Evaluation of the appointment of silvio napoli at schindler india Essay Example

account. Primarily, Napoli's management style was not applicable in India as he believed in commanding obedience and making all decisions himself. This leadership approach can be attributed to the Swiss culture where hierarchy was clearly defined. For instance, Napoli recalls his first job in Sweden where employees promptly responded to his requests, indicating that leaders were highly respected and feared within Switzerland. One employee mentions being aware of their role as Mr. Schindler's assistant and feeling obligated to show kindness towards him due to this cultural norm prevalent in Switzerland, where people exhibited caution around those holding positions of authority. Unfortunately, Napoli brought this cultural norm to India without fully comprehending that it was a different country with its own unique traditions.Napoli, like many businesspeople, believed his way was best in a new culture. He attempted to adjust his management style but failed. Schindler should have trained Napoli before assigning him to another country. The most critical area that required training was building relationships, which are highly valued in India's business dealings. Trust is crucial for success in doing business in India, something Napoli didn't understand as he imposed his own management style. In Indian offices, only the "drudge" handles desk work and everyone has distinct roles and responsibilities. An ideal general manager would adapt their behavior based on circumstances and situations. It would have been wise for the company to put directors through an outlook trial to find the best candidate for the position since the general manager plays a vital role in decision-making and understanding employees. A strong organizational culture is also essential for any company.
The general manager's ability to foster relationships between

employees and leadership, as well as among the employees themselves, is crucial. However, Napoli made a significant mistake in this regard. According to his colleagues, Napoli was described as impatient, impulsive, and overly communicative at times. If fellow coworkers are expressing these concerns about their general manager, it indicates a serious issue. The expectations for Schindler were extremely high as they needed rapid growth within a short time frame. Given Napoli's impulsive and impatient nature, it would likely take considerable time before the Indian branch could stabilize and generate desired profits. Schindler aimed to achieve sales of around 50 units in the first year of business and gain a 20% market share within five years - ambitious goals for someone with limited international business experience. The company should have chosen a general manager who had been with the company longer and had experience working in different countries or cultures. Implementing a similar accountability system to Switzerland where Napoli reported directly to the CEO would have been preferable in India as well. It is evident that Napoli was not suited for the role in India.The case study reveals that Napoli's personality was not compatible with the Indian culture. A colleague explicitly mentioned that Napoli wanted everything done quickly, which does not align with how things are typically done in India. This clearly indicates a mismatch between Napoli and the Indian work environment.

Upon analyzing the entire study, it becomes evident that the main problem stemmed from poor leadership. This serves as ample evidence to support the claim that Napoli was unsuitable for his role. Despite hiring a management team for their expertise, Napoli consistently underestimated their capabilities.

For example, when the team accepted an order for custom glass cod lifts, Napoli rejected it, arguing that it went against the company's strategy. It is important to note that he had chosen this team specifically to assist him.

Furthermore, Napoli declined an opportunity to install glass-walled lifts in a government building in Mumbai. Although his team members insisted it was just a minor modification of their S001 model, Napoli believed it would be too challenging for a new team to handle installation. An effective general manager should embrace challenges and be willing to take on any job if it benefits the company.

Similarly, Silvio has shown an ability to accept his direction squad's positions since they are responsible for their respective roles and receive compensation accordingly. Retaining a squad whose positions are irrelevant is unnecessary.

Overall, Napoli failed to recognize and utilize his team's potential effectively despite assigning them all necessary tasks required for success.As Luc Bonnard, how would you evaluate Silvio's initial seven months as the general director of the Indian company? What guidance would you offer?

Despite some negative aspects of Silvio's performance, it is worth mentioning that he also demonstrated positive results on various occasions. For example, he displayed rationality in selecting his management team. His plan was well-considered as he comprehended the working environment. Therefore, it was prudent for him to choose his team from a group of seasoned professionals identified by Egon Zehnder.

Commencing with 42-year-old Kara Singh as the managing director and 33-year-old Jujudan Jena, who was recruited as the chief financial officer, it was judicious of him to assemble a team of experienced individuals to assist him due to his lack of

experience. This team would guide the company in the right direction. Given that the selected team members were from India, they had insight into what to expect and would consequently provide the best advice. Most importantly, he had a rationale for selecting each member of the team.

In the process of selecting the main fiscal officer, it is important to consider compatibility of the individual (Fagan et al., 6). This indicates that selection was not made blindly but based on significant qualities. It is justified to consider compatibility because choosing someone incompatible can hinder decision-makingA compatible team is crucial for fostering trust, promoting good relationships, and maintaining coherence within a company. Without trust, conflicts arise and working relationships suffer. Silvio took the positive initiative to hold a meeting with his teammates to introduce them to each other. This facilitated one-on-one communication and helped build trust among the members. It also allowed members to share their perspectives on running the business. In addition, Silvio sought input from the management team instead of relying solely on his own ideas, recognizing the importance of including different perspectives from the very beginning. However, relocating his family while needing to focus on work in India was a mistake. It would have been better for him to either move the family after establishing the company or before starting work. Dealing with family issues such as accidents involving his children and finding a place to live consumed too much time that could have been dedicated to work. Furthermore, his unsettled state due to these problems made it difficult for him to concentrate effectively. He should have been open to making changes when necessary

adjustments were required by market conditions instead of stubbornly sticking with an ineffective business planThe company's management should reassess Schindler India's business plan, as it did not account for the customization of products that customers have indicated is necessary. Silvio, in order to ensure smooth business operations at the location, will need to gain the respect and support of the team. While in Switzerland, Silvio earned the respect of employees through his tough leadership style, he needs to ensure that the management team in India also respects him. It may be beneficial for Silvio to adopt a more diplomatic approach to gain their respect as his aggressive management style is not working well there. Despite resulting in a loss for the company, Silvio should proceed and accept the non-standard glass wall lift order. Penetrating the market is crucial at this point and sometimes businesses must incur losses to profit in other ways. This opportunity allows Schindler to demonstrate its difference from strong competitors dominating the market to customers.If Silvio accepts the order, it is highly likely that the company will be accepted in the market because it offers what customers need. Demonstrating dependability, effectively managing installation, and providing superior services to customers compared to competitors can still allow the company to make profits. While it is always beneficial for management to commit to the company's business plan, sometimes adjustments are necessary to gain market share. Currently, the company has not made much progress in entering the market. However, by accepting the order to supply glass-walled lifts for a government building, the company will gain entry into an important segment of the market. The government continually

constructs new buildings, so providing them with high-quality lifts may lead to more orders in the future. Customer loyalty plays a crucial role in business success as it encourages repeat customers and can expand the company's market share through positive word-of-mouth. Additionally, some team members who specialize in the lift industry understand that glass-walled lifts are just a variation of our standard product. Even if it may cost slightly more for our company, what matters is that this opportunity presents a great chance for us to penetrate (enter)the market.Silvio should also inform Mr. Schindler about European programs that do not provide necessary support.

It is essential to immediately outsource the S001 model to local providers in order to avoid any detrimental effects on the company. Mr. Schindler should be informed so that he can use his position to communicate with the European works and respond promptly to the needs of the Indian works. The increase in import duty rates from 22% to 56% has had a devastating impact on the company's goal of breaking even. Considering outsourcing lifts to local providers was a wise decision, demonstrating the spirit of a successful company in a highly competitive environment. Delaying plans to expedite the supply of S001 is not an option as it is crucial for the company's success. Having 50 units is enough to generate good profits for the company. Informing the CEO about these delays could lead to changes in strategy. How should he handle this challenge regarding shipping prices and limited technical cooperation from Europe works? The company faces significant challenges such as high transportation costs and limited cooperation from European works, which hinder its

pursuit of success according to its business plan. Outsourcing key logistic and manufacturing functions is seen as the best way for them gain a competitive advantage, avoid high import duties and shipping costs, and reduce overhead expenses by sticking with their outsourcing plan they can rely on local resources instead of importing items.However, considering the slow response from European works in addressing Schindler India's needs, it would be wise for Silvio to inform Mr. Schindler about the issue. This way, Mr. Schindler can use his position and influence to expedite a response from the European companies. If Silvio remains silent, he will bear all blame and jeopardize the company's goal of achieving a 20% market share. As a general manager, it is Silvio's responsibility to discuss company policies and strategies with upper management as ultimate approval comes from top direction. In this situation, it is crucial to inform Mr. Schindler about the difficulties since he is better equipped to handle the European works. Time is of essence for the company and every minute counts in order to maintain competitiveness in the market where competitors are likely seeking cost reduction measures.It should be noted that customer concerns do not revolve around issues like increased shipping rates or import duties; their priority lies in obtaining quality products at reasonable prices.Nevertheless, maintaining a good relationship with European works is important for Schindler India as they are part of same corporate family.Silvio does not need to make European works managers appear incompetent; instead, he should report the matter to CEO without reflecting negatively on European management.There may have been miscommunication or technical issues beyond the control of the management

team. In business, unforeseen circumstances sometimes occur that are outside of anyone's control, but what truly matters is how the team handles these situations. Fortunately, Alfred Schindler recognizes that conducting business in India can be likened to a battlefield. Silvio also understands that India presents a challenging environment and urges the management team to be resilient. The sudden rise in transportation rates serves as an example of this hostile environment. It is crucial for Silvio to remain calm and address the issue appropriately. Establishing direct communication with the general manager of the Europe plant would have been vital in resolving this matter effectively. Rather than relying on emails or discussing it with other members of the management team, calling him directly would have been preferable. Alternatively, Silvio could have visited the Europe plant personally to ascertain the root cause of the problem. A competent general manager should promptly rectify any necessary adjustments when needed instead of staying in India and awaiting a response from Europe. Urgent matters demand immediate attention, and this was unquestionably an urgent issue requiring prompt resolution. As for Luc Bonnard's next steps with Napoli, he should carefully consider Napoli's profile and recognize his own capability to manage a business successfully. It is essential for him to comprehend that each unique business environment operates differentlyFirst and foremost, Napoli must undergo extensive training on conducting business in diverse countries or cultures. It is insufficient to assess an individual's success based solely on their education, character, or performance in a single project. In Switzerland, Napoli succeeded and was highly regarded by the CEO. The Swiss culture instilled caution among employees when interacting with top

management. However, the situation was entirely different in India. For instance, a young veteran remarked, "He was Mr. Schindler's assistant, so I knew it was best to treat him well." In India, M.K's first question to Napoli was "who are your allies within the company? Who dislikes you?" This indicates that Indians tend to be more outspoken.

In addition to training, Napoli should also work on changing his perfectionist nature and adopting a more flexible approach. Luc Bonnard ought to ensure that Napoli re-evaluates the company's goals alongside his management team. The business plan requires review as it appears excessively ambitious. One example is its claim of achieving significant growth within five years in the market. What Napoli failed to recognize is that the Indian market environment is unpredictable and necessitates learning during the initial year before making conclusive plans.

Similarly, the company chose an untested business model in India. While generating fresh ideas for business ventures deserves praise, thorough research should precede their implementationFocusing solely on standardized lifts had never been done before, which was not a wise decision. To succeed in any competitive market, a business model must be flexible. Napoli's business model is the biggest obstacle to Schindler India's success, and Bonnard needs to ensure that Napoli adjusts it for the company to experience growth. Additionally, Bonnard should ask Napoli to review his management team, particularly the CFO who needs to improve performance. The CFO is responsible for assessing market conditions and predicting future changes but failed to inform the company in advance about transportation price and export changes. The idea of using outsourcing as a strategy backfired in overcoming increased transportation and import

rates. Consultation with the main fiscal officer may shed light on this scheme's source; however, Jena Jujudhan might lack experience in handling financial affairs under pressure for an international company in a new market. While replacing the general manager so soon may not be advisable, it could be a good solution for the company by allowing a more experienced member to take charge in India while Napoli returns to Switzerland where he has been successful.As the Vice President, Bonnard should also contemplate forming a partnership with a local lift company in order to gain insights into the Indian market. The decision to enter the new market without merging with another company proved to be arduous. Despite having skilled team members who had previous experience working in India, they all belonged to different companies and followed distinct strategies. Thus, it is advisable for Bonnard to consider merging with a local company so as to capitalize on its current clientele.