Bombardier Aerospace Case Study Analysis

A Case Study Of Bombardier With Swot,Internal And External Elements Which Add To The Company Success

Executive Summary:

Bombardier Inc. (BBD) has seen net profits fall 163.1% from 2000 to 2002. In an effort to regain profitability, it has embarked upon a concentration strategy to focus on its core competencies of aerospace and mass transit, which would be supported by Bombardier Capital and Bombardier International. Secondary research, from sources such as company documents, journals and other online materials have been acquired to present relevant information. This information will be categorized into the following headings: Corporate Policies, Marketing Policies, Quality Care Policies, Information Systems, Financial Position, Future Challenges, and Final Analysis and Recommendations.

The Corporate Polices section deals with organizational structure, majority shareholders, and social responsibility. BBD follows a decentralized organizational structure to maintain efficient operations and short reaction times. The Bombardier family controls the majority voting interest with 62.96% and continues their father's legacy by donating 3% of BBD's income before taxes to the J. Armand Bombardier Foundation.

The data referring to BBD's targeted industries and market segments, products, and consumer utility is detailed in the Marketing Policies section. BBD is primarily involved in the transportation industry through two of its functional groups, Bombardier Aerospace (BA) and Bombardier Transportation (BT). BA, which provides regional, business and amphibious aircraft to governments, wealthy individuals and corporations, has been loosing sales steadily since September 11th, 2001. BT's increasing income from its rail equipment, manufacturing and servicing, as well as signal, and control and propulsion system contracts with large corporations and governments compensates the downward trend in BA. Consumer utility is provided through worldwide deliveries, customizable products, timely manufacturing and long term usage.

BBD's product quality and safety is detailed in the Quality Care Policies segment of the report. Numerous test runs, as well as internationally recognized certification such as ISO 14001 and OHSAS 18001 are part of the safety net designed to catch defective products.

To remain competitive internationally, BBD refined its internal information systems to provide more accurate information on stakeholders, other projects, and its own abilities. Project Management Offices and Enterprise Resource Planning are main components of this refining process and have already begun delivering results.

The Financial Position section details the worsening trends experienced by many aspects of BBD. The inventory turnover rate is the sole investigated ratio that showed signs of improvement over the past three years. To remedy the situation of falling profit, the concentration strategy calls for the spinoff of both Bombardier Recreational Products, divisions of BA, and the consolidation of Bombardier Capital. Fluctuating...

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Bombardier Aerospace, Program & Customer Support

Bombardier Aerospace is part of Bombardier Inc., a Canadian corporation of 55,000 employees, active in the fields of aerospace, rail transportation equipment, financial services and more. Bombardier Aerospace has grown in the last 10 years to become the third largest manufacturer of civil aircraft in the world, combining the resources of four leading aircraft manufacturers—Canadair and de Haviland in Canada, Learjet in the United States and Shorts in Northern Ireland. Bombardier Aerospace is actively engaged in process improvement, and has been implementing the Six Sigma quality program since 1997.

The Customer Support organization for Bombardier Aerospace, Business Aircraft, specializes in handling all customer-related issues relevant to operating a business aircraft, including: scheduled and unscheduled maintenance, customer, pilot and maintenance technician training, spares, technical information services, in-service engineering and special missions. This organization operates worldwide with major offices in Montreal, Wichita, Dallas and Tucson, and Field Service Representatives on all continents.

Bombardier turned to Interfacing to take advantage of its vast experience in the field of business process management (BPM).

Through the use of Charter and Designer, and under the guidance of Interfacing’s Professional Services group, Bombardier Customer Support successfully produced tangible results including:

  • An enterprise process framework, outlining the core and support process structure of the organization
  • The definition, modeling, analysis and improvement of one customer-oriented process, resulting in standardizing and communicating best practices across the different sites
  • An online monitoring mechanism for the selected process was developed to collect operational data and evaluate process performance, thus enabling its continuous management and control

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