I do not believe Schindler made the right choice in assigning Silvio as the general manager of India. Silvio had little to no "real world" international experience. Silvio had much success in Sweden but there are several factors that limited his success in India. Silvio had high "warrior" and low "monk" attributes. Silvio was a task oriented individual. This management style is not well received in India. The General Manager needed to be a person that can change their behavior when dealing with different cultures. Before making their selection Schindler should have required Silvio to take a Global Mentality Test. This test would have told …show more content…
Outsourcing the S001 manufacturing to local suppliers is the critical part of Silvio's business model. With the increased import duty rates Silvio can not afford to let the outsourcing plans be delayed any longer. This duty increase and the short time frame to deliver 50 units requires Silvio to take this approach and ensure success.
4. How should he deal with the challenges he is facing over transfer pricing and technical cooperation from the European plants?
The transfer pricing and the lack of technical cooperation from the European plants are crippling the organization. Both of these problems need Silvio's immediate attention. The business plan's main objective was to develop a unique competitive advantage by outsourcing the manufacturing to local companies. This would allow Schindler India to avoid the excessively high import duties and transfer pricing while keeping overhead cost extremely low. Silvio needs to take the lack of honoring transfer pricing and supplying technical information to Mr. Schindler. Mr. Schindler can use his influence to insure Silvio can meet the very aggressive time frame that has been established.
5. Should Silvio change the strategy for Schindler India that he developed when he was in the company's headquarters?
I believe that Silvio should sit down with his management team and re-evaluate the business plan. One area of concern is centered on the intended market place. Silvio's business model requires