The performance of any corporation is measured in terms of contribution to standard of living of the people,profit return, cost effectiveness, market penetration and corporate image. The normative view of strategic planning is that organizations that do formal planning have a higher probability of success than those that do pot. If planning is so fundamental to organizational success, this article looks at how strategic management of a public enterprise can ensure its continuity. The paper is also aimed at offering strategic solutions so as to improve the performance of Raja Passenger Trains Company.