Eli Lilly in India: Rethinking the Joint Venture Strategy
Eli Lilly in India: Rethinking the Joint Venture Strategy
1. What Decisions or Actions need to be taken?
For Luc Bonnard, the vice chairman, board of directors of Schindler Holdings Ltd, the decision to make was to allow Silvio Napoli, the Indian country manager to continue managing after 8 months of operations without installing a single elevator. More importantly Silvio needs to decide whether to stick with his business plan that he wrote in Switzerland or come up with a new business plan that will improve his performance in India.
2. What is Your Recommendation(s)?
As for Luc, I recommend he allows Silvio to stay at his post. Silvio’s education and experience is very extensive and I believe Silvio is the right person for the job.
Silvio’s aggressive business plan relied on 2 main factors:
1- Low cost elevators that did not allow any room for customization.
2- Outsource the manufacturing of parts to local companies.
As one can see from the text, insisting on a standard model did not allow Silvio to install any elevators even though he had order since the orders included customization. Furthermore, outsourcing also was a project that could not even get started since the plans in Europe did not supply the a parts list. Business was not being actualized according to the current plan and therefore I recommend the following:
1- As Silvio is establishing business in India, he should consider maintaining Schindler’s installed elevators that were previously sold in India before focusing on selling new elevators.
2- Instead of outsourcing the manufacturing of parts, Silvio can build a new plant from the ground up to build the elevators locally.
3- Business plan should be more flexible and adapting.
3. Why is this the best Alternative? .
According to my three recommendations above, here is why I believe these recommendations are the best alternatives.:
1- Since Schindler installed elevators in India as early as 1925, Silvio should
1. What Decisions or Actions need to be taken?
For Luc Bonnard, the vice chairman, board of directors of Schindler Holdings Ltd, the decision to make was to allow Silvio Napoli, the Indian country manager to continue managing after 8 months of operations without installing a single elevator. More importantly Silvio needs to decide whether to stick with his business plan that he wrote in Switzerland or come up with a new business plan that will improve his performance in India.
2. What is Your Recommendation(s)?
As for Luc, I recommend he allows Silvio to stay at his post. Silvio’s education and experience is very extensive and I believe Silvio is the right person for the job.
Silvio’s aggressive business plan relied on 2 main factors:
1- Low cost elevators that did not allow any room for customization.
2- Outsource the manufacturing of parts to local companies.
As one can see from the text, insisting on a standard model did not allow Silvio to install any elevators even though he had order since the orders included customization. Furthermore, outsourcing also was a project that could not even get started since the plans in Europe did not supply the a parts list. Business was not being actualized according to the current plan and therefore I recommend the following:
1- As Silvio is establishing business in India, he should consider maintaining Schindler’s installed elevators that were previously sold in India before focusing on selling new elevators.
2- Instead of outsourcing the manufacturing of parts, Silvio can build a new plant from the ground up to build the elevators locally.
3- Business plan should be more flexible and adapting.
3. Why is this the best Alternative? .
According to my three recommendations above, here is why I believe these recommendations are the best alternatives.:
1- Since Schindler installed elevators in India as early as 1925, Silvio should