JetBlue Airways Inc Strategic Plan Alignment
This paper evaluates the scale of configuration between the JetBlue’s published values and; a) the treatment of internal stakeholders by managers, b) the internal stakeholders ‘ treatment of one another, c) the organization ‘s treatment of external stakeholders, d) the short-term plans of JetBlue, and e) JetBlue’s long-term plans . a) Alignment/configuration between managers’ treatment of internal stakeholders and organization’s values: The internal stakeholders of JetBlue are the owners, the employees as well as the management.
With regard to owners, the underlying strategy for JetBlue is to maximize the value of their wealth which is reflected in profitability as well as high share prices. JetBlue, by pursuing a tactic of employing low-cost operations, which has been attained through operating a single mode fleet (Airbus A320, though Embraer 190 jets that are smaller have been added to the fleet), and by offering single-class services as well as establishment of a ticketless reservation system, has managed to keep operations cost low; a strategy which has enabled the company to continue posting good profits even during turbulent times.
This strategy maps well onto the strategy by the management of offering high dividends as well as high stock prices to shareholders (Carter et al. 2002). However, with regard to employee relationships, some instance have come up that raises questions about fair treatment of workers at JetBlue, especially by their supervisors. For instance, discrimination of workers against age has been recorded as proven by the case of Diane GORZYNSKI v. JETBLUE AIRWAYS CORPORATION (2010).
The issue of workplace discrimination need be curbed by the management since it could have huge negative implications especially on financials (legal settlements) as well as brand image for the corporation. b) Alignment between internal stakeholders’ treatment of one another and JetBlue’s values. JetBlue Airways has a policy in place which desires to create a friendly environment for all of its workers. One effective method by which the airline has maintained high motivation amongst its workers is purchase and maintenance or brand new aircrafts.
The desired outcomes of a high degree of motivation amongst workers are reproduced across the organization in terms of worker productivity (which in the case of JetBlue is degree of customer satisfaction). c) Alignment between organization’s treatment of external stakeholders and JetBlue’s values. The external stakeholders of the company includes customers, suppliers, government agencies, the media, strategic partners, professional organizations and associations, interest groups, communities, among others. The value of JetBlue Airline with regard to its customers is to make their flying experience as simple as well as pleasant as possible.
In line with this, the company has created a Customer Bill of Rights, which is meant to be subjected to the highest safety and security level for the sake of customers as well as the crew members(www. jetblue. com). Further, JetBlue always notifies its customers of flight cancellation, delays or diversion on time to reduce the inconveniences such actions causes to customers. At the option of the customers, JetBlue will either refund them fully or offer re-accommodation in the next scheduled flight at no additional cost.
If a flight is cancelled within four hours of scheduled flight, the customers are provided with fifty dollars credit redeemable at future travel with the airline. This is perfectly in line with the airlines values of providing the customers with services that derive maximum customer satisfaction. d) Configuration between JetBlue’s short-term plans and its values. JetBlue has set out short-term plans such strategic partnership with other airlines in line with providing satisfactory flight services to its customers.
The partnerships are aimed at enabling the clients of both partners to make flight connections faster and easily to destinations one partner has no route to. Regarding this, South Africa Airways, Aer Lingus, Cape Air, and Lufthansa have been brought on board (www. jetblue. com). However, this partnership may not auger very well with the low-cost value of the company as the partners most probably than not stick to their operations strategies, which could have high operation costs and hence higher air fares. e) Alignment between the company’s long-term plans and its values;
The long term goals of the airline is expansion which will see addition of more planes and flight destinations, hence bringing the benefits of high-quality low-cost airline services to many middle-sized cities who are hungry for the same, expand customer base, grow market share and in addition increase JetBlue brand awareness. In this regard, the airline company has entered into purchase contracts with Airbus and Embraer that would see it acquire more low capacity planes, a move that will push the airline’s fleet close to three hundred planes by the year 2015 (www.
jetblue. com). This move fits the airline values of offering their customers low-cost yet high-quality and memorable flight experience, maximizing the value of shareholders wealth as well as keeping the employees highly satisfied with their jobs. But the airline must reckon the fact that expansion does not always translate into success. As a matter of fact, it serves to multiply the risks of doing business. It thus has to set forth appropriate risk mitigation mechanisms that would check the expansion programme from turning into a flop. Conclusion;
JetBlue has a fairly good strategy alignment between the various stakeholders as well as the goals of the organization, both short-term and long-term with regards to its set values. The airliner however needs to keep revaluating the alignment of the various multiple relationships involving people as well as plans that exists in its organizational structure so as to ensure maximum and continuously productive configuration is attained. REFERENCES: Carter, G. , DiSciullo, W. , & Kalmans, A. (2002). Strategy Final: Is JetBlue’s strategy conducive to sustaining profitability?.
Retrieved August 9, 2010, from http://www. mcafee. cc/Classes/BEM106/Papers/UTexas/2002/jetblue. pdf GORZYNSKI v. JETBLUE AIRWAYS CORPORATION (2010). Docket No. 07-4618-cv. . Retrieved August 9, 2010, from http://caselaw. findlaw. com/us-2nd-circuit/1508597. html Weiss, T. (20 February 2007). JetBlue’s Survival School. Forbes. Retrieved August 9, 2010, from http://www. forbes. com/2007/02/20/neeleman-jet-blue-lead-cx_tw_0220jetblueceo. html JetBlue Airways Inc. (2010). Airline partners. Retrieved August 9, 2010, from http://www. jetblue. com/about/airlinepartners. html
