Did Schindler make the right choice in assigning Silvio as general manager oI
I do not believe Schindler made the right choice in assigning Silvio as the general
manager oI India. Silvio had little to no "real world" international
experience. Silvio had much success in Sweden but there are several Iactors that
limited his success in India. Silvio had high "warrior" and low
"monk" attributes. Silvio was a task oriented individual. This
management style is not well received in India. The General Manager needed to be
a person that can change their behavior when dealing with diIIerent cultures.
BeIore making their selection Schindler should have required Silvio to take a
Global Mentality Test. This test would have told Schindler iI Silvio was open to
accepting other cultures. II the test showed positive attributes, Schindler could
have provided Silvio with the training required to prepare him Ior this new
assignment. The problem with this training option is the time required. Given that
Schindler was expecting large growth in a short period oI time (sell 50 units in Iirst
year and have 20° oI the market share within 5 years), they should have hired a
General Manager that was more experienced with business in India and had Silvio
report directly to that person.

2. As Luc. Bonnard, how would you evaluate Silvio's Iirst seven months on the
Silvio's perIormance has both positive and negative attributes. Silvio's method Ior
selecting the management team was extremely positive. His choices oI a
management team seemed to be very logical and well thought out. It was obvious
Irom the case that Silvio knew he was not in a comIortable environment. The
selection oI experienced managers with a background in India was extremely
needed. Another positive attribute was his desire to get buy-in, Irom the
management team, to his business model Irom the start.
From a negative standpoint, Silvio should have either done more upIront work
prior to relocating his Iamily to India or have relocated his Iamily prior to starting
to develop the company inIrastructure. Silvio spent weeks trying to juggle the
relocation oI his Iamily and setting up the company inIrastructure. As a result oI
the juggling, neither goal was executed well. Silvio needs to become more
accepting oI alterations to his business plan. Silvio was determined to Iollow his
business plan even iI the market revealed better alternatives. A good example oI
this was the decision to strictly oIIer a standard product line with no customization.
Customers were pretty clear that the standard product line would not be acceptable
Ior the Iirst two orders that Schindler India received.
I would advise Silvio to sit down with his management team and reevaluate their
business plan. AIter the re-evaluation Silvio needs to gain the respect oI the team.
In Sweden Silvio was given respect due to his position. In India Silvio would need
to earn the respect oI his management team. The "warrior"
management style that Silvio was Iamiliar to did more harm than good at earning
their respect.

3. What advice would you give Silvio regarding his decision on the nonstandard
glass wall elevator that has been ordered?
Even though the company would loose money by accepting this order Silvio
should accept it. UnIortunately, you sometimes need to accept loss to gain
acceptance in a market that is dominated by a competitor. II Silvio can pull oII the
installation, demonstrate reliability, and provide superior customer service the
company could make large strides in penetrating the market. Silvio should
approach Mr. Schindler about the lack oI support he is receiving Irom the
European plants. Outsourcing the S001 manuIacturing to local suppliers is the
critical part oI Silvio's business model. With the increased import duty rates Silvio
can not aIIord to let the outsourcing plans be delayed any longer. This duty
increase and the short time Irame to deliver 50 units requires Silvio to take this
approach and ensure success.

4. How should he deal with the challenges he is Iacing over transIer pricing and
technical cooperation Irom the European plants?
The transIer pricing and the lack oI technical cooperation Irom the European plants
are crippling the organization. Both oI these problems need Silvio's immediate
attention. The business plan's main objective was to develop a unique competitive
advantage by outsourcing the manuIacturing to local companies. This would allow
Schindler India to avoid the excessively high import duties and transIer pricing
while keeping overhead cost extremely low. Silvio needs to take the lack oI
honoring transIer pricing and supplying technical inIormation to Mr. Schindler.
Mr. Schindler can use his inIluence to insure Silvio can meet the very aggressive
time Irame that has been established.

5. Should Silvio change the strategy Ior Schindler India that he developed when he
was in the company's headquarters?
I believe that Silvio should sit down with his management team and re-evaluate the
business plan. One area oI concern is centered on the intended market place.
Silvio's business model requires high levels oI growth, even within the Iirst year.
The business plan also laid out a business model that had never been attempted in
the India Elevator market. Lastly, neither the business plan nor Silvio allowed
Ilexibility. Flexibility is generally required in a highly competitive market. Each oI
these items are obstacles that need to be conquered prior to experiencing growth.
Most oI these items are in direct conIlict with a target oI high growth in a short
time period.

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