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