Bombardier Transportation and the Adtranz Acquisition

Only available on StudyMode
  • Download(s) : 502
  • Published : November 16, 2008
Open Document
Text Preview
Bombardier Transportation and the Adtranz Acquisition

Executive Summary………………………………..3

Current Situation………………………………...4

Team Structure…………………………………………4

Global Drivers…………………………………………5

Problem…………………………………………5

Analysis…………………………………………….5

Possible Solutions……………………………………6

Solution Recommendation……………………………………6

Implementation Issues…………………………………….7

Time Line…………………………………………8

Bibliography…………………………………………10

Executive Summary

Bombardier Transportation had one main problem which is that there isn’t any specific and defined organizational structure. This situation was particularly a problem with Bombardier Transportation trying to merge with Adtranz. Establishing the corporate culture is the first step that needed to be taken in order to be a successful company as well as increase the morale of the employees. A possible solution would be to redesign the firms value chain which would result for such positive outcomes such as ensure rapid growth in the market share, growth in scope of economies expansion with other products, increase speed of responsiveness to environmental changes as well as significant gains in the firms cost structure. For Bombardier to truly benefit as a company, they need to implement the International Matrix Structure for the acquisition with Adtranz. This structure would allow adequate communication and help the company in regards to being responsive to area demands, lost opportunities with area/product opportunities, establishing a corporate strategy and the issues with the constraints on resources. We feel that the International Matrix Structure will help Bombardier with the areas of the company that need improvement. The acquisition brought technology needed to improve the company locomotives, caused the company to develop an organizational structure and with the development of the International Matrix Structure, Bombardier will be able to have good communication, a defined corporate structure as well as informed employees which is needed to help the company be all around successful.

Current Situation

Bombardier Transportation needed to diversify into the global market in order to reduce cyclical risks, ensure the long term survival and keep up with the competition. Bombardier Transportation looked to capitalize on the rail way industry’s uncertainty through the purchasing of Adtranz Corporation at a low price and thus growing its market share. Diversification has led to Bombardier Transportation being the leading supplier of rail cars. The acquisition of Adtranz was attractive to Bombardier Transportation because Adtranz would add the value of their existing competencies, therefore, strengthening the business. The Adtranz Acquisition would expand Bombardier Transportation’s revenues and geographic scope, complete its product portfolio, as well as significantly increasing competencies in propulsion systems and train controls. Before finalizing the contract the European Commission had to approve it and Pierre Lortie, President and COO of Bombardier Transportation, was aware this process could take a long time. [pic] [pic]

Global Drivers

• Total market penetration- By acquiring Adtranz there would be one less competitor in the rail way industry where competition predominantly existed in Europe. Trade barriers were beginning to relax, as well as the United Kingdom totally privatizing its rail system in 1998 (including infrastructure and rolling stock), the rail way industry was growing and expanding into markets through out the world. • Technology- Bombardier Transportation stands to benefit in the gain of Adtranz expertise in propulsion systems, high-speed and inter-city cars, as well as signaling systems. • Shorter product life cycles- If Bombardier Transporation acquired Adtranz, they would combine their resources and costs, which would spread per unit costs further over more units. By globalizing their services and products, including...
tracking img