Adtranz Merger

Adtranz Merger

Eileen Kapolnek                       Jack Byam






The most pressing issue Bombardier Transportation must address is defining and reinforcing the company’s organizational structure. This issue creates a problem for Bombardier Transportation trying to successfully merge with Adtranz. Establishing a valued corporate culture is the first step needed to be taken in order to ensure the success of the company as well as increase the morale of the employees. A possible solution would be to redesign the firms’ value chain. It would lead to positive outcomes, such as support for rapid growth in market share, growth in scope of economies expansion with other products, increase speed of responsiveness to environmental changes as well as contributing significant gains in the firm’s cost structure. For Bombardier to truly benefit as a company, they need to implement a structure conducive to the European environment for the acquisition with Adtranz. This structure would allow adequate communication and help the company in regards to being responsive to area demands, lost opportunities, and establishing brand recognition.
Since the start of Adtranz in 1995, the company has been inconsistent in management of its business operations. A key reason for the lack of solid management results from the continual change of ownership. Every two to three years a new owner would take over operations with a different style, and as a consequence Adtranz was unable to establish its own identity. This deters employees from developing loyalty to the company and creates a vulnerable work environment for them to work in. This is one of the company’s biggest criticisms, and over the years has tarnished the brand’s image, or lack there of.

To help reinvent the culture within Adtranz, Bombardier needs to communicate to employees and customers that they are in for the long term. The current employees should be presented with the long term plans Bombardier has for the company, as...