Corporate Strategies
Clayton Industries Inc. Lorenzo Mazzeo - 652821
Peter Arnell arrived in Brescia in late September 2009, and suddenly he had to face some daunting challenges due to the global recession: sales recorded a sharp decline of 5.3% in 2008 and a drop of 19.4% in the first half of 2009; Clayton SpA was in the third consecutive year of losses and accumulating more than 1 million US Dollars??per month; receivables and inventories are both above 120 day sales. In addition, the Italian market was split between low-priced foreign imports (Asian products) and Italian brands and offering neither the former, nor the second, Clayton was losing its product share in the market. Overall, the company
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Nevertheless, cost estimates were about 5 million, with almost all the investment in the first 12 months. Such investment would have been in contrast with the CEO’s and EVP’s guidelines and would have been very difficult considering the condition of the balance sheet, as Clayton lost 24.2 million in the last six months, with the only Clayton SpA loosing 6.7 million. Overmore, the company is currently losing more than 1 million per month as a consequence of a 27% increase in steel prices in the past two years. A a cost that would still affect the company by choosing this option and that could not be recouped due to foreign competitors’ aggressive pricing. In this sense it will be very difficult to compete with Asian low prices because both of the initial 5 million investment and the higher manufacturing costs. Hence, Clayton SpA is not going to develop a new product line able to acquire new market share in the post-recession profitable growth, it will be almost impossible to achieve the “top four in four” plan and to increase the low percentage (7%) of the overall market share, as compressor chillers have generated in 2009 only the 12% of sales for the rest of Europe. Finally this option would imply a greater layoff , counteracting the FILM, unions and local laws and affecting the company’s political relationship. However it would be very difficult to achieve a downsizing owing to
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
The report provides the analysis of the Harrison Company. The company financial conditions reveal that the company profitability has declined in the last three years making the company to face challenges in settling its short-term obligation. For example, Harrison Company has not been able to settle suppliers' payment on time as being stipulated in the contract agreement. The company deteriorating financial conditions has also made the company todecline the costs of marketing campaign in the last three years. With the implementation of various strategies to improve the company financial conditions, the report forecasts that the company will generate sales totaled $295 Million in the next five years compared to the company sales of $48 Million in the last year.
Chester Inc. is a client of SNHU, LLC who prepares the financial statements and financial analysis for Chester Inc. This report will detail several key items including the accounting effects of international expansion as it relates to differences between Generally Accepted Accounting Principles (GAAP), the United States standards, and the International Financial Reporting Standards (IFRS), the standards that would govern a portion of the financial reporting with an international expansion. This report will also review the financial performance of Chester Inc. Additionally; it will use ratio analysis to compare Chester Inc. with two of its main competitors.
Sterling Household Products Company manufactured and marketed a wide variety of consumer goods products which were sold domestically as well internationally. Despite having great products and being positioned well in the industry, Sterling’s growth prospects were limited. Sterling’s decision to acquire the germicidal, sanitation and antiseptic production unit of Montagne Medical Instruments Company could provide the much needed growth. Furthermore, the division was well aligned with Sterling’s existing operations, helping Sterling diversify its business without compromising on
Although times have changed since Lowe's first opened its doors in 1946, Lowe's values have not: the company remains committed to offering quality home improvement products at the lowest prices, while delivering superior customer service. Lowe's utilizes both strategic and financial planning in order to further their business and to stay in the competition with other home improvements stores for many years. Using strategic planning, the company has been able to make changes that allowed saving money and improving customers' experience. As diligent as Lowe's has been over the years, Lowe's reported a slight decrease in its sales and its earnings in its 2008 annual report. For 2009, the company plans to increase its revenues by using a
Clayton Industries was struggling due to the recent recession. However, Clayton SpA was particularly faltering - losing approximately one million dollars a month in mid-2009. Since 2004, Italy had been behind other European countries in revenue growth. Sales declined 5.3% in 2008 and in the first half of 2009 dropped by 19.4% (Bartlett et al., p.3). Accomplishing either corporate initiative set by Buis would be difficult for Clayton SpA. Inventory and receivables were both above 120 days and a reduction of 10 days would be difficult. Several factors, both internal and external, lead to the situation Italy faced at the time.
One night in 1981, Jeff Munks, a police office in San Jose, CA responded to an urgent call and arrived at a residence where a Vietnamese immigrant who spoke no English was screaming and waving his arms agitatedly. Next to him, his son was having trouble breathing. After Jeff guessed what had been happening and immediately called for an ambulance, he kept thinking about emergency situations where danger is exacerbated because of a language barrier. This resulted in Telephone Interpretation being offered since that year. This service connects trained interpreters via telephone to Limited English Proficient (LEP) Individuals. Cyracom International is one of those companies that provide critical
Market analysis C & J Clarks LtdCONTENTSEXECUTIVE SUMMARY1.INTRODUCTION2.COMPANY HISTORY AND PROFILE2.1C&J Clark2.2History2.3Manufacturing2.4Range of Shoes2.5 K Shoes3.MARKET ANALYSISA. MICRO ENVIRONMENT3.1 Market Data3.2Competition3.3Consumer demandB. MACRO ENVIRONMENT3.4Political3.5Social3.6Technological3.7Economic4.SWOT ANALYSIS5.IDENTIFICATIONS OF STRATEGIC ALTERNATIVES6.RECOMMENDATIONS6.1Short Term6.2Medium Term6.3Long TermEXECUTIVE SUMMARYI have been asked by C & J Clark Limited (Clarks) to prepare a report which would include a market analysis of the UK footwear industry and to propose a number of strategic recommendations which would ensure that Clarks secures its short, medium and long term future as the market leader in the shoe
Since its establishment in 1925, Caterpillar Inc. has built a name in the construction and mining industry as an excellent manufacturer of equipment for a wide range of applications. Today, the company is the market leader in the industry and now it targets to expand its operations globally. In the various emerging economies such as India, China, and Brazil, Caterpillar Inc. has sported potentially profitable opportunities which it needs to exploit before its competitors establish their presence in those markets (Rome & Levine, 2006). In this regard, Caterpillar Inc. has to have an effective business strategy and contingency plans as well as an effective implementation plan. This paper shall discuss the components of the implementation
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
Company Datamonitor Report, June 2006 viewed 17th February 2007 http://web.ebscohost.com.ezlibproxy.unisa.edu.au/ehost/pdf?vid=6&hid=3&sid=996498d3-c3b0-4fcb-ad90-d280615ac7af%40sessionmgr102 Ettenson, Richard & Knowles, Jonathan (2006) "Merging the Brands
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