Recommendation Report: The Wallace Group
...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.
Recommendations
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 productsÂ…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....
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