Schindler India Group 8

7/31/2019 Schindler India Group 8

1/22

Presented By :

Shivani Bhatia D014

Jitendra Jidewar D030

Ankur Khosla D033

Arpit Mahindru D035

Rahul Panigrahi D045

Chhavi Saluja D048

Gaurav Singh D058


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COMPANY OVERVIEW


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NAPOLIS BUSINESS PLAN: FOUR MAJOR PLAYERS

OTIS

BBL

KONEECE

50%

8.6%

8.8% 8.4%


5/22

NAPOLIS BUSINESS PLAN: TWO BASIC

ELEMENTS

Standardized product Differentiated sales andservice

The need to sell a focused line ofstandard products

No in-house manufacturing; No centralisedassembly; No logistics Infrastructure

Ability to outsource key manufacturingand distribution functions


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POSITIVE ATTRIBUTES

Proactive approach of identifying candidates for topmanagement team even before government approval of startinga business

Handled work pressure along with family issues pretty well

He has a crisp and clear understanding of what does he wantand 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)


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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


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ORGANIZATION STRUCTURE


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ORGANIZATION CHALLENGES

Field Operation under T.A.K. Matthews, who has only services sales experience which isdifferent 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 servicesfunction

Napolis management team was not convinced with his idea of thrivingonly 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


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MAJOR OPERATIONAL POLICIES BY NAPOLI

Positioned S001 as the product for low end marketwith no customization

Positioned S300P as the product for medium to highend market

Outsource manufacturing to local industries

Commercial support form Global Schindler

Strategic implementation of culture, process andstructure


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CHALLENGES IN OPERATIONAL POLICIES

Customization for S001 required for last two orders. No data regarding

customization.

Huge dependency for technical support from Global Schindler. Nocommitment from European plants. No local expertise.

30% increase in transfer prices was levied by the SchindlerEuropean Unit, No prior notification to the Indian unit. Nocommercial 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 formedorganization and its culture are not in sync with the organizations

strategic intent


14/22

He wants everything done yesterday. And in

India, things dont get done yesterday.


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MEN WHO MATTERED

Silvio Napoli (Age 33)

Started working with Schindler

Strong headed and single mindedmanager

Driving hard, impulsive, hard task master

MK Singh

(Age 42)

Experiencein Hospitality

Sector

Patient yet

could act

tough

TAK

Matthews(Ag

e 35)9 yr

experience in

Otis India

Ronnie

Dante

Age 39

24 yr

experience atOtis as an

Pankaj Sinha

Age 32

Employee

oriented HRmanager

VALUES

High

ethical

standards

Integrity

Assiduousness to

work

Drive

Jujudhan

Jena

Age 33

CFO


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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 beestablished

Time clashes as senior management was not yet fully relieved of their previousjob responsibilities

Sales team was not trained effectively to get orders that met the company needs


17/22


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LESSONS

Plan well and be prepared

Team dynamics matter

Strategy communication needs to be clear to allemployees


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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


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LESSONS

Provide proper guidance to salesmen

Have alternatives at hand

Seek regular updates from associates


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SUGGESTIONS

Focus on maintenancecontracts

Rigidity not the best optionwhile entering new markets

Ensure that company strategyreaches each employee

Documents

Schindler India Group 8