Schindler Essay

623 Words3 Pages
SIM - Napoli Case Analysis – Napoli is facing various challenges and a lot come from cultural differences between the different acting differences. In this analysis I want to focus on the strategic challenges he is facing. The main problem I see that he is trying to force a business plan that worked well in Europe with the Swatch project onto an Indian project. Further, his Indian managers had submitted twice orders for non-standardized products whiles this was against all of the Napoli’s strategy to only sell standardized products. Further, Schindler’s Indian business faced cost pressures due to sharply increased import tariffs that were not calculated for and a rise in transfer prices from the goods imported from European subsidiary. Lastly, the Indian subsidiary of Schindler did not get engineering support, design specifications and parts lists it needed in time from the European headquarters. The most important challenge I see in the case study is to overcome the evident cultural differences. To name a few, the differences in power distance and the individualism vs. collectivism. Napoli needs to understand that the local network is important and very powerful and that he needs to have interpersonal relationships with his co-managers in order to be successful in India. Then Napoli put himself and the whole project under pressure with having aggressive targets in the short run. He basically had a plan that worked well in the developed world and wanted to carry that over to India without making the necessary adjustments to the cultural differences of the Indian market. What he failed to understand was that in India things do not work like they work in Europe. Napoli wants to sell low cost products and outsource most of the production. In India on the other hand, everything needs to be flexible and customized and his Indian managers show a great deal of
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