They have a number of years of experience to integrate various companies after acquisition and to drive post acquisition benefits after acquisition. Another reason behind choosing acquisition from other growth strategies, such as organic growth, strategic alliances, and joint ventures is the mindset of the employees that their jobs will be protected in the event of acquisition, which is evident from the fact that when it first entered into Aerospace industry, it did not replaced the existing staff now this mindset is also somehow showing its effects on the top management. Generally when one company acquires another, there are lots of redundancies that become evident right after integration of both companies, but this is not the case in BT. Another reason behind not choosing the strategic alliances and joint ventures was the complex and very vast rail market of Europe and America because generally, going into alliance without any pre-planning thatis the assessment of another company and its fit for the purpose of long term survival and growth through strategic alliance requires considerable amount of management focus.
Two very important reasons for an acquisition are: 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.
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.
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. Adtranz was a relatively new company in existence since build from a collection of many different companies where each newly acquired company brought in its own business philosophies, they never had the chance to develop their own homorganic culture.
When we look at both companies, I feel there is a definite potential for BT however there are quite a number of potential pitfalls. At first look it seems like the opportunity of a lifetime.
For BT to establish itself in the European market is very difficult. The industry BT is in, is rather specialized and requires large amounts of funding.
If starting greenfield next to this, Adtranz already has a customer base and is very aware of European regulations and customer requirements. As transport equipment and propulsion equipment have a high degree of complexity, a complementary acquisition such as this one enables a company to grow faster and develop markets and products.
BBD has a long and extensive track record of buying companies with a strong track record of integration acquisitions. BBD has a strong reputation as assembling company, however they are weak in development.Bombardier Transportation & the Adtranz Acquisition; Bombardier Transportation & the Adtranz Acquisition.
Words Feb 3rd, 10 Pages. More about Bombardier Transportation & the Adtranz Acquisition. Essay on Bombardier Aerospace Company Report Words | 16 Pages; Essay about Bombardier Case Study Words | 7 .
Bombardier Transportation & the Adtranz Acquisition Essay I.
Overview Pierre Lortie = newly appointed President & Chief Operating Officer of Bombardier Transportation (BT), headquartered in St.
Bruno, Quebec BT = one of 3 major operating groups of Bombardier Inc. (BBD), headquartered in Montreal, Canada. Adtranz is complementary to Bombardier since it has expertise in propulsion systems, high-speed and inter-city cars and signaling systems, which Bombardier does not have.
So this acquisition will bring needed technology and product expertise to different domains of Bombardier. This case analysis is about the successful Adtranz acquisition by Bombardier in and how the new appointed president and COO Pierre Lortie was brought in to manage the acquisition. Based in Montreal, Bombardier is a diversified multinational company with four major divisions: aerospace, recreational products, capital and transportation.
With the acquisition of Vevey Technologies () and ABB Daimler Benz Transportation (Adtranz) in , Bombardier Transportation has become one of the largest suppliers of rail transportation equipment in Switzerland.
Bombardier Transportation & the Adtranz Acquisition Essay I. Overview Pierre Lortie = newly appointed President & Chief Operating Officer of Bombardier Transportation (BT), headquartered in St.
Bruno, Quebec BT = one of 3 major operating groups of Bombardier Inc. (BBD), headquartered in Montreal, Canada.