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Clayton Industries case analysis The new general manager of Clayton SpA did an excellent
job from the first day of his arrival, finding dialog with FILM representatives and meeting
individually with his top team. He had to find ways to restore the profitability of the
company in line with Briggs priorities to face cash crisis and handle the emergency caused
by current losses, and on the other hand to find solutions that satisfy the ambitious plans of
Simonne Buis like 10/10/10 and aggressive market strategy "Top 4 in 4", that would be
particularly difficult to achieve for Clayton SpA, considering not only the overall market
conditions, but also the actual position of the company. Arnell was tough enough and made
everything to buy the company time needed to evaluate the situation for better future
decisions. He had managed his team well enough to have three different and clear
alternatives after his 60 days analysis.
A.Revitalize the compressor chiller line, following the Italian managers plan; This option
requires the biggest initial investment of $5 million in next 12 months plus actual losses of
the 1 million a month must be considered as we assume that company would reach
profitability in case of success of marketing plan after 4-6 months. Still it would be very
hard to achieve any positive result, considering that the chillers were too expensive for
European market, lacked innovative features and operating efficiencies. It would be
practically impossible to reduce price, develop and implement new technologies in
compressor chillers in such a short period, as hard it would be to change customers
