...Case Analysis of Schindler By University of Maryland University College AMBA 660 Week 8 August 31, 2012 Introduction The paper will discuss the challenges faced by Silvio Napoli, in carrying out Schindler’s expansion into the Indian elevator market at the request of the VRA, the corporate committee of Schindler which included Alfred Schindler (CEO), Luc Bonnard (Vice Chairman), and Alfred Spoerri (CFO). To begin Silvio Napoli, a young MBA from France, a third-country national, was fully responsible for the Indian expansion, and he had to get operations up and running and profitable in for years. His challenges included staffing and implementing a business plan he developed. Napoli’s plan two basic premises 1) to sell standardized elevators in India, and 2) outsource manufacturing and logistics in India. Napoli’s plan had success earlier in his career in 1995 with the Swatch Project that bested industry standard 20- to 30- week cycles by 50% with this same approach. Other challenges faced by Napoli included pressure in family his family life as a result of poor planning and no employee assistance program to get his family acclimated to Indian culture. That poor work-life balance distracted Napoli to the point where he could focus on neither his work, nor personal life. After 8 months he had not installed one unit and had orders that were contrary to the standardization strategy his entire business plan was based on. Government activities that affected Schindler’s...
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...Business School case study Silvio at Schindler India summarizes the issues and problems associated with the elevator company’s entry into a new market global. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators pursued new entry into the India market. Key members of the executive committee believed that there was a significant growth potential in the industry. The goal of the company was to develop standardized elevators at a lower cost than the existing customized market. They turned to Silvio Napoli, Vice-President; Schindler in Asia to lead the new market entry. To enter the market, Silvio and company had many factors to contend with; including but not limited to (1) the strategic approach and mode of entry; (2) organizational structure; (3) marketing, sourcing and logistics strategies; and (4) international and local staffing policies. Simultaneously, the company had to consider the best international strategic approach applicable to the specific market environment; government guidelines; product development including targeting and positioning; chain supply management including logistics efficiency; and possible human resources management issues including cultural navigation and other differences. The following critical issues will be discussed in this analysis; (1) identify and discuss two major issues and management problems that challenge Schindler’s cultural adaption for its operations in India; (2) was Silvio the right choice for general...
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...1. Was Silvio the right choice for general manager of Schindler's India operations? Silvio Napoli is the right candidate for the job of general manager of Schindler’s India operations. Mr. Napoli is a bright MBA scholar of Harvard University Graduate School of Business Administration. He also earned a degree in Material Science Engineering, from the Federal Institute of Technology (EPFL), in which he ranked top 20% of his class. Not only does he have several degrees, but also a lot of experience behind him. Since 1989 until now, Mr. Napoli had many job positions that have qualified him to become the General Manager of Schindler in the South Asia operations. Plus who could be a better candidate for that position then Mr. Silvio Napoli; that the person who designed the business plan and knows how to put into action. Mr. Alfred N. Schindler was looking for a candidate that has more strengths than weakness’s. He was looking to fill that position of general manager for the South Asia region with a dynamic individual. Plus he needed someone in whom he can trust and could get the job accomplished. Mr. Schindler was searching for someone that was young, energetic and flexible and will be willing to move to India. He was also seeking for a person that was enthusiastic, aggressive, and courageous and knew about the elevator business. Those characteristics that Mr. Alfred N. Schindler was looking for Mr. Silvio Napoli has. He was 33 years old and full of energy, aggressive, risk taker...
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...Schindler India case The ascend of Silvio Napoli up the corporate ladder of Schindler was swift enough to give him greater responsibilities than most managers possess at the age of 33. The business plan to enter the Indian market was a strategic one – one which meant greater presence of Schindler in the market elevating its market share and revenues. There were several challenges though, in the process that presented themselves like two-edged swords to Napoli and company. Napoli was in-charge of the project and had to be accountable for the happenings in India to Alfred Schindler and the VRA. Amongst the various personal and business issues, the key issue that was of the highest concern for Napoli while setting up the plan in India was the fact that the project had over-run its development time and had not yet registered its first sales in spite of the business plan conjuring sales of 50 elevators in the first year. The cost of importing the raw materials and the plant to set up the manufacturing facilities was of an even greater concern for Napoli. Already lagging behind in the costs and the time targets, Napoli had to conjure up things so that within the next 4 months he would be in a position to begin selling in the Indian market. It is true that he had a team of exceptional managers under him, however, this did not help him fight the uncertainties laden with the project – standardization was one standard that was not consistent for the company. There were more instances...
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...Napoli Case Study Schindler Holdings Ltd. is a Swiss-based company that designs and produces elevators and escalators. Silvio Napoli, who is Schindler Holdings’ head of corporate planning manager in Switzerland has been relocated to New Delhi and has been promoted to vice president. Napoli obtained his new position by creating a business plan that strived for “core standardized products,” which meant that the production of elevators in India would be simple and of minimal design. Napoli thought the plan of producing standardized elevators would be a great idea and create a competitive advantage over other companies that made customized elevators. This plan in actual fact turned out to be a failure due to certain factors. Due to high import costs, many foreign elevator companies were forced to manufacture locally. Since Napoli knew about this situation, he decided to do things a different way. To keep costs low, Napoli would have elevator parts outsourced by local suppliers in Europe. However, when Napoli looked over the transfer prices he noticed that they were 30 percent above the costs he had originally calculated. When he contacted the company to complain, it turned out that a new transfer system had been created, so raising costs were necessary. Also, while communicating to one of his leading managers in India, Napoli had discovered that the company had accepted an order for an expensive glass customized elevator, instead of the original standard elevator...
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...Segment 15 Video, “Global HRM,” Course Content. Assignment: Individual Paper #2. Case Analysis. (15%) Read: “Silvio Napoli at Schindler India.” You purchase the cases directly from Harvard Business Press. Copy and paste this link directly into your browser: http://cb.hbsp.harvard.edu/cb/access/11520415 Deliverable: Submit an analysis of the operational and managerial challenges Schindler faces in India. Your report should clearly demonstrate your ability to apply, integrate, and cite relevant theories, concepts, frameworks and ideas from course readings into your analysis. Additional research is not required or desired. Use the data and information provided by the case study, course readings and conferences discussion. Format: The report is to be 7-to-8 pages, double-spaced with 1-inch margins, 10-to-12 point type, and posted as rtf or Word document. Use APA format for references. The cover page, references, and appendixes are not part of the page count. The organization of the report is to include: Introduction: A brief, one-to-two paragraph introduction that succinctly states the issues or problems you will discuss in the report. Do not restate the facts presented in the case. Analysis: 1. From the list below, identify and briefly discuss what you consider to be the two major issues and management problems challenging Schindler’s cultural adaptation for its operations in India. • Strategy, mode of entry • Organizational structure • Marketing, sourcing strategies...
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...Brief Introduction Silvio Napoli has been charged with creating a new division of Schindler in India. In addition to creating a new subsidiary and new low-cost elevator strategy in India, Napoli also has the added challenges of incorporating essentially three cultures (Italian, Swiss, and Indian) (Bartlett, C., Fagan, P., Yoshino, M. 2006). It is difficult to know Napoli’s level of adaptation to Swiss culture, so I will consider him to be Italian, and thus discuss his interactions with both Swiss and Indian culture. In the below case study analysis I will analyze various cultural assumptions within Italian, Swiss, and Indian cultures and provide Napoli with a specific action plan to incorporate the cultures successfully, gain true consensus among managers, provide insight on strategy deployment and advise him on whether he should share the situation with Luc Bonnard. Cause and Problem Analysis In the below section, I will analyze key assumptions of the three national cultures and discuss strategy deployment. These assumptions include the relationship with nature, nature of truth and reality, controlling vs. adapting strategy, relationships with people, time, language and communication. Assumption 1: Relationship with Nature Italy’s relationship with nature is very different from that of Switzerland and India. Italian culture lends the idea that situations can be controlled by regulations and rules, whereas Switzerland and India have a culture that denotes fewer rules...
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...Silvio Case Analysis Introduction The Silvio case reads as a classic case of a manager born far earlier than he should have been. The facts that will be analyzed paint a picture of a smart but untested manager that was set out with a noose already around his neck and tightened with little room for escape. The lack of analysis of feasibility of his original plan and a proper risk assessment led to a very difficult situation. Silvio made some key mistakes on his approach to starting up a new business in a country that already had key leaders and a culture he did not understand. This report will analyze some of those mistakes so that a clear picture can be gleaned of what not to do during a start-up in a new market. Analysis From the list below, identify and briefly discuss what you consider to be the two major issues and management problems challenging Schindler’s cultural adaptation for its operations in India. * Strategy, mode of entry The largest of the issues faced is the strategy and mode of entry that Silvio proceeded with to enter an already established market. The Swatch model of low cost standardization works because it is a simple design in a watch. This was implemented by many different production managers in the 90’s with varying levels of success depending on what they were manufacturing. This deviation may work in some situations, but in this case it is a very poor choice. The market was already flooded with low cost versions of elevators and the...
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...MULTINATIONAL MANAGEMENT COURSE OUTLINE (2007-09) The globalization of the world economy and the related liberalization of the Indian economy are radically changing the business landscape. The international capital flows into India have increased several-fold since the onset of liberalization; Indian companies are becoming multinationals in their own right--a trend certain to intensify in the coming years. All in all, multinationals are becoming more ubiquitous as an instrument of economic and business activity. The business leaders of tomorrow need to be trained today in the unique requirements of multinational management. It is toward this objective that the proposed course in Multinational Management is being offered. The course combines a number of sub-disciplines from the fields of social sciences and business administration. It is broad in sweep; its depth is pitched at the PGP level. The overall course is divided into four modules, as follows: Module I--International Business Context-- provides an historical perspective on globalization and presents a viewpoint on its future direction. It also covers some of the globalization drivers including international trade and investment and how they spawn multinational activity. The phenomenon of domestic and cross-border corruption and bribery, often an inherent part of such activities, is discussed. Finally, it postulates how countries and companies can develop competitive advantage and defines the implications...
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...Chapter 1 expanding abroad: motivations, means, and mentalities Case 1-1 Cameron Auto Parts * Alex Cameron got the family biz when graduated in 2001, when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity ...
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...Chapter 1: Expanding abroad Voorbeeld MNE: Intel, Unilever, Samsung, McKinsey Starbucks Vb. blz. 3 toont aan dat de invloed van MNE op de wereldeconomie gigantisch is. MNE stellen enorm veel mensen te werk en volgen vaak een zeer complexe strategie. 1. The MNE: Definition, Scope and Influence Wat is een MNE – multinational ( multinationaal management) Niet alle MNE zijn groot, maar de meeste grote bedrijven in de wereld zijn MNE. zijn Men is alleen een MNE als men aan deze voorwaarden voldoet: 1. Directe investeringen doen in het buitenland. MNE doet niet alleen aan export, maar is ook écht aanwezig in het buitenland. Ze voeren er directe investeringen in door vb. te produceren in het buitenland. 2. Actief met de investering bezig zijn (vb. aanwezig zijn in de RvB) 3. Geïntegreerde operaties (geen losse filliaaltjes) Dit betekent ook dat de operationele omgeving sterk verandert, de complexiteit stijgt. ekent omgeving Veel verschillende consumenten, distributiesystemen, … Ook de politieke agenda van de landen waarin we investeren speelt een belangrijke rol. Global game: men speelt wereldwijd waardoor alles complex wordt. Binnen de EU spelen de wisselkoersen geen rol meer maar daarbuiten wel, dit kan een belangrijke invloed hebben op vb. de winst. Ook organisatorisch is de omgeving complex. De meeste MNE zijn vrij recent (na WO II) uitgegroeid tot internationale spelers. In totaal zijn er wereldwijd zo’n 70 000 bedrijven van dit type. De toegevoegde waarde van grote...
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