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           1. Case 3:jetblue airways: a cadre of new managers takes control group members:sharundewi a/p moorthy ac081024purvitha a/p rajugopal ac081345vikneswari a/p krishnan ac081375 2. Introduction… 3. JetBlue Airway is an airline industry. Founder is David Neeleman, a Salt Lake City entrepreneur. The eighth largest passenger carrier in United State. Have won many awards including “Best Domestic Airline”, “Best Domestic Airline Value” and “ Best Overall Airline”. The case
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     1. Case 3:jetblue airways: a cadre of new managers takes control groupmembers:sharundewi a/p moorthy ac081024purvitha a/p rajugopal ac081345vikneswaria/p krishnan ac081375    2. Introduction…    3. JetBlue Airway is an airline industry. Founder is David Neeleman, a Salt Lake Cityentrepreneur. The eighth largest passenger carrier in United State. Have won many awards including “Best Domestic Airline”, “Best Domestic Airline Value” and “ BestOverall Airline”. The case study discuss on the Jetblue Corporat ion emphasize on itsfounder, on its financial performance, human resource management pratcices,organizational culture and startegies.    4. QUESTION 1: What was David Neeleman’s srcinal strategic vision for JetBlue?Should JetBlue’s strategic vision be re vised now that the company has new executiveleadership?    5. Original vision… Start a company -combined the low fares of a discount airlines carrier with the comforts of a small cozy den in people’s homes. Customer have - cheap andaffordable flights-US and abroad aircraft that comfortable- equipped with modernentertainment options customer centric business model make customer service no1priority Motivation factors  –  David use leather seats- easy to clean, more comfortable thanfabric seat (experience  –  a flight  –  fabric seats-was socked with urine).    6. Should only revised- to further development- to incorporate new technologies- tofacilitate growth and profitability. After David resign- the new management-instituted tohelp rebuild  –    JetBlue’s reputation &a mp; to develop innovative strategies(to prevent incident like Valentine’s Day 2007 –  because failed to deliver excellent customer service.Organization no need to change vision. To remain successful the management, they canapply Incorporated New technologies Best practices Provide training to all employees    7. QUESTION 2: What were the key elements of JetBlue’s strategy in 2008? How has the company chosen to attract customers in sufficient volume to earn profits? How doesJetBlue offer its customers value?    8. Key elements of JetBlue’s new strategy: Reevaluate the ways the company was using its assets. Reduce capacity and cut costs. Raise fares and grow in select markets. Offerimproved services for corporations & business travelers. Form strategicpartnerships. Increase ancillary revenues.    9. Develop a new terminal at JFK airport  –  to improve its on-time departure and arrivalaverages at airports. Sold a stake of its shares to Germen carrier Lufthansa  –  to increaserevenue & allow the customers to book code share flights on Lufthansa flights toGermany. Appealed to business travelers by introducing refundable fares &discounts for corporate meeting planners  –  for every 40 customers booked to  –  samedestination. Also entered into 5years agreement with Expedia Inc  –  for the managed& unmanaged business travelers. Interested in pursuing partnership with otherairlines. Example form an agreement with AerLingus  –  to make passenger easy to book tickets.    10. Attract customer by.. Proving comfortable seats and entertainment services on all of their flights. Using newer, non propeller aircraft on all flights, ease of ticketing,cancellation and flight changes, multiple destinations and faster service.    11. Offer customer value... Creation of the passenger bill of rights- states the companiesaction regards to flight changes, cancellation, service & more. This makes the  customer to know what to expect on each and every JetBlue flights & from thecompany    12. QUESTION 3: Are JetBlue’s functional ar  ea strategies consistent with its overallstrategic approach? What policies, practices and procedures have been developed toexecute its business strategy and functional area strategies with proficiency?    13. Functional area strategies are consistent with its overall strategic approach. Visionmainly focus on customer service. when ever vision  –  challenged- they rebounded withnew strategies ,technologies and improve the customer service. Example of strategicapproach: Utilization of 2 different type of aircraft (Airbus A-320  –  150 seats &Embraer E-190- 100 seats) E-190 use for shorther distances & A-320 use for longerdistance To save on fuel allocation & help to balance flight/passenger load balances    14. Eliminate service at cities where competition is either too stiff or unprofitable - helpsto cate its service to the customer much more efficiency  –  instead of being generalaircraft with limited service compare  –  to other airlines. Use each plane a little less a day-help cut back on maintenance and other services (cleaning)- reduce costs. At 2010-JetBlue performingwell compared with other airlines. Able to avoid the plagues of othercarriers such as bankruptcy& merger  –  by its core beliefs and staying withmanageable size.    15. QUESTION 4 : What is your assessment of JetBlue’s financial performance during fiscal years 2003- 2007? Does the company’s recent financial performance support the board’s decision to replace top management?    16. For example: Debt to asset ratio= Total debt / Total assets The recent financial  performance support the board’s decision to replace top management it is becauseJetBlue’s financial status is positive. The debt ratio was lower. If replace top management the company began to grow again and developed newer routes, markets, technologicalinnovations.    17. QUESTION 5: What are the factors driving change in the airline industry? How arethey likely to impact the future attractiveness of the industry?    18. All of these factors have and will impact the attractiveness of the industry. Individualswho wish to establish their own airline companies will have to take into consideration themarket share of the cities they wish to serve, the aircraft and their capabilities andeffectiveness, the economy both national and global, and consumer demands regardingair travel.    19. QUESTION 6: What are the key success factors in the airline industry? How well do JetBlue’s resource strengths and competitive capabilities match these industry success factors?    20. The key success fac tors are… Attract customer Manage its fleet Manage it s human capital (employee) Manage its finance Jetblue providing low fares, new fleet of modern jet aircraft equipped with DirectTV/wifi/XM Radio service for travel entertainingpurpose and have customer friendly employees in order to attract customers. Using thesmaller aircraft for short-haul flights and the larger aircraft for longer distance flights andhaving the flight crew clean up the aircraft after each flight in managing their fleet.    21. JetBlue manages its people by providing training opportunities to each member of theteam and even job cross training to maximize the effectiveness of its personnel. Jet Bluemanages its finances by selling shares of stock to other airlines JetBlue also delayed theacquisition of several new aircraft and reduced its fleet size to accommodate for the  turbulent economy JetBlue has now started charging for second checked bags on all of their flights, in-flight meals and other services to help boost revenue.    22. QUESTION 7: Do the strategy and changed to operating practices initiated in 2008seem well- matched to the industry conditions and the company’s internal situation” Whatrecommendations would you make to help speed JetBlue’s turnaround and revive its growth in revenues and earnings?    23. Strategies are well-matched to the industry conditions and its internal situation.Partnerships with AerLingus, Lufthansa and South African Airways allow the companyto grow its market share by allowing its customers to fly on its code-share partners. Gainrevenue by sell the several A-320 aircraft. Eliminating service at cities where competitionis either too stiff and or unprofitable allows the carrier to focus on a lean market. Andfinally using each plane a little less in the day helps to cut back on maintenance and otherservices (cleaning, replenishing in- flight magazines, etc…) which reduces costs Refer  page c-71    24. Recommendation… As the airline revenue growth is positive, JetBlue able to avoid bankruptcy and mergers. As a recommendation, the marketing team at JetBlue shouldlook into developing an application for the iPhone where customers can check in for theirflights, check flight statuses and even track flights, purchase tickets and display boardingpasses (to cut back on paper tickets) as Southwest, American and Delta airlines
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