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JetBlue Airways Starting from Scratch Case Solution
JetBlue Airlines, the modern entrant in the flight companies industry went from the preliminary development on the organizational existence circuit progressively beneath successful authority involving Neeleman as the company head. JetBlue Airways is in the formalization period on the existence point from where there would be a great for the generation of processes in order to handle the complex task of company’s external and internal management. Likewise, as the company’s profits are increasing, it has to align itself with the rest of the environment to change the initial success period into a sustained success path for the company. Human resource management and company’s culture are also the main concerns of the company to be maintained through proper strategy formulation.
Following questions are answered in this case study solution:
If you owned and/or managed a venture capital fund would you invest in JetBlue? Why or why not?
What are the key features (or potential success factors) of JetBlue’s business model?
How would you characterize (or describe) the Chief HR Officer role of Ann Rhodes in reference to pages 159 and 160 of the text and the HR role configuration presented?
What is your evaluation of the degree of alignment of the corporate strategy (and business model), HR practices, and organization values and culture of JetBlue?
Is the objective of remaining union-free realistic and how important is being non-union to the business model and HR practices and systems?
Use the models (frameworks) contained in chapters 3 and 4 (pages 106 and 171) of the Mello text and prepare a brief situational and strategic analysis. Also, go to the web site of JetBlue to obtain current information.
Can a values-based corporate culture develop when top executives do not see each other on a frequent basis? Why or why not?
JetBlue Airways Starting from Scratch Case Analysis
1. If you owned and/or managed a venture capital fund would you invest in JetBlue? Why or why not?
A venture reserve that administers cash from the investors looking for private value stakes in startup and modest/medium-sized endeavors with solid development potential. These speculations are ordinarily described as high-risk/high-return chances. Hypothetically, they give individual personals the capability to get in promptly at an organization's startup organize or in extraordinary scenarios in which there is a chance for dangerous development. Previously, step capital ventures were just approachable to expert wander businesspersons. Capital venture funds have a high risk attached to them and are preferred only through a diversified portfolio approach. If JetBlue is analyzed through the point of view of a capital venture, it would be clear that JetBlue can come out to be a profitable venture. The main reason behind the interest of capital venture in this company would be the experience and track record of its director, Neeleman. The success of Morris Air has provided Neeleman a credible position in the industry so each of his project is given due importance by investment companies. Additionally, JetBlue has based its strategy upon lowering the cost of air travel, which is the need of this time.
2. What are the key features (or potential success factors) of JetBlue’s business model?
The key features of JetBlue’s business model include the idea of being the airline with the lowest pricing strategy in the industry. It has focused on the Pricing factor out of 4 P’s (Pricing, promotion, product and placement) and has planned to provide premium quality air travel to the customers. The airline offers a variety of air routes available on lower prices than the other players in market. JetBlue's low-cost method is unique in every way. The free airline model approaches to save money on the company's value-chain, whilst applying technologies to boost output and further help to increase functional efficiencies. JetBlue's importance sequence displays it is the capacity to be properly competitive in many important regions relative to the particular bottoms involving levels of competition inside the business operations which concentrate on reducing costs. It has a number of added advantages for its customers such as, stand up pricing, customer support, routes supported, airfare schedules, sorts of plane, protection report in addition to name, and in-flight leisure systems in addition to repeated flyer programs.
3. How would you characterize (or describe) the Chief HR Officer role of Ann Rhodes in reference to pages 159 and 160 of the text and the HR role configuration presented?
Rhoades wanted to get the top from all the other airline carriers and also apply these instructions with constructing JetBlue. Her initial works were specialized in aiding the founding customers on the supervision crew, and define exactly what these people wished about the system and the management response. She had a belief that valuations drove all the other things to do and also were the foundation with the development of one’s business. To be able to define the valuations upon which JetBlue could well be developed, Rhoades held some sort of two-day conference for 20 customers on the leading supervision crew. The session was started by requesting people to take into account exactly what recognized the top businesses these people realized. Many people wanted to contain financial ambitions on this checklist, although Rhoades argued that they should not be for the checklist. Whenever they actually resided his or her espoused valuations, financial overall performance would likely comply with. The actual team finally came to some sort of general opinion around five key valuations that had been to be able to characterize the business:
4. What is your evaluation of the degree of alignment of the corporate strategy (and business model), HR practices, and organization values and culture of JetBlue?
Exceedingly esteemed client administration, JetBlue executives demand, hails from a serious approach to inward cause and the arrangement of JetBlue society with all workforce improvement activities. Every JetBlue representative (called 'crewmembers') graduates from JetBlue University with a regular comprehension of JetBlue’s plan of action. Institutionalized training is based the five center qualities of security, mindfulness, trustworthiness, fun, and ardor. Month to month "Blue Notes" are messaged to each crewmember about organization advance, contender standings, and budgetary results. The organization offers occasional "pocket sessions," by means of its intranet which are exchanges around directors about interesting issues inside the organization. These deliberations mean to guarantee crew members comprehend what is normal of them, and how they can help JetBlue’s triumph. The way to development coupled with change, JetBlue’s Neeleman infers, hails from representatives who truly comprehend the bigger objectives of the organization. The higher management can only fulfill the bigger objectives of the association if representatives comprehend those objectives and how to help successfully. This is the start of our conceptualization of representative observable pathway to the association's vital goals. Observable pathway is a worker's comprehension of the association's objectives and what activities are indispensable to help those goals.
5. Is the objective of remaining union-free realistic and how important is being non-union to the business model and HR practices and systems?
It’s a part of labor union to protect representatives' rights, guarantee safe work conditions and arrange for the workers through group bargaining. Unions carry aggregate dealing to businesses. Group bartering comprises of an arrangement handling between the administration or HR branch of a business and the union agents of the organization. Case in point, the union will arrange equivalent installment for comparative work for all workers dependent upon the employment position and period of time at work. This takes out the HR branch's capacity to give a reward or raise to a representative who is commendable and whose work surpasses desires. Extra terms the union arranges under group haggling incorporates average cost for basic items raises, excursion pay, ailing leave, health profits and grievance procedures. HR management loses its capability to lay off workers rapidly when there is a labor union. There is no "at-will" business once the business gets unionized. JetBlue can stay a non union business by fulfilling the needs of their employees in a decent manner. If employee exploitation is avoided, non unionism can help the company stay focused on its success.
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