Bombardier transport Case Solution
There are many pressing issues in the integration of the acquisition of ADTRANZ. Many industry analysts believe that, there is some mismanagement in the operations and after sales service departments, which are reducing the quality of the products of ADTRANZ. However, the management of Bombardier considers these departments a good complementary assets of ADTRANZ. It can be argued that, management of Bombardier are considering the acquisition in any way that they are not properly highlighting the weaknesses of ADTRANZ, which can have an adverse impact on the long-term performance of both companies. The management of Bombardier is too optimistic regarding the performance of ADTRANZ. Furthermore, Bombardier is also not giving proper attention to the cultural issues of ADTRANZ.Many acquisitions and mergers fail just, because of the clashes in cultures of different organizations and same can happen here. This is particularly,because of the frequent changes in the operating culture of ADTRANZ, after the acquisition every parent company wants to implement their culture and same will be done by Bombardier.
Degree of change at Bombardier
It is recommended that, Bombardier should bring some slight changes in the culture of Bombardier,in order to integrate successfully with ADTRANZ. Furthermore, Bombardier should also have to bring some changes in the business strategies as well. Currently, they are following aggressive business strategies for inorganic growth.Frequent acquisition might result in the increased debt burden and liquidity issues being faced by the company. Furthermore, they are also acquiring undervalued companies.It is possible that acquiring company doesn’t have enough capability to generate profits which will result in heavy losses.
Degree of change at Adtranz
In order to make integration successful, a high degree of change is required in the management of ADTRANZ not only in management, the change should also be incorporated in the day to day operations of ADTRANZ. The employees and management have to change themselves according to the culture of Bombardier.The employees should receive substantial training regarding the culture of Bombardier Transport. In addition to this, the change should also have to be incorporated in the day to day management of the operation of ADTRANZ.In order to resolve quality control issues in its trains and to resolve the contract gaining issues.
Post-merger integration plan
The post-merger integration plan of Bombardier and ADTRANZ should have three phases which are described below:
Phase One (First Week):
In the first week the acquisition of ADTRANZ, should have to communicate with the general employees of ADTRANZ and Bombardier.The communication should also include the roles and responsibility of the employees in the combined company. The communication should also include the formal presentation of changes in the organizational structures as well.
Phase Two (First 60 Days):
In the first sixty days, the management of the combined companies should have to make efforts,in order to implement the culture of Bombardier at ADTRANZ. Furthermore, the management should also have to assess whether the pre-agreed benefits of theacquisition are achieved or not, along with the improvement in the quality of trains produced by ADTRANZ.
Phase Three (First year):
In the third phase, it will be assessed whether the stated milestones are continuously accomplishing or not. Moreover, the quality issues will also be amonitor in this phase, along with the improvements in contract gaining process. The management should also have to assess whether the toxic activities abound or not……………..