Bombardier Transportation And The Adtranz Aquisition Case Analysis

1238 words - 5 pages


Prepared by: Samuel C. Anyanwu
Date of Submission: February 17, 2015.
Submitted to: Prof Dr. Kelly Thompson.

Bombardier Inc. (BBD) had over the years built a well diversified and versatile business in order to reduce cyclical risk, ensure long term survival and redefine the company’s position on a global scale. The route taken to achieve this level of diversification was through strategic acquisition of key players in the industry that complimented BBD’s vast business ventures.
BBD’s growth philosophy was to seek acquisitions that enabled the company to apply exiting competencies without focusing solely on ...view middle of the document...

[ (Rikard Larson & Sydney Finkelstein P1) ]
The acquisition of Adtranz by Bombardier Transportation (with Adtranz being twice the size of BT) fell within the lines of the company’s ascertained approach to expand revenue and geographical scope but the acquisition was mainly to increase its competencies in propulsion systems and train controls which would complement its product portfolio. (BOMBARDIER & ADTRANZ AQUISITION CASE ,P1,4,5).
Adtranz’s business model constituted a good strategic fit with great complimentary attributes which made for an increased degree of synergy realization but BT still needed to conceptualize and effectively rectify the organizational structure incompatibility as there were organizational issues to be dealt with before full synergistic benefits from the merger was to be realized.
According to Larson and Finkelstein, the presence of complementary operations increases the probability of acquisition success by boosting synergy realization of the merger and combination potential is significantly more successful when coupled with high organizational integration. [ (Rikard Larson & Sydney Finkelstein) ]. The theory proposed by Larsson and Finkelstein establishes the fact that the BT and Adtranz merger was significantly successful from a the complementary combination of operations to being about greater synergy realization but the lack of organizational integration could see to the less likelihood of the success of the merger being maintained and sustained overtime. The presence of complementary operations as opposed to combination of similar production and marketing operations made for the absence of resistance from employees on both sides of the merger.
According to Larson & Finkelstein, the approach to be considered by the executives at BDD when trying to integrate both companies from an organizational perspective would have to entail taking advantage of BT’s/BBD’s current approach of using a low degree of organizational integration as considerable interaction and coordination of both companies structure and strategy are necessary to adequately exploit the strategic interdependencies that both companies possess. Larson and Finkelstein proposes that organizational integration can be considered based on the degree of interaction between both companies from a restricting point of view where executives are able to analyze the best restructuring approach that culminates into a win-win strategy for increased synergy realization. [ (Rikard Larson & Sydney Finkelstein) ].
Considering the cross border combination hypothesis proposed by Larson and Finkelstein, it is stipulated that cross border mergers can impede interaction and coordination needed to realize synergies or it can speed up entrance into new markets thereby promoting globalization synergies. The acquisition of Adtranz by BT makes for a positive cross border combination as the legal and financial framework of both countries where the companies are located are...

Other Papers Like Bombardier Transportation and the Adtranz Aquisition Case Analysis

Sky Nurses and Placidway Offer Patients Safe Transportation Back Home from Anywhere in the World

639 words - 3 pages organization." 'Sky Nurses takes medical tourism a step further. Patients from all over the world have access to safe and professional transportation to their homes no matter what destination they choose for medical care. No more fears of unsafe and risky transportation which might cause complications for the patients who had complicated surgeries. We appreciate the effort Sky Nurses does to get patients safe home and we will support and help

The Fashion Channel Case Analysis

6197 words - 25 pages Situational and SWOT Analysis The Fashion Channel is a network dedicated to fashion twenty-four hours a day, seven days a week. Since it was founded in 1996, it has successfully achieved profit growth above the industry average rate and steady revenue. TFC reaches more than 80 million households in the United States, and targets a wide variety of demographics, specifically, viewers between the ages of 35 and 54. Impressed by The Fashion

The Lincon Company Case Analysis

1141 words - 5 pages at Lincoln. Employee benefits package Another negative factor to take into consideration is the limited benefits, as in Betty Steward’s case, a 52 year old woman working at Lincoln for 13 years. Betty did not get paid sick time when taking time off for her back surgery and more than likely had to force herself to get back to work as soon as possible to continue earning her wages. I believe Lincoln should set higher standards for work benefits

Hardtech, Inc and Mearl Oil Case Analysis

591 words - 3 pages Hardtech, Inc Case Study Analysis (Harvard) Homework #3 IE560 Spr 2016 #1 HardTech, Inc) Hardtech, Inc. should implement a matrix organization per Ryan’s recommendation to complete their three new initiatives. This will allow each initiative to be run by a discrete, dedicated project team. The project teams will consist of employees from each of the relevant departments allowing deep subject matter expertise as needed to complete the

The Dim Lighting Co. Case Analysis

1933 words - 8 pages or agency to provide suitable candidate profiles for the vacant position. The responsibility of the HR manager lies in providing the requirements expected out of the recruitment and selection process. A SWOT Analysis of Comcast (2012, May 31) Retrieved October 06, 2014, from

The Irac Method of Case Study Analysis

787 words - 4 pages The IRAC Method of Case Study Analysis LAW/531 April 27, 2014 The IRAC Method of Case Study Analysis Facts In the case of Martha Bull, 76, against Greenbrier Nursing and Rehabilitation Center, negligence was found in her death. Ms. Bull was admitted to the center for rehabilitation after a stroke. On the night of April 7, 2008 there was an order to have her sent to the emergency room; however, there was oversight and the order was

Case Study Analysis: The Reluctant Workers

1061 words - 5 pages Case Study Analysis: The Reluctant Workers Name Withheld BUS xxx-Business Class Professor Name Withheld Saturday, May x, 20xx Case Study Analysis: The Reluctant Workers Tim Aston, a young Project Manager only three months into the company, is experiencing difficulty with the operation of his project. The case study is a dialog between Tim and his director, Phil Davies, concerning the advancement of the project. The analysis is on three

The Forgotten Team Member: a Case Analysis

1047 words - 5 pages MGMT-591 Smith Leadership & Org Behavior Case Study The Forgotten Team Member: A Case Analysis Shon Gregory 11-26-2012   Group Development Just as all people go through phases of change in their lifecycle, childhood, adolescence, adult, and old age, teams also go through development/lifecycle phases as well. Depending upon the stage of development that a team is in, issues, challenges, and opportunities should be handle differently

The Exley Chemical Company Case Analysis

873 words - 4 pages Alexander Becerra BUS 431 Chapter 10 Case Study The Exley Chemical Company Case Analysis I. Problems A. Macro 1. A leading indicator of a problem within an organization is when sales and profits begin to drop off steadily over a substantial period of time. This is the case with Exley Chemical who previously had experience a positive ratio of net profits to sales but since the

Case Analysis - Leading the Josie Esquivel Franchise

948 words - 4 pages The main issue of this case is whether Josie Esquivel should stay at Lehman Brothers or accept Morgan Stanley’s job offer. There are three possible alternatives to solve this problem, which are (1) stay at Lehman Brothers; (2) accept Morgan Stanley’s offer; (3) Leave Lehman Brothers and find and another job but not to accept the offer of Morgan Stanley. Following are feasibility analysis of each alternative. Stay at Lehman Brothers Strengths

Written Analysis of the Case - Prestige Company

2180 words - 9 pages Financial Analysis Tools and Methods, decide whether to shut-down the operations of the subsidiary by the end of 1997. 3. To identify the areas for improvement in the operations of Prestige Data Services as to realize an income of at least $50,000.00 from its operations by the end of 1997. Areas of Consideration: External: 1. Subject to regulations of Public Service Commission * Because it operated as a public utility, the rates charged by

Related Essays

Motor Transportation And The Environment Essay

1713 words - 7 pages Motor Transportation and the Environment Keiser University Writing for Managers September 16, 2012 Abstract According to a Department of Transportation (DOT) study, there were 134,880,000 vehicles and 7,883,000 motorcycles registered in the United States in 2009 alone. Looking at these numbers we can say that the purchase of these vehicles and motorcycles contributed to the United States economy, but at the same time, those numbers also

The Effect Of Energy Prices On Transportation And Storage Sector’s Equity Returns: The Iranian Case

4778 words - 20 pages THE EFFECT OF ENERGY PRICES ON TRANSPORTATION AND STORAGE SECTOR’S EQUITY RETURNS: THE IRANIAN CASE by ABSTRACT The purpose of this study is to examine the effect of oil and gas prices on transportation and storage sector’s equity returns in Iran. To this end, we analyze Iranian transportation and storage sector index for the period from the first week of January 2005 until the third week of March 2010. Based on the multifactor model and

Control And The Mobile Work Case Study Analysis

752 words - 4 pages Case for critical thinking: Control and the mobile worker: rethinking IT devices in the workplace 1. The case outlines several ideas that organisations are using to capitalise on changes in technology and preferences of employees to work remotely. How does the concept of management control relate to this? The concept of management control directly relates to the several ideas that organisations are using to capitalise changes in technology

Case Analysis: Micky Arison And The Costa Concordia Tragedy

860 words - 4 pages Jessie Carpenter Professor Merrie Marks MGMT500.2 Principles of Management 21 September 2013 Case Analysis: Micky Arison and the Costa Concordia Tragedy The former CEO of Carnival Corp. faced one of his biggest challenges when the Costa Concordia cruise ship began to sink off the Italian coast in January 2012. His actions at the time caused a bit of hype in the public eye. People wondered why Micky Arison wasn’t taking a more public role