The Wallace Group Case Study

Introduction and Background Analysis

The Wallace group is a leading company in providing high quality civil engineering, land planning, architectural design and surveying services. It was developed in Texas in the late 1970’s and the company and has since then recorded a stable growth over the years. In essence, the company has been successful in conducting their duties in serving its client. This is an important range of servicing that requires keen inclusion of technology in conducting the jobs¹. For instance, the company should invest in developed technology to offer quality services to its customers. In addition, the company should innovate better ways of conducting their businesses in relation to costs and technological advancement. If the services are satisfactory, they will attract more customers and clients for more services. The company is best known by its guiding principles which are; providing sound business practices and increasing its deep roots in Texas².

However, in the recent past, Wallace group has faced a number of atrocities that are threatening its existence. The corporation has recorded a decrease in its profit margins as compared to the past. Even though prices of commodities and products have gone up, the corporation still records a drop in the profit margin³. This means that their sales of products and services have dropped rapidly plunging the corporation into low profits. In addition, the company has faced competition from other competitors who are rapidly increasing their market niche as opposed to the Wallace group⁴.

The problem was brought by the individual existence of the three pillars of the Wallace group. The Wallace group consists of three operational groups; Electronics group, the plastics group and the chemicals group. In the beginning, each of the three groups worked under one pillar. However, in the recent past, the distance between the three operational groups has enlarged plunging the corporation into loss of market. This is due to the increase in operational costs and on the other hand, a controversial decrease in the sales⁵. Even though the vice president of the Wallace group is in control, the three operational groups are still working independently, which is reducing the advantages of team work⁶.

Moreover, the president brought the point forward that the engineers in the corporation were high-strung and temperamental. This means that the engineers in the company did not work in corporation with their supervisors and other management leaders. This was a setback to the corporation as it started to indulge in low quality productions as compared to the previous constructions. Similarly, the business environment was shuttered by the unending wrangles between the engineers and their supervisors⁷. In relation to this, some employees did not have trust in their president, Mr. Wallace. In a voting activity that happened in the corporation, many employees voted against him citing bad governance.

Recommendations

The Wallace Company is, with no doubt, a leading performer in the industry. Therefore, it has to improve on a number of factors to accrue the success in its operations. An increase in its operational and supply of products and services will increase the sales margins which will in return increase the profit margins⁸. For instance, the company should increase its operational indulgence by encouraging team work in the three operational groups. If the three operational groups work in coordination, they will increase the profit of the company. Similarly, the peaceful business environment will attract business transaction from people outside the company.

Additionally, the company should increase its diversity in various projects that are lucrative. Diversity in the investments will accrue large profit margins emanating from different sources in the same economy⁹. For instance, the company should increase its involvement in the microelectronics, chemicals and plastics to diversify the profits. Secondly, the indulgence in minor display programs is a positive way forward. The company should increase the involvement in making the tactical fighter plane in relation to navy-A program. In addition, it should increase the indulgence in the manufacture of the air force-B system in making an observable plane. In essence, these are lucrative strategies that could be used to increase the profitability of the company.

Strategic Alternatives

Future plans of including other two minor projects namely Army-LG and OBT-37 are vital programs that could provide better profits and sales to the company. The incorporation of the new technology in the aircraft system could help increase the company’s reputation in technological development. Similarly, the world is fascinated about emergence of new technologies. This will be a better avenue in restoring the reputation of the company as an innovative and exploring company of the world¹⁰. In addition, the company will increase the sales in many regions since there are many countries that are in need for the improved technology in aircrafts. In retaliation, the company will have created the demand strategy to the consumers who will in turn increase the supply.

Again, there are some markets in the world that are untapped. These are markets that do not have the possible investors to embark on the inclusion of the services. In this regard, the Wallace Company could invest more in wider markets including other regions and countries. This will be a strategy to increase their market share¹¹. For instance, the company should not only concentrate in Texas, but also explore some other regions that are in dire need of their services. The services will be regarded as quality and in the end they will increase the sales of their products and services.

Conclusion

The Wallace Company is a reputable company that offers a wide range of services. It has been successful in their business since it offers quality and innovative services. However, in the recent past, the company has plunged into reduced profit margins attributed by a number of causative factors. The factor included the separation in operation by the three operational wings and mistrust in the organization. The sales have been recorded to be reducing through the years resulting into reduced profits.

However, plans are underway in making sure that the company increases its operation and increases its profits. This includes investments into the army, increase in its technological advancement and an investment into the aircraft industry. These are lucrative and innovative business opportunities that will record an increase in the performance of the business¹². Similarly, the company has embarked on team building strategies to increase the connection between the three operational groups in the company. A recent replacement of the president was seen as a positive approach to the existing wrangles.

Plan of Action

The planned actions by the company are positive activities that are likely to accrue success in the running of the company. For instance, the inclusion of other productions in the company is likely to increase the sales and income. Even though the company will have to invest heavily, it is likely to have better returns as opposed to the current returns. In essence, the plan of action that has been taken by the company is encouraging as it will encourage profits and developments.

Bibliography

1. Dess, Gregory., Strategic management: creating competitive advantages. (New York: McGraw-Hill/Irwin, 2003).
2. Economist Newspaper Ltd. The economist, Volume 357, Issues 8195-8198. California: University of California, 2000).
3. Gupta, Gollakota., & Vipin, Srinivasan., Business Policy and Strategic Management: Concepts and Applications. (Bahrain: PHI Learning Pvt. Ltd., 2007)
4. Hiriyappa B’s. Business Policy and Strategic Management. Bahrain: CreateSpace, 2010.
5. Hunger, David., & Wheelen, Thomas., Strategic management. (California: Prentice Hall, 2000.
6. Hunger,Wheelen., Strategic Management and Business Policy. (London: Academic Internet Publisher, 2006).
7. Kozami, Azhar., Business policy and strategic management. (New York: McGraw-Hill Education, 2002)
8. Lock, Dennis., Project management. (New York: Gower Publishing, Ltd., 2007).
9. Sadler, Philip., & Craig, James., Strategic management. (New York: Kogan Page Publishers, 2003).
10. Wheelen Thomas & Hunger, David Strategic management and business policy. (California: Prentice Hall, 2004).

Footnotes

1. Lock, Dennis., Project management. (New York: Gower Publishing Ltd., 2007), 143-145.
2. Hunger, David., & Wheelen, Thomas. Strategic management. (California: Prentice Hall, 2000), 19-25.
3. Wheelen Thomas., & Hunger, David. Strategic management and business policy. (California: Prentice Hall, 2004).
4. Hunger,Wheelen., Strategic Management and Business Policy. (London: Academic Internet Publisher, 2006), 45-50.
5. Dess, Gregory., Strategic management: creating competitive advantages. (New York: McGraw-Hill/Irwin, 2003), 64-68
6. Sadler, Philip., & Craig, James., Strategic management. (New York: Kogan Page Publishers, 2003), 187-190.
7. Hiriyappa, B’s. Business Policy and Strategic Management. (Bahrain: CreateSpace, 2010), 72-75
8. Economist Newspaper Ltd. The economist, Volume 357, Issues 8195-8198. (California: University of California, 2000), 55-60
9. Kozami, Azhar. Business policy and strategic management. (New York: McGraw-Hill Education, 2002), 67
10. Gupta, Gollakota., & Vipin, Srinivasan. Business Policy and Strategic Management: Concepts and Applications. (Bahrain: PHI Learning Pvt. Ltd., 2007). 98-100
11. Wheelen Thomas & Hunger, David Strategic management and business policy. (California: Prentice Hall, 2004),178-182
12. Hunger, David., & Wheelen, Thomas. Strategic management. (California: Prentice Hall, 2000), 187

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