Business Law Essay

1774 words - 8 pages

JetBlue Airways was created with the primary purpose to provide low cost American flights with “top-notch customer service” at budget prices. On the stormy day of February 14, 2007, their airline service was tested to the extreme. JetBlue initially serviced passengers between New York and Florida and then expanded rapidly. By the end of 2006, the airline had 500 flights operating in 50 different cities providing each passenger with (luxury) amenities such as TV, and leather seats (Laudon, pg. 72). This rapid expansion brought challenges the airline had not prepared for.
JetBlue’s most valuable differential advantage above other airlines, their “customers come first” attitude, was severely ...view middle of the document...

The airline only operated airbus A 320, and when not exclusively using Microsoft software for its information systems, it also used Navitaire, who hosted JetBlue’s reservation system among other airline systems. This approach gave JetBlue a competitive advantage over other airlines such that the airline expanded more rapidly than was envisioned. It was not well rounded enough or large enough to cover its customer’s needs in the time of a major crisis and shutdown. JetBlue was so successful for so long because it was a small organization. From the case study, it seems that JetBlue was only taking measures to emphasize their business model, “purchasing a new plane every five weeks through 2007” (Laudon, 2010, p.72), and not attending to other important infrastructural and information system details that should be considered with company expansion. Although we hear about all the information systems (in-house and out-sourced) that JetBlue had in place before the snowstorm, there is no discussion about upgrades to their systems due to growth. JetBlue was still operating under the same information and technology systems even with their primary goals accomplished of strong customer relations and rapid growth.
On February 14, 2007, New York City area experienced an ice storm affecting flights and most airlines started canceling their flights earlier in the day. JetBlue did not and operated on the “belief” that the storm would pass. There was no evidence-based management system put in place or practiced to make well-informed decisions on facts. JetBlue only hoped to live by its reputation of providing excellent service to its passengers. This resulted in the passengers and the crew being confined inside the planes for up to six hours without basic necessities such water, food and access to sanitary toilets. Upon realizing the severity of the problem, JetBlue management started canceling flights leading to many customers rescheduling their flights or canceling them altogether. Due to so many passengers rebooking or tracking their (lost) baggage, the airlines automated system and skeletal staff could not handle all the traffic and crashed. Furthermore, the airline did not have a system in place to effectively communicate with its employees in case of such emergencies. “With the breakdown in communications, thousands of pilots and flight attendants were out of position, and the staff could neither find them nor tell them where to go” (Laudon, 2010, p.73). Overall, the airline’s primary problems is best outlined by their Chief Executive, David Neeleman, who admits in an interview that “JetBlue management was not strong enough and its communication system was inadequate (Laudon, 2010, p.73). The department responsible for allocating pilots and crews to flights was too small” (Laudon, 2010, p.73). This was a wake up call for the company that had relied on low cost technology, and a skeleton workforce.
Notwithstanding the mishap, JetBlue remained true to...

Other Papers Like Business Law

Business Law Essay

935 words - 4 pages punishment for violation of the crimes. It also helps to resolves disputes by providing a basis for deciding the legal interest and rights to every party involved in the dispute. Modern law in the United States regulate businesses and individuals in a combination of constitutional law, statutory law, common law and administrative law on a federal, state, or local level. (Melvin, 2011) The function and role of law in business can help with the

Business Law Essay

1230 words - 5 pages BUSINESS LAW IN CROSSBORDER TRANSACTIONS Question 1 Common Law and Civil Law are two of the world’s legal systems. Common Law, which is also called Anglo-American law, has its roots in England and implicit in former English colonies like USA, Australia, most of Canada and Malaysia. On the other hand, Civil Law, which is also known as Continental European, is originated from Western Europe and divided into four groups. The first one is

Business Law

1361 words - 6 pages , patents and copyrights, and ordinary contract rights, has only conceptual existence and thus does not come under Article 2. A moveable item can be carried from place to place. Tangible property is property that has physical existence and can be distinguished by the senses of touch and sight. A car is a tangible property; a patent right is intangible property. (Miller, Jentz. Business Law Today: Comprehensive. 9. VitalSource Bookshelf. South Western

Business Law - 4137 words

4137 words - 17 pages Chapter 43 Law for Small Business ------------------------------------------------- Section 1: The Importance of Legal Counsel ------------------------------------------------- Section 1: The Importance of Legal Counsel This chapter will cover the specific laws for small business owners and requirements needed for someone to start their own small business. The legal principles in this chapter are applied in the context of a small

Business Law - 1508 words

1508 words - 7 pages principles and cases and thus reliance on what others have written is necessary. This guide attempts to provide you with some assistance in writing and referencing law academic papers. Some basic resource materials are also noted. [NB: This guide is a starting point only.] There are two types of Law Academic Papers Students who take the Business Law Major will inevitably be expected, at some stage, to answer at least two different

Business Law - 928 words

928 words - 4 pages IRAC Method of Case Study Analysis Nsima Etok and Christopher Dunbar Business Law 531 March 31 2015 Gregory Martins Introduction In any type of business, whether it is partnership, Limited Liability Company (LLC) and or a Corporation, these are seen as different types of businesses that involves one, two or more People. The same is implied to businesses that are operated internationally between different

Business Law - 369 words

369 words - 2 pages Problem 1 ISSUE Is the terms of Ash’s contract with Davis Car Rental Pty Ltd unfair under the ACL? LAW ACL s.23 states that a consumer’s contract is unfair if: * It causes a significant imbalance in the parties’ rights and obligations, * It is not reasonably necessary to protect the legitimate interests of the business; and * It would cause detriment to the consumer. APPLICATION The car hire contract is considered as a

Business Law - 1696 words

1696 words - 7 pages are the flexibility and inexpensive way you can organize and control the company. The owner can create their own policy and procedures as long as they are with the parameters of the law. They receive all income generated by their business and can reinvest as they see fit. Disadvantages There are a few disadvantages sole owners can experience such as raising funds, use their own personal savings and acquiring debt through business loans

Business Law - 1666 words

1666 words - 7 pages Duress to act like a defence in contract law. Tort of Conspiracy happens when two or more commits and agrees on a course of conduct to harm another, involves lawful acts, performed in furtherance of the agreement and the plaintiff to suffer damages. In the case of Wu Yang Construction Group Ltd v Zhejiang Jinyi Group Co Ltd (2006), employees who conspire to resign from their jobs at once and negatively affecting the employer’s business and

Business Law - 3883 words

3883 words - 16 pages AbstractInternational trade has existed since times immemorial and can be dated as long back as 2000 B. C. With the increasing complexities and volumes in international trade, an urgent need for a uniform code for regulating these transactions was keenly felt in present day economy where domestic and foreign politics play their influencing role in conducting transnational business. International Law for business aims at providing the regulations

Business Law - 692 words

692 words - 3 pages Business Law Q.1. What is meant by discharge of contract? Discharge of contract relates to the circumstances in which the contract is brought to an end. Where a contract is discharged, each party is freed from their continuing obligations under the contract. A contract may be discharged in one of the following ways: * Discharge by Performance * Discharge by Breach * Discharge by Agreement * Discharge by Frustration

Related Essays

Business Law Essay 629 Words

629 words - 3 pages employer or a doctor or even a public place where one can make phone calls. Statutory Law Most new law is statutory law. It affects each of us in business, professional and personal lives. This is more a people-made law or a law made as a result of people electing local legislators who pass state statutes; people vote for senators and representatives who create federal statutes. Example: Criminal Law. Bills Bill is a proposed statute

Business Law Essay 908 Words

908 words - 4 pages Business Law 315 - Chapter 1 Review Questions 1. In the common law system of the United States, a crime is defined as: a. a private wrong that necessitates litigation between the victim and the perpetrator b. any act prohibited by the government and made punishable through imprisonment or fines c. litigation where the injured party sues to recover compensation for the damages and injury sustained as a result of the defendant’s

Business Law Essay 854 Words

854 words - 4 pages between or among independent nations. * Executive Orders laws issued by the President or by the governor of a State.Administrative Law body of law created by administrative agencies to carry out their regulatory powers and duties. | Chapter 2 Definitions | Ethics study of what is right or good for human beings.Business Ethics study of what is right and good in a business setting. | Ethical Theories | Ethical Fundamentalism individuals look

Business Law Essay 982 Words

982 words - 4 pages procedures. The rules are so complex and they can affect other entities of the business this law is very crucial. Administrative law is the rules that have been established by the company. These rules help guide orderly conduct and established goals for the company. The Case and Common Law Doctrines, which has been discussed earlier about. Furthermore, when you think about common law and all the Sources of American law what is it so