To: Harold Wallace, President of the Wallace Group Subject: Rampar Associates, Consulting Analysis EXECUTIVE SUMMARY The Wallace Group, Inc., is a company composed of three operating groups (electronics, plastics and chemicals ) and a corporate support staff. The groups operate independently of each other, but also require mutual product support on specific contracts. Because the companies currently work independently, the focus and direction are not well defined for the Wallace Group as a whole. The Electronics group depends on government contracts and is currently working on projects for the Navy and Air Force for future contracts. The Plastics Group is profitable and offers solid performance for the products it makes. There is also the ability of the Plastics group to expand and gain greater market share. The chemicals group, which has performed well over the past year, is not living up to Wallace Group's expectations and is in need of reform. In order for Wallace Group Inc. to become a more productive entity, I recommend the following actions to consider.1. Restructure and organize the company's management staff.2. Identify and secure alternative contracts for the three groups that maximize growth and profits.3. Use a consulting firm to analyze chemical group management to identify internal weaknesses.4. Maximize interaction within the group to facilitate unity of the three individual groups (management and workloads)5. Communication with the organization must be simplified.6. Human resources must renew its efforts to attract and hire the necessary workforce.I. The company's current objectives and strategy Wallace Group Inc. is a diversified company engaged in the manufacturing and development of technical products and systems. The company is made up of three individual groups and company staff. The three groups include electronics, plastics and chemicals, each operating under the direction of the group's vice president. The Wallace Group Inc. produces profits of $70 million in sales from the efforts of the three groups. Wallace Group's primary sales come from large contractors in the government and automotive markets. The Wallace Group is seeking to secure future contracts with the Navy and Air Force through the Electronics Group. This potential workload is vital to the success of the Electronics group as future contracts would be profitable for the group.