Clayton Industries: Peter Arnell, country manager for Italy
Submitted to:
Prof. Payal Mehra
Submitted by:
Introduction to the Case
Peter Arnell, the new Country manager of Clayton SpA, Italy, was responsible for the Compression chiller manufacturing unit in Brescia and marketing of the same in Italy, Germany and Switzerland. He faced challenges due to global recession and reduction in revenue for the third consecutive year. The corporate leadership has huge hopes on him and expects him to bring back thing to order.
Italian business of Clayton includes Production and distribution of compressor chillers to Italy and the rest of Europe. These units are used in large Commercial, Public and Institutional installations. Though Clayton’s European Market grew fairly with greater market share the compressor chiller units were lagging behind in terms of the overall market share and the revenue generated.
The President of Clayton Europe Simonne Buis, has set up aggressive targets for the country managers to sustain and stabilize Clayton’s Operations and Market share in Europe. She had wanted all the country managers to cut their receivables and inventories by 10 days and reduce the head count by 10%. She also asked her managers for a plan to increase market share and be within the top four competitors in Europe within four years.
Arnell, being new to the geography faced challenges due to highly unionized and over staffed labor in his plant in Brussels. Further the low penetration of the product in the rest of Europe and outdated features of Clayton SpA’s compressor chiller were serious concerns looming ahead of the Italian Operations. These have made the targets set by the President very difficult to attain.
Clayton Europe Scenario * Brussels became the formal Headquarters for Clayton Europe. Four country mangers were appointed for by new president who were given responsibility for sales and exports. Following graph compares the market