Recommendations

Separation of ownership and managerial control.

Executive Compensation: appropriate salaries,
bonuses and compensation plan to align
managers interests with shareholders interests.
Increase stock ownership of directors. Research
indicates a positive relationship between
corporate performance and the amount of stock
owned by directors.
Introduce a management development
plan/succession planning.

Recommendations
On a corporate level, strategy should be profit
maximization of the group as a whole.
Development of corporate culture needed, vision,
mission must be defined.
Introduce group level Marketing/Sales functions
to develop a strategy, define markets, and
research & develop product opportunities i.e.
Staff functions to support Line functions.
Need to integrate Marketing planning efforts
between group and corporate.

Recommendations
Consider including outside directors. Boards with
a larger proportion of outside directors tend to
favor growth through international expansion
and innovative venturing activities than do
boards with a smaller proportion of outsiders.
Redefine Wallaces designation as CEO and
introduce a new President to take financial
control of operating budget and planning for
future capital and operating expenditures.