Napoli

Topics: United States dollar, Currency, Case study Pages: 4 (1366 words) Published: October 22, 2013
Was Silvio the right choice to head the India operation?
In my opinion, I do not think that was the right choice. Even though India’s growth potential was significant, there are several reasons why I think so. First of all, Exchange rates and unforeseen duties further frustrated market development efforts. When it comes to international business those risks always would be cause of challenge. For example Japanese lumber company in Canada decreased their sales from last year because of change of currency rate of Japanese yen and Canada dollar. Making the transferred sub-assemblies even more expensive was the fact that there were exchange rate fluctuations favoring Indian currencies. Second, Schindler's manufacturing cost structures were compatible with customization, not commoditization. According to “ Exhibit 6”, Indian people focus on price or service, not safety or technology. One of the biggest challenges he faced as getting transfer costs for elevators to a price point internally where building elevators made sense. The case study details the very slow ramp for sales. Was Silvio the right choice to head the India operation?

In my opinion, I do not think that was the right choice. Even though India’s growth potential was significant, there are several reasons why I think so. First of all, Exchange rates and unforeseen duties further frustrated market development efforts. When it comes to international business those risks always would be cause of challenge. For example Japanese lumber company in Canada decreased their sales from last year because of change of currency rate of Japanese yen and Canada dollar. Making the transferred sub-assemblies even more expensive was the fact that there were exchange rate fluctuations favoring Indian currencies. Second, Schindler's manufacturing cost structures were compatible with customization, not commoditization. According to “ Exhibit 6”, Indian people focus on price or service, not safety or technology. One...
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