Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
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
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 - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, there is backlash against globalization, technology disruption, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion,
digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , etc
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 -
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.
Diverse revenue streams
– Arnell Clayton is present in almost all the verticals within the industry. This has provided firm in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version firm has clearly differentiated products in the market place. This has enabled Arnell Clayton to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Arnell Clayton to invest into research and development (R&D) and innovation.
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.
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.
Low bargaining power of suppliers
– Suppliers of Arnell Clayton in the sector have low bargaining power. Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Arnell Clayton to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Arnell Clayton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Arnell Clayton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Learning organization
- Arnell Clayton is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Arnell Clayton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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 -
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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Arnell Clayton has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Arnell Clayton has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version, in the dynamic environment Arnell Clayton has struggled to respond to the nimble upstart competition. Arnell Clayton has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Low market penetration in new markets
– Outside its home market of Arnell Clayton, firm in the HBR case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Arnell Clayton 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Arnell Clayton supply chain. Even after few cautionary changes mentioned in the HBR case study - Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Arnell Clayton vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Arnell Clayton has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Arnell Clayton even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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 -
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.
Developing new processes and practices
– Arnell Clayton can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Arnell Clayton can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Arnell Clayton can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Leveraging digital technologies
– Arnell Clayton can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Arnell Clayton to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Arnell Clayton in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Arnell Clayton can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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 -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Arnell Clayton needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
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.
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.
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.
Stagnating economy with rate increase
– Arnell Clayton can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Arnell Clayton needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
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.
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 .
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.
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Clayton Industries, Inc.: Peter Arnell, Country Manager for Italy (Brief Case), Chinese Version