Free Case

Turnaround at Alstom (A)

Published 31 Jan 2009
Reference 5579
Topic Strategy
Region Global
Length 13 page(s)
Language English

The case summarizes the history of ALSTOM from its inception to the brink of bankruptcy, charting the failure of initial rescue attempts and the arrival of a new CEO who succeeds in turning around the company. ALSTOM is an example of an entity born from a spin-off of other companies, with a fast competitive need to grow or die but lacking cash, good risk management practices, and a clear strategy. The transition from a public-sector to a private-sector mentality and from a technically-oriented to a business-oriented culture are among the main challenges it faced.

Teaching objectives

Case A traces ALSTOM's history to its near-bankruptcy in 2003. CEO Patrick Kron must communicate a turnaround plan that will stave off bankruptcy, recapitalize the firm, and revitalize sales. Case B details the steps that Kron took to turn around the firm. It highlights the outstanding management challenges and discusses post-turnaround strategic options.

  • AR0809
  • AR2009
  • RD0109
  • Turnaround
  • Bankruptcy
  • Strategic Management
  • Change Management