Case Analysis of the Wallace GroupIntroductionThe Wallace Group is a diversified company engaged in the manufacturing and development of technical products and systems. The company is made up of three main operating groups: electronics, plastics and chemicals. The electronics group is by far the largest, its size roughly matching that of the plastics and chemicals groups combined. Of the $70 million in net sales, the electronics groups contributed about $35 million, with $20 million from the plastics sector and the remaining $15 million coming from the chemicals group. Both the plastics and chemicals groups were acquired for the sole purpose of diversifying the company. . Mr. Wallace thought that if he added these two new divisions, he would be able to breathe new life into the company. However, partly because of these acquisitions, the Wallace Group faces several problems. The first issue is their hiring process and how they choose who to promote. Instead of hiring qualified employees with the right skills, they focus more on reducing costs, thus hiring unskilled employees. An example of this process is that instead of creating a management development program to train and recruit new management, it simply promotes it within it. However, they promote technicians to management positions without the proper training because it is cheaper to do so. The second problem that emerges is their inability to have a standardized form of data collection and presentation. An example is that both the Vice President of Marketing and the Director of Advanced Systems collect and use similar data for marketing purposes. Since both managers collect data for the same purpose, there is redundancy and...... half of paper investments that can support the other weight and balance their portfolio and therefore alleviate some of the risk they face.4. Restructure the company and clearly define job responsibilities. This would result in more efficient functioning within and between departments and ensure that people know exactly who is responsible for which tasks. This would also reduce the need for Mr. Wallace to be involved in dispute resolution and improve overall morale among managers.5. The chemical department must become more profitable. Until this can happen, the other two departments (electronics, plastics) should purchase materials from a source that represents the lowest cost to the company. If the above recommendations fail to improve the profitability of the chemical division, you should consider changing management or even selling this division.