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Schindler Case Study Silvio Napoli at Schindler India
entrance into a new global market. government guidelines. (2) was Silvio the right choice for general manager of the India operation.Schindler 2 Schindler Case Study Analysis The Harvard Business School case study Silvio at Schindler India summarizes the concerns and issues related to the Schindler Holdings Ltd. tactical method appropriate for the targeted market. (3) organizational structure. trying to establish a market in India. supply chain management including logistics efficiency. The company is a manufacturer of elevators and escalators based in Switzerland. including but not limited to (1) international and local staffing policies. The following critical issues will be discussed in this analysis. . sourcing and logistics strategies. development of products including targeting and positioning. and possible human resources management issues including cultural navigation and other differences. head of corporate planning at Schindler. The purpose of the venture was to create elevators at a cheaper cost than the existing market value. (2) marketing. Schindler had to decide the best global. and (4) the strategic approach and mode of entry. (1) identify and discuss two major issues and management problems that challenge Schindler’s cultural adaption for its operations in India. The lead on this was Silvio Napoli. Silvio and company had many challenges to cope with. (3) the overall evaluation of Silvio’s first eight months as general manager of the Indian company. Significant members of the executive board thought that there was substantial growth potential in the business of elevators.
“an international firm doing business in another country must determine which of that nation’s business practices differ from its own and then decide which adjustments. Napoli presented his idea in a persuasive business plan and was offered the task of making this a successful venture. Lacking the local knowledge necessary. it prevented Napoli from recognizing this as a possible barrier. p. 3). in-depth consultations with market experts. Though research was conducted.Schindler 3 Two major issues and management problems challenging Schindler’s cultural adaption for its operations in India. Radebaugh. . leaving potential revenue on the market. are necessary if it is to operate efficiently” (p. In the short term. This approach levies limitations almost immediately that create a disadvantage for a new market entrant. This business approach made no allowances for customization. and studies by local consultants (Silvio Napoli at Schindler India. According to Daniels. He decided to center he focus on basic and narrow products lines for rapid market entry based on market research. if any. standardization could produce fast-tracking sales and promotion but cannot survive in the long-run as acquiring new business will be a challenge because standardization reduces possible opportunities for the company to do business with customers that may require customization or slight changes to the standard product. Strategy as a new market entrant Napoli’s method to entering the Indian market concentrated on standardization. 50). and Sullivan (2011). he soon learned that standardization was not the preference of the customer.
Despite the findings. sourcing strategies and logistics are other major issues and challenges. there would be no problems and Schindler would have success in India. 8). It had to find its own unique source of advantage. He theorized. If the business plan was built off this principle. DRS (2011). The team established “an innovative approach to sell the standard line. talks about global integration as the “process of combining differentiated parts into a standardized whole” so as to achieve/improve efficiency and synergy (p. Not reinventing the wheel was not a method Napoli wanted to take. His mistake was deciding to outsource most of the logistics and manufacturing functions to decrease costs without taking in to account the importing fees. in-house manufacturing. Nonetheless. 9). To name a few include: low quality products. there are unintentional significances that could hurt Schindler’s reputation. 417). Entering into joint venture partnerships in an unknown market seems to be a more rational method to reduce . Schindler’s tactic was reckless and ill advised. questionable working conditions and unreliable delivery.Schindler 4 Marketing. He felt that Schindler could not compete just "matching what others did. p. Most foreign elevator companies manufactured locally due to the high import tariffs. and no centralize assembly. “the most effective way to enter the new market would be to focus on a narrow product line of simple and standardized elevators.” (p. 8). Napoli decided against logistics infrastructure.” (p.” (Silvio Napoli at Schindler India. From an advertising viewpoint. The issue with outsourcing is the lack of monitoring and quality control. high transfer expenses prohibited the company from transporting needed materials from the European factories. He briefed this marketing plan to the management team he assembled in India. shoddy work.
he was connected to a network of individuals. His weaknesses are that he is so demanding. It is easy to say Napoli lacked understanding. and limited experience of the market and culture of India. he had the assurance of the Chairman and executive committee. Was Silvio the right choice for general manager? After looking at this. he had everything needed to succeed. He brings numerous strengths to the company and venture: he was involved from the beginning to the end and was the draftsman of the business plan. These conflicts arisen due to the culture of India being informal and relaxed. . He did everything right in that aspect. In saying that. This is why the executive committee was hired. The stress may have contributed to him not being able to adjust when it was realized that the culture was different from what was anticipated. Silvio was the right choice for general manager.Schindler 5 manufacture costs. I think an evaluation of Silvio’s strengths and weaknesses is needed along with the outcome of the project before determining if he was the wrong choice. This style of management was in stark contrast to his executive committee and subordinates hired that resulted in communication difficulties and other issues. hasty and impatient. It can be challenging trying to keep up with work while facing a crisis in one’s personal life. and had meaningful participation in the successful Swatch project. knowledge. better monitoring and guard of the company reputation and brand. his stress level was high in dealing with the demands of the start-up and pressure of relocating his family. Even though. The rule of thumb is always hiring people smarter than you. Having a partner will guarantee Schindler’s interest with quality control.
Silvio has all the things needed to succeed in India. his calculations were . How would you evaluate Silvio’s first 8 months as general manager? Silvio’s difficulties in understanding the culture overshadowed his strengths mainly because the attributes he possessed did not get used properly. strategy and implementation of work are the key elements that result in demonstrated ability and success to successfully complete projects with little disruptions.Schindler 6 Even though Napoli spent nine months studying the business atmosphere. That was a mistake on the company’s part. I also would have looked to have a partnership with a local company to share and cut expenses. I would evaluate his performance as exceeds expectations for effort while needing improvement in implementation and execution. 559). Personally. Overall. While problems arose. That said. DRS (2011) maintained knowledge is key to a sustainable competitive advantage (p. all of which Silvio can achieve and tweak by going back to the drawing board and making a few adjustments. I would have accepted this project because I would be determined to succeed but with a more sound business plan. It is unclear whether or not nepotism or an act of a crony gesture is what played a role in selecting Napoli for the position. Silvio did not have a back up plan to deal with any issues that came about. Bonnard. Luc Bonnard. consulting with specialists about survey data and arranging the business plan he did not have the experience of truly living and working in the culture. if I were Mr. I would have experienced the culture for myself before accepting responsibility of leading a project without proper acclimation. as he should have been enriched in the culture before being assigned the job. Imagine you are Mr.
his overconfidence in his abilities. this approach will aide in having a successful venture. economical. There are many factors a company should take into consideration to include political. It is essential for firms to do their homework. Mr. ineffective communication and staffing problems. Realize that values between cultures can conflict and necessitates a plan of action to address situations when they occur. legal. too prideful about asking for help and getting the situation under control. the reminder of assumptions and poor planning are costly. Additionally. environment and social . It is necessary to recognize how these elements and others influence the business plan development. Cultural differentiations are sometimes more challenging than anticipated. business rules and strategy to enter the new market. environment and social. There are many lessons that can be taken from the Schindler case. It is critical to understand the role and impact of political. and lack of cultural awareness. Problems that is fixable. legal. Also. Conclusion and Reflection The Schindler case is a powerful reminder that entering a foreign market requires a lot of planning and understanding of the culture. contract expert consultants who have a proven track record and strong reputation offering direction on how to conduct business in foreign countries. Bonnard should not remove Silvio from the project but should sit down and determine what went wrong to fix it while looking at a partner in India.Schindler 7 outdated so it gave the company incorrect information. economical. The executives believe in Silvio and should take the effort to help him succeed if they believe he can turn this around and worth the risk. it is vital to learn how to adapt in situations that are not apart of the script.
teams units and divisions into a functioning whole” (p. I think British Airways could learn from the mistakes made by Schindler and Napoli by staying in contact with headquarters as things will get rough and keeping them informed with what is going on good or bad. .558). Knowing the culture and gathering proper research with valid. We will be sure to not make that same mistake going forward.Schindler 8 factors. This was a failure on Napoli’s part to create a successful environment in India. For our Team project. DRS (2011) states that building a requisite organization calls for managers to integrate the efforts of people. up to date information that will assist and knowing the wants and needs of the customers.
L. (2011).D. Pearson Custom Publishing Learning Solutions. & Sullivan.. Silvio Napoli at Schinlder India (A). Bartlett.H. International Business (13th ed.. 2006.). D. 9-303-086.P. . J. M. Faganm P.Schindler 9 References Daniels. Harvard Business School. Radebaugh.. C. Yoshino..
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