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Jet Blue Airways

By:   •  Case Study  •  641 Words  •  January 16, 2010  •  1,918 Views

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Introduction

I have done some research on JetBlue Airways Company. After gathering the information I studied the information and have explained what I feel is the problem facing this company. I also have explained what my recommendations for them are. Included in this paper is how to balance between commitment to the stakeholders and commitment to the community.

JetBlue Airways

JetBlue Airways is a discounted airline that is growing steadily. In this industry they have been using their considerations of excellent customer service and lower prices on tickets to build up their customer base. Their core competencies are what they use to develop their strategies. The five core competencies are safety, caring, integrity, fun and passion. The advantage they have over there competitors is the use and infrastructure of information technology and an operational recovery system. The years of experience and knowledge of their management teams also gives them an advantage along with their non union workforce. Stock options are also available to their employees. What JetBlue has done is capitalized on strengths of their competitor’s. Sounds like a great strategic plan. Even though they are the leaders in this industry they still strive to provide excellent customer service. The CEO is an active team player and leader. With all this, JetBlue has secured its success.

The Potential Problems

The first problem I foresee is the stock options for employees not being enough for them in the future as they get older. Another problem I foresee is the increase in maintenance costs as their fleet grows. My recommendation on the employees that will retire from JetBlue is to first get feedback from the employees on what they want or would want in the future. Then figure out what programs will benefit their needs, wants, and expectations. Once that has been figured out then implement the programs within the next few years. As for the maintenance part, I recommend that they invest in products that will last longer such as leather seats which are easier to clean and last longer than what they have now. If JetBlue continues with their strategy for excellent customer service and employee relationships they will rise to the top.

Commitment

Evaluation and control would be a great way to balance the commitments between the shareholders and the communities. A change in direction is what a new strategy means to any business. The implementation of this new strategy should be constantly evaluated

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