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.
BBD = one of the world’s largest manufacturers of passenger rail cars
BBD recently completed acquisition of Adtranz from DaimlerChrysler, headquartered in Berlin, Germany
Acquisition would expand BT’s revenues & geographic scope; increase BT’s competencies in propulsion systems & train controls; complete its product portfolio
Before deal is solidified BT requires regulatory approval of the European Commission (EC) – lengthy process
Lortie began a thorough review of work
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Acquired Canadair from Canadian gov. Through aggressive marketing, cost-cutting measures and tight controls, BBD turned operations around. Acquired Short Brother PLC (aircraft producer in Ireland), Learjet Co, and de Havilland (civil aircraft industry penetration). BBD introduced new planes.
Revenues were now less than 15% for snowmobiles due to diversification.
Beaudoin’s deals & acquisitions turned poorly operating entities into profitable ones
Profits from the BBD’s recreational products group (snowmobile/watercraft sales) represented 37% of company’s profits; MADE GROUP CENTRAL TO COMPANY SUCCESS. Aerospace group represented 66% of revenues and 85% profits (increase in jet sales, expanding economy, Bombardier created new commuter jet segment).
BT grew as well (awarded prestigious contract to produce specialized rail cars for the Eurotunnel engineering project). BT acquired Waggonfabrik Talbot KG of Germany, DWA Deutsche Waggonbau GmbH of Berlin (doubling train/subway car manufacturing capacity in Europe). Acquired contract w/Virgin Rail Group of
r market by entering into strategic code-sharing agreements with international carriers, such as Cathay Pacific , and American Airlines
Clive Beddoe and team started their journey with three aircraft fly to five destinations and 220 friendly WestJetters — a journey that would help them become a company of more than 8,800 passionate WestJetters flying one of the youngest fleets of Boeing 737 Next-Generation aircraft to more than 80 destinations in North America, Central America and the Caribbean.
Structural: The Leadership indicated that BEA was concerned with building an airline infrastructure than it did in profit. This was reflection a de-centralized leadership style and BOAC was concerned with the jet airliner which was focusing on the task. The merger caused BA to be very controlled with a lot of rules and regulations. Privatization by the British government made BA a public limited company. (Jick & Peiperl, 2011, pp. 26, 34).
BBBY faces both external / internal potential problems while it tactics to implement its expansion plan.
They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and
Mr. Gaffney was born in Canada and has been with Bombardier for 20 years. He has worked his way up from maintenance in the shops up in Canada to moving to Maryland and obtaining his position as GM for the Maryland site. Bombardier Transportation or BT has a predominant stay in Europe with at least 5-6 sites in the US. BT has sites in Miami, Orlando, LA (2 sites), New York and Maryland among others. The Maryland site has a contract with MTA to run the service and maintenance for the MARC train lines. They run the Camden and Brunswick train lines but not the
Westjet came into the air travel business in 1996, offering fares up to 50% cheaper than there competition. They strived for an excellent relationship between the employee and the employer by creating an ecstatic, friendly work environment. Westjet is one of the most successful airlines as it did start out with the most start up capital any airline has ever experienced, as well as keeping their debt to a minimum. With such commercial success, Westjet was questioned with their actions towards Air Canada as one of the founders employed a travel agent to find out certain information about Air Canada which gave them a competitive advantage so they knew exactly what price would be a noticeable difference, which would attract
Establishing an effective corporate culture for the new conglomerate is essential to Bombardier Transportation’s success. Pierre
Air Canada arranges a proactive strategic procurement plan to obtain different goods and services that are vital and fundamental for company growth. These strategies are based on analysis of their historical spending and on educated forecasting of requirements and opportunities. Air Canada is able to create and improve important relationships with key strategical suppliers due to their pronounced buying volume allowing them to acquire greater leverage.
With this acquisition, Timken could break into and dominate the European market and use it as the leverage to be the leader in bearing industry.
Strategy #1 The aircraft market is extremely competitive, even though there are less than five major players globally. Between Boeing and Airbus, most of the market share for the next generation aircraft has already been solidified. For Bombardier to effectively gain orders it must make the aircraft are more appealing to purchasers in two major ways: cost and performance. In the final cost of an aircraft, a great deal of money is spent on research and development. Boeing has millions invested in new aircraft and wing design, and piggy-backs off its other divisions and aircraft offerings. Airbus receives a great deal of benefit from its govermnet contracts
After a few number of mergers & acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen.
Over the years Air Canada’s business strategy has changed and has been reconstructed a number of times. Air Canada’s mission has always remained the same, “connecting Canada and world” (Air Canada, 2016), but their visions and goals, have transformed.
Boeing Australia Limited (BAL) is a global extension of the Boeing Company whose head office locates in the United States.
Our intention is to achieve the already given targets and also prepare BT for an opening to new horizons. In addition, in order to face the fast changing environment we have to introduce within the companies activities like cross selling and e-marketing.