International Management

International Management 0

1. Introduction

This report analyzes the topics discussed within the course International Management at Kwansei Gakuin University. The analysis presented in this paper is related to the assigned case of Silvio Napoli at Schindler India (A) published by the Harvard Business School. Concepts and frameworks discussed in class will be examined in order to conclude and thereby determine how well the manager had been able to conduct the basic tasks of management which according to the theoretical scientific approach include the actions of planning, organizing, leading and controlling.

Within this report the elevator and escalator manufacturing industry is examined first, followed by a brief summary of the company in question which is Swiss-based elevator and escalator manufacturer Schindler as well as its position within the specific industry. Furthermore different modes of entry into the Indian market are explored before describing Schindler’s actual way of entering the business. This is followed by the examination of Silvio Napoli’s management style as well as the company’s ability to match its industrial environment. Finally, a conclusion is drawn on the assessment of how well Silvio Napoli as the manager of Schindler’s wholly owned Indian subsidiary had been able to conduct the basic tasks of management in an international setting.

2. The industry

The industry described within the case of Silvio Napoli at Schindler India is the elevator and escalator manufacturing industry. The paper focusses the reader’s attention on the elevator business in particular. The global elevator manufacturing business is dominated several global players which include among others Otis from the USA, today’s largest company within the business which generates the highest revenues, Schindler from Switzerland which is today ranked as the second largest company within the market. Other global players involved include Kone from Finland, Mitsubishi from Japan and South Korean Hyundai Elevator. At the time when the case of Silvio Napoli at Schindler India was published in 1998 Schindler had been the largest manufacturer of elevators worldwide generating revenues of US$ 4 billion.

The Indian market for manufacturing elevators and escalators emphasized within the paper published by the Harvard Business School accounted for revenues of US$ 125 million including service income for additional services provided relating to sales of elevators in 1998. Annual growth rates of the Indian elevator industry between 8-12 percent per year are expected for subsequent years.

The Indian market which is described as highly price sensitive is dominated by four major players combining for more than 75 percent of market share. These companies include US-based Otis which generates 50 percent of