(Jet Blue, 2005). Jet blue is noticeably taking strides to gain a significant market share by producing a valued product at affordable fares while maintaining efforts to emphasize low operation costs, and operating in underserved markets. (Jet blue 2005) What business risks does Jet Blue 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? (Hint: Focus on pages 17-23 of the 10-K/A.)
Boeing 767 Case Study Questions 1. Explain Boeing’s approach to project management identifying strengths and weaknesses. The approach of Boeing project is definition (program definition and cost definition), supplier management and production management The defining process includes program definition and cost definition. During the period of program definition, Boeing worked on market, technology and cost. Firstly, market analysts began by talking directly with major airlines to get their estimates of future needs and then they combined this information with econometric models to generate forecasts.
Case #1 Managing in Action: Boeing To what extent is Boeing using evidence-based management? Are they over doing it? Explain your rationale. -Boeing has been proactive, where the team conducts evaluations so frequently. Collecting evidence and making changes according to the evidence and implementing it into the companies decision making.
In the hopes of becoming the leader in the airlines industry, the Investor Relations team hopes to raise capital in the form of a stock issuance. To do this, we aim to prove to institutional investors that this is a frugal opportunity that will yield positive returns in the long run. This capital will be used to retrofit the company’s aircraft to make them more energy and fuel-efficient in order to lower costs, to increase comfort for customers, and to provide more amenities than what is currently offered, all in order to enhance the customer experience. To get this project underway, our overall goal is to show institutional investors, which currently hold 96.4% of the company’s stock, that we are a low-risk company that has essentially doubled our share price in the last 12 months. This will be done through an NPV analysis, which will prove that this project is worth undertaking.
Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely. (Brickley, Smith, & Zimmerman, 2009, p. 180) In this case I believe that the flights from San Francisco t Washington DC should be discontinued. Even though United Airlines is a large company and profitable if they continue these flights in the long run they will lose money. The other option that they would have would be to increase the fares to cover those costs, but since the airline industry is a competitive market people are more likely to go with a lower cost airline. The first thing the airline must do is look at the firm supply.
Identify the business situations that Continental had to develop the real time business intelligence (BI) and enterprise data warehouse (EDW) project. Real-time business intelligence (BI) has already proven to be Continental Airline’s saving grace with substantial and measurable return on investment (ROI) generated. Continental developed certain aspects of its BI to address concerns within the company and to provide a greater customer experience. Gordon Bethune took over as CEO of Continental in 1994. At that time the company was in trouble.
This paper will examine the aspects of the balanced scorecard that Lockheed Martin incorporates into its business to make the company a success. References Kaplan, R.S., & Norton, D.P. (1996, January/February). Using the balanced scorecard as a strategic management system. Harvard Business Review, 74(1).
Running head: PROBLEM DEFINITION: CLASSIC AIRLINES Problem Definition: Classic Airlines University of Phoenix Problem Definition: Classic Airlines For a company to launch a successful marketing campaign, all environmental factors must be evaluated and implemented properly. Much of the work lies in planning which can prepare the company for unexpected outcomes, mitigate identified risks, and control the timeframe and budget as much as possible. Classic Airlines is a company with a long history of success; however, they have recently encountered difficulties in their progression towards an effective customer service and marketing campaign. They face the possibility of failure and, assuming rumors are correct, bankruptcy if the project is not pulled through the obstacles. It is critical for Classic Airlines to regain their industry-leading position in the market, increase revenue and profits, and create lasting relationships with customers.
When examining the problems at hand, it becomes clear that Boeing should focus on structure. Boeing has recently undergone some mergers and acquisitions and has a giant need to integrate these companies into the Boeing family so employees and consumers aren’t confused and to eliminate duplicate functions between organizations (Galbraith 2000). Secondly, technology is lagging not just in operations, but in employee data tracking and knowledge management. Another application of this could be in the marketing department through the use of metrics to better meet market demand. The use of a knowledge management system would also help to address the collaboration problem that Boeing has between employees.
Although the Sarbanes-Oxley Act was passed by Congress for positive reasons, there are many disadvantages that come along with it. A major issue is the cost of regulation, especially for smaller companies. Expanding internal controls delay the timeliness of financial statements by adding processing time to accounting functions. To follow the SOX, companies would need to separate duties, causing an increase in personnel. The SOX also calls for additional audits which increase business costs.