From the research done above, the following points summaries the issues found With Annapolis strategy in expanding Schneider into India. There were many issues that arose throughout the process of setting up Schneider India. We have broken these down into three main categories and listed the relevant issues below them.
Problems with Marketing NO customization Of products reduced the number Of customers that were interested in buying a Schneider elevator. The business strategy created by Silvia was very rigid and did not allow for personalization of products.Silvia dated in his business plan that he would outsource the parts of the elevators from Europe. Due to insufficient research into the Indian economy, Silvia was not prepared for the increase in Indian’s input duties and this was not taking into consideration in the initial budget analysis. Lastly, there was no presence of an after-sales service for customers who bought a Schneider elevator. This meant customer relationships were weak and this would not compete well with the strong market leaders who had occupied the Indian elevator market for decades and had strong brand awareness and loyalty.Problems with Cross-Cultural Management Having only visited India once previously, Silvia had not been fully submerged into Indian culture meaning he was entering unknown territory. Again, the lack of flexibility in his business plan meant that Silvia could not incorporate unexpected changes into the plan as they occurred.
His lack of cultural knowledge exacerbated this issue, especially regarding the difficulties in the Indian economy. At the time of entry into India, the economy was recovering from the Asian Financial Crisis making business even more difficult.Before arriving in India, Silvia had not undergone any pre-departure training and because of this was not aware of the full extent of differences between Indian and Swiss culture. This led to multiple misunderstandings occurring throughout the board and with the potential to develop into conflicts. Finally, Silo’s family and work life were not fully integrated. While Schneider headquarters were in Iambi, his family life was located in New Delhi resulting in him having to travel between the two and elevating stress.
Problems with Human Resource Management (HARM)The main problems that arise within regards to HARM are due to the lack of staff training when starting up Schneider India. The late night meetings did not suffice and the rest of the board were not fully aware of the kind of company culture that Annapolis would adopt. Due to no training staff ended up being confused and problems began to arise. Secondly there was a distinct lack of communication between employees. Especially when Silvia was out of the country the rest of the board were not able to cope and communication broke down. This led to the acceptance of wrong orders.
Recommendations (Plan of Action)From the issues summarized above a correctional business plan has been devised which will discuss the recommendations given to Silvia in taking Schneider India forward. Firstly, it should be made necessary for all employees to undergo staff training. The people that Annapolis hired to make up his board Of directors came from many different backgrounds and specialist areas that, on paper, could have worked together to make a great team. However, each of the members on the board, apart from Annapolis, was Indian. They had not previously worked for a Western organization and were not aware of the corporate culture thatAnnapolis was expecting.
Moving forward staff training would give employees insight into Schneider as a global organization. On the job training Off the job training It is recommended for Schneider employees to undergo off the job training in which they are able to learn of the aspects of the business and then put this to practical use. This prolongs the process of the official start up of Schneider India and as a result is more expensive for the company.
However, the potential benefits of staff training will overall increase productivity, reduce chances of miscommunication and make the process of starting up much mother.Staff training should last around x weeks and will cost Ex. Furthermore, the business strategy that Annapolis put in place was extremely rigid. Re-thinking the business strategy to make it more flexible will allow Schneider India to incorporate customized products into their product line. On top of this, having a more flexible approach will allow the company to deal with the unexpected in a much more practical and efficient way. Branching from standardized products will increase the company’s potential customer market size, as they will be able to appeal to more consumers.