Scanning the Environment
Pierre Beaudoin stepped down in 2015 as the company continued to spiral down-
ward. The C-Series has yet to make any real penetration in the market with orders of less
than 250 planes (and none in the past 1½ years) as of 12/31/15 compared to 3,072 orders
for Boeing’s 737 and 4,471 for Airbus’s 320. As the investment of billions in the program
was underway, the company decided to launch two new business jets further stretching
resources.
The company has invested over $5 billion in the C-Series alone and has had a net negative
cash burn for the past five years. The stock is now worth one-tenth of what it was in 2011
and the company is asking for a bailout from the Canadian government as they lay off nearly
10% of their workforce.
SOURCES: S. Deveau & F. Tomesco, “Why Bombardier Is Struggling to Build Bigger Planes,” Bloomberg Business, February 4, 2016; A. Petroff, “Bombardier cutting 7,000 jobs,” CNN Money; February 17, 2016 (money.cnn.com/2016/02/17/news/companies/bombardier-job-cuts-canada-europe/index.html); http://www.bombardier.com/en/about-us/history.html; F. Tomesco, “Quebec eyes fresh Bombardier aid absent federal investment,” The Globe and Mail, February 10, 2016, http://www.theglobeandmail.com /report-on-business/quebec-eyes-fresh-bombardier-aid-absent-federal-investment/article28701038/
A Resource-Based Approach to Organizational analysis—Vrio
Scanning and analyzing the external environment for opportunities and threats is nec- essary for the firm to be able to understand its competitive environment and its place in that environment. It is the absolute starting place for strategic analysis. However, in order for the organization to thrive, the senior leadership team must look within the corporation itself to identify internal strategic factors—critical strengths and weaknesses that are likely to determine whether a firm will be able to take advantage of opportuni- ties while avoiding threats. This internal scanning, often referred to as organizational analysis, is concerned with identifying, developing, and taking advantage of an organiza- tion’s resources and competencies.