Could you please help me with the strategic audit for the wallace group?

1. Current Situation
   1. Current Performance
   2. Strategic Posture
      1. Mission
      2. Objectives
      3. Strategies
      4. Policies

The Wallace group

The Wallace Group, Inc., is a diversified company dealing in the manufacture and development of technical products and systems. The company currently consists of three operational groups and a corporate staff. The three groups include Electronics, Plastics, and Chemicals, each operating under the direction of a Group Vice President. Hal Wallace was the President of The Wallace Group.

Range of operation:

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, involve the incorporation of new technology into existing aircraft systems.

Important problem:

The most essential issue confronting the Wallace assemble is leadership. The Wallace gathering may have a Board of Directors yet needs Corporate Governance on the grounds that there is by all accounts no change from a solitary proprietorship to enterprise considering and administration which particularly obvious in absence of cohesiveness between the three divisions. As opposed to working as a team, the three are more similar to rivals vieing for assets and faculty.

1. There are no standard reports required by higher management.

2. There is no value chain or coordination in between departments.

3. Un-standardized methods of collecting

4. No consultation has been made to users as to what benefits they could get from the new system.

5. Cannot meet volume and profit targets when saddle with non competitive material costs. The corporate policy of transfer pricing needs to be addressed in terms of product cost and profit margin.

6. Heavy dependence on government contracts could put the corporation in financial difficulty if further sales diversification cannot be found.

Recommendations:

• Strategy formulation
• Strategy implementation
• Separation between ownership & management
• Establish governance and control mechanism to prevent managerial opportunism.
• Focused on clear vision and strategic plan and responsible for decisions and mentoring the managing directors.
• Provide Auditing systems.
• Financial control process

He must be approached directly clarifying the need of separation between owner ship and management.