Peter Arnell’s First Two Months at Clayton SpA: An Evaluation

Peter’s Performance:

Peter’s first two months at Clayton SpA seem like a mixed bag. Here’s an evaluation:

Positives:

• Recognized Problems: He identified key issues like stagnant growth, high COGS, and a strong union (FILM).
• Took Initiative: He implemented a cost-cutting program and streamlined operations.

Negatives:

• Autocratic Approach: His aggressive style alienated some employees and created tension.
• Disregarded Local Context: He didn’t seem to consider the cultural differences and established relationships in Italy.
• Ignored Union Concerns: His focus on cost-cutting could lead to clashes with the powerful union, FILM.

Understanding Briggs and Buis

For his meeting with Briggs and Buis, Peter needs to understand their:

• Priorities: Are they primarily focused on short-term cost savings or long-term market share growth?
• Risk Tolerance: Are they willing to risk a potential labor dispute with the union for faster cost reductions?
• Awareness of Italian Market: Do they understand the cultural nuances and the importance of maintaining existing customer relationships?

Why Buis Chose Peter

Buis likely chose Peter for his:

• Track Record: Success in the UK could have indicated an ability to turn around struggling subsidiaries.
• Decisive Leadership: His willingness to take action and implement changes may have appealed to Buis’ desire for quick results.
• Cost-Cutting Experience: His focus on streamlining operations aligned with Buis’ potential desire to improve Clayton SpA’s profitability.

Peter’s Likely Choice

Given Buis’ priorities and Peter’s style, Peter is more likely to choose:

• Option 1 (Focus on Cost Reduction): This aligns with Peter’s existing approach and Buis’ focus on profitability. However, it could exacerbate tensions with the union and lead to long-term problems.

Peter might consider Option 2 (Market-Driven Strategy) if Buis expresses a willingness to invest in long-term growth and navigate the complexities of the Italian market. However, his past actions suggest a preference for immediate results.

Recommendation:

Peter should present both options but advocate for a balanced approach that prioritizes cost-efficiency while acknowledging the importance of worker relations and market realities in Italy.