1) I believe Silvio is a good choice for the manager since he was the one who developed the plan for the project for India, as he was in charge of creating the Indian subsidiary, thus he is experienced in the planning and detailed information about the plan. He also has extensive knowledge of the S001 project which he also worked on. India’s plan revolves around the S001 project, thus since he has experience with it, it would be beneficial for the general manager to have knowledge of that as well.
He also seems dedicated to this task, is young, vibrant and strong-headed, where he can probably get things done in India, where delays and punctuality are taken lightly. ...view middle of the document...
Although he got offices set up in Mumbai and Delhi, currently there were no sales, thus something must be done to see where the problem lies: diagnose it and come up with an adjusted strategy, especially with the new tax policies.
3) Silvio believes that installing the nonstandard glass wall elevator will be difficult for the new staff to get used to. But, installing it would allow the company to see how it is received in India and thus provide some way to gauge for future plans to install more of this nonstandard glass wall elevator. It might also increase sales. Perhaps they can do a trial run and install one and then adapt and change accordingly when they see how the people react to this nonstandard glass wall elevator. It might be so well received that sales and demand will increase.
Recent changes in transfer prices rates have increased from 22 percent to an astonishing 56 percent, which caused the prices of S001 elevators to also increase significantly. Such a large increase (30%) no doubt hurt the competitiveness of Schindler in India. Thus, Silvio needs to seek Indian suppliers to meet his product demand. Also, since there is no manufacturing unit in India, it will be important to establish a network of reliable suppliers.
Silvio’s other challenge was not having technical support from the company’s factories, which makes it difficult to get suppliers in India for its operations within the country. Seeking headquarters for next steps and implementation would be crucial at this point.