The Wallace Group Case Analysis

Case Analysis: The Wallace Group

The Wallace Group consists of dissimilar operating groups manufacturing electronic products, plastic products and chemicals primarily used in the manufacture of plastic products. Many individuals in the company have suggestions for improving the management of the company. Attach a Word document that answers the following questions:

1. Using Professor Jay Barney's VRIO framework described on pages 120-121 of the text identify the core and distinctive competencies of the Wallace Group (50 points).

The competencies of the Wallace Group are few and far between—meaning they have the resources and the capabilities to exploit these resources, but strengths within the company, such as its vertical integration and projects with guaranteed sales, are at risk of becoming core rigidities instead of developing as core or distinctive competencies. Electronics, the so-called “star” of The Wallace Group, has “competences in the area of microelectronics, electromagnetic sensors, antennas, microwave, and minicomputers” (textbook, 381). The company, with better management and harmony between functions and corporate, could easily create many core competencies because it is vertically integrated with each group working under the vision of one owner. If no other competitors in the industry are vertically integrated, that could be a distinctive competency in itself. However it is ironic that what could be The Wallace Group’s distinctive competency, vertical integration of the company, is threatened by becoming a core rigidity because nobody likes the “Wallace” part of it! For now, we will focus on the current competencies – diversity of technical abilities and securing projects with guaranteed sales.

In the annual report, Wallace states,

“We have a firm foothold in our current markets…The electronics group performed well this past year and is engaged in two major programs under Defense Department contracts...that provide us with the...