Strategic Audit the Wallace Group, Inc Essay

952 WordsAug 13, 20154 Pages
Midterm exam Summer 2015 The Wallace Group, Inc. SUGGESTED APPROACHES TO THE CASE: • Below is some information about The Wallace Group, Inc. This information includes data regarding corporate operations and operating problems as perceived by various managers of the company. • You should review this material then analyze critical issues facing The Wallace Group and identify solutions that The Wallace Group management could either take alone or with consulting assistance by your firm. • You will have a fictional opportunity to meet with Mr. Harold Wallace to discuss your diagnosis and action plans. These plans should be as specific as possible, as they may lead to a consulting assignment for your consulting company. In calculating costs associated with your participation in the plan you propose, assume a professional fee of $500 per day plus out-of-pocket expenses for food, travel, hotel, graphics, etc. • At the conclusion of your presentations, Mr. Wallace will determine if your firm will be awarded the consulting contract----and thus,a passing grade. I. CASE FACTS Harold Wallace, founder, serves as Chairman of the Board and President of the Wallace Group. He owns 45 percent of the outstanding stock. The company consists of three operating groups: Electronics, Plastics, and Chemicals, which generate sales of $70 million. Mr. Wallace continues direct operational control over the Electronics Group. Several years ago, Wallace and the Board embarked on a strategy of diversification into plastics and chemicals in order to decrease the company’s dependence on defense-related business. Presently, the morale within The Wallace Group has deteriorated to the point where some of the employee stockholders made an attempt to force Wallace’s resignation. As a result of this crisis, Wallace has hired YOU, a management consultant, to

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