JetBlue Airways Case Study Help
Area 1: Strategic Issue Diagnosis
Business Issues
The travel business was severely impacted by Pandemic COVID-19. One sector of this impact has been the airline industry. The travel sector has seen a sharp fall as a result of the worldwide lockdown. The travel industry is experiencing a significant market decline from an industry life cycle (ILC) perspective, which could be viewed as a temporary decline. This is the main business issue for U.S.Airlines, as many of its planes are idle, and this is also seen as a radical change from a disruption perspective.
Because of the pandemic the governments all around the world had to impose several traveling restrictions for bother international and domestic travels. The country’s government also had to impose such restrictions. Ultimately, U.S.Airlines also had to face several challenges due to such imposed restrictions. Although it is now back on track as people and economies are back on their tracks as earlier. As a result to the pandemic the revenue of the company dropped severely in the year 2020. Another business issue that the company is currently facing is the increased fuel cost amid the war between UK and Ukraine.(Atems, B., 2021)
Cultural Issues
Cultural diversification could be widely found in the aviation and airline industries, it is because of the nature of business that the airlines and aviation industry are involved. In their nature of business, the airlines are supposed to maintain good relations with entire nations of the world because they have to travel country to country. Because of being engaged in international traveling, the airlines all around the world are supposed to recruit employees from different nationalities so that they could communicate with their customers or delegates in a more convenient manner. Such is the case with Jet Blue. The Airlines have recruited the employees of various nationalities, despite that the mission and vision of the company is dedicatedly followed by each employee of the company.
The company has several internal advantages. They offer a competitive cost structure, low fares, and low debts. Their employees are efficient and diverse. The company's limited internal weaknesses make it difficult for competitors to compete with them. This airline focuses on the middle class population and has few customers in the high-class. In addition to the competitive cost structure, the brand is also known for its culture.
Routine and rituals: The employees of the airline are always very well trained and they know how they could effectively communicate with the airline’s customers, vendors, investors or partners etc. Hence it could said that they are habitual of daily business operations, rituals and the culture of the organization.
Stories
It was the combination of HR practices and information technology that allowed JetBlue to become so successful, despite the many challenges in the airline industry. The founder wanted to create a firm focused on customer advocacy and positive employee experiences. The company pioneered e-ticketing and IT in aircraft maintenance and incorporated best practices in the management of its aircraft. However, these innovative strategies have not worked, and the company is facing challenges as it grows.
Organizational structure:
The airlines has a very effective organizational structure which is pyramidal. In the airlines, the highest organizational authority is given to its board of members.
Power: As mentioned above the board members of the airlines are considered to have the higher authority hence they are the ones who holds significant power to make decisions. Song, J. (2021).
Political and governance issue
The airlines duly respects all of its shareholders and managers and it is very grateful of have trust and support from them. Although the high authority is retained by the top management of the company but the employees’ feedbacks are also valued in the decision making process. Also the customer need and values are always preferred. The decision makers of the airlines always try and bring various effective and cost control strategies.
According the core values of JetBlue, corruption is considered to be a great threat to its growth and expansion. Hence every kind of corrupt activity is severely prohibited by the company and highly condemned. In order to combat any kind of corruption, the airline has established an Anti-corruption Manual and Anti-Corruption Plan.
Diagnosis conclusion
With the aim of provide law cost flights to the citizens of the company, the company always thinks and suggests for various ways that could be used to provide low cost flights, although in the recent times the airline had to face several operating challenges such as the disruptions of the pandemic. Despite these challenges the airline is stuck with is aims, mission and vision. Hence the airline always try to maintain the integrity and alignment with its code of conduct.
Area 2: External Analysis
PEST Analysis
Political
The recent lockdowns due to the aftermaths of Covid-19 have brought many disruptions from the political authorities. Most importantly the travel restriction all around the world have also brought down the revenue of the airline industries all around the world. However JetBluewas also impacted badly with such a restrictions from the governments all around the world.
Economical
There are various and several impacts of the increase in the fuel costs due to the Ukraine crises on the financial performance of the company. Additionally the economic recession that is brought by the covid-19 have also impacted the performance of JetBlue. (T. Kishimoto,2021)
Social
Many social constraints have also severe impacts on the performance of the company. Aeroplane phobia has caused fear to the people who are afraid of taking flights from JetBlueas they think that it would risk their lives. Hence in order to combat this issue the JetBluehas to take various steps to vanish this fear out of people’s minds.............
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