Case Name :      Balancing Stakeholder Interests at the Indonesian Railways

Authors :           Marleen Dieleman

Source :             Ivey Publishing

Case ID :            W13137

Discipline :        General Management

Case Length :    08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The chief executive responsible for the Indonesian railways, a state-owned enterprise, is under pressure to show profits, but he also needs to balance widely diverging stakeholder expectations that include inexpensive transportation and excellent customer service. The government subsidizes the railway’s passenger travel segment and has capped its fare prices, which has turned the railway’s mainstay into a loss-making business. The chief executive wonders how to best trade off the different stakeholder expectations. He needs to develop a plan to present to the minister for State-Owned Enterprises.