Strategy



Introduction

Developing a business strategy requires analyzing the basic purpose of the railway, assessing its competitive and financial position, coming to agreement with shareholders on the railways’ mission and objectives, and then developing a long-term strategy to achieve those objectives (figure 12.1). Successful railways focus their efforts on a few critical areas determined during the strategy analysis. Strategy establishes a general direction that must be backed up by a detailed plan and set of performance measures. The strategy will include market, cost structure, investment, human resources, and finance components. Generally, these elements must be addressed iteratively, using a range of potential alternatives to develop a final strategy that will be reviewed with shareholders.



    
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