Subject category:
Case Method and Specialist Management Disciplines
Published by:
Ivey Publishing
Version: 1995-04-28
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Abstract
Top management of Otis Elevator''s joint venture in St. Petersburg, Russia, are facing a number of supply and management problems. The manager of Otis'' European headquarters in France, who was in charge of Northwest Russia and the Ukraine, was coming to visit Otis St. Petersburg in one week. Senior management at Otis St. Petersburg was trying to decide what to recommend to the manager about the major strategic issues facing Otis: (1) Whether to expand, maintain, or contract activity in the service market, (2) Whether to try to increase, maintain, or decrease the percentage of inputs sourced domestically, (3) Whether to produce more different models or even custom models suitable for renovations, since the renovation market was experiencing much greater growth than the new construction market, and (4) Whether to continue to index elevator prices to the consumer price index. The Russian economy is changing rapidly and these strategic decisions represented many new opportunities and challenges for the company.
About
Abstract
Top management of Otis Elevator''s joint venture in St. Petersburg, Russia, are facing a number of supply and management problems. The manager of Otis'' European headquarters in France, who was in charge of Northwest Russia and the Ukraine, was coming to visit Otis St. Petersburg in one week. Senior management at Otis St. Petersburg was trying to decide what to recommend to the manager about the major strategic issues facing Otis: (1) Whether to expand, maintain, or contract activity in the service market, (2) Whether to try to increase, maintain, or decrease the percentage of inputs sourced domestically, (3) Whether to produce more different models or even custom models suitable for renovations, since the renovation market was experiencing much greater growth than the new construction market, and (4) Whether to continue to index elevator prices to the consumer price index. The Russian economy is changing rapidly and these strategic decisions represented many new opportunities and challenges for the company.