Silvio Napoli At Schindler India Essay Example
Silvio Napoli At Schindler India Essay Example

Silvio Napoli At Schindler India Essay Example

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  • Pages: 4 (869 words)
  • Published: November 29, 2016
  • Type: Case Analysis
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1. To succeed in India, he must establish relationships beyond his India team, including European Company relationships with the Head of Procurement, Supply Chain, Manufacturing, and the Financial Controller responsible for the South Asia region. Additionally, he needs to build connections with key government functions like Taxation and tariff for staying ahead of regulatory changes and expediting processes. It is crucial to develop relationships with manufacturers, suppliers, and human resource companies in the Indian market as it remains unclear who is setting up the supply chain or how it's being established. Furthermore, it is uncertain if Egon has a strong presence or existing relationships in the Elevator business and its companies.

2. Are there any risks in asking Mr. Bonnard for assistance in obtaining the necessary resources from the multiple Schindler sources?

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Should he seek help from him? What specific help should Savoli request from Mr. Bonnard? Initially, Savoli failed to consider this collaboration and did not make any efforts to comprehend or address potential obstacles related to it during the planning stage. Furthermore, his approach towards expediting outsourcing plans seemed to be reactive.

Although the information regarding increased transfer prices and longer lead times in transferring designs may be accurate, Savoli was disappointed with the lack of efficiency. These challenges are typical in both corporate bureaucracy and when establishing a new business in a foreign country. To address these issues, Savoli should take two approaches. Firstly, he should discuss them with the heads of other departments such as sourcing, manufacturing, and costing. It is unclear whether he has already done so. Secondly, he should involve his boss (Zbiden) and financ

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controller to escalate the matter further. If necessary, a meeting between Zbiden and the head of Procurement/Manufacturing should be arranged to resolve the initial problems.

The uncertainty lies in whether or not he still maintains a direct line of communication with Bonnard. If this connection exists, he could update Bonnard on his challenges and share his approach, while being mindful not to overwhelm him. He could also request feedback on his approach, but should refrain from seeking additional assistance. Requesting help may imply a lack of organizational agility or the ability to handle his own issues, which would negatively impact how others perceive his maturity. Additionally, it may make Bonnard aware of his inadequate organizational and planning abilities.

3. Our recommendations for how he can focus his organization on executing his strategy instead of pursuing elevator sales in the traditional Indian way, which is giving the customer whatever they want, are as follows:

Firstly, what is the structure of Savoli's Sales rewards and incentivization? Are rewards and punishments designed to align with the goals or strategy of selling the single source S001 model? Another aspect to explore is the organization structure - why does he have a layered org structure? And why does Sales fall under Technical Operations? The heads of important departments (sales, support, HR etc) should report directly to him. It seems that the message about his strategy might be getting lost. Savoli is a driven manager who is under pressure to make sales. He needs to ensure that this behavior does not lead to mixed signals among his sales force, making them believe that it is acceptable to ignore the strategy.

Savoli must consistently reinforce the message with his management. Additionally, repeat mistakes by the same agent should result in termination.

4. The orders that his staff have accepted should be fulfilled. This is important because the orders have already been made and there is a commitment to fulfill them. Additionally, the team has determined that the second order customization only requires a small adjustment to the existing S001 model. Instead of wasting time dealing with corporate bureaucracy and fighting headquarters, he should concentrate on re-evaluating the rewards structure and improving his relationship with Indian manufacturers and suppliers.

5. What is the appropriate duration for implementing his strategy before considering an alternative? Please provide a justification for your answer. Savoli has yet to implement his strategy, which involves three key components in becoming the "low cost leader" in India: manufacturing, selling, and servicing/maintenance of the product. Although he has successfully established a sales and services arm, there is currently no indication of any manufacturing facilities in India. As a result, it remains unclear how he is currently competing in the market, as the import/tariff approach seems to be financially unsustainable.

Furthermore, it remains uncertain if Savoli's customer segmentation and product strategy are relevant in India's evolving environment. Is the S001 model meeting the desires and expectations of customers? It is imperative that Savoli promptly evaluates his strategy in terms of timeline and cost effectiveness. The original estimate for setting up operations in India was $10MM; does this estimate still hold true? Additionally, how long will it take to establish a functional supply chain and operational capacity? Considering that all previous orders have

been customized, it raises the question of whether the core "standard" model will be successful in this market. Lastly, does Savoli have the necessary time and approval from headquarters to implement his strategy in India? The answers to these inquiries will assist in determining the appropriate timeframe for experimenting with his strategy.

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