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Assignment 1: Jetblue Airways

1267 words - 6 pages

Case #3
Jet Blue Airways
A Cadre of New Managers Takes Control

Strategic Management
BUS 599 051*VA016*1122*001
Dr. Russell Handlon

January 15, 2012

Case 3: Jet Blue Airways
Question 1
Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy.
The trends in the United States airline industry is high prices on gas, oil, maintenance, risks of terrorism, and less travelers flying rather its for personal or business. When these things happen it costs the airlines to make some changing by charging customers for checking their luggage, food, pillows, blankets, and leisure entertainment in order to meet the high spending cost of the ...view middle of the document...

JetBlue offers the most legroom in coach. Long-limed or not, you will appreciate extra space. JetBlue decided to give to customer even more extra space. They introduce “Even More Space” which includes extra legroom, early boarding an early access to overhead bins. JetBlue even offers pillow and blanket kits at a small fee of $7.00 to keep (JetBlue Airways, 2012).
Mr. Neeleman introduced electronic tickets and has agents work from home. The customers can print their tickets from electronic machine called Kiosks. Kiosks allows you to print out your boarding pass, things happen like leaving you flight information at home or lost you boarding pass and there is a way to print your flight information on a Kiosk at the airport.
JetBlue’s state –of-the-art terminal at the New York JFK airport, T5 brings the lasted JetBlue experience, with over 40 restaurants and retail stores and also have free Wi-Fi on the aircraft and in the terminal and receive e-mail and instant message free of charge, they only offer this in New York JFK and Long Beach California (JetBlue Airways, 2012).
Question 3
Discuss Jet Blue’s financial objectives and whether or not the company has been successful in achieving this objective.
JetBlue financial objective is to become more profitable by offering lower air fares and try to keep operating cost low and the quality high. JetBlue and other airline companies were unable to distribute its value to it investors over the past 5-year. In 2003 to 2007 JetBlue revenues increase to 185 percent, but the operating expenses increased by 222 percent during the same time period, but the operating expenses did not include the jet fuel that increase slowly than profits in 2003 to 2007 (Thompson, Strickland, & Gamble, 2010).
Question 4
Discuss Jet Blue’s strategic elements of cost, organizational culture, and human resource practices and evaluate whether each elements provides the organization with a competitive advantage.
Ann Rhoades, the first executive vice president of human resource of JetBlue, she believed that “people can accomplish the extraordinary when they are give the authority and responsibility to succeed.” The employees implemented the five steps to achieve the extraordinary results in the company. Step one is dealing with the company’s values. The values consist of safety, caring, integrity, fun, and passion. These values helps guided the crew members in the decision making process. Step two making sure the managers hire the right candidate for the position that have equal values like the company’s values. Step three/four the crew members must exceed expectation taking care of the customers when they are in need of assistance. Step five to create a “disciplined culture of excellence.” JetBlue must make changes to better its services for the customers so they can be ahead of their competitors (Thompson,...

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