This case details the struggles of Clayton Industries, an air conditioning manufacturing company based in America. Clayton industries made air conditioners for residential customers and light-commercial applications. To me it appears that Clayton Industries has an absolute advantage because at this point they would try and break into the European market by acquiring four European coompanies: Corliss, Fontaire, Control del Clima, and AeroPuro.
Although the European market was slow at first because the people believed that air conditioning was an American luxury that they can’t afford, Clayton Industries first mover advantage and under the leadership of Simmone Buis (President of Clayton Europe), Europe is now the company’s largest source of global revenue. Then the economic crisis which will affect both United States and Europe. The board of directors for Clayton Industries forced their 63 year old Chief Executive Officer to step down in favor for Dann Briggs, a 16 year company revenue.
When Buis’ European sector was facing a crisis, Buis argued that the European mindsets are changing and that air conditioning will be embraced by the country. Briggs wanted a growth plan as proof that the European market is still profitable. Peter Arnell was the successor to Paolo Lazarro after he was fired for his attitude. Arnell was driven to turn the market around and asked for the support of his employees by postponing vacation days until further notice.
Three managers met with Arnell and appeared to have refused to give up their vacation days because in Italy, August was a vacation month. Arnell fired them all on the spot. With the new subsidiary manager at the helm of the, they hope to breathe new life into Clayton spA. Although Buis believed that Arnell was a worthy successor, he could be a liability and endanger the growth of the company and himself. * Peter Arnell’s first 2 months as the new subsidiary manager is not going well.
On his second day on the job, the media and union representatives suggested that Arnell is a “hatchet man” who threatened to close the Brescia plant and implement a mass layoff. Arnell dealt with this by assuring the media and union representatives that he has no such plans and that he would be meeting with the union the following week. Arnell knew that the company was in massive debt and payments to the bank were due soon.
He organized an appointment with Clayton’s bank while accompanied by his finance manager and union representative. With great success, the three men were able to convince the bank to postpone the payments of the upcoming quarter. * I would convince my bosses to back my recommendation by showing them my loyalty and commitment to the company which I worked for. I would use technology to suggest new ideas about how a company could gain a competitive edge and keep their place on top.
I would use data graphs and charts to show how I was able to create a new, dynamic, and highly productive atmosphere that encourages innovation. * I believe that Arnell was the right choice to be country manager for Clayton spA because he didn’t get lynched on the second day of the job by the media and the union, he convinced their bank to postpone payments, and refused to use Cassa Ingrazione Guardagni (temporary layoff in exchange for pay cut). Arnell knew and understood the company’s current financial crisis and was doing something about it.