Executive Summary
Since CN has been privatized and deregulated from the Canadian government CN has seen tremendous growth in sales, operations, and the investment market. CN has worked hard to turn the company around and become a successful rail company over the years. Some changes have included lowering operating costs, lowering debt, expansion into the U.S, being more competitive and cost conscious with a profit oriented mindset, as well as increasing capital investments in equipment and infrastructure.
CN is now working on ways to help grow the company and continue growing its revenues. In order to do this CN has identified three main issues; these issues include the current CN-NAFTA strategy, Surface Transportation Board (STB), and expansion to new markets.
After reviewing some of CN's options for growth, it is determined that CN should take advantage of the emerging market in Asia and open up Freight Forwarding firms. By opening up the Freight Forwarding firms CN will have the opportunity to expand its business model, take advantage of economic growth, increase revenues and improve customer service.
CN will need to ensure that educated reliable personnel are found for their new freight forwarding firms, and starting looking to secure office space as well as employees. Below we will take an in-depth look into CN's current business strategies and how there is room for growth and improvement.
Issue Identification
CN is faced with many different challenges due to deregulation of the rail industry and privatization. New strategies are required in order for CN to remain successful and have continued growth in revenue as well as in the company. Some of the issues that CN has been able to overcome are:
High operating costs
Crippling debt
Growth demand from north-south traffic flows
Border security.
Although CN has overcome many obstacles and challenges there...