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Clayton Industries: Peter Arnell, Country Manager for Italy

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Submitted By lisijia08013
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SIJIA LI

02/03/2013

6040---Management process and organizational theory

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, many of which lacked the duct work.

Target : “Top Four in Four” and “10/10/10 Plan ”

Alternative I : Restore Brescia’s profitability.

a. Early cost estimates were about 5 million with the most of that investment in the next 12 months.

b. By adding new features in compression chiller to make them could compete with other Asian distributors .

c. Technical progress caused higher efficiency and effectiveness

d. Exploit economies of scale to reduce average cost.

e. Strengthen cooperation with local European brands to improve brand awareness .

f. Choosing the best mix of communication, distribution, and selling channels of other European arms of Clayton industries to keep exploring new business opportunity.

Alternative II : Find new absorption chiller’s plant in Spain.

a. Technology transfer from Spain to Italy which would improving enterprise's key ability of Clayton Industries.

b. Phase our the compression chiller line and convert capacity to absorption chillers to meet the growing market.

c. Lower the factory expenses to reduce company’s overall cost.

d. Improving the sales channel by deriving synergies between the affiliated corporation.

Alternative III : Focus on efficiency measures to restore profitability and studying the various strategic options for the current crisis to get over.

| Advantages |Disadvantages |
|Decreased the risk of Clayton industries |Delaying for six months is not come for free |
|Have more time to study and analyze chooses. |No one knows when the economic crisis will be over |
|Arnell can have time and chance to prove himself |Aenell need to convince Briggs and Buis |

Recommendation:

From a long-term perspective, company should find a new absorption chiller’s plant in Spain. Company need to focus on the climate-friendly absorption chillers in the near future .Government predicts that the nation's economy will take some time to return to its past growth rate, so it would be a good choose for the company to focus on improvement in its operations and rethinking on its product line. By investing in a new absorption chillers plant ,the company will require significant cost in layoffs and restructuring with a step-by-step transition process. But on basis of green friendly ,the absorption chillers will expanding into the wider European .It will increase company’s chances to enlarge the sale market, increase market shares, and strengthen the market competition of the region.

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