...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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...Required Reading: DRS: Daniels, J. D., Radebaugh, L. H. & Sullivan, D. P. International business. (13th ed.) Chap. 20, “Human resource management,” pp. 747-788. For PowerPoint slides & chapter quizzes (self-assessments) go to: http://wps.prenhall.com/bp_daniels_ib_13/148/37970/9720352.cw/index.html Recommended Media: 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...
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...according to your scoring model, there is no difference between Alternative one and three, even though they are completely different (they both achieve the same score) * Why do the possibilities for future growth decrease when building an in-house production plant? * You do not really take into consideration that maybe the biggest problem is actually Silvio Napoli himself. Even if he was the one preparing the entry strategy plan, it is still possible that he is not the best one at implementing it. After all, the first thing that he encountered was a high demand for customized products, which was not really expected. * I think part of the problem consists of a leadership malpractice, which is not really surprising considering the changes in cultural environment that Napoli has to face. * Human resources: Napoli was the one hiring the staff, but eventually he turned out to also be the one complaining. Maybe he did not hire the appropriate people from the beginning, which could be one of the main factors that lead to not selling any elevator during the first eight months. * You mentioned cultural training for Napoli, which is probably crucial for performing this job * Very good and comprehensive appendices - they really help going easily thorough the whole report Comments to group 3 (?!) Report level: * First of all, the report looks very professional * Regarding the language style, I consider that too long sentences sometimes lack of clarity and I think...
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...based company to manufacture, market and sell Schindler elevators. Eventually, Schindler would acquire up to a 15% equity ownership of BBL; however, it would appear that Schindler did not leverage this equity stake by learning the intricacies of business ownership in India. The decision to create a 100% wholly owned subsidiary came at the behest of Silvio Napoli, Schindler’s Swiss head of corporate planning, based in no small part on an aggressive business plan Mr. Napoli developed specifically for the Indian market centered largely on selling “core, standardized products,” (models S001 and S300P) at low cost. Because of the highly economical cost of the sale of these models, no customization was allowed, and with the exception of some safety components, most of the manufacture and assembly would be completed in the Indian subsidiary. Mr. Napoli decided that the best course of action in India would be to improve the existing Swiss strategy of sales rather than re-inventing the strategy as a whole, and then ‘tweak’ their plans to make it more suitable for the Indian business environment. To implement this, Mr. Napoli employed 5 Indian nationals to act as leadership team, managers and department heads and assist with...
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...SILVIO NAPOLI AT SCHINDLER INDIA (A) Schindler was established in 1874 in Switzerland by Robert Schindler. In 1889, the elevators has been started to manufacture by company. Then, Alfred N. Schindler, fourth generation the family, transformed the firm from manufacturing Company to customer-oriented service company. Schindler is the leader in supplying escalators and second largest Swiss based company which supplies elevator. CEO, Alfred Schindler decided to enter the India market since it is a growing market. Therefore, Silvio Napoli, who is a graduate of Harvard MBA and head of the corporate planning of the company, charged for developing a strategic plan in India. Since 1996, Schindler has not direct operations in India except distribution agreement with ECE. After terminating it, they had a technical collaboration with Bharat Bijlee LTD. (BBL).Then, the negotiations between BBL and Schindler resulted badly and that agreement was terminated as well. Afterwards, in order to understand the India market, they agreed with Boston Consulting Group. They narrowed 34 potential partners to 8 and it was understood that the candidates were not appropriate for the partnership. Thus, decisions changed to start a wholly owned company in India. Silvio Napoli was a young man with a family. These properties made Alfred Schindler’s mind to choose Napoli as a GM for Indian company. He thought that only a young person can adapt himself to a different culture and he relies on him for making strategic...
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...Silvio Napoli at Schindler India WHAT IS A KEY ISSUE IN THIS CASE? Silvio Napoli, a Harvard MBA graduate was hired by Schindler Elevator Company where he introduced a business plan that supports the company's goal to grow its international market share by acquiring a fully owned subsidiary in India. The primary goals were to achieve 50 orders in the first year, then break even after 4 years of operations. It was also planned that 20 percent off the market share will be gained one the inside of 5 years. Because Napoli had constructed the plan, and he has had success in the past with his award winning Swatch strategy in a rising market that had growth prospects. It was the mindset among his bosses that he would be the best candidate for the job. The two key elements of his business plan strategy are as follows: 1.) The introduction of a line of standardized and non-customizable S001 & S00 3 elevators. 2.) The local supply of materials and companies. It had been 8 months since Napoli took up office and there hasn't been a single sale. Things had gone wrong. The strategic implementation of the business plan was not as easy as anticipated and the lack of infrastructure and support from the European plants is causing the implementation the much harder. HOW SHOULD HE DEAL WITH THE CHALLENGES HE IS FACING OVER TRANSFER PRICES AND LIMITED TECHNICAL COOPERATION FROM THE EUROPEAN PLANTS? The transfer pricing and the lack of technical cooperation from the European...
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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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...Silvio Napoli at Schindler India Analysis Name University Course Introduction When a company embarks on an international endeavor they are faced with many obstacles and adversities. The corporation’s keys elements are challenged, management tested, strategies examined, and decisions questioned. The purpose of this paper is to analyze the Silvio Napoli at Schindler India case study. This analysis will address Silvio Napoli’s actions while establishing an Schindler subsidiary in India. It will discuss the strategy, organizational structure, staffing, and Silvio’s progress. Also, this analysis will examine Schindler VRA’s decision of Mr. Napoli as General Manager and provide future recommendations for Schindler. Lastly, the paper will discuss lessons that may be applied to BG Group’s international endeavors. Analysis Schindler’s Indian Strategy Alfred Schindler, Schindler’s Chairman, recognized the huge market potential in India and decided to embark on establishing an Schindler subsidiary. The VRA appointed Silvio Napoli as General Manager to lead this endeavor. Silvio desired to differentiate Schindler from its competitors. Silvio developed a strategy of a narrow product line to serve low and mid to high markets, S001 and S300P respectively. Also, to gain a price advantage, Mr. Napoli planned to outsource the logistics and manufacturing sectors, with the exception of the safety-related components. This strategic plan had many shortcomings. Schindler was the first...
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...my chosen country of study for the Global Business Cultural Analysis research paper. With Rome as its capital, this fascinating Republic is full of rich history and Christian heritage. Lead by a Prime Minister, Italy boast being the seventh largest economy in the world (Thomas White International, 2013). The Italian peninsula is rich in the diversity of business, including world renowned automotive companies, fashion, textiles, tourism, and of course, the bounty of gastronomical wonders. Unfortunately, and adding to the flavor of this country, is the stronghold of corruption and organized crime that ultimately affects its own citizens and the further growth of their economy. Corruption has reached even as high as the Prime Minister, Silvio Berlusconi, who “has since been convicted of tax fraud, banned from public office for two years, and handed a one-year sentence.” (Cohen, 2013). I would like to study and learn about their local and international financial system, and discover why such a blessed country has such high unemployment rates among its citizens. I would also like to research their business culture, the types of corruption within the Government, their financial potential for improvement, and how international companies view investing in this interesting and diverse economy. Despite many negative factors, Italy continues to be the romantic capital of the world, full of dreamy landscapes, vineyards, and singing gondoliers. It will be most interesting to gather...
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...CORRUPTION Political corruption remains a major problem in Italy, particularly in Southern Italy including Calabria, parts of Campania and Sicily where corruption perception is at a high level. Political parties are ranked as the most corrupt institution in Italy, closely followed by public officials and Parliament, according to Transparency International Global Corruption Barometer 2013. Regarding business and corruption, foreign investments and economic growth are hindered by organised crime and corruption. Business executives from World Economic Forum Global Competitiveness Report 2013-2014 consider corruption one of the problems for doing business in Italy Procurement process, mainly in water, roads and railway projects, in Italy is affected by corruption. ------------------------------------------------- CORRUPTION CHALLENGES Government and politics Checks and balances in the Italian government are compromised. A 2012 study indicates that the legislative branch has little independence from the executive. This creates a disparity in power and enables the executive to govern without appropriate accountability. Integrity mechanisms are also poor in the public sector. According to a 2011 report, parliamentary and government codes of conduct are aspirational at best, and not enforceable. Weak – and often non-existent – sanctions cannot effectively deter corrupt acts. National corruption scandals also undermine public officials’ image. Political financing Corporate...
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...After scanning Sicily’s external business environment I came to the conclusion that it would be extremely challenging to have the manufacturing operations in this particular Italian region. I have conducted a PEST analysis to help you understand why it would be unwise and/or hard to achieve a successful market entry strategy in Sicily. I looked at the political, economical, social and technological factors and came across that the biggest obstacles to operate in Sicily are the current political and economical climate, whereas social factors would cause only mild difficulties and technological factors wouldn’t cause any difficulties. PEST analysis: POLITICAL FACTORS ==> Regional government – definitely one of the biggest challenges of doing business in Italy is the lack of clarity, efficiency and transparency of the government, which is most evident in Sicily ==> Slow court systems - difficult to enforce contracts ==> High income taxes (43%) and corporate taxes (27.5%) ==> Bureaucracy - high level of bureaucracy ==> Organized crime - Mafia infiltrates various business sectors. The extortion of money by mafia from businesses is common since it is a primary income for the mafia, aside from drugs and government contracts. ==> Corruption – the corruption has been an impediment for the economic growth for a long time. Its evident in government, investment sectors, banks, etc. ECONOMICAL FACTORS ==> Lack of transparency – many businesses are suffering from the...
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...The saga of Italian reporter Giuliana Sgrena, held for a month by kidnappers in Iraq and then shot by U.S. soldiers as she made her escape, is just another bizarre chapter in the continuing story of how President Bush's invasion of Iraq has put America behind the international eight ball. The wounding of Ms. Sgrena and the killing of her rescuer, Italian intelligence agent Nicola Calipari, triggered massive mourning in Rome and intensified simmering anti-American sentiment in Italy, where public opposition to the invasion clashes with official government backing. Italian Prime Minister Silvio Berlusconi, one of Mr. Bush's staunchest supporters on the war, has asked the U.S. Embassy for an explanation of the affair, in which the car carrying Ms. Sgrena and Mr. Calipari to the Baghdad airport was fired upon as it drove - or sped - through a highway checkpoint. The initial U.S. explanation was that the car was bearing down on the checkpoint at high speed and that the U.S. troops, fearful of another suicide car bombing and uninformed by the Italians of the car's mission, took customary defensive action when the driver of the car ignored commands to stop. That may be true, and perhaps a failure of communication was at fault. But in the court of public opinion in Italy and much of Europe, the incident only rekindles hostility toward the Americans for starting a war that they have not yet been able to finish. The string of unintended consequences, from the liberation that...
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...Since the effects of the media increased over people, the aim of the media has gone into an alteration. The morals of the media changed and a huge conflict became into existence between the morals in past and now. As all over the world in Turkey, ethics of the media changed after the media bosses have caught it. Media must be objective, impartial, and balanced, but because of the media bosses, it changed its ethics. The first purpose of media must be objectivity, but media rarely objective while reporting or researching information. Media’s objectivity is filtered and censored by the media owners, advertisers, newsmakers, news sharpers, and the pressure groups. All of the affect media while its doing its job. Media’s job is to inform. Because of the filters of media, it usually uses for propaganda, having profit and power. Many people think media is the most powerful means for propaganda. Lord Beaverbrook (1879-1964), who is owner of the Daily Express and founder of The Sun, and he used his newspaper for entirely for propaganda without taking into consideration of the purposes of media (Watson, 84). Media works same in Turkey as the world. The bosses, who have newspapers and television channels, use them for their propaganda. Moreover, this propaganda works very well because they have power over the people and having amounts of profit owing to media. Media is mass communication, a connection all over the world that informs, entertains, and influences people. It is powerful...
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...ITALY COUNTRY BRIEFING updated at May 2009 Forecast May 26th 2009 From the Economist Intelligence Unit Source: Country Forecast | | | | Outlook for 2009-10 • Italy's right-of-centre coalition government, led by Silvio Berlusconi, faces a major challenge to limit the impact of the global crisis on Italy's rapidly deteriorating economy and keep its fragile public finances under control. • Government cohesion will be hindered by divisions in the ruling coalition, but the Economist Intelligence Unit expects it to remain in office. Mr Berlusconi has a comfortable parliamentary majority and the centre-left is in disarray. • GDP contracted by 1% in 2008. Our baseline forecast is that it will contract by a further 4.6% in 2009 and by 0.6% in 2010. • The fiscal deficit is forecast to rise from 2.7% of GDP in 2008 to 5-5.5% of GDP in 2009-10. The public debt/GDP ratio is expected to be about 120% by the end of 2010, up from 105.8% in 2008. • Much larger deficits cannot be ruled out as our forecast assumes that the minister of the economy, Giulio Tremonti, will resist pressure for tax cuts to boost the economy and interest rates do not rise sharply. • Inflation (EU harmonised measure) will average 0.6% in 2009 and 0.9% in 2010, well down on 3.5% in 2008, reflecting weak demand and lower commodity prices. Monthly review •...
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...by English men made the club named Milan, the city name pronounced in English, instead of pronouncing it Milano, as for the all-time rival FC Internazionale Milano. The Associazione Calcio Milan has spent almost its entire history in the top flight of the Italian Football Championship, the Serie A. To date, AC Milan is the second most titled club in the world with 7 champions’ league titles, among other international trophies, right behind the Real Madrid and its 10 champions’ league titles (taking into consideration that Real Madrid won half of its champions’ league titles in the 60’s.) However, under the last 28 years of Italian Billionaire and Italy’s former Prime Minister Silvio Berlusconi’s chiarmanship, the Associazione Calcio Milan have won more titles than any other team worldwide. Thus, Silvio Berlusconi is considered as the most successful football club president of all times, even if there is a debate about it since Real Madrid fans consider Santiago Bernabeu as the owner of this title because of his 60’s successes. Throughout its history, the AC Milan has left its mark over the European Football. Indeed, the club has seen many prodigious players wearing the red and black shirt, but also several fabulous coaches that had led the team to some of the most memorable wins and records. For instance, the Swedish magic trio formed of Gunnar Nordhal, Nils Liedholm and Gunnar Gren, nicknamed...
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