Boeing’s success depended directly on the success of those airline companies. Boeing was looking to take an opportunity advantage of an “e-Enabled” operating environment in which every aspect of an airline’s and it supplier and partners operations would be integrated through Information Technology (IT). By providing airplane information systems that could be better networked with airline ground systems as well as new products, services, and solutions within the networked environment, Boeing could help airlines operate more efficiently while also creating preference for Boeing products and services. Boeing had a vision 2016 that centered on three strategic initiatives: Run a health core business, leverage strengths into new products and new services, and open
Strategy consists of the competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance (Thompson, et al, 2010). A company’s business strategy will succeed when it is predicated on action, business approaches, and competitive moves that are aimed at appealing to buyers in a way that set its company apart form its rivals and carving its own market position. JetBlue is such a company; it has implemented, evaluated and improved its business strategy. Founder David Needleman, was well versed in customer service and had worked in the travel and airline industry before starting JetBlue (1998).Which became a low-cost and low-fare airlines. Needleman’s impact on JetBlue is understandable having a vision he implemented his dream and started the award winning airlines, which spreaded to international ports.
Scott Strode, Vice President of Airplane Development at Boeing commented that they value their approach to involving partners as it, “has resulted in the development of a better airplane that can be produced more efficiently”(The Collaborative Supply Chain at Boeing). Mr. Strode also added that they have developed new technologies and tools that have enabled their collaboration model to be successful and provide value to future projects at Boeing. The impact of the new way of handling supply chain has proved beneficial to Boeing in several different ways with the new way of handling its supply chain. For one, more responsibility is now put on the shoulders of the suppliers to manufacturer and complete
JetBlue Airways JetBlue has successfully implemented an integrated strategy operating a single-type aircraft fleet in a focused segment of the market. The company had success in gaining market share along the existing routes and wanted to expand into medium-sized cities that were being served by legacy carriers’ regional airlines. As JetBlue moved into these markets with shorter flights they realized a need for a more suitable aircraft. Having a smaller jet would make it easier to enter these new markets because of their lower break-even load and it would help to increase passenger loads on their original point-to-point flights. Because of the strategic alliance with Embraer, JetBlue played a significant role in designing the interior of the aircraft to improve passenger comfort, a key component of their differentiation strategy.
It has even increased its market shares with the rise of military aircraft sales mainly because of its conservative policy and strong working capital position. In September 1979, HMTC asked for an extension of its $1,000,000.00 loan until the end of December of the same year from St. Louis National Bank. Also, the company asked for an additional loan of $350,000 that would be repaid December 1979 with interest rate of 1.5%. II. STATEMENT OF THE PROBLEM How should Mr. Jerry Eckwood respond to Mr. Cowen’s requests of the renewal of the existing loan of $1,000,000.00 and of an additional $350,000.00 loan?
Boeing VS Airbus A380 Business Interior Both Boeing and Airbus share some similar business practices and marketing techniques, but that’s where it stops, the rivalry and competition between the two companies has always proved to be beneficial to clients. Between the two companies, you are able to find the perfect aircraft for your needs. But between Boeing and Airbus, who provides the best marketing to clients, and most important, who has the better product. Boeing 787 Mockup Interior Boeing is staying away from the large capacity aircraft designs and is looking to producing the B787 Dreamliner which will be a quick and fuel efficient. Having already filled the market with 747s, Boeing is looking to capitalize on the demand for direct flights and medium capacity requirements.
With this many integral forces, strategic planning is crucial. There is a need to keep them unified and collectively striving on future endeavors. With the Boeing Corporation being valued at over 66 billion dollars, the leadership must be doing something right. Their ability to provide 24/7 technical support to airline operations, keeps them in constant connection with their customers. Boeing also offers training on maintenance and flight crews through a partnering firm, Alteon (Boeing, 2008).
JetBlue Airways: Starting from Scratch Case Study Analysis * This case illustrates how an entrepreneurial venture can use human resource management – and specifically a values-centered approach to management – as a source of competitive advantage. * The major challenge faced by Ann Roades is to grow this people-intensive organization at a rapid rate, while retaining high standards for employee selection, and while building a strong organizational culture. Strengths | Weaknesses | * Clear niche * JFK – protected slots * Political protection * Efficient * Quick turnaround at the gate; * Paperless * Low fares * Better product that Southwest * Wider seats * Less waiting in line * Strong top management team * Experienced * Cohesive * Smart * Well-funded * Flexible workforce | * Serious competition if they threaten major carriers * Potential competition with SWA as SWA grows * Though industry for start-ups * Difficult to hire quickly at high standards * No structures for building team and participation as they grow * Lack of standardization in HR policies could be source of inequity, division * Flight attendants turnover could create high training costs, poor service | Jet Blue Strategy: * Low cost, low price * JFK – under-served markets and beachhead for protected revenues stream * Increase demand through low fares * High asset utilization * High productivity (people) * People who might not otherwise fly (eg vacation), cost-conscious. Dangers of rapid growth: * Can they hire the right “type” of people who fit? * Will the growth lead to fragmentation such that they lose their focus and emphasis on people?
Vincent Stabile, Vice President of People for JetBlue Airways has a challenge: How must the organization understand the current organizational structure’s successes and evolve these learnings to support this growth? JetBlue’s core strategy capitalizes upon superior customer service paired with a low-cost structure achieved through use of brand new single model planes that reduced maintenance and training costs, better use of technology including automated processes, a smaller and more productive workforce, and the staffing of content yet non-unionized workers. JetBlue’s organizational structure is a modified hierarchy – divisional design so that “important decisions regarding strategy and implementation could be more easily executed by crewmembers at all levels of the organization.” This balances with a corporate policies designed to create integration and standardization across divisions such as the Holiday Helper program through which office-based staff volunteered in customer service operations during peak holiday travel times to aid in the operational heavy workload as well as to interact with customers and stay in touch with the core product. This aggressive growth plan mandates a departure from low-cost competitive advantage of supporting only one type of plane because a
Positive attitude was the main characteristic managers were looking for when hiring new employees. Employees were often rewarded with bonuses which encouraged the initiative. JetBlue´s positive attitude within its corporation were communicated by its airline policy “never canceling flights” and provided gift vouchers for delays even if those were due to uncontrollable factors. The early growth and expansions of the company led to an unstructured corporation. JetBlue´s fast growing business model escalated with a natural disaster caused by a snowstorm in 2007.