Silvio Napoli at Schindler IndiaContemporary Management: Case Study
Maya Abou DibHiba BizriCaroline HaddadMarwan HouraniRawad Mroueh
Group D:
A Leader’s Vision
The Mission
The Man, Silvio Napoli Italian, 33 years oldEducation: MBA (USA Harvard) Past: Former Rugby PlayerExperience: 3 years Head of Corporate Planning in
Schindler (Switzerland)
Creating Schindler’s
Subsidiary in India
from Scratch
The Choice
Young
Generalist
Insider
The Swatch Project Breakthrough
The Product
The Swatch Project
Standardized Elevators-No
Customization
Outsourcing Core Tasks
Lower Costs
Profitable Long Term maintenance service contracts
Redesigned Supply chain – ½ Cycle Time
S001
Schindler Decides to Enter
the Market through its
Wholly Owned Subsidiary
Schindler Appointed a
Local Distributor
First Schindler Elevator was Installed in
India
Schindler’s History in India
1925 Late 1950’s Late 1990’s
The Opportunity
Economic Liberalization
Ban on Collapsible Gate Elevators
Rising Demand for Elevators
Industry Revenue
Urbanization
Construction of High Rise Buildings
$125M Including Service Income
oDifferent cultures
o Customers were looking for better services and facilities
o Tourism and Hotel industry was expanding
o Laws pushing toward safety
LegalEcon-omical
SocialTechno-logical
The General Environment
Market
Ambiguity
Fierce Competition
Cultural Differences
The Competition
Otis50%
BBL9%
Kone8%
ECE8%
Other25%
MARKET SHARE (1997)
The Challenges
The Plan
$10 Million Initial Investment
Core Standardized Products
Outsourcing Manufacturing and Logistics Activities to Local Parties
S300P Mid-Rise Segment
S001 low-Rise Segment
The Expectations
50 units in First year
20% Market
Share in Target Segments in 5 years
Breakeven in
4 Years
Silvio Napoli, 33
ManagerT.A.K Matheus, 35
Head of Field Operations
Ronnie Dante, 39
General Manager for Engineering
J. Jenna, 33
CFO
Pankaj Sinha,32
Head of HR
M.K. Singh, 43
Managing Director
Education: MBA (India) Mechanical Engineering (India) Experience: 19 years Leading construction
projects for hotels (India)Strength: Firsthand experience in building
an organization From scratch Customer Side Patient and Easy Going
Education: MBA (India) Engineering (Tanzania)Experience: 9 years OTIS IndiaStrength: Industry and Business
Expertise
Education: High School (India)Experience: 24 years OTIS IndiaStrength: Hard-core Elevator
Engineer
Education: Accounting (India)Experience: 8 years Finance (India)Strength: Compatible Character
Strength: Non-traditional Indian
Recruiter
The Team
77
4851
34
66
74
PowerDistance
Individualism Long TermOrientation
India Switzerland
The Facts
Engineering
Production
Installation
ServiceRepair
Modernization
Replacement
20%
80%
Elevator Market in India is Highly
Price Sensitive
Residential Segment accounted
for 70% of the Indian Market
The Elevator Life Cycle
From Plan to Action…
The Real Life Challenges
Large Increase in Custom Duties on Imported Elevator Component and materials from Schindler Plants
Requested Support (Part, Engineering, design) from Schindler European Plants not Forthcoming
8 Months Passed…Not a Single Elevator Installed!
Addressing Challenges
His Team Submitted an Order for Non
Standardized Elevators -custom Glass rear wall
Option 1: Block the
Order
Option 2: Review the
Strategy
Technical Support Shortage from
European Plants
Report to headquarters & Urge Support to be Due
Stay Updated with Business Changes back in Switzerland I.e. Price Changes etc..
+ Transfer Price
(30% Increase)
Silvio as a Manager
Experience in Schindler No experience in Asian country
Hired Qualified Indian TeamMeetings with the team
No connections in IndiaNo seeking support
Knowledgeable Swatch project Outsourcing strategy2 strategic offices: Mumbai and New Delhi
Initial plan outdated - no revision Lack of flexibilityFocused on cost reduction more than customer serviceNo commitment to plan from teamNo contingency planUnrealistic startup target Opened both offices at once
Conceptual
Human
Silvio as a Manager
“To survive in India you have to be half monk and half warrior”
“He wants everything done yesterday and in India things don't get done yesterday”
Committed - Needed to achieve the objective in a timely manner
Driving very hard, strong headed, single minded, impulsive, impatient, task oriented
But…
Now…Let’s Meet Silvio
Silvio Napoli is the CEO of the Schindler’s group
More than 56,000 Schindler employees work to serve one billion people using their elevators and escalators every day.
A strong customer focus is the basis for the design and delivery of all Schindler product and services.
“Leadership Through Customer Service”, is the cornerstone of Schindler India`s growth strategy and which is evident “with our service presence across 42 major cities which include our branch offices in 13 major cities in the country and is head-quartered in Mumbai”.
Schindler Today