Clayton Industries: Peter Arnell, Country Manager for Italy Case Solution & Answer

Question 1:

Peter Arnell after arriving at Clayton SpA took some bold decisions and adopted a proactive approach that was required at that time. The current situation of the company is not in a healthy position and Arnell is hired to resolve the issues and bring the company back on track. However, the situation is much more complex for which Arnell had to come up with a contingency plan to take the company back to its position. He decided to set-up a 60 days plan in which he will assess the situation and the organization more clearly before taking any decisions, but the situation did not allow him to do so. His actions are not only bold but daring as well and leveraging his Italian background; he decided to respond to the situation in a strict manner. While bringing change in the organization, he focused on resonance at every phase to keep an emotional association with the employees as his decisions are not only disciplined but strict as well (Howard Gardner, 2015).

He studied the situation and realized that there are some critical challenges that he might face. Therefore, his attitude seems more like military attitude that he adopted to maintain discipline and ensure that the company enters into the top four in the European market within four years. He emphasized on building political relationships more strong in order to gain corporate clients, an aspect that the company lacks. Furthermore, he decided to cut the cost and practiced layoff, but also focused on taking into the confidential the labor unions. As a whole it can be stated that Arnell spent the first two months in taking short-term decisions to gear up the company for a bigger war.

Question 2:

Arnell has to convince Buis about the opportunity in Spain and will have to understand the entire situation to convince her that Spain is more than a niche market. Although Spain is in a good shape and can be a good opportunity for future, as she is convinced about Italy and is more concerned about the company’s performance in Italy. Therefore Buis’ task is to convince her that Spain can be a profitable business and the company is also focusing on the Italian market, but in order to increase the market share, the company will have to exploit new opportunities.

Clayton Industries Peter Arnell, Country Manager for Italy Case Solution & Answer

Arnell must understand the fact that they are expecting him to develop a decent plan for the future growth of the company. However, he will have to convince him on a few aspects that are important. First of all he has to gain their trust, secondly, he needs to put forwards his solution that is risky but as the company has time constraints, therefore, implementing this strategy is necessary and most importantly, he needs to assess their understanding of the current market in order to explain them the reasons of failure with the current portfolio.

Question 3:

Peter Arnell is the right choice for the GM at Clayton SpA as his approach is more persuasive, and he emphasizes in bringing change leveraging this persuasive approach (David A. Garvin, 2015). He believes in changing minds by using this approach which is why boys selected him as the GM.

Furthermore, his Italian background is also a strong point to support this decision as he understands the market and can implant ideas that are more feasible. On the other hand, Arnell is more likely to select the option of changing the product line and introducing a new product, absorption chillers while eliminating comprehension chillers. Furthermore, the suggested market for this option is Spain, not Italy, which itself is a challenge as Buis is not convinced about this move. Furthermore, this option involves risks in the form capital investment which is around $15 million.

Besides that, labor unions and recession are also major threats that further dilute the return on investment. However, there are some strong points that can be taken into account as the advantages of this move that Arnell may put forward. The company is in a position that requires risky moves and should seek new opportunities for which Spain is a good option and a lucrative opportunity. Furthermore, it will allow the company to exploit new markets and create new opportunities, and as the company wants to increase market share this move seems more attractive……………………..

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