Bombardier Transportation and the Adtranz Acquisition

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Bombardier transportation and the Adtranz Acquisition 1. What is this case about (250 words)? 2. What are the Key Success Factors of the railway equipment industry ? 3. Draw a schematic representation of Bombardier’s business portfolio before and after the Adtranz acquisition. How critical is the European railway market for Bombardier? (From a business and a corporate level perspective). 4. Is Adtranz an attractive acquisition target for Bombardier? What are the arguments for and against? 5. What should Lortie do with Adtranz? Integrate it ? Leave it as a stand alone? A mix? Justify. What should be his focus in Europe in the next three years : growth or profit ? Justify. 6. Propose an organizational structure for…show more content…
In terms of people management the railway equipment industry gives credit to not replace existing staff when there is a merger. This is an asset because existing staff can form the other ones on manufacturing methods and share best practices. BBD named it “tried and tested management approaches”. Question 3 Bombardier’s business portfolio before the acquisition: Bombardier’s business portfolio after the acquisition: In these two schematic representations we can see that the biggest business group of Bombardier is the Aerospace group with a revenue of $8 126 M during for year 2000. As Bombardier is the number one or two globally in the aerospace industry, depending on which under group you are looking at, Bombardier is considered to have a high competitive advantage. The industry attractiveness is rather high, as it is a global industry with a turnover of many billions dollars, but also with a high growth of about 5 % per year. Recreational products has a revenue of $1 473 M in 2000 at Bombardier and therefore the second smallest business group within the company. Also within this industry Bombardier has a quite high competitive advantage as the company reports to be number one or two globally depending on under category. As this category has a small part of the total revenue of the company, and contribute with an even smaller profit, the recreational group may be seen as having a peripheral role and therefore not be

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