Essay CP's strategy

2459 WordsSep 26, 201310 Pages
The other teams mostly follow the structure of the midterm, individual case study and the strategy in the news. They all include at least 1 slide of financial analysis They provided 3~5 alternatives, analyzed them and recommend over the analysis Key factors for competitive success (both internal factors and external factors): 1 new CEO Harrison, the former CEO of CN, since June 2012 has a strong track record of “service reliability, efficient asset utilization and strategic capital expenditure”3, and he is planning “precise scheduling, controlling costs and a war on bureaucracy”1. He is very confident in CP that he bought 5 million worth of CP stock in February 20121. “Precision railroading — where trains are regularly scheduled…show more content…
“The Rockies have always been there,” Harrison said. “It snows everywhere. It snows on CN and CP.1 CP’s operating ratio — which is a measure of efficiency, with lower numbers better — sat at 81 for 2011. By contrast, CN’s was 63.1 The negative feedback on Harrison’s track record ““This has been a terrible forum because it’s been so one-sided. I have to tell you from the shipping community, we are in full support of Fred Green as CEO,” said Tepper, who said many CN customers complained about service during Harrison’s leadership.” 1 The new largest stakeholder: “New York hedge fund Pershing Square Capital Management LP recently revealed that it had taken a 12.2 per cent stake in CP, which has lagged other North American railroads’ performances in recent years—particularly CN. Led by Bill Ackman, Pershing has a reputation for taking stakes in underperforming companies and working with their management teams to bring about changes. Pershing, which pressured Wendy’s to spin off Tim Hortons in 2006, said in its filings that it intends to “engage in discussions” with CP’s management, board and other stockholders about the railroad’s business and its future.” 2 ” By contrast, CN managed to transform itself from a bloated government utility into a lean, mean transportation business after it was privatized in 1995. It

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