Should Genesee & Wyoming Go Down Under?
Publication date: 1 December 2010
Abstract
The Case takes place at the headquarters of Genesee & Wyoming, Inc. (GWI), one of the leading short line railroads in the United States. The Case revolves around three executives - Mortimer B. Fuller III, Chairman and CEO, Mark Hastings, CFO and Treasurer, and Alan Harris, Senior Vice President and Chief Accounting Office - and the dilemma over whether to pursue international expansion.
GWI has generally pursued a strategy of diversification through acquisition. However, there are other approaches to diversification, including international expansion. With increasing deregulation and privatization of railroads around the world, GWI and its competitors must weigh the risks of internationalization with the rewards. GWI fears that a failure to move quickly might result in missed opportunities as competitors acquire railroads around the world.
An opportunity has recently arisen in Australia, where the government is selling Australian National Railway. GWI believes Australia might be a good initial foray into the international market given the similarities of the country and its railroad industry to the United States and its railroad industry. The Case asks the question, “Should GWI enter the bidding?”
Acknowledgements
This material was inspired by a document compiled by Jay Formosa. The author wishes to acknowledge the research conducted by Jay and the many suggestions made by the reviewers of The CASE Journal.
Citation
Overby, J.W. (2010), "Should Genesee & Wyoming Go Down Under?", , Vol. 7 No. 1, pp. 103-128. https://doi.org/10.1108/TCJ-07-2010-B005
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited