Cut Blue Airways

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JetBlue Airways Managerial Accounting 630 Ruizhen Harden November 28, 2011 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? I found that the company’s strategy for success pivots around product leadership customer value proposition. As stated in the report itself JetBlue, "provides high-quality customer service at low fares, primarily on point-to-point routes" (JetBlue, 2005). Further evidence of the company’s success is their efforts to offer low-cost alternatives to customers by serving "underserved and large metropolitan areas that have had high average fares" (JetBlue, 2005). Due to reasonable and fair customer service measures like this, JetBlue has aircrafts with the highest number of seats occupied in any given period. 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? In the world of business, there are several risks that may affect stockholders. Decision makers must examine such risks in order to minimize negative effects. One of JetBlue’s most threatening business risks is the prospect of increased jet fuel prices. Jet fuel costs contribute to a majority of the company’s operating expenses. These expenses can be regulated by negotiating forward-thinking contracts in order to lock in secure prices for jet fuel in the future. 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? The concept unit level activities can be applied

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