Bombardier Case

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

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...

Case BOMBARDIER /ADTRANZ

Question 1

Two very important reasons for an acquisition are:

1 Possibility to expand internationally;

2 The potential to transform a company and to enrich a firm.

What is the Why Rationale?

With the cross border acquisition of Adtranz by Bombardier Inc. (BBD) it enabled Bombardier Transportation (BT) - a division of BBD - to enter the local European markets, obtain know-how and access to European engineering concepts needed in emerging markets like Asia and South America and other markets or influential groups demanding European equipment and technology. Apart from this, it would clearly strengthen BT¡¦s global reach.

With this acquisition it wanted to balance revenue streams in the different groups within BBD and to create a healthy balance against BBD Aerospace Group.

BBD is a Canadian corporation engaged in design, development, manufacture and marketing in the aircraft, rail transportation equipment and recreational product industries. In addition, the company offers services related to its core products and core businesses and is, through subsidiaries, involved in financial services and the development of real estate interests. Although BBD¡¦s acquisition strategy was focusing to complement or strengthen businesses, they had been growing predominately through acquisition of companies in poor shape. They have been very successful in turning around companies with poor performance by implementing tight controls. BBD was also strong in product costing and tendering, as opposed to Adtranz.

ADtranz, which is wholly owned by DaimlerChrysler AG, is engaged in the

manufacture and distribution of rail transportation vehicles (Propulsion Systems and Train Controls). Its current activities cover the manufacture and sale of rolling stock equipment as well as fixed installation and signalling equipment.

Although