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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

Answer to question 1:

IT is important to have a good support from the manufacturer when purchasing machinery of components. Nonstandard machinery or parts are not mass produced, it does not mean they are non conforming or complying the clients demands, but, first, they are expensive because of not having an economy of scale that allwos its mass production, and in the other hand, its support is not quite guaranteed from the provider, because a nonstandard part has a risk of failurebecause of design considerations not known that could affect the, in this case, glass wall elevator. A series of tests have to be done over this nonstandard elevator, because it has not been standardized, it is not known in which cases it may have any kind of structural or performing failures. I would recommend then, if this kind of nonstandard elevartor is to be put, to test it first and standardize performing conditions that are safe for this new elevator, second, I would recommend to keep the strategy of local production of those, maybe by having Schindler\'s contractors working in India, if this type of elevator is demanded in the indian market, also, if this is a new kind of elevator and it has a good acceptance in the indian market, cosidering the patent trammits is a good idea.

Answert to question 2:

Because napoli has Schindler as its provider, the best idea is to make Schindler to have factories at India, so as to hire people from the region who manufactures the elevators there, in order to avoid transfer prices to be charged to the company nor to the clients, both situations are in fact undesirable.