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Of the $70 million in net sales, the electronics groups contributed about $35 million of that, with plastics contributing $20 million and the remaining $15 million coming from the chemical group.
Both the plastics and chemical groups were acquired for the sole purpose of diversifying the company. Mr. Wallace thought if he added these two new divisions, he would be able to bring new life to the company.
However, due in part to these acquisitions, the Wallace Group faces several problems. The first issue relates to their hiring process and how they choose who to promote. Instead of hiring qualified employees with the proper expertise, they focus more on cutting costs, therefore hiring non-qualified employees...
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