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Silvio Napoli at Schindler India
Transcript of Silvio Napoli at Schindler India
Mark Rego Silvio Napoli at Schindler India Introduction
Key Learnings Outline Gloria will discuss the case in detail to ensure understanding - conducted by Mark and Peter
- based on dimensions Analysis - discussed by Emma Key Learnings Summary Questions 2. Case Analysis Pt. 1 3. Case Analysis Pt. 2 4. Key Learnings questions? comments? concerns? Uncertainty Avoidance - High uncertainty avoidance in Switzerland
- Led to little maneuverability from business plan; unfeasible approach in Indian market Power Distance - Stark difference in power distance between Switzerland and India
- Napoli successfully accounted for this variance Individualism - Napoli moved from an individualist to a collectivist society
- Failed to realise the power and role of interpersonal relationships Polycentricism - Provided Napoli with local knowledge otherwise inaccessible to him
- Highlighted Napoli’s lack of familiarity with the Indian market Key Learnings Successes
Failures Hedging Risks external knowledge
internal knowledge Recruitment Approach ethnocentrism vs geocentrism
training and knowledge management Cultural Differences knowledge
HQ support 1. Overview 1874 Schindler was established in Switzerland by Robert Schindler. The company began to manufacture hydraulic elevators 1889 1925 The company’s first elevator in India was installed Alfred N. Schindler became the 4th generation of family to lead the company 1987 1994 - Silvio Napoli joined Schindler in September of 1994
- MBA graduate from Harvard
- Reported directly the CEO
- Located at HQ in Switzerland 1995 Silvio Napoli was involved in the “Swatch” project Also in 1995 - Schindler’s Chairman saw huge growth potential for the company in India- Proposed a JV 1996 Negotiations collapsed - After 9 months Napoli came up with a business plan
- The plan was approved & Napoli was offered the job 1997 1998 - In March 1998, Napoli relocated to India with his wife and two young children
- Implemented an aggressive business plan Challenges 1) Twice in 2 months Indian managers had submitted an order for a non-standard product.
2) Cost pressures - Increased customs duties on imported elevator components & a rise in transfer prices for components imported from Schindler’s European factories.
3) Requests for parts lists, design specifications, and engineering support were not forthcoming from Schindler’s European plants. Quote “Mr. Napoli, if you fall flat on your face here you are finished!
But if you succeed, you will have a very nice career.” Cultural Management Issues Mark Rego Cultural Management Issues Peter Tiliakos 1) Schindler’s strategic push:
(1) Low cost standardised products AND
(2) outsourcing – rare practice in India.
2) Model was based on their previous expansion plans and learning’s of the Swatch project. Plans were to ensure short-medium term success to motivate continued operation in the sub-continent.
3) This PAST ORIENTATED and SHORT TERM desire for success is holistically different from Indian counterparts which hold a long term-future orientation.
4) Evident through Napoli’s impatience/persistence in making sure objectives were complete whilst Indian managers would remark ‘whilst he expected things to be done yesterday, things do not get done yesterday in India’. CULTURAL MANAGEMENT ISSUE: 5 – PAST & SHORT TERM ORIENTATION 1) Napoli’s business strategy was based on a linear structure consisting of a series of stages which would eventually make Schindler competitive in the market.
2) Based on this sequential value dimension, it is clear to notice the difficulties Schindler encountered due to their inherent inflexibility.
3) The Indian domestic managers appear to fall within the synchronic dimension due to their great flexibility and ability to consider external factors in decision making.
4) Their main priority was meeting the needs of the domestic market as best as possible whilst Napoli’s model was ensuring success through low cost. CULTURAL MANAGEMENT ISSUE: 6 – SEQUENTIAL VS. SYNCHRONIC CULTURAL MANAGEMENT ISSUE: 7 – ACHIEVEMENT VS ASCRIPTION 1) What is the difference between the achievement and ascription?
2) Indian managers respected Napoli and hold him in high regard due to his position as GM of the Indian subsidiary.
3) This ability to base their perception of the individual based on his position in the company is characteristic of Indian high ascription values.
4) This is quite different from Napoli who measures success based on an individuals achievements in the life of a company.
5) Example: Discussion of structure of building in HQ he outlines that he received the pioneering role because of his achievements before hand. 1) In a Universal society, rules and contracts are developed which can apply in any situation. There is a belief that what is good or true can be discovered, defined, and applied to every situation. Particularism is based on logic of the heart, human friendship and fulfillment of actual needs.
2) Napoli’s universalist values are characteristic of Swiss business orientation and can be seen through his decision to apply existing values to formulate a prefigured plan in India.
3) This is quite different from the Indian particularistic culture as the Indian managers sought to develop relationships.
4) They chose to incorporate the feelings/sentiment of the general public before applying their approach to ensure universal utility. CULTURAL MANAGEMENT ISSUE: 8 – UNIVERSALISM VS PARTICULARISM Emma Corcoran Gloria Nassif Overview