New Flyer Industries: Innovation in Transit (Simplified Chinese Version)
(8 pages of text)
Case (Pub Mat)
In late 2017, senior management staff at New Flyer Industries Inc. (NFI) were reflecting on the recent growth of their company. NFI was an automotive company that specialized in heavy-duty transit buses and motor coaches. It had been over a year since it had acquired Motor Coach Industries International Inc., and the leadership team was pleased with NFI’s performance; however, they wondered why the company’s stock price had become stagnant in recent months. NFI had a long history of operational excellence and innovation and had exhibited growth through acquisitions. Had NFI reached the limits of its current strategy? What opportunities and threats existed in the industry? Which resources had enabled the firm to achieve market success? The management team needed to analyze the business and its environment to identify a way forward.
This case is best suited for an introductory or undergraduate course on accounting, business strategy, or management. The case introduces students to a market leader with a strong history of success and asks them to make a strategic decision regarding the future of the business by incorporating financial analysis, environmental scanning, risk management, and resource planning using a variety of tools, including Porter’s Five Forces; strengths, weaknesses, opportunities and threats (SWOT) analysis; the resource-based view (VRINE); enterprise risk; and ratio analysis. After working through the case, students will be able to do the following:
- Identify and analyze business risks in the transit bus and motor coach industries.
- Identify and analyze the resources and capabilities of the focal firm.
- Explain how environmental and enterprise analyses complement financial analysis when making strategic decisions.
- Utilize both qualitative and quantitative analyses to provide recommendations for the future direction of a firm with a strong history of success and unclear options moving forward.
Canada; United States, Large, 2017
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