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Case Study - The Wallace Group Inc - The Facing Problems

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CASE 2 THE WALLACE GROUP, INC.


I. CASE ABSTRACT

Harold Wallace, founder, serves as Chairman and President of the Wallace Group. He owns 45% of the outstanding stock. The company consists of three operating groups -- Electronics, Plastics, and
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Case Study - The Wallace Group Inc - The Facing Problems

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Case 2 The Wallace Group

IV. CASE OBJECTIVES

1. To acquaint the students with a CEOs management of a company that leads to conflict and power struggles among managers. To deal with Why hasn't the board of d an issue in corporate governance:
become involved in this issue?

2. To have the student act as a consultant. As such, the student should develop a list of the most important problem(s) facing the Wallace Group, and specific action plans to deal with each specific problem. 3. To discuss how to convey potentially negative information to the person who hired you, especially if that person is the principal cause of this negative information. 4. To review the corporation diversification plan from an area of expertise (electronics) into areas (plastics and chemicals) where it has no distinctive competence.

V. SUGGESTED CLASSROOM APPROACHES TO THE CASE

1. Dr. Larry Stybel, the case author, suggests two possible ways of handling this case.
first option A. The involves students individually formulating a response to the following questions:

What is the most important problem facing The Wallace Group? Develop a specific action plan to deal with this problem.

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Case Study - The Wallace Group Inc - The Facing Problems

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Case 2 The Wallace Group

On (date) your team will have an 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 group. In calculating costs associated with your participation in the plan you propose, assume a professional fee of $100 per day plus out-of-pocket expenses for food, travel, hotel, graphics, etc.

Each team will present its findings to Mr. Wallace separately. You will have thirty (30) minutes for the

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