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SOLUTION MANUAL FOR STRATEGIC MANAGEMENT AND BUSINESS POLICY GLOBALIZATION, INNOVATION AND SUSTAINABILITY 16TH EDITION (GLOBAL EDITION) BY CHARLES BAMFORD, ALLAN HOFFMAN, THOMAS WHEELEN, DAVID HUNGER$29.99
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SOLUTION MANUAL FOR STRATEGIC MANAGEMENT AND BUSINESS POLICY GLOBALIZATION, INNOVATION AND SUSTAINABILITY 16TH EDITION (GLOBAL EDITION) BY CHARLES BAMFORD, ALLAN HOFFMAN, THOMAS WHEELEN, DAVID HUNGER
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Course
STRATEGIC MANAGEMENT AND BUSINESS POLICY
Institution
STRATEGIC MANAGEMENT AND BUSINESS POLICY
SOLUTION MANUAL FOR STRATEGIC MANAGEMENT AND BUSINESS POLICY GLOBALIZATION, INNOVATION AND SUSTAINABILITY 16TH EDITION (GLOBAL EDITION) BY CHARLES BAMFORD, ALLAN HOFFMAN, THOMAS WHEELEN, DAVID HUNGER
, SOLUTION MANUAL FOR STRATEGIC MANAGEMENT AND BUSINESS POLICY
GLOBALIZATION, INNOVATION AND SUSTAINABILITY 16TH EDITION (GLOBAL
EDITION) BY CHARLES BAMFORD, ALLAN HOFFMAN, THOMAS WHEELEN, DAVID
HUNGER
Case 1
The Wallace Group, Inc.
I. CASE ABSTRACT
Harold Wallace, founder, serves as Chairman 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
Frances Rampar, a management consultant, to conduct a management survey
into the problems facing The Wallace Group. Her task is to develop a
series of priorities for Wallace’s consideration.
Decision Date: No Date Sales: $70,000,000
Net Income: $ 1,760,000
II. CASE ISSUES AND SUBJECTS
Corporate Governance Morale and Culture
Diversification Organizational Structure
Stages of Corporate Development Top Management Responsibilities
Vertical Integration Modes of Strategy Formulation
Transfer Pricing Distinctive Competence
Sub optimization Entrepreneurship
III. STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS
(See Figure 1.5 on pages 20 and 21)
1. To acquaint the students with a CEO’s management of a company that
leads to conflict and power struggles among managers. To deal with an
issue in corporate governance: Why hasn’t the board of directors 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. Laurence J. Stybel, the case author, suggests two possible ways of
handling this case.
A. The first option 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 these problems.
This option typically involves one and a half to two hours for class
discussion.
B. The second option would be to bring in a guest who would take the
role of Harold Wallace. A retired president would be ideal for this
kind of exercise. Under this format, students are divided into
consulting teams and are given the following instructions:
Attached 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.
Your consulting team should review this material. The team will
then meet to analyze critical issues facing The Wallace Group and
to identify solutions that The Wallace Group management could
either take alone or with consulting assistance from your firm.
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.
1-2
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