Clayton Industries: Rethinking Strategies in Europe Essay

1692 Words Nov 29th, 2012 7 Pages
Clayton Industries: Rethinking Strategies in Europe

Clayton Industries has been around since 1938 when they began as a residential and light commercial air conditioner manufacturer and distributor. In the early 80’s they expanded in North America, and this has helped establish them today as one of the foremost leaders in the United States and North American air conditioner sales. They restructured in 1988 to better organize their business arms as they were expanding into many different European nations to continue competing on an increasingly global scale. By the year 2000 Clayton really had established itself in Europe, but the residential and commercial air conditioner industry just was not as powerful as it was in North America at
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At this point they have been doing business in Europe for over 10 years, and they have a good understanding of what works, what doesn’t, and why. That said, they are in a very good position to realistically analyze their position and make an educated reform policy moving forward. In selecting a strategy, Peter Arnell is going to base his decision off company and his boss’ goals, which are cut costs, collaborate, and scale.
Since coming onto the position in Italy Peter Arnell began a series of dynamic and sweeping reforms and made it very clear from the start that he was an active leader rather than a passive leader. This is good, because his predecessor Mr. Lazzaro was fired ultimately for bad performance and much too passive approach to the economic downturn affecting performance in Italy so greatly in 2009. Clayton needed a leader that would come out and make dynamic moves to combat the failing economy. Arnell did that buy going out to the banks and renegotiating lines of credit to buy the company more time in paying back their loans, freeing up some capital to make improvements in efficiency. In response to his immediate layoffs of top management who did not show dedication to the company goals, the Italian Union came looking for a fight with Arnell. In response, not only did he deflect this potentially harmful

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