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to read pages 1-11 on the article called \"Silvio Napoli at Shindler India (A)\" Then answer the questions below in two paragraphs with 10 sentences in each paragraph:

1. What advice would you give to Silvio regarding his decision on the nonstandard glass wall elevator that has been ordered?

2. How should he deal with the challenges he is facing over transfer prices and limited technical cooperation from the European plants?

Solution

1.

His company would experience a loss if Silvio accepts the order, but he should accept it. At the mentioned situation, the company needs to penetrate into the market. The company can expand its customer base as well as market share by accepting the order. Supplying the government building with the best elevators, might earn the company more orders when need arise. The glass wall elevator was only a modification of the existing model. It would not add any extra value to the product.

Besides this, Silvio should inform Mr. Schindler about lack of support from the European plans. It was very important for the company to outsource the S001 model to local suppliers immediately.

2.

Silvio should use the given steps to deal with the challenge he is facing over transfer prices and limited technical cooperation from the Europe plants:

Silvio should inform Mr. Schindler about lack of support from the European plans. Mr. Schindler can further talk with the European plants for their support and assistance.

He should focus on outsourcing the S001 model to local suppliers immediately. It would help them to quickly respond to the needs of the customers at reasonable price.