RUNNING HEAD: CLAYTON INDUSTRIES CASE ANALYSIS CLAYTON INDUSTRIES A Case Analysis Table of Contents Executive Summary 1 Company Background 3 Problem Statement 5 Internal Factors 5 External Factors 6 Analysis 7 Industry 7 SWOT 7 Alternatives 9 Revitalize Clayton SpA 9 Absorption Chillers 11 Recommendations 13 Considerations of Peter Arnell 13 Reduce Capital Use 14 Reduce Costs 14 Rationalize Product Line 15 Align for Growth 16 Conclusion 18 References
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Corporate Strategies Clayton Industries: Peter Arnell‚ Country Manager for Italy Clayton Industries Inc. was founded in 1938 in Milwaukee and became very successful in the United States manufacturing room air conditioners. The company built a strong position in Europe by acquiring four different companies in that continent. The operations between the US and Europe had been separated to better manage its expansion. Since 2001‚ Simone Buis is the President of Clayton Europe and she made increasing
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Clayton Industries Case Study LeeAnn Wisniski Elizabethtown College Clayton Industries Inc. was founded in 1938 Milwaukee. Their business was built around window-mounted room air conditioners for residential and light-commercial applications. In the early 1980’s Clayton saw growth opportunities within the North American commercial sector‚ as well as in European residential and commercial sectors. In its expansion‚ Clayton acquired Corliss‚ Fontaire‚ Control del Clima‚ and AeroPuro‚ all European-based
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DATE: February 23‚ 2012 TO: Clayton Industries Management Dan Briggs - CEO Clayton Industries Simonne Buis - President Clayton Europe FROM: Peter Arnell - Manager Clayton SpA RE: Action Plan for Clayton SpA to Increase Sales & Profitability in the Italian Sector EXECUTIVE SUMMARY: Clayton SpA‚ the Italian subsidiary of Clayton Industries‚ faces numerous obstacles that are causing the company to lose profitability as well as its standing in the market it once
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Clayton Industries: Peter Arnell‚ Country Manager for Italy Major issues : a. Many European people saw air conditioning as an luxury item which is harming environment. b. Europeans have strong national brand preferences. c. They are losing both potential commercial customer and the chance to reach in other parts of Europe. d. Some of Asian produces had been able to gain penetration in Europe‚ largely on the basis of price. e. Its air conditioners are fit poorly with Italian buildings
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Case Analysis Report Clayton Industries: Peter Arnell‚ Country Manager for Italy (HBS Case # 4199) 1. Evaluate Peter Arnell’s first two months as general manager of Clayton SpA. What are the main challenges he faces? How well is he dealing with them? The biggest challenge Peter faces is the stagnant growth that Clayton SpA has experienced in recent years‚ especially with a 5.3% decline in 2008 and 19.4% drop in the first quarter of 2009 for Italy. This lack of sales directly affects
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Case Analysis 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
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CLAYTON INDUSTRIES 1º Executive summary: Clayton Industries has been beaten by the current economic situation. But there is one European subsidiary that is suffering more than the rest. The Italian plant is having deep losses and needs to be re-established. The European head has appointed a new plant director in Italy to make this factory profitable or to take another decision to face the current scene and the possibility of growing in few years. 2º SWOT Analysis: Strengths: Support from
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Problem Analysis The key business issue facing Clayton in late 2009 is that its Italian subsidiary‚ Clayton SpA‚ has been making heavy operational losses for three years now‚ to the tune of over $1 million USD a month. While these losses have been exacerbated due to a general global recession which has reduced sales (which are down by 19%)‚ their root cause lies in the fact that since 2001‚ Simonne Buis had been making organizational changes‚ and trying to create a more integrated European organization
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Analysis of possible course of action from point of view of Peter Arnell Issue: Peter Arnell is in a tough situation and faces difficult challenges to revive Clayton SpA‚ Italian subsidiary of US based Clayton Industries Inc. Clayton SpA has recorded 3 consecutive years of losses and hence gathered attention from its senior management. As the economy struggles to come out of recession‚ Peter Arnell faces 3 possible courses of development to swing the Italian subsidiary out of red. Peter’s problems
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