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Case Analysis Of Bombardier

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Bombardier (BBD) business has evolved from the early years of snowmobile manufacturing to a diversified business in the transportation industry. Now, more revenue comes from its aerospace division in comparison to recreational products and even transportation. BBD wanted to expand its transportation division (BT) and had recently concluded the negotiation of Adtranz, a company twice the size of BT. Using the Strategic Analysis Framework, below is the rationale to justify the acquisition of Adtranz for BBD.
RATIONAL FOR ACQUISITION
Using the Strategic Analysis Framework (Appendix 1) below are the reasons why Adtranz was a strategic target for BBD:
Environment opportunities: The European transport market was expected to grow, on the back of demand from Asia and South American countries. Also, the push for green movement with government support provided a long term growth opportunity in Europe.
Stakeholder aspirations: BBD’s main business had become aerospace, which was a cyclical business and it was important to strengthen the other division to balance the industry exposure of BBD and provide stable growth and cash flows to the business.
Organization capabilities: Over the past few years BBD has incorporated many mergers successfully. The team had the capabilities to add value through acquisition by application of its existing competencies.
Given Adtranz recent changes resulting in an unstable culture and structure, it presented BBD with an opportunity to not only improve and

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