Challenges faced by Sylvio Napoli in India

• Operational challenges
-Due to the high import tariffs on elevator components, reducing costs is a challenge.
- Managers collecting orders for non-standard elevator models that were not compatible with the low-
cost conventional elevator strategic planning.
-A 30% rise in transfer prices for the low-cost component raised overall costs and pushed the break-even
point out of reach.
- Delays in establishing offices in India were caused by legal paperwork issues.
 
• Management challenges
- Differing management styles from Indian cultures at the top made it difficult for their Indian
counterparts to communicate .
-Trust deficit among the Indian workers made it difficult for outsourcing businesses to implement their
strategies.

- Every aspect of business application required a high level of participation in a developing economy.
 If you were him what would you have done differently?

• Costs were kept down by standardizing but the level of service differentiation might
have been increased greatly to attract more customers.
• Greater emphasis on identifying and quantifying new venture operations and
resources.
• New facilities might be built up in India to take advantage of low-cost labour and
serve domestic and foreign markets including Pakistan, Sri Lanka, and Bangladesh
thanks to recently enacted tax reforms.
• Napoli-like leadership might have been used to target professionals in the
construction industry. The current MD's relaxed leadership style led sales team to
depart from standardized aim.
• Create new standardised versions to break into the manual elevator business, which
accounts for 50% of the Indian market.
What are the lessons learnt, linking this to the other class
discussions?

• There was lack of  coordination and motivation in  the company like it
was in the case of Allentown whereas the organisational structure of
Strabucks was highly structured and coherent .