At what level is each of the decisions that you identified? Functional /Business/ Corporate? Why do you believe this to be the case? What is your assessment of these decisions? Will they be effective? Why? How have you decided this?

07:14 Not Secure - mim.ac.mw violation of federal law. This case was edited for SMBP-9th, 10th, 11th, 12th, and 13th Editions. The copyright are solely responsible for case content, Reprint permission is solely granted to the publisher, Prentice Hall, forth mit and Business Policy - 13th Edition by copyright holder. Dr. Laurence J. Stybel. Any oth 456 of (, 13 violation of copyright laws, unless the copyright holder has granted an additional written Corporate Governance and Social Responsibility: Executive Leadership To the Shareholders: This past year was one of definite accomplishment for The Wallace Group, although with some admitted soft spots. This is a period of consolidation, of strengthening our internal capacity for future growth and development. Presently, we are in the process of creating a strong manage- ment team to meet the challenges we will set for the future. Despite our failure to achieve some objectives, we turned a profit of $3,521.000 before taxes, which was a growth over the previous year's earnings. And we have declared a dividend for the fifth consecutive year, albeit one that is less than the year before. However, the retention of earn- ings is imperative if we are to lay a firm foundation for future accomplishment. Currently, The Wallace Group has achieved a level of stability. We have a firm foothold in our current markets, and we could clect to simply enact strong internal controls and maximize our profits. However, this would not be a growth strategy. Instead, we have chosen to adopt a more aggressive posture for the future, to reach out into new markets wherever possible and to institute the controls necessary to move forward in a planned and orderly fashion. The Electronics Group performed well this past year and is engaged in two major programs under Defense Department contracts. These are developmental programs that provide us with the opportunity for ongoing sales upon testing of the final product. Both involve the creation of tacti- cal display systems for aircraft being built by Lombard Aircraft for the Navy and the Air Force. Future potential sales from these efforts could amount to approximately $56 million over the next five years. Additionally, we are developing technical refinements to older, already installed sys- tems under Army Department contracts In the future, we will continue to offer our technological competence in such tactical display systems and anticipate additional breakthroughs and success in meeting the demands of this mar- ket. However, we also believe that we have unique contributions to make to other markets, and to that end we are making the investments necessary to expand our opportunities. Plastics also turned in a solid performance this past year and has continued to be a major sup- plier to Chrysler, Martin Tool, Foster Electric, and, of course, to our Electronics Group. The mar- ket for this group continues to expand, and we believe that additional investments in this group will allow us to seize a larger share of the future. Chemicals' performance, admittedly, has not been as satisfactory as anticipated during the past year. However, we have been able to realize a small amount of profit from this operation and to halt what was a potentially dangerous decline in profits. We believe that this situation is only temporary and that infusions of capital for developing new technology, plus the streamlining of operations, has stabilized the situation. The next step will be to begin more aggressive marketing to capitalize on the group's basic strengths. Overall, the outlook seems to be one of modest but profitable growth. The near term will be one of creating the technology and controls necessary for developing our market offerings and growing in a planned and purposeful manner. Our improvement efforts in the various company groups can be expected to take hold over the years with positive effect on results. We wish to express our appreciation to all those who participated in our efforts this past year. Harold Wallace Chairman and President In addition to manufacturing tested and proven systems developed in the past, The Wallace Group is currently involved in two major and two minor programs, all involving display systems. The Navy-A Program calls for the development of a display system for a tactical fighter plane; Air Force-B is another such system for an observation plane. Ongoing production orders are anticipated following flight testing. The other two minor programs, Army-LG and OBT-37, involves tecnology into existing aircraft 07:14 Not Secure - mim.ac.mw violation of federal law. This case was edited for SMBP-9th, 10th, 11th, 12th, and 13th Editions. The copyright are solely responsible for case content, Reprint permission is solely granted to the publisher, Prentice Hall, forth mit and Business Policy - 13th Edition by copyright holder. Dr. Laurence J. Stybel. Any oth 456 of (, 13 violation of copyright laws, unless the copyright holder has granted an additional written Corporate Governance and Social Responsibility: Executive Leadership To the Shareholders: This past year was one of definite accomplishment for The Wallace Group, although with some admitted soft spots. This is a period of consolidation, of strengthening our internal capacity for future growth and development. Presently, we are in the process of creating a strong manage- ment team to meet the challenges we will set for the future. Despite our failure to achieve some objectives, we turned a profit of $3,521.000 before taxes, which was a growth over the previous year's earnings. And we have declared a dividend for the fifth consecutive year, albeit one that is less than the year before. However, the retention of earn- ings is imperative if we are to lay a firm foundation for future accomplishment. Currently, The Wallace Group has achieved a level of stability. We have a firm foothold in our current markets, and we could clect to simply enact strong internal controls and maximize our profits. However, this would not be a growth strategy. Instead, we have chosen to adopt a more aggressive posture for the future, to reach out into new markets wherever possible and to institute the controls necessary to move forward in a planned and orderly fashion. The Electronics Group performed well this past year and is engaged in two major programs under Defense Department contracts. These are developmental programs that provide us with the opportunity for ongoing sales upon testing of the final product. Both involve the creation of tacti- cal display systems for aircraft being built by Lombard Aircraft for the Navy and the Air Force. Future potential sales from these efforts could amount to approximately $56 million over the next five years. Additionally, we are developing technical refinements to older, already installed sys- tems under Army Department contracts In the future, we will continue to offer our technological competence in such tactical display systems and anticipate additional breakthroughs and success in meeting the demands of this mar- ket. However, we also believe that we have unique contributions to make to other markets, and to that end we are making the investments necessary to expand our opportunities. Plastics also turned in a solid performance this past year and has continued to be a major sup- plier to Chrysler, Martin Tool, Foster Electric, and, of course, to our Electronics Group. The mar- ket for this group continues to expand, and we believe that additional investments in this group will allow us to seize a larger share of the future. Chemicals' performance, admittedly, has not been as satisfactory as anticipated during the past year. However, we have been able to realize a small amount of profit from this operation and to halt what was a potentially dangerous decline in profits. We believe that this situation is only temporary and that infusions of capital for developing new technology, plus the streamlining of operations, has stabilized the situation. The next step will be to begin more aggressive marketing to capitalize on the group's basic strengths. Overall, the outlook seems to be one of modest but profitable growth. The near term will be one of creating the technology and controls necessary for developing our market offerings and growing in a planned and purposeful manner. Our improvement efforts in the various company groups can be expected to take hold over the years with positive effect on results. We wish to express our appreciation to all those who participated in our efforts this past year. Harold Wallace Chairman and President In addition to manufacturing tested and proven systems developed in the past, The Wallace Group is currently involved in two major and two minor programs, all involving display systems. The Navy-A Program calls for the development of a display system for a tactical fighter plane; Air Force-B is another such system for an observation plane. Ongoing production orders are anticipated following flight testing. The other two minor programs, Army-LG and OBT-37, involves tecnology into existing aircraft