Schindler Essay

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Schindler India Case Study Introduction Schindler India is a part of the Schindler Group, the largest supplier of escalators and the second largest manufacturer of elevators worldwide. Schindler produces, installs, maintains and modernizes elevators and escalators in all kind of buildings (Residential, Commercial and High-Rise). The company is present in more than 140 countries and employs 43,000 persons worldwide. In 1997 India, Schindler was encouraged by the economic reforms to further expand operations by establishing a 100% owned subsidiary known as Schindler India (Source: Internet). Situational Analysis The following case facts can be interpreted as under: 1. Prior to 1996, Schindler had a 12% equity stake in Bharat Biljee Ltd. The company had a 10%-15% share in the Indian elevator market. 2. After Schindler’s trip to India in 1995, he found a huge growth potential in the Indian elevator market. With the lifting of the govt restrictions and cease of collaboration with BBL, a 100% wholly owned subsidiary of Schindler was set up in India in 1997. 3. As vice president for South Asia, Napoli was responsible for corporate planning for the South Asian market. He was entrusted with the task of developing and executing his business plan for the Indian market. Background to the Problem Napoli’s business plan was not going as per his expectations. Eight months in India and he was not able to install a single elevator. Napoli was in a state of dilemma for the actions he should take next. He was faced with the following problems: 1. As his managers took orders for customised products, supplying and installing became a challenge. 2. The costs had increased due to large increase in custom duties and rise in transfer prices for the low cost components and materials. As a result, it attacked the planned break even objectives. 3. In order

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