...protection 11 Chapter 1 12 SWOT Analysis 12 Porter’s 5-forces Analysis 14 Value Chain Analysis 16 Strategic Logic 18 Chapter 2 22 Strategic Map 22 Chapter 3 23 Value Based Management Philosophy 23 Chapter 4 25 Risk Management Process 25 Chapter 5 27 Financial Analysis 27 Ratio Analysis 28 What is the position of the company in this situation of a financial crisis related to its main competitors? 32 Chapter 6 33 Budgeting Process in Management Control System 33 Chapter 7 34 Internal Control System 34 The alignment of the Internal Control System into the day-to-day management of performance 35 Conclusions and Recommendations 36 Bibliography 37 Closing statement 38 Preface Background We are appointed to finish the Bombardier case to give a primary analysis on the Bombardier Transportation, emphasis on the risk management of the company. Combining the subjects we have learnt about risk management and strategy management. Acknowledgement We would like to express our gratitude to all those who gave me the possibility to complete this report. We are heartily thankful to our professor, Mr. Chretien Straetmans, whose encouragement, guidance and support from the initial to the final level enabled us to develop the understanding and complement of the report. Report direction We are presenting the report to assist Bombardier Transportation to have a better development on the whole management system. Summary Albert Einstein once said:...
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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 the Railway SBU of Bombardier. Justify. Question 1 Bombardier transportation was one of three major operating groups of Montreal, Canada-based Bombardier Inc, it was one of the world’s largest manufacturers of passenger rail cars. Adtranz, an European company belonging to DaimlerChrysler is the major player in Europe in propulsion systems and train controls. In order to expand BT’s presence in the global rail equipment industry, especially on European continent, BT considers that merging with Adtranz could enlarge its key competencies and know-how and will allow BT to be more competitive on its market. But this operation presents four main issues to be solved: The size of the acquisition, Adtranz was approximately twice the size of BT. ...
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...Bombardier International Business Goran Vitic, Tim Subion, Tim Dunkin, Dan Table of Contents Introduction 3 Top Two Countries 3 United States 4 United Kingdom 7 Political, Economical & Cultural 8 Political Differences 8 United States: 8 United Kingdom: 10 Economic 11 United States: 11 United Kingdom: 12 Culture 12 United States 12 United Kingdom 12 Overcoming Differences 13 United Kingdom 14 Opportunities 14 America 15 Opportunities 15 Threats 15 Conclusion 16 Executive Summary 16 Works Sited 17 Introduction Bombardier’s headquarters is located in Montréal, Canada. It is a publically traded company on the Toronto Stock Exchange, traded under BBD. At the end of the fiscal year January 31, 2011, the company had posted revenues of $17.7 billion USD. Bombardier’s goal is to earn worldwide leadership in aerospace and rail transportation. The company’s mission statement successfully depicts the firm. We are committed to providing superior value and service to our customers and sustained profitability to our shareholders by investing in our people and products. We lead through innovation and outstanding product safety, efficiency and performance. Our standards are high. We define excellence and we deliver . Bombardier started with inventor and entrepreneur J. Armand Bombardier, founder in 1942 through his invention of the snowmobile. Laurent Beaudoin, the son-in-law took the reins of...
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...BOMBARDIER Trevor Davies Steve Bernier Paul Gos Jeff Cosentino Bombardier Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment. It is also a provider of financial services and asset management. The Corporation employs 79,000 people in 24 countries in the Americas, Europe and AsiaPacific Objective The goal of Bombardier is that the company and management team wish to downsize the company in order to have financing for other projects that they are currently researching. That’s why they sold the recreational division (snowmobiles). Joseph-Armand Bombardier History of Bombardier 1942 - Joseph-Armand Bombardier founded a company in Valcourt, in Québec's Eastern Townships Manufactured tracked vehicles capable of transporting passengers on snow-covered terrain. First commercial vehicle was the B-12, which was used to haul wood, carry mail and transport students in rural areas. 1959 - mass-production began of what today is considered the true forerunner of the Ski-Doo snowmobile. January 23, 1969 - listing of Bombardier stock on the Montreal and Toronto stock exchanges and public offering of two million shares. 1972 - Creation of subsidiaries Bombardier Credit Ltd., in Canada, and Bombardier Credit Inc., in the United States 1973 - Energy crisis precipitated a decline in the snowmobile market, thus forcing Bombardier to look for another field of activities...
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...Case Study: Bombardier Serves Multiple Business Markets Background: “Bombardier is all about trains and planes.” Since 1942, Bombardier has been manufacturing transportation products from snowmobiles to planes; and even ventured into rail transportation industry. Now, it has established its name as one of the industry leaders when it comes to manufacturing of planes and trains. Statement of the Problem: As one of the industry leaders, how can Bombardier sustain its market holding amidst rising competition? Objective of the Problem: To be able to identify a market strategy that will help Bombardier sustain or even increase its market share in the industry. SWOT Analysis Strengths: • Knowledge, Expertise, and Adaptability to Customer Demands Bombardier knows what and how to give what its customers want. It offers the perfect ingredient which is important to any transportation business: fuel efficient with low operating costs. It gives importance to its customers’ specifications. It asks where and when its aircrafts will be used. Bombardiers offers wide array of products and services such as manufacturing commercial and corporate planes. Users of its corporate planes may be part owners when they have 50 or more flight hours. In addition, if customers occasionally need a private plane for specific trips, they may avail of Sky jet charter program. These are just few of the services Bombardier offers. With the upgrading of...
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...An analysis will be conducted to suggest a strategic plan that Embraer would pursue over the next three to five years. The analysis will identify the competitive positions that Embraer has in the aircraft industry as well as identify the three major rivals listing their strengths and weaknesses. The analysis will also include the successful strategies that Embraer used to compete against its more established rivals. The analysis will be of assistance in understanding the reasoning for the suggested strategy. Following an approval of the strategy, a detailed strategy plan will be provided to you by the assigned deadline. Analysis: Using Porter’s diamond of national competitiveness to provide a convenient way to analyze the potential reasons for Embraer’s success, we verified that human resources and people with education and knowledge are factor conditions of the diamond. Most of the hired engineers have been students in the Aeronautical Technological Institute (ITA). The government Aviation schools provided a great overall national competitive advantage. As for the supportive institutional framework, the government had a roll in funding Embraer in its early days. As well, Aeronautical Technology Center (CTA) and Aeronautical Technological Institute (ITA) created a supreme opportunity for the company. Embraer took advantage of the untapped demand for regional airlines; and this covers the demand factors of the diamond. As for the local competitive intensity, Embraer did not...
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...carrier of Ethiopia, Ethiopian Airlines has become one of the continent’s leading carriers, unrivalled in Africa for efficiency and operational success, turning profits for most years of its existence. Ethiopian Airlines was established on December 21, 1945. As one of the pioneer African Airlines, Ethiopian has come a long way since its humble beginning, with DC-3/C-47 aircraft. Operating at the forefront of technology, it has now become one of Ethiopia’s major industries and a veritable institution in Africa, operating a modern and environmental friendly fleet. It commands a lion’s share of the pan African network including the only daily east-west flight across the continent. The airline is currently implementing its 15-year strategic plan called "Vision 2025" with the goal of becoming the leading aviation group in Africa. Beyond the passenger airline business, the Aviation Group is diversifying into seven profit centers with ten billion dollars in revenue. The profit centers of the Ethiopian Aviation Group are: Ethiopian International, Ethiopian Regional, Ethiopian Cargo Services, Ethiopian MRO Services, Ethiopian Aviation Academy, Ethiopian Catering Services and Ethiopian Ground Services. During the period 2011-12 Ethiopian carried 4.6 million passengers, successfully competing with other airlines with respect to modern equipment, convenience of connections, and quality of service. Its green, yellow and red emblem is recognized almost everywhere as the symbol of the...
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...Effective Leadership Smith COMM 425 Dr. Regine Nazaire 25 November 2010 Effective Leadership Everyone wants to be a leader, for the power, influence and respect. What makes an effective leader, how does an effective leader change the mind set of not only their employees, but their peers? In this paper I will discuss on how an effective leader, the influence of change, from one or a group of individuals, with strategic planning, communication of new policies, with a clear objective’s that will lead a company into the level of growth and sustainability. What does it take to be an effective leader in today’s world? This is done through organized training, communication, observation, and self development. Leadership is built on having a vision, strong values, and purpose, which is focus. Leaders take initiative to get things done, and to do the right thing (Zalabak, 2009). They do not wait on someone to tell them to do something; they take responsibility for there choices. Leaders are passionate and committed to a purpose or a goal. Leaders motivate their teams, through strong coaching and continue development. And finally a great leader inspires, building a strong team. An effective leader supports the relationship between a person who wants to learn, to develop his/her knowledge and who chooses to be helped and a coach who can provide the support for his/her development, CFC Consulting Group, (2003) In today changing environment, utilizing idea’s of those around you...
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...Contents 1. Strategic Profile 1 2. Mission Statement 1 3. Situational Analysis and SWOT Analysis 2 4. Problem Identification 3 5. Analysis of Alternatives 4 6. Strategy Control and Evaluation Processes 6 7. Conclusion & recommendations 7 8. Implementation 7 References 9 Appendix 1 11 Appendix 2 12 Appendix 3 15 1. Strategic Profile Embraer SA is a Brazil-based company which was founded in 1969 and primarily engaged in the manufacture of aircrafts. The company divides its operations into four main segments: Commercial Aviation; Defense and Security, and Executive Aviation. It also offers aircrafts for agricultural use, structural components, mechanical and hydraulic systems, aviation services, and technical activities related to the production and maintenance of aerospace material (www.embraer.com.br). The company’s commercial aviation segment designs, develops, and manufactures various commercial aircraft for regional, low-cost, and mainline airlines and its defense and security segment provides a range of integrated solutions for the defense and security market. The company’s executive aviation segment develops a line of executive jets for fractional ownership companies, charter companies, and high-net-worth individuals. Its aviation services segment offers after-sales customer support services. This segment also provides spare parts, sales, inventory pooling programs, customer training, and other product support services. It has strategic alliances with...
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...The Boeing Company, Part II Political The Boeing Company is very involved in the politics of the industry. Therefore, Boeing has a Government Operations office located near Washington D.C., and the office serves the company in three ways. One way is that they work with government officials and organizations to protect and advance the company's interests, competitiveness, and reputation. This is very important because as the world’s largest aircraft manufacturer, Boeing does not want to get surprised by a policy or rule that could hurt the company. In addition, another service is to win government contracts. Recently, Boeing won a contract with the U.S. Navy for an order of 20 P-8A airplanes for $2.5 billion (Smith, 2016). Due the location of the office, Boeing was able to secure this contract, as well as many others over the history of the company. Lastly, Boeing and the government works hard to shape public policy issues that impact the company. The office works with public officials across all levels of government, federal, state and local, to work with the government to be compliant. Boeing’s team also works with various third party organizations such as associations, public policy groups, and international organizations (Boeing, 2009). The effective income tax rates for 2014, 2013, 2012 were 23.7%, 26.4% and 34.0%, respectively. Boeing’s 2014 effective tax rate was lower than 2013 primarily due to tax benefits of $265 million related to tax basis adjustments and $259...
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...thus created a large number of business travelers. Deluce’s strategic vision for Porter was to start with exceptional customer service and combine that with numerous flight options by instituting a quick turnaround system for departures and arrivals. He also wanted a competitive but low cost fare structure with the intent to gain a healthy market share in a short period of time. Porter wanted to use a single turbo prop airplane fleet that would have low maintenance costs and would be efficient to run over short distances. This would allow Porter to offer more flights at lower capacities yet still be able to make a profit. Deluce also wanted his working environment to be friendly but efficient and he leads by example. Deluce has also been known to come down to the terminal to greet notable passengers—governors, cabinet ministers—when they arrive. As one observer put it to me, “He runs his airline like a family restaurant.” (Preville, 2013) Air Canada, its subsidiaries and affiliates dominated the Canada airline industry and they often used strong-arm tactics to crush any competition. The lack of competition in Canada’s airline industry allowed Air Canada to maintain high fares and this was something that Deluce wanted to exploit with Porter Airlines. Air Canada had deep pockets and could easily drive out small start-up airlines with price wars and deeply discounted fares. Deluce had a very ingenious plan to prevent Air Canada...
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... 5 Alternatives or Options 7 Recommendation 9 Implementation 10 Monitor and Control 11 Executive Summary At De Havilland Inc. we have been in business since 1928 and have come a long way since then. After many acquisitions and mergers and now bought by Bombardier Inc we have been a major part of Canadian aircraft manufacturing industry. With the influence of Bombardier we are making strategic decisions to focus on cost reductions, long term vendor relationships and reduce number of vendors we use at De Havilland. Focusing on cost reductions we have requested a 25% cost reduction on the flap shrouds pricing and Dollard Plastics who is the current supplier has turned us down. Now after looking at nine bids Marton Enterprises Inc. has been chosen as the preferred vendor which will meet the terms that BSB was looking for. This new relationship will reduce overall cost of the parts and make us a stronger competitor in the market. Product quality and financial health of Marton must be checked but this relationship will be beneficial...
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...Through Their Expansion Plans, How will Porter Airlines Effectively Utilize Their Low-Cost Business Level Strategy to Increase Their Customer Base? Table of Contents Executive Summary…………………………………………………………………….p. 3 Porter Airlines…………………………………………………………………………..p. 4 The Expansion..………………………………………………………………………...p. 4 What is Organizational Strategy………………………………………………………..p. 7 Porter Airlines Business Level Strategy………………………………………………..p. 9 Core Competencies …………………………………………………………….p. 9 Competitive Advantage………………………………………...………………p.12 Low Cost Business Level Strategy………………………………………...…..p. 13 Low Cost Business- Level Structure………………………………………………….p. 15 Conclusion…………………………………………………………………………….p. 17 Appendix……………………………………………………………………………...p. 18 References…………………………………………………………………………….p. 20 Executive Summary Porter asserts that their secret to success relies in combining a low-cost business-level strategy with a focus on higher yield passengers who value premium service (Preville, 2014). The company has been profitable for the last two years, and as a result has been focusing efforts on expanding their domain and customer base. After conducting an interview with an operations manager at the company, Ashley Hammill, I was able to acquire information about the company’s expansion plans, business strategy and structure (See Appendix A). I will be using the information provided by her primarily, with some secondary sources allowing me to go into further detail about the company....
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...expedited security and check-in times. Additionally, a critical success factor for Porter is to maintain the commercial exclusivity on the airport, to take advantage of cost savings as a result of being the owner, tenant, and operator. Competitive advantage is also a result of operating a single class of aircraft that has significant cost and operational efficiencies. Alternatives and Recommendation ------------------------------------------------- Several alternatives were provided for Porter to continue its growth, including a focus on refining competitive advantages and improving the TCCA, expanding the destination portfolio to include additional local destinations as well as Western Canada destinations, and the possibility of joining a strategic alliance, which are very common in the airline industry. Overall it is recommended that controlled expansion should be...
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...Executive Summary De Havilland (Havilland) is Canadian aircraft manufacturer that was recently acquired by Boeing. The parent company has requested Havilland take on several initiatives including seeking 25% price reductions from suppliers, reducing the total number of suppliers and seeking more long-term fixed pricing agreements. Havilland recently received submissions for an RFQ for the supply of supply flap shrouds and equipment bay doors. The pricing received raises some concerns however, as there are large variations in pricing between the lowest price from Marton Enterprises Inc. (Marton) and the highest price from the incumbent, Dollard Plastics (Dollard). There are several viable alternatives for Havilland. They may accept the bid from Marton on the condition that it is assured Marton fully understands the scope, their facilities are sufficiently equipped, and they provide their financials. It will be in Havilland’s best interests not to pursue their policy under the Bidder Selection Board (BSB) to attempt to renegotiate the price lower since Marton already provided substantial savings. The next option for Havilland is to pursue the first option but only given Marton 80% of the work for the first year and keep the incumbent under contract for the remaining 20% of work. The third option is to cancel the RFQ, clarify with the bidders what was unclear in the specifications that resulted in such a wide variation in pricing and go out for bids again. The final option...
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