Essay About Bombardier Annual Report And Product Development

Globalization
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Section 5 – GlobalizationGlobalization is not only spreading something worldwide but also is international cooperation in business, political, and social wealth by maximizing the unique knowledge contributions of nations and cultures worldwide in developing a better living stander for all nations. ((Delcored page150) As a leading manufacturer of both international aerospace (BA) and rail transportation (BT) Bombardier is facing global challenges that including product development, product demand, and foreign currency fluctuation.(Bombardier Annual Report, 2013)Product development is the biggest challenge for Bombardier incorporation. In order to success in global business, the product of both BA and BT need to adapt to the rapid growth market. This means that the company need to be able to invent new products within new technologies in a short period time. At the same time, the experiment expenses and the cost of production need to be under the budget. Because by doing this the company will has a lower opportunity cost and export more products to other countries. Moreover, the company need consider how to alleviate the problem that creates greenhouse gases. To operate both BA and BT, people need to add gasoline to both products and it releases greenhouse gases which is the major component causes global warming. Product demand is another challenge that associated with global business. Bombardier incorporation’s success partly depends on its ability to receive enough orders to generate sufficient cash flows to support existing products, programs under development, and employees. (Bombardier Annual Report, 2013) Furthermore, the company’s success is also depends on its ability to replenish its order backlog in its core markets and capture growth opportunities in fast-growing markets and new technologies. (Bombardier Annual Report, 2013)This is a challenge for Bombardier Company. If the company does not receive a large amount order form customers, they cannot keep the stable growth of the year.

Foreign currency fluctuation also plays an important role for the company running globally. In case of Bombardier incorporation, a potential loss is due to the unstable exchange rate from countries to countries. Obviously, the company will loss revenue for the lower currency exchange rate. The unstable cash inflows and outflows will generate a financial problem. However, for a global company like Bombardier has its own way to avoid and prevent these changelings and risks.  The company mitigate product development changeling through four ways. First, Bombardier Company holds a regular communication with their customer to check the satisfaction of their products. (Bombardier Annual Report, 2013) And after this, they will collect all the data from customers to make improvement for their products. Second, the company always double check their products to ensure it meets the standard. (Bombardier Annual Report, 2013) By doing this Bombardier Company will receive less complaints from customers about the quality of product, and it improves overall image and reputation for the company. Third, the company gate review processes to assure better consolidation and synchronization of project deliverables.  (Bombardier Annual Report, 2013) This process will inspect all the detail on the new products to ensure there is no problem when they sales their products to customers.