Jet Blue

Jet

Assignment 1: Crafting and Executing Strategy

Derrick J. Moultrie

Dr Roy Nafarrete

BUS 499, Strayer University

January 11, 2011

Conduct an analysis of a company situation Case #3 Jet Blue Airways (p. C-51) and prepare a 4-5 page, double-spaced report to complete the following: Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy Discuss Jet Blue’s strategic intent Discuss Jet Blue’s financial objectives and whether or not the company has been successful in achieving this objective Discuss Jet Blue’s strategic elements of cost, organizational culture, and human resource practices and evaluate whether each elements provides the organization with a competitive advantage Discuss Jet Blue’s strategies for 2008 and beyond and evaluate whether or not Jet Blue will be successful implementing these strategies. Conclusion *** Include question in body of the paper, APA style, in-text citing as applicable and if not original thought, reference page 3 at least.

Crafting and Executing Strategy

1. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy.

Answer: The U.S. Airline industry is a multi billion dollar industry. In order to stay competitive in that industry a company must understand the trends and adapt accordingly to them. The following are some trends in the U.S airline industry and their impact on a company’s strategy. One trend that has played an important part in the industry for the past ten years has been the increase in crude oil prices. In early of 2008, the U.S. economy slowed and crude oil prices rose to a record of $140 per barrel. Business began to cut back on employee travel, and consumers started to save money by not taking vacations. Jet fuel prices skyrocketed as crude oil prices rose. In a way one trend led to another trend. As crude oil prices increased the amount of ticket prices increased which eventually led to less...