recent years. ... For all these reasons, Harold Wallace, who is the CEO of the Wallace Group, decided that strong action was necessary. He requested the Electronics Group Vice President¡¯s resignation and hired a new VP. ... The strengths, weakness, opportunities and threats Analysis Strengths: (1) Principle sales are the large stable orders from government (2) Advanced technology oriented (3) Products from individual groups can combine a product chain (4) Financial situation Weakness: (1) Profits mainly depends on defense products (2) Internal management style-dictatorial, X style (3) Human Resource & Employee relations (4) Non-defense products distribution channels (5) Internal transfer pricing problems (6) Global marketing Opportunities: (1) Technological development by competency the defense product programs like Navy-A and OBT-37 (2) Trends of non-defense products (3) Realize the self-problem and finding the way to change (4) External environment security Threats: (1) High profits brings strong industrial competition (2) X-style management will limit and weaken a Hi-tech corporation¡¯s development in a long term period To my opinion, the most important problem Wallace Group facing is its Internal Management Style, which was called X-style or dictatorial style.