Cn Case Study Essay examples

2185 Words Nov 25th, 2010 9 Pages
Executive Summary:
My decision as the President and CEO of CN, Hunter E. Harrison, is to continue with our strategic focus on continuing to improve productivity and customer service along with a new directive moving forward to continue to grow our sales, profits, cash flow and market value. CN will implement a new strategic focus to expand the share of rail traffic in North America by directing overseas traffic flows on to our network. In order to grow with expansion possibilities in North America being limited and the growth in NAFTA trade declining, CN requires a solid strategy to capture the growing importance of Asian markets. CN will invest and/or partner in international logistics as a freight forwarder intermediary to assist
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CN deals with both regulatory agencies in the US and Canada for safety and security, cross-border mergers and acquisitions, where there is an absence of political integration and harmonization so CN must keep their identity as both an American and Canadian company despite their integrated North American structure and operations. There is a rise in demand for Asian trade due to lower total costs compared to the costs of a North American product. CN wants to increase revenue and profits by participating in this market transporting goods in and out the Asia and North American markets. If CN were to expand internationally with rail lines and operate like their North American network there are many factors to consider such as government regulations, costs, infrastructure and technology. The Asian Development Bank’s share of total lending for transportation infrastructure has been rising with relatively large programs in China and Southeast Asia. China, Mexico and parts of Southeast Asia, in particular, are quickly expanding or enhancing road and rail infrastructure, supporting rapid growth in their respective economies. China’s railway system has been in decline, but leadership has realized the need to upgrade the rail system in order to connect the less developed, but resource rich, northern and western parts of the economy with more prosperous manufacturing centers in the East. This will foster development outside the coastal provinces.

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