...Running head: ASSIGNMENT #1 CRAFTING AND EXECUTING STRATEGY Assignment #1 Crafting and Executing Strategy Jet Blue Airways Strayer University BUS599016VA016-1116-001 Strategic Management July 11, 2011 Abstract This paper examines the business strategy of Jet Blue Airways. The paper will also examine strategic elements that provide the organization with a competitive advantage. The company’s competitive strategy and the impact of the trends in the U.S. airline industry will also be discussed. Assignment #1 Crafting and Executing Strategy Jet Blue Airways David Neeleman worked in the travel and airline industry before starting JetBlue. He was well versed in customer service. He learned from his grandfather as a teenager never to disappoint customers; satisfied customers would return. As a young man Neeleman also learned to be frugal (C-53). David Neeleman started JetBlue Airways as a company that would combine the low fares of a discount airline with the comforts of a den. Passengers would save money, consume gourmet snacks, sit on leather seats, and watch television. Many of JetBlue’s ideas came from Neeleman’s own personal experiences. He decided to add leather seats because he was once assigned a cloth seat that was soaked with urine. Leather seats were more durable and easier to clean. Individual monitors provided entertainment. He decided to provide 24-channel live television via satellite for free (C-53). On February 11, 2000, JetBlue’s...
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...Jet Blue Airways – Crafting and Executing Strategy BUS 599 Dr. Menon Assignment 1 January 15, 2012 Jet Blue Airways – Crafting and Executing Strategy Company Background JetBlue Airways Corporation is an American low-cost airline that was founded by David Neeleman who was born in Brazil during 1959. JetBlue Airways Corporation is headquartered in the New York City borough of Queens and its main base is located at the John F. Kennedy (JFK) International Airport. Prior to its name JetBlue Airways, David Neeleman founded this company under the name “New Air” and several of the employees who once worked for JetBlue Airways also worked for Southwest Airlines prior to working for JetBlue. During February 2000, JetBlue Airways received formal U.S. authorization to launch its first ceremonial flight between Buffalo and New York City, which then made the John F. Kennedy (JFK) International Airport its core location. Upon its initial opening, JetBlue Airways aimed to carry some of Southwest Airlines’ different approaches over to its corporation, such as offering low-cost travel; however, JetBlue also wanted to differentiate itself by offering in-flight entertainment, televisions on every seat along with satellite radio and to overall “bring humanity back to air travel, " as Neeleman once stated (JetBlue Airways and Thompson, A. A., Strickland, A. J., & Gamble, J. E., 2010). Over the course of six, rapid years, JetBlue Airways grew to be one of the largest airline...
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...The University of the West Indies, St. Augustine Faculty of Social Sciences Department of Management Studies M.Sc. Aviation Management AVMT 6001 – Accounting for Business Decisions AVMT 6001 – Group Project 2 Managerial Accounting - JetBlue Airways Corporation Group Members: Cherrish Bridgemohan - 807001633 Rajiv Debie - 04708006 Israel Duncan - 814004144 Kenrick Duncan - 814002425 Neil Shepherd - 814004177 Signatures: Cherrish Bridgemohan ___________________________ Rajiv Debie Israel Duncan Kenrick Duncan Neil Shepherd ___________________________ ___________________________ ___________________________ ___________________________ November 16, 2014 Table of Contents I. II. Table of Abbreviations ........................................................................................................................ 5 Executive Summary............................................................................................................................ 6 III. Introduction......................................................................................................................................... 7 IV. Background – JetBlue Airways ......................................................................................................... 7 V. Management Accounting Information.............................................................................................. 8 Financial Accounting versus Management Accounting ...........................
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...Management Cases “JETBLUE AIRWAYS” UFUK CANDAR FOYA BAHÇEŞEHİR UNIVERSITY Table of Contents INTRODUCTION 3 BRIEF SUMMARY 3 ENVIRONMENTAL ANALYSES: 4 VALUE CHAIN ANALYSIS: 10 FINANCIAL ANALYSIS: 13 SWOT ANALYSIS: 19 SPACE MATRIX: 21 TOWS MATRIX: 24 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM): 25 CONCLUSION: 26 INTRODUCTION Within case analysis assignment, the JetBlue case is analyzed strategically in this document to set answers for following basic questions: * To make a set of recommendations based on the analysis, * To describe exactly what need to be done for success, * To explain why the proposals will solve the problems, * To suggest how best to implement the proposed solution After giving a brief summary regarding the case of JetBlue has and drawing a general picture of the company, several strategic analysis methods will be used to analysis JetBlue. BRIEF SUMMARY The economic downturn in the late 1990s and 9/11 terrorist attacks in 2001 have severe consequences on airline industry. The demand for air travel dropped and led to decrease in flights and revenue. The security costs increased. Airlines significantly reduced capacities. As a result low-cost strategies with new route services became important. Rebounding of economy by the end of year 2003, the demand for business and leisure travel was expected to grow in low-cost competition marker after flight reductions and fewer routes. JetBlue started operations...
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...Assignment #1 Case #3 Jet Blue Airways Daisy L Kenney Professor Kimberly Anthony BUS599 Strategic Management July 10, 2011 Case #3 Jet Blue Airways 1. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The trend in US airline industry is to use price discrimination and differential pricing to increase the revenue of the airlines. For this there are computerized programs that help increase the revenues of the airlines. Further, the current trend among airlines is to reduce operating costs. The current trend in airlines industry is to lease aircraft and avoid entering into long term contracts so that the financing remains modes. Finally, the current trend of alliance among airlines especially that of code sharing or selling the tickets of another airlines. Overall, the airline industry is very competitive, turbulent and volatile. 2. Discuss Jet Blue’s strategic intent. The strategic intent of Jet Blue Airways is to improve its profitability, revenue optimization, Improved capacity management, cost reduction, and delivering high quality service. Since its IPO, Jet Blue Airways posted its first loss in 2005. There is a difficulty in the strategic intent of Jet Blue Airways...
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...M1 – Synthesis Essay #1 Delegation Versus Empowerment In today’s business world what makes empowerment differ from delegation? By definition empowerment means to give power or authority to; authorize, especially by legal or official means: “I empowered my agent to make the deal for me”. “The local ordinance empowers the board of health to close unsanitary restaurants”. “Wealth empowered him to live a comfortable life”. While delegation is defined as the assignment of responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of management leadership. However, the person who delegated the work remains accountable for the outcome of the finished product. Delegation empowers a subordinate to make decisions, this in turn, is a shift of decision-making authority from one organizational level to a lower one. The opposite of effective delegation is micromanagement, there this where a manager provides too much input, direction, and review of delegated work. In general, delegation is beneficial and can save money and time, help in building skills, and motivate people. Poor delegation, on the other hand, might cause frustration and confusion to all the involved parties. Some agents however do not favor a delegation and consider the power of making a decision rather burdensome. Empowerment on the other hand allows for the subordinate in some cases identify the concern and address the concern...
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...Bus 599 Assignment 1 Dr. Elile Awa CRAFTING AND EXECUTING STRATEGY Submitted by: John-Miguel Onkony Winter Quarter 2011 Strayer University Introduction This document presents an analysis of one case presented in the textbook (Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin.), entitled “JetBlue: A Cadre of New Managers Takes Control”. The case describes the reasons for the success of JetBlue, a three-year-old, low-cost airline, operating in the USA. Trends in the U.S. Airline Industry and their Impact on Company’s Strategy Since 2001, the US airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest US airlines went into bankruptcy. To recover from this situation and try to remain financially viable...
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...even better, a focus on you the customer. That company is JetBlue led by its visionary Founder and CEO David Neeleman. Neeleman believes so strongly in delivering customer value to his passengers that he often rides flights to hear personal direct feedback from passengers as it is happening, and he also likes to be paged whenever a flight is delayed or something in the JetBlue business is not properly executed according to the JetBlue standards (Johnson, & Weinstein, 2004 pg 315 – 316). Neeleman has set forth three guiding principles that are known as the “Golden Rules” and govern the business of JetBlue and its employees. Those principles are: flawless executions at every customer contact point, making matters right with the customers if the execution is not flawless and treating employees well (Johnson, & Weinstein, 2004 pg 317). Neeleman who was formerly a founder of another airline and longtime leadership member of rival Southwest feels that combining efficiency, technology, and a focus on customer value will continue to drive customer loyalty around what has become one of the, if not the single, strongest brands in the Airline industry. Neeleman and JetBlue have set out with the goal of “bringing humanity back to airline travel and making flying more enjoyable” (Johnson, & Weinstein, 2004 pg 315 – 316). JetBlue has been doing many great things since its inception in 2000. One of the main items JetBlue consistently capitalizes on is the industry wide customer...
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...Welcome to Strategic Human Resource Management Course Number: MBA 786 School of Business & Technology University of Wisconsin - Parkside 6:00 - 9:15 p.m. Wednesdays, Molinaro 167 October 29 – December 17 Fall Semester 2008 “…if we are to have citizens who can live constructively in this kaleidoscopically changing world, we can only have them if we are willing for them to become self-starting, self-initiating learners.” Carl Rogers Contacting the Instructor Professor: Dr. Karen Crooker Phone/Voice Mail: 595-2348 (worst way to contact) Office: Molinaro 349 Fax: 595-2680 (label to my attention) E-mail: crooker@uwp.edu (best way to contact) Address: UWP, Department of Business, PO Box 2000, Kenosha, WI 53141-2000 Web page: http://uwp.edu/~crooker/ Office hours: 3:15 – 4:30 p.m., Mondays & Wednesday. Other times by appointment. Course Description Using human resource management systems to create and sustain competitive advantage. Emphasis on an integrative framework that requires linkage between, as well as consistency among, functional HR activities and their alignment with and reinforcement of the organization’s competitive strategy. Course Objectives The goal of this course is to help students develop their knowledge, skills, and abilities in the following areas. At the conclusion of this course, students should be able to ✓ Name competitive...
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...discussed from the perspective of the operating or line manager as well as the human resource specialist. Attention will be devoted to the various contexts of human resource management, basic techniques and methods, and the changing nature of managing human resources. More specifically, our concerns will include human resource and employment planning, employee recruitment and selection, training and development, performance planning and evaluation, compensation administration, organizational career management, structure of the human resource function, and the strategic role of human resource management. Objectives of the Course: During the course, the student will hopefully progress toward attainment of the following objectives: 1. Become familiar with the human resource management process (or HR value chain) and its key elements: a. Organization and human resource goals and strategies b. Human resource planning and analysis c. Employee staffing – recruitment and selection d. Organizational career management – training, performance management and evaluation, and rewards/compensation e. Employee retention and turnover – psychological contract 2. Understand that human resources are an asset (investment) to be developed rather than a labor cost to be expensed...
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...IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at www.mhhe.com/bruner5e FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. 1. How well has Value Trust performed in recent years? In making that assessment, what benchmark(s) are you using? How do you measure investment performance? What does good performance mean to you? 2. What might explain the fund’s performance? To what extent do you believe an investment strategy, such as Miller’s, explains performance? 3. How easy will it be to sustain...
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...HEAVY EDIT JetBlue Airlines: Getting “Blue” again?* JetBlue posted a net income $97 million in 2010. The airline continues to pursue its goal of becoming ―the Americas‘ Favorite Airline‖ and aims attainting positive free cash flow and long term sustainable growth while maintaining adequate liquidity position. Financially, the airline was far better than after the Valentine day fiasco in February 2007 and subsequent loss of $84 million in 2008. It focuses on controlling costs, maximizing unit revenues, managing capital expenditures and aims at achieving disciplined growth (see Exhibit 1).1 However, in the recent years, JetBlue appears to be moving away from its core strategy, in quite interesting ways, of being a low-cost player providing the distinctive ―JetBlue experience.‖ In its efforts to boost revenues, the airline began charging $10 to $20 for seats with extra legroom, doubled its ticket-change fee to $100, and introduced refundable tickets that cost more than nonrefundable ones. Further, the airline began charging $7 for a pillow-and-blanket kit, an amenity usually provided free of charge by other airlines.2 Breaking another low-cost rule, JetBlue moved away from ticket sales through its own Web site and signed up with travel agencies and the Galileo and Sabre global distribution systems in August 2006 and with online travel agencies such as Orbitz in January 2008. Further, it sold approximately 42.6 million shares of common stock to Deutsche Lufthansa, the German...
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...MN 490 STRATEGIC MANAGEMENT Spring 2011 Instructor: Dr. Eugene Calvasina Office: 256 T. T. Allain Office Hours: 12 – 1 2:30 – 5:30 M & W Telephone: (225) 771-5643 E-MAIL: ejcalvasina@cox.net COURSE DESCRIPTION: Study of business policies integrating the functions of all fields of business administration with emphasis on top management viewpoint of the operations of the business enterprise. This is a capstone course for the graduate business curricula. PURPOSE: To integrate the various fields of study taught within the school of business and to apply this knowledge in addressing basic administrative problems in business and industry. The course will address global, technological, ethical, social, environmental, political, demographic, and legal issues in strategic decision making. METHODOLOGY: Lecture, cases, and a business simulation will be used in the class LEARNING OUTCOMES: The student will be able to: A) identify, explain, and demonstrate the general concepts, principles and terminology of management through active class discussions; develop a strategic problem solving approach via the Strategic Audit through class discussions of cases; B) develop oral and written skills through written tests, class discussions, and case assignments; C) integrate the various disciplines of management, marketing, finance, accounting, and other sub-disciplines through their application in case situations: and D) Present current events in...
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...VMOST Vision Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s commitment to their employees reads: “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer” Objectives Strategy The strategy that Southwest Airlines should use in order to continue its success is also based on the “Short-Haul” strategy. The difference is that the strategy must be inter-converted. Southwest can try its best to duplicate its “Short-Haul” strategy globally. For instance, it can do exactly the same business with the same strategy once again. But this time, Southwest has to do it in every part of the world. For instance, Southwest can expand its business in France, Germany, Australia, Russia, China, Japan, Poland, Greece,...
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...Crafting and Executing Strategy Assignment 1 By Sarisa Sukbumrung BUS 599 Dr. Johnnie. Drake E. Drake, Jr. Strayer University Fall 2011 Abstract The objectives of this paper are to illustrate the business strategy of Jet Blue airways. The company’s strategy advantages, i.e., the quality of services, market strategies, and employees trained and challenges of a company competing on price. Latterly, focus on how the company deals with high competitive market industry, shareholder and financial management. Assignment: #1 - Crafting and Executing Strategy 1. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The trends in the U.S. airline industry, most of the U.S. airlines are operate in discount airline carrier by offering the passengers low fares, operated point to point system, used two types of aircraft and served only snacks, also provided quick turnaround times at airports. The most of the U.S. airline concentrated in the domestic route, however most the domestic flight can help the company gain small amount of the profits margin. It is the high competition between the pricing of each airline to attract the customer. Many airlines save the time ranged from 20 to 30 minutes during the flight because no meal served during the flight, so the plane do not have to wait for catering services to replenish the aircraft. Although, to save time for flight attendants to clean up all the trash, that is also help...
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