A strategic analysis of jetblue airways

A strategic analysis of jetblue airways The US airline industry trends have caused airline companies, including Jet Blue to struggle for survival. Retirement has caused a shortage of pilots and instructors. Flying schools experience less instructors and hours needed to train new pilots. In 2008, crude oil prices increased to a record $140 per barrel (Thompson, Strickland, federal employees were tasked to handle all airport security. Increased screening for baggage and passengers, size limits on fluids and x-ray inspections. With the additional security measures, came financial burdens to the airline industry. Jet Blue’s strategic intent When Jet Blue’s was founded, David Nelleman wanted air travel to compassionate and fun. The strategic intent was to offer customers a low discount airline carrier with the comforts of home. As the first airline to offer electronic ticketing, Jet Blue wanted to delay its flights instead of canceling them. Agents were allowed to work from home and customers enjoyed gourmet sna cks, coffees, in-seat televisions with satellite radio and movie channels. Jet Blue began to look into increasing the shareholder and customer values with the expansion of New York’s JFK Airport with 8 am and 9 am flights. This was hopeful to Jet Blue executives; they wanted to appeal to younger customers, affluent New Yorkers, and those traveling to New York City. Opening up this new terminal has saved $50 million in labor, fuel, and vouchers. Now, the company serves more than 53 destinations (Thompson et al., 2010). JetBlue’s financial objectives & success in achieving Although Jet Blue’s stock dropped by 50% in the five years, revenues grew 185% between 2003 and 2007, their operating expenses grew 222% during the same period. The loss in revenue was blamed on the cost of fuel (532% increase) and interest expense (658% increase). Jet Blue decided to take a conservative financial strategy in which they maintained high liquid ratios relative to the other major a irlines (Thompson et al., 2010). Jet Blue was millions behind the competitor but developed new equity capital and credit, which was needed to keep the company, and allow them to maintain strong liquidity. Assessment of competitive advantage Cost. JetBlue operates at a lower cost than its competitors. According to Thompson, Strickland & Gamble (2010), JetBlue’s total operating expenses were 12.17 per revenue passenger mile in 2008 versus $18.18 for American Airline, $18.18 for Continental, $20.95 for Delta, $13.85 for Southwest, $19.13 for United, and $21.45 for US Airways. Its planes, such as, the Airbus A320, tended to be newer than those of its competitors resulting in lower maintenance costs and no maintenance-related fines. The company increased flying time by minimizing turnaround time. Reservation agents worked at home resulting in cost savings as compared to a traditional call center. These measures paid off creating a major competitive advantages in the form of low op erating costs that other airlines did not achieve. Organizational culture. JetBlue’s organizational structure was created based on five steps. First, the company’s values were determined. Then, hiring managers selected employees who mirrored the company’s values. Next, the company ensured that the company exceeded employee expectations and to listen to customers. And, finally, the company created a plan to drive excellence. The values established by JetBlue were safety, caring, integrity, fun, and passion. As an example, George Forman grills were set up at the JFK terminal to allow employees to have fun. By only hiring employees that mirrored those values, the company could encourage hiring managers to be creative during the hiring process and to weed out those that would not be a fit. By making these steps an active part of getting work done, JetBlue developed a strong organizational culture.

From Francovich to Brasserie du Pecheur Essay Example | Topics and Well Written Essays - 3500 words

From Francovich to Brasserie du Pecheur - Essay Example Francovich5 is a landmark case because it established the fact that European Community law confers certain rights on individuals and if there is an infringement of these rights by a Member State, then the State will be legally and financially liable and will have to make reparation to the individuals concerned for the losses and damages sustained by them due the Member State’s breach of Community law. Application of national law where individual rights may be violated, will be limited by the obligation of the Member States to implement the EU Directives. Francovich, Bonfaci and others filed the suit against Italy for failure to implement the provisions of a European Directive that was not directly effective in Italy and required payment of unpaid wages to individuals in the event of the insolvency of their employer. Italy was held liable for damages to be paid to the Plaintiffs. In specific reference to the damages sustained by individuals and the obligation of the Member Stat e to assume liability, the Court relied upon Article 5 of the EEC Treaty in establishing that such a principle was inherent in the Treaty. State liability had earlier been established in other cases, where the supremacy of individual rights had been established to the extent of requiring states to be liable if those rights were infringed.

INTERNATIONAL EXPANSION STRATEGY IN Zarraffa's Coffee Essay

INTERNATIONAL EXPANSION STRATEGY IN Zarraffa's Coffee - Essay Example A market analysis of the Chinese coffee market has been conducted through industry analysis framework. The project also shed light on how Zarraffa’s Coffee should go about the expansion plan in the next five years through the franchisee model. The twenty-first century is often cited as the age of competition, this century is associated with globalisation, which has resulted in organizations breaching geographical boundaries to gain access to markets across the globe. Competition is the buzzword of globalisation with every product category being offered by numerous organizations resulting in a highly competitive environment. The present study deals with the issue of international expansion by organizations. International expansion can be of many types which include setting up Greenfield projects, Joint ventures, Tie ups and Franchising. The study would try to analyse the international expansion of a firm using the franchisee model. Zarraffa’s Coffee has been chosen as the firm for study, and the Chinese market has been chosen as the nation for the firm’s expansion. The choice of the nation assumes significance as it represents the fastest growing economy of the world whish offers a huge potential for players to expand their business operations. According to a study the Chinese coffee market is still in its growth phase, the report also states that the coffee consumption by the Chinese consumers has grown by approximately 20 percent (Li, 1995, p.6). Zarraffa’s Coffeein an Australian based coffee shop which was established in the year 1996 by Kenton Campbell. The first store of Zarraffa’s was based in the city of Southport in Australia. The company provides excellent service to its customers which are in accordance with its mission to provide a perfect cup of coffee to every customer (Zaraffa’s Coffee, n.d.). Presently the organization has its presence across 42 stores which are spread around Australia. The company has gone a long