The most important problem facing the Wallace group is leadership. Mr. Wallace has created a company of leaders with no empowerment. In today's competitive environment a company must not only have a high sense of urgency but must also be agile. Agility is important because it can keep you one step ahead of your competitors instead of one step behind. A management team without empowerment is not agile and will usually be behinds its competitors instead of leading them. An example of this is that Mr. Wallace's own employees are demoralized due to the lack of action by upper management. Since management is not empowered they do not communicate to their subordinates about their concerns or ideas without Mr. Wallace's approval.
             Mr. Wallace should consider making himself the Chairman of the Board. He should find a new President/CEO who can make this company more stable for the future and create a stronger management team that will help to continue to provide a growing EPS for the shareholders. The new President should review each department head and evaluate whether they possess the ability to exercise good judgment when making decisions. There may be some turn over but in the long run the company may be better off.
             Once a new leader is found the Wallace group should engage in strategic management. It seems to lack any kind of strategic plan. The strategic plan will help them have a clearer vision of the company's future, a shaper focus of what is strategically important and an improved understanding of a rapidly changing environment. Strategic management consists of these four basic elements environmental scanning, strategy formulation, strategy implementation and evaluation and control. (Wheelan & Hunger, 2004).
             Environmental scanning will be important because it monitors, evaluates and disseminates information from the internal as well as the external environments and provides this information to the right p
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