This report reviews the current situation at Clayton Industries and addresses the challenges that we are facing. We present various strategies that are available in front of us and compare these strategies. We then recommend the most suitable course of action that places the company in a strong position when the economy recovers. Background The compression chillers division is facing a major dip in its profitability and the prime objective for us is to restore the profitability. We have been experiencing a sales drop of more than $1 million a month. Some of the key reasons for the current situation are as follows:- 1. Because of recession the demand has been shrinking for its product-compression chillers, and the steel prices also have seen an increase of 27% in the past two years. 2. Clayton chillers lagged the operating efficiencies of market leading units by 15%. This is leading to increased internal operating costs. 3. Major customers of other European countries, other than Italy, have opinion that the product is too expensive and has little innovative features to competito......

Word Count: 1740
Page Count: 6.9 (250 words a page / double spaced)

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