BUS630: Managerial Accounting
Professor Monique Smalling
Oct 1, 2012
JetBlue Airway Corporation
What is JetBlue’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?
JetBlue’s main goal is to provide quality travel while maintaining low-fare pricing to its travelers. It’s success is based off of product leadership customer value proposition. While offering low prices they are able to be competitive in the airline industry. This has helped them to grow as a corporation and earning the loyalty of its customers. What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks?
Like any other business there are many threats out there, it may not show immediately, but growing becoming successful and growing, rise in competition is sure to happen. Some of the risks are items such as; maintenance costs will increase as the fleet ages, not being able to attract and/or retain qualified personnel at reasonable costs, or not being able to keep low costs for customers. These are just some of the items that could affect their ability to satisfy their stockholders
How can the concept of unit-level activities be applies to an airline? More specifically, what are two examples of unit-level activities for JetBlue? What steps has JetBlue taken to manage these unit-level activities more efficiently?
Unit-level activities are ³performed each time a unit of a product is produced. The number of times unit-level activities are performed varies according to the number of units produced. Fuel cost is one example due to its ever changing price. Another is the different services they offer to the travelers. It also...