...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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...Silvio Napoli At Schindler India Management Essay Published: 23, March 2015 Schindler, a Swiss elevator company, had decided to develop and grow its international market share by planting a fully owned subsidiary in India. Its primary goals were to achieve 50 orders in its first year and break even after four years of trading. It also planned to win 20% of the market share inside of 5 years. Silvio Napoli, had been carefully selected as he was the author of the business plan which had documented this take-off. The mindset was that Silvio could replicate his winning Swatch strategy in a rising market that had strong growth prospects. The two key elements of his business plan strategy was (a) the introduction of a line of standardised and non-customised S001 and S003 elevators and (b) the local supply of materials and components. It had been eight months since he took up office and there hadn't been a single sale. Things had gone pear - shaped frustrating Silvio as they had hindered his attainment of the targets set for him. Firstly, selling non-standard elevators in India was myopic where customised elevators were critical to new entrant strategies. Secondly, his strategic expansion highlighted cost reduction instead of focusing on product customisation. Thirdly, communication problems and lack of vital support beleaguered the new low-cost subsidiary from its parent company. Finally, it appears personnel were not "listening". Read more:...
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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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...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 activities such as raising transfer taxes and import duties also presented Napoli with unplanned production cost. Analysis ...
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...“CASO : SCHINDLER INDIA” I.- RESUMEN EJECUTIVO Schindler holding Ltda., unos de los mas prestigiosos fabricantes de escaleras mecánicas y ascensores del mundo, decide en el año 1998 expandir sus operaciones en la India apostando así un mercado en crecimiento y lleno de oportunidades que la compañía no dejara pasar. Buscando un modelo diferenciador para la llegada de la empresa a la India, Schindler Holding implantar un modelo de ascensores diferente a los ya existentes en el mercado local, apostando así a una reducción de costos de fabricación de ascensores estandarizados como la subcontratación de la totalidad de los componentes de proveedores locales y así poder establecer diferencia entre los competidores establecidos en el sector.- Para llevar a cabo dicho plan estratégico, Schindler brinda toda la confianza en la puesta en marcha del objetivo planteado a Silvio Nápoli, Ejecutivo joven de la compañía educado en la universidad Harvard, quien viaja junto a su familia a este nuevo desafío que la compañía a puesto sobre sus hombros.- Nápoli en la búsqueda de lograr implantar su plan de negocios, se vera expuesto a varios obstáculos en el desarrollo del plan de negocios establecidos con anterioridad para la empresa, estos provienen desde su misma compañía como también de factores externos que generan al final fuertes cambios en los diseños establecidos originalmente en los modelos de ascensores para la India.- Finalmente Nápoli tendrá que tomar decisiones...
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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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...Silvio Napoli at Schindler India Problems: * Establishment of a unified top management team, which worked as a collective unit to implement his strategic ideas. This was instrumental in helping Silvio to beat the initial reluctance and resistance by Indians to take orders from a foreign individual. It also played an integral role in establishing an organizational culture that compatible with the culture of the Indians. * it is evident that perfect tactical strategies do not guarantee success in foreign markets. For instance, within 6 months, Mr. Silvio Napoli had established offices in Mumbai and New Delhi, recruited 5 skilled Indian managers, and embarked on an aggressive implementation of the business plan. However, he did not manage to win any new business. It can be seen that the tactical execution of the plan was perfect, but strategically, his swatch approach was not bringing any new deals on the table. * The initial business model adopted by Silvio stipulated high growth levels, even in the first year of operation. In addition, such a business plan had never been tried in the elevator market in India * Lastly, neither Silvio nor the business plan had room for flexibility, which is a key requirement for highly competitive markets. * He has set high targets for himself and knows he will be able to get his staff to emulate him. It could be that as a first time foreign manager he wants to set the boundaries for his new team but has clearly not communicated...
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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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...1. Was Silvio the right choice for general manager of Schindler’s India operations? No en ese momento de su vida. Aunque Napoli mostraba energía y fuerza, en ese entonces era un estratega sin ningún conocimiento en la implementación de planes de negocio. Eso fue patente al tratar de implantar el plan establecido de forma sistemática sin darle el valor que requerían las aportaciones de sus asesores. Aportaciones que debía haber tomado en cuenta para analizar a fondo el contexto y estar preparado para afrontar los cambios requeridos. Por otro lado, lo definían como rígido e impulsivo y le faltaba la madurez para adaptarse a la realidad del trabajo y el contexto social de un país tan diferente como India. 2. As Luc Bonnard how would you evaluate Silvio’s first seven months as general manager of the Indian company? What advice would you offer? De entrada se debe ser consciente de la incertidumbre que siempre existe al abrir nuevos mercados, especialmente en tales como lo es la India. A esto hay que sumarle lo comentado en la pregunta anterior y es que curricularmente Napoli no tenía experiencia en la ejecución de planes de negocio y desde Schindler lo sabían. Éstas, son dos realidades que se debían tener en cuenta antes de evaluar a Napoli. Analizando sus primeros meses, vemos que afrontó los siguientes desafíos: a. Aprobación de los directivos indios de un ascensor no estándar, que requería una pared trasera de cristal. b. Las presiones en los costes debido...
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... “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, logistics...
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...and a technical agreement with BBL, a Mumbai 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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...Sciences Source: wallpapers.pixxp.com Case Study Silvio Napoli at Schindler India Was Silvio the right choice? hochschule hof University of Applied Sciences Univ ersityof Applied Sciences PROS: He developed the business plan Int. Experience CONS: Age and family situation Personality and cultural background (France & USA) Experience with Swatch Project Lack of adaptation to foreign cultures No similar post before Well educated No sales and technical experience in the elevator business 2 Was Silvio the right choice? hochschule hof University of Applied Sciences Univ ersityof Applied Sciences Blindly sticking to his business plan Lack of soft skills Failed to convince the team of his plan Harsh leadership style not suitable in India Probably not the right person for this particular position as general manager 3 How to evaluate the Silvio`s first seven moths as general manager? hochschule hof University of Applied Sciences Univ ersityof Applied Sciences “The first step is always the hardest!” Teething problems in establishing the business Still in the “learning process” Too ambitious plans Having build a reasonable management team Sold the first elevators (although customized) Having failed to meet the demand of the Indian market 4 How to advice Silvio? hochschule hof University of Applied Sciences Univ ersityof Applied Sciences Do you still want to work for Schindler in India? Better adapting to Indian values in terms of...
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