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Business Strategy study guide

O napoli was vp for south asian new culture new

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o Napoli was VP for South Asian - New Culture, New Challenges o A lot of foreshadowing with the family’s bad luck (daughter opening her forehead, wife with food poisoning, son falling in bathroom) o Went back and forth with New Delhi and Mumbai - Recruiting the Team o Singh: firsthand experience o Matthews: worked for Otis India o Dante: experienced with Otis o Jena: CFO – high ethical standards, integrity, and drive - Developing the Relationships o Different management styles o Must balance monk and warrior o Hard driver, impulsive, impatient, single-minded - The India Business Plan - The Indian Elevator Market o 50% of demand was for low-tech manual elevators o India’s rapid urbanization o Small but growing demand for top-quality, high-rise office facilities - Competition o Otis, BBL, Finland’s Kone, ECE o Otis India installed 26,000 elevators o Indian market was highly price sensitive o Elevator life cycle: engineering, production, installation, service, repair, modernization, replacement (30 years) o Maintenace were the majority - The Standard Product Strategy o Schindler had to have an advantage: focus on a narrow product line of standardized and simple elevators - The Outsourcing Strategy o India’s high import duties had forced most foreign elevator companies to manufacture locally o Maintenance contracts - From Analysis to Action: Implementing the Plan - Business Challenges o Questioned Napoli on his management and feasibility of plan o Group accepted an order for a custom glass pod elevator, angering and going against statraegy
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o Break-even objective - Reflections of a Middle Manager o Job requires high energy and courage – Napoli is lonely Toys “R” Us Japan - Japan has a multilayered distribution system - Toys “R” Us and Den Fujita became partners – won approval from Japan’s powerful MITI (Ministry of International Trade and Industry) - Would Japanese customers, accustomed to small shops and personal service, ever accept a self-service discount warehouse? - Would Japanese manufacturers risk damaging long-standing relationships with wholesalers and retailers by dealing directly with Toys “R” Us? - The Toys “R” Us Company o Brainchild of Charles Lazarus o By 1988, Toys “R” Us captured 20% of US toy market o Sourcing directly from manufacturers o 8-15k SKU’s o Larry Bouts (President of the chain’s international division) suggested the expansion of Toys “R” Us actually benefited foreign retailers as well as consumers - The Japanese Market for Toys o Japan was an extremely attractive market for toys o Strengthening economy and increased consumer spending o Annual retail sales grew 94% during the 1980s, while JGDP grew o Japan’s falling birthrate made families spend less on food and more on toys o 1991, Japanese toy market was worth $7.1 billion o Foreign discount retailers had difficulty establishing a market position – remained highly fragmented and locally-focused 1-2k SKU’s o Nearly all retail shops were domestically owned and bought their toys from local wholesalers o
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