The Wallace Group: Business Strategy Analysis Problems a. Calling for resignation of the President.

Based on Frances Rampar interview with Harold Wallace, he stated that one of his managers called for resignation of the President which is Harold himself. Even though the vote was defeated, it was clear that people who voted are upset with the way things are going. b. Electronics and Plastics group lack of growth in market and profits. c. Initial decline of Chemicals operations.

Analysis We will analyze the problems based on each department interview to get whole perspectives. a) Industrial Relations 1. Morale Problem. Morale is poor. Harold Wallace runs company like a one man operation and seems too busy to handle everything. 2. Human Capital Management. Lack of competent employee. Frank Campbell faced difficulties to find competent employee to management positions and eventually forced to promote technical people who had no prior managerial experience. He suggested to make management development program yet declined because it was seen too expensive. Recruitment and Selection. Company doesnt seem to have a proper employee recruitment and selection system. There are recruiting backlog especially for engineering position because the pay scales not competitive enough, job specs are too high or using wrong recruiting channels. This shows there are some problems concerning human capital management in company, especially in human development, recruitment and selection system and remuneration. b) Advance System Lack of integrated planning between corporate and group

Top brass keeps making demands that do not relate to the job that the group trying to get done. This make things become redundant because the data that should prepared one time, keep asked by another division to take the data again. This thing will make the job become inefficient.

c) Engineering Lack of competent employee Because the company do not attracted new competent employee, the become lack of competent employee and depend on some key person that seems do not have regeneration or successor in their position. In some time, that key persons will retired, and lack of successor will jeopardy the company to sustain in business.

d) Administration Complicated office bureaucracy The company seems generate wheel spinning in their administration. For example, request from partner that must be answer, cannot be respond immediately because supervisor approval came late or do not have respond.

e) Operation Restriction in getting cheap raw material Manufacturing problems in chemical and plastic group, has forced them to raise price and electronic group has suffer the consequences because they encouraged to buy plastic and chemical from the sister group and make production more costly. However, price of raw material from another supplier is cheaper. There must be a company policy that allow them to purchase raw material from another supplier in a special circumstances.