Clayton Industries

Topics: Financial crisis, First-mover advantage, European Union Pages: 2 (572 words) Published: December 8, 2012
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...
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