The focal company has several disadvantages. First of all, his worst asset would be his financial situation. Clayton SpA's net profit growth rate has been reduced from 8.7% to 4.4% since 2004. Furthermore, its heavy operating losses for three years now have exceeded $1 million per month at end of 2009. Furthermore, the worst capacity would be its business capacity. Despite the 2009 global economic crisis, Simonne Buis' decision to try to create a more integrated European organization is also a crucial reason why Clayton SpA has remained money-losing. There were two main changes he made to achieve his goal: “Top Four in Four" and 10/10/10. From my point of view, these two changes were unrealistic due to the diversification of each country's situation in Europe. It was also forgotten to consider local laws and strained labor relations which means reducing receivables, inventory and headcount by 10. Due to the inefficiency of these changes, the focal company faced a situation more difficult than ever. Furthermore, thanks to Arnell's meeting with bank representatives, Clayton SpA gained more time to pay its debt in order to have more time to consider its future development and growth strategy. Due to European needs and preference of national brands, Clayton products faced competition from local brands. Last but not least, Clayton SpA also faced a challenge from Asian competitors due to its low pricing strategy. . Although the Italian company faced so many problems, it also had many competitive advantages. First of all, since the Barcelona factory cannot produce chillers on a large scale due to plant growth concessions there, the company's best asset should be its physical asset... half paper... all stakeholders . Especially on the part of Buis and Briggs.2.Clayton SpA, the Italian company should continue to cooperate with the local government to have stable revenue. In the meantime, they should try to find another company to partner with. 3. The focal company should take initiatives so that it can reduce the production costs of compression chillers. It should also evaluate the existing product line and eliminate the poorly performing product line and finally produce only better performing products. With lower prices and greater operational efficiency in the future, Clayton SpA products can compete with Asian competitors. In conclusion, from my point of view, it is too early to make a strategic decision without an unstable economic environment. The priority task for Clayton now is to focus on the profitability and efficiency of the current chiller line. You need to try to keep it as stable as possible.
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