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Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version


When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.Clayton Industries, a sixty-year-old U.S.-based firm in the HVAC (heating, ventilation, and air conditioning) industry, with nearly $1 billion in revenues, has gradually built a presence in a number of countries, including several in Europe. Peter Arnell, previously Clayton's successful country manager for the U.K., has been asked to take over the Italian subsidiary, which has recently been struggling on several fronts. Arnell must juggle the strategic objectives of his manager (the head of Clayton Europe) and of the firm's Wisconsin-based CEO while overseeing the day-to-day activities of the business in this new setting. Many of Arnell's challenges derive from his dual responsibilities of handling manufacturing as well as sales of Clayton products in his new home country.

Authors :: Christopher A. Bartlett, Benjamin H. Barlow

Topics :: Leadership & Managing People

Tags :: Cross-cultural management, Labor, Leadership, Organizational culture, Organizational structure, Project management, Sales, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version" written by Christopher A. Bartlett, Benjamin H. Barlow includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Arnell Clayton facing as an external strategic factors. Some of the topics covered in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version case study are - Strategic Management Strategies, Cross-cultural management, Labor, Leadership, Organizational culture, Organizational structure, Project management, Sales, Strategy execution and Leadership & Managing People.


Some of the macro environment factors that can be used to understand the Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version casestudy better are - – supply chains are disrupted by pandemic , there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, geopolitical disruptions, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc



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Introduction to SWOT Analysis of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Arnell Clayton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Arnell Clayton operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version case study
2. Improving business portfolio management of Arnell Clayton
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Arnell Clayton




Strengths Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Arnell Clayton in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version Harvard Business Review case study are -

High switching costs

– The high switching costs that Arnell Clayton has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Highly skilled collaborators

– Arnell Clayton has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Superior customer experience

– The customer experience strategy of Arnell Clayton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Successful track record of launching new products

– Arnell Clayton has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Arnell Clayton has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Ability to recruit top talent

– Arnell Clayton is one of the leading recruiters in the industry. Managers in the Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Analytics focus

– Arnell Clayton is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Christopher A. Bartlett, Benjamin H. Barlow can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Innovation driven organization

– Arnell Clayton is one of the most innovative firm in sector. Manager in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Operational resilience

– The operational resilience strategy in the Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Digital Transformation in Leadership & Managing People segment

- digital transformation varies from industry to industry. For Arnell Clayton digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Arnell Clayton has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Ability to lead change in Leadership & Managing People field

– Arnell Clayton is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Arnell Clayton in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Cross disciplinary teams

– Horizontal connected teams at the Arnell Clayton are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Effective Research and Development (R&D)

– Arnell Clayton has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.






Weaknesses Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version are -

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version, it seems that the employees of Arnell Clayton don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Increasing silos among functional specialists

– The organizational structure of Arnell Clayton is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Arnell Clayton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Arnell Clayton to focus more on services rather than just following the product oriented approach.

Lack of clear differentiation of Arnell Clayton products

– To increase the profitability and margins on the products, Arnell Clayton needs to provide more differentiated products than what it is currently offering in the marketplace.

Workers concerns about automation

– As automation is fast increasing in the segment, Arnell Clayton needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Aligning sales with marketing

– It come across in the case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version can leverage the sales team experience to cultivate customer relationships as Arnell Clayton is planning to shift buying processes online.

Need for greater diversity

– Arnell Clayton has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High cash cycle compare to competitors

Arnell Clayton has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High bargaining power of channel partners

– Because of the regulatory requirements, Christopher A. Bartlett, Benjamin H. Barlow suggests that, Arnell Clayton is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Slow to strategic competitive environment developments

– As Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version HBR case study mentions - Arnell Clayton takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Arnell Clayton is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version, is just above the industry average. Arnell Clayton needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.




Opportunities Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Arnell Clayton can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Arnell Clayton can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Arnell Clayton can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Using analytics as competitive advantage

– Arnell Clayton has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Arnell Clayton to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Arnell Clayton can use these opportunities to build new business models that can help the communities that Arnell Clayton operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Arnell Clayton to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Arnell Clayton to hire the very best people irrespective of their geographical location.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Arnell Clayton in the consumer business. Now Arnell Clayton can target international markets with far fewer capital restrictions requirements than the existing system.

Building a culture of innovation

– managers at Arnell Clayton can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.

Learning at scale

– Online learning technologies has now opened space for Arnell Clayton to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Manufacturing automation

– Arnell Clayton can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Loyalty marketing

– Arnell Clayton has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Arnell Clayton can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Buying journey improvements

– Arnell Clayton can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Creating value in data economy

– The success of analytics program of Arnell Clayton has opened avenues for new revenue streams for the organization in the industry. This can help Arnell Clayton to build a more holistic ecosystem as suggested in the Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version case study. Arnell Clayton can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.




Threats Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version are -

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Arnell Clayton.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version, Arnell Clayton may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Arnell Clayton in the Leadership & Managing People sector and impact the bottomline of the organization.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Arnell Clayton business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– Arnell Clayton needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Arnell Clayton can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Arnell Clayton will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Consumer confidence and its impact on Arnell Clayton demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Easy access to finance

– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Arnell Clayton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology acceleration in Forth Industrial Revolution

– Arnell Clayton has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Arnell Clayton needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Arnell Clayton in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Arnell Clayton with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Shortening product life cycle

– it is one of the major threat that Arnell Clayton is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.




Weighted SWOT Analysis of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Arnell Clayton needs to make to build a sustainable competitive advantage.



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