Table of Contents
Executive Summary 3
Issue Identification 4
Slowing Growth in NAFTA Trade 4
Continuation of NAFTA Strategy versus Expansion into Latin America 4
Taking Advantage of Economic Growth in Asia and Emerging Markets 4
Expanding Overseas 4
Environmental & Root Cause Analysis 5
Slowing Growth in NAFTA Trade 5
Continuation of NAFTA Strategy versus Expansion into Latin America 5
Taking Advantage of Economic Growth in Asia and Emerging Markets 5
Expanding Overseas 6
Alternatives and/or Options 6
Slowing Growth in NAFTA Trade 6
Continuation of NAFTA Strategy versus Expansion into Latin America 6
Taking Advantage of Economic Growth in Asia and Emerging Markets 7
Expanding Overseas 7
Recommendations and Implementation 7
Slowing Growth in NAFTA Trade 7
Continuation of NAFTA Strategy versus Expansion into Latin America 7
Taking Advantage of Economic Growth in Asia and Emerging Markets 8
Expanding Overseas 8
Monitor and Control 8

Executive Summary
Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing on customers’ needs and expectations. It also required attracting customers whose business was growing more rapidly. CN’s strategic plan was based on the following three thrusts: productivity, customer focus and the North American Free Trade Agreement (NAFTA).
As a result of CN’s success, CN needs to move forward and investigate how to continue growing its revenues while maintaining if