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    Schindler India Group 8

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    Shivani Bhatia
    Napoli's business plan involves selling standardized elevator products while outsourcing manufacturing. The company faces challenges including differing backgrounds amongst its new top management team, a sales team untrained in new product sales, and organizational culture not fully aligned with its strategic goals. Additionally, high dependency on its parent European company resulted in issues like unexpected cost increases and lack of local manufacturing alternatives. Lessons include the need for clear strategy communication, alternatives, and ensuring flexibility when entering new markets.

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    Schindler India Group 8

    Uploaded by

    Shivani Bhatia
    327 views22 pages
    Napoli's business plan involves selling standardized elevator products while outsourcing manufacturing. The company faces challenges including differing backgrounds amongst its new top management team, a sales team untrained in new product sales, and organizational culture not fully aligned with its strategic goals. Additionally, high dependency on its parent European company resulted in issues like unexpected cost increases and lack of local manufacturing alternatives. Lessons include the need for clear strategy communication, alternatives, and ensuring flexibility when entering new markets.

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    Napoli's business plan involves selling standardized elevator products while outsourcing manufacturing. The company faces challenges including differing backgrounds amongst its new top management team, a sales team untrained in new product sales, and organizational culture not fully aligned with its strategic goals. Additionally, high dependency on its parent European company resulted in issues like unexpected cost increases and lack of local manufacturing alternatives. Lessons include the need for clear strategy communication, alternatives, and ensuring flexibility when entering new markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    327 views22 pages

    Schindler India Group 8

    Uploaded by

    Shivani Bhatia
    Napoli's business plan involves selling standardized elevator products while outsourcing manufacturing. The company faces challenges including differing backgrounds amongst its new top management team, a sales team untrained in new product sales, and organizational culture not fully aligned with its strategic goals. Additionally, high dependency on its parent European company resulted in issues like unexpected cost increases and lack of local manufacturing alternatives. Lessons include the need for clear strategy communication, alternatives, and ensuring flexibility when entering new markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    Presented By : Shivani Bhatia Jitendra Jidewar Ankur Khosla Arpit Mahindru Rahul Panigrahi Chhavi Saluja Gaurav Singh

    D014 D030 D033 D035 D045 D048 D058

    COMPANY OVERVIEW

    NAPOLIS BUSINESS PLAN: FOUR MAJOR PLAYERS

    OTIS BBL KONE ECE

    50% 8.6% 8.8% 8.4%

    NAPOLIS BUSINESS PLAN: TWO BASIC ELEMENTS


    The need to sell a focused line of standard products

    Standardized product Differentiated sales and service Ability to outsource key manufacturing and distribution functions
    No in-house manufacturing; No centralised assembly; No logistics Infrastructure

    POSITIVE ATTRIBUTES
    Proactive approach of identifying candidates for top management team even before government approval of starting a business Handled work pressure along with family issues pretty well He has a crisp and clear understanding of what does he want and why does he wants it Intelligently hired people who were their clients earlier (Mehar Karan Singh) Hired people who used to work in the same business (T.A.K. Matthews and Ronnie Dante rom OTIS India)

    PROBABLE WEAKNESSES
    Aiming for standardized products while overlooking the possibilities of getting custom orders Need to differentiate sales and service Feasibility of plan ? Increasing dependence on the outsourced products while ignoring the possibilities of increasing transfer prices of outsourced parts/services Inability to set up local sources

    ORGANIZATION STRUCTURE

    ORGANIZATION CHALLENGES
    Field Operation under T.A.K. Matthews, who has only services sales experience which is different from new product sales

    Team tend to lack depth in skills like sales and technical specialization There is a need to split the sales from new installation and services function Napolis management team was not convinced with his idea of thriving only on standard products and questioned the feasibility of his plan Schindlers inability to get assistance in setting up alternative local sources Lack of motivation amongst employees regarding the sales strategy and also the employees perceived Napoli to be a tough and rigid to his ideas

    MAJOR OPERATIONAL POLICIES BY NAPOLI


    Positioned S001 as the product for low end market with no customization Positioned S300P as the product for medium to high end market Outsource manufacturing to local industries

    Commercial support form Global Schindler Strategic implementation of culture, process and structure

    CHALLENGES IN OPERATIONAL POLICIES


    Customization for S001 required for last two orders. No data regarding customization. Huge dependency for technical support from Global Schindler. No commitment from European plants. No local expertise. 30% increase in transfer prices was levied by the Schindler European Unit, No prior notification to the Indian unit. No commercial support as expected. Increase in import duty by Indian government from 22% to 56%. Impact on overall profitability and 5 years breakdown period. The order for non-standard product shows that the newly formed organization and its culture are not in sync with the organizations strategic intent

    He wants everything done yesterday. And in India, things dont get done yesterday.

    MEN WHO MATTERED


    Silvio Napoli (Age 33) Started working with Schindler Strong headed and single minded manager Driving hard, impulsive, hard task master
    MK Singh (Age 42) Experience in Hospitality Sector Patient yet could act tough Ronnie Dante Age 39 24 yr experience at Otis as an TAK Matthews(Ag e 35) 9 yr experience in Otis India

    VALUES High ethical standards


    Integrity Assiduou sness to work Drive

    Pankaj Sinha Age 32 Employee oriented HR manager

    Jujudhan Jena Age 33 CFO

    CHALLENGES
    Due to the varying backgrounds, discussions were directionless initially

    Clash in working styles

    New team needed to be brought up to speed and co-ordination needed to be established


    Time clashes as senior management was not yet fully relieved of their previous job responsibilities Sales team was not trained effectively to get orders that met the company needs

    LESSONS
    Plan well and be prepared

    Team dynamics matter


    Strategy communication needs to be clear to all employees

    CHALLENGES
    Difference in expectations between the countries Lack of relevant experience at the helm Communication gap between the top management and salesperson Slower pace of work

    High response time from parent company


    Lack of alternatives

    LESSONS

    Provide proper guidance to salesmen

    Have alternatives at hand


    Seek regular updates from associates

    SUGGESTIONS
    Focus on maintenance contracts
    Rigidity not the best option while entering new markets Ensure that company strategy reaches each employee

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