Case Analysis Report
Clayton Industries: Peter Arnell, Country Manager for Italy (HBS Case # 4199)
1. Evaluate Peter Arnell’s first two months as general manager of Clayton SpA. What are the main challenges he faces? How well is he dealing with them?
The biggest challenge Peter faces is the stagnant growth that Clayton SpA has experienced in recent years, especially with a 5.3% decline in 2008 and 19.4% drop in the first quarter of 2009 for Italy. This lack of sales directly affects receivables and inventory. Coupled with a strong union in Italy (FILM), these two forces directly contribute to the difficulty of fulfilling the 10/10/10 plan. Based on these trends, a “top four in four” years is unlikely unless SpA can
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Furthermore, the four for four plan cannot be met if this strategy is instituted.
3. How would you convince your bosses to back your recommendation? Prepare your arguments and support them with data.
I believe that the first option will have the most immediate, effective, and guaranteed impact for Clayton SpA. There are significant areas in need of improvement that can all contribute to the long term success of the division and taking a chance on an entirely new product with unproven technology at this point in time is an unnecessary risk.
Given that Net Income is down across the board, we can see that 08-09 has been a rough year mainly due to the decrease in sales and increase in the cost of raw materials: $37.5 to $50.1 million. If it is true that the Italy plant is currently 20-30% overstaffed, then it will be imperative that Italy drives its COGS down from current levels to achieve its goals.
4. How could you implement your recommended strategy? Prepare an action plan.
* From the firings, we can see that management does not share Arnell’s plans for massive changes. * Bad PR right now with regard to FILM and possibly worker morale * Focus should be on improving efficiency while decreasing the number of employees * Systematic evaluation of workplace efficiency, increase incentives for better production * Increase training for management – improve workplace
A major reason for this is directly correlated to their innovative ways to lower cost and increase profit margins. Loblaw’s must continue striving for excellence and remodel their supply chain, in order to maintain and exceed their company profit margins. Without proactively adapting to new technologies Loblaw’s will fall behind the market standard and lose their position in the market, potentially losing profit margins and market share.
1.1 Financial Resources & Capabilities During the period from 2007 to 2009 total sales went up 8.13% which is a strong performance. Most contribution is driving from domestic sales (i.e. German operations). 2007 Turnover (€m) Total turnover growth (%) Grocery Sales Density (euro/sqm/wk) Number of Stores Sales Area (‘000 sqm) 41,818 +3.9 2008 45,183 +8.0 2009 45,221 +0.1
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1. Using symbolic interaction theory as your guide, explain how the terms “aliens” and “illegals” helped shape public opinion/attitudes in Farmingville towards Latino day laborers. What do these words mean? How did these definitions influence perceptions and behaviors?
What sales volume would have been necessary in 2004 for Benetton to attain a target income from operations of €300 million?
1. Identify the key factors responsible for the success of Gordon Biersch to date. What concerns, if any, do you have as the company looks ahead?
Provide the following discussion based on the conclusion of your test: If you conclude that there are less than sixteen (16) ounces in a bottle of soda, speculate on three (3) possible causes. Next, suggest the strategies to avoid the deficit in the future.
3. What is your evaluation of the company’s internationalization strategy under Tony Massaro’s leadership? Is it likely to be more successful that the previous offshore initiatives? If so, why?
Morris Mining Corporation owns and operates mining facilities that are located in the United States, and Canada. This company primarily distributes extracted ores and minerals to their customers. Recently, in January 2015, Morris Mining acquired the mining company King Co. Once the company has been acquired, Mining Morris plans to record the difference of the purchase price and identifiable net assets as goodwill. The identifiable assets and liabilities of King Co. are going to be recorded at fair value on Morris Mining 's books. There has been discussion as to how the company is going to report the fair value for the patent that is part of the assets they acquired from King Co. Rob, an audit manager on the Morris Mining engagement, and Gabriela, the audit senior, are trying to evaluate if the method of the fair value estimate it reasonable.
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In the summer of 1998, Nantucket Nectar created a subsidiary of their brand called Juice Guys. This new product was comprised of fresh juice and fruit smoothie drinks that were taking over the West Coast. Within three-and-a-half months, Juice Guys had sold a total of 175,000 items ranging from smoothies, yogurts, sorbets, Nantucket Nectar drinks and fresh squeezed juices. Juice Guys’ revenue went up to 91% and they made a profit of $227,000 in sales.
4. If you were Woodmere’s top management, what suggestions would you make to improve the current proposal? Why?
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