SilvioNapoli at Shindler India (A)
SilvioNapoli at Shindler India (A)
Mr.Napoli, a 33-year-old Italian had quickly went about to set anentirely new company from scratch. He had already gone about creatingnew offices in New Delhi and Mumbai, hired 5 top Indian managers, andstarted to implement aggressive business plan he had developedearlier. His plan calls for 10 million dollars and hinged on sellingcore standardized products without the allowances that are meant forcustomization. However, he is face with a few challenges. First, helearnt that the managers he had hired had submitted an order fornon-standardized products. Secondly, his business plan came undertense pressure since there is large increase in the costs due tolarge increase in custom costs, and finally, elevator parts he hadordered that could be required for smooth running of the operationswere not forthcoming.
Thereare three core issues that Mr. Napoli is facing prior to Bonnard’svisit. First, he realized that twice in a span of two months, the newmanagers he hired had already submitted an order for production ofnon-standard product by requesting a glass roar in one of thestandardized supposed elevators. Again, almost at the same time, hisbusiness plan had experienced cost pressures, first due to increasein customs duties from imported components of the elevator. Secondly,from surprising rise in the transfers of prices of the components,and also from materials imported from Europe. Finally, while Mr.Napoli started accelerating development strategy of local sources, herealized that his parts lists he had requested, engineering support,and design qualifications were not forthcoming from Europe. When hisbusiness plan implementation seems to stall, Mr. Napoli wondered onwhat he should do. It has been eight months since he moved to Indiaand until now, he had failed to install even a single elevator, whilehis first year target shows installation of 50 units. Should he seekassistance from Bonnard, or try to sort it out by himself? Mr. Napolishould handle the situation alone since he is tasked with theoperations of the company.
Itis apparent Mr. Napoli successfully set up the company’s operationsfrom scratch and easily avoided the cons associated with differencesin culture among others. One advantage is that he established aunified management team that worked hard as a collective unit tofacilitate implementation of his strategic plans. From this, it wasevident it was going to assist Mr. Napoli beat initial resistance andreluctance by the Indians to accept foreign leaders. Again, it alsofacilitate establishment of organizational culture, which was verycompatible with the Indian way of thinking and perception.
However,there are also a few cons from the case. This is evidenced bynon-guaranteed success in foreign markets from the tacticalstrategies put in place. From example, Mr. Napoli had established thesubsidiary company in less than 6 months, acquired 5 well experiencedIndian managers, and went on an aggressive business planimplementation. However, there was failure to win and conquer newmarkets. Again, as much as tactical execution was perfect,strategically, the approach was not going according to plan.Secondly, the business plan was new in the Indian markets, which wasa disadvantage and the lack of flexibility also became an issue. Tofix this, flexibility on his business plan could be a key requirementfor high competition in the market.
Mr.Napoli should have went back to his business plan using strategicinputs from the company’s top management by taking intoconsideration the cultural perception of elevators in India.Secondly, he should step forward and empower the Indian subsidiarytop management so that it could be easier to come up with strategicdecisions to extreme situations related to culture. This will be astep towards ideal instrumentation to deal with core issues that’scould come from the situation. From my standpoint, it is evident thatperfect execution of plans could not guarantee success, more so withthe expansion into the foreign markets. In conclusion, Mr. Napolishould be flexible enough to deal with the new cultural challengesthat he is not used to that originate from exploration of new foreignmarkets.