...figures in this case and they had important responsibilities in F&C International, Inc. Jon Fries was the President, CEO, and managing director of F&C international, Inc. He was in charge of the total management of the company. The key responsibilities of Jon Fries were to align the company, internally and externally, with his strategic vision. His duties were to facilitate business outside of the company while guiding employees and other executive officers towards a central objective. As a CEO, Jon Fries had high interaction with F&C`s independent auditors, but he misguided them by creating false documents, mislabeling inventory, and undercutting the subordinates` attempts to expose the fraud. Fletcher Anderson was the Chief Operating Officer and member of company's board of directors. As the COO of the company, his responsibilities were to ensure that business operations are efficient and effective and that the proper management resources, distribution of goods and services to customers, and analysis of systems are conducted. Anderson later became the president and CEO of F&C international, Inc. As a COO, Fletcher Anderson had interaction with F&C`s independent auditors. He and controller supposed to provide all the documents and answer all the questions of the independent auditors but they didn�t tell them about the fraud of the company. Craig Schuster served as the Chief Financial Officer of F&C international. He was responsible for managing the financial risks, financial...
Words: 1457 - Pages: 6
...John F. Kennedy International Airport (IATA: JFK, ICAO: KJFK, FAA LID: JFK) is a major airport in the borough of Queens in New York City, owned by the City of New York and operated by the Port Authority of New York and New Jersey under a long-term operating lease. It is about 12 miles (19 km) southeast of Lower Manhattan. It is the busiest international air passenger gateway in the United States, handling more international traffic than any other airport in North America.[3] It is also the third-leading freight gateway to the country by value of shipments.[4] In 2014, the airport handled 53,254,362 passengers,[5] making it the 18th-busiest airport in the world and sixth-busiest in the United States by passenger traffic. Together, JFK International, LaGuardia, and Newark Liberty airports, all operated by the Port Authority of New York and New Jersey, are the largest airport system in the United States, second in the world in terms of passenger traffic, and first in the world by total flight operations. Dedicated as New York International Airport in 1948,[6] the airport was more commonly known as Idlewild Airport until 1963, when it was renamed in memory of John F. Kennedy, the 35th President of the United States.[7] Over 90 airlines operate out of JFK.[8] It is the base of operations for JetBlue Airways and is a major international gateway hub for American Airlines and Delta Air Lines. In the past, it has been a hub for Eastern Air Lines, Gemini Air Cargo,[9] National Airlines...
Words: 1088 - Pages: 5
...Assignment #1 Crafting and Executing Strategy Jet Blue Airways David Neeleman worked in the travel and airline industry before starting JetBlue. He was well versed in customer service. He learned from his grandfather as a teenager never to disappoint customers; satisfied customers would return. As a young man Neeleman also learned to be frugal (C-53). David Neeleman started JetBlue Airways as a company that would combine the low fares of a discount airline with the comforts of a den. Passengers would save money, consume gourmet snacks, sit on leather seats, and watch television. Many of JetBlue’s ideas came from Neeleman’s own personal experiences. He decided to add leather seats because he was once assigned a cloth seat that was soaked with urine. Leather seats were more durable and easier to clean. Individual monitors provided entertainment. He decided to provide 24-channel live television via satellite for free (C-53). On February 11, 2000, JetBlue’s first ceremonial flight was launched and, John F. Kennedy International Airport (JFK) its hub. The first flight was between Buffalo and New York City, JFK (C-54). JetBlue’s strategy consists of business approaches to grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance (p. 6). JetBlue...
Words: 1447 - Pages: 6
...Mahasarakham University Mahasarakham Business School Case 20: JetBlue Airways Subject: Business Policy and Strategic Management Instructor: Dr. Olimpia C. Racela Group Members: 1. Miss. Nguon Phuongtepsonich ID: 540101919847 2. Miss. Shi Lilin ID: 54010919850 3. Miss. Ananya Duangthowset ID: 54010919845 Submitted Date: Thursday, September 18, 2014 JetBlue Airways 1. Situation Analysis JetBlue Airways was founded by David Neeleman and lawyer Tom Kelly in 1998 with $160 million of capital. Its main base is John F. Kennedy International Airport (JFK) in New York. JetBlue positioned itself as the Low-Cost Carrier (LCC) but distinguish itself by its services such as in-flight entertainment, TV on every seat and Satellite radio. SWOT Analysis: Strengths | Weaknesses | * Good customer service: * Allow passengers to choose their seat on the plane whenever possible. * Unlike other LCC, JetBlue served free snacks on board. * Cost management: * Saving more cost by serving snack rather than meal. * Good routing management: * Flew only point-to-point flights helps to avoid the complication that resulted from connecting flights and passenger transfers. * High technology: * E-ticket and paperless operation. * Human resource management: * Family-like atmosphere at the workplace which leads to positive attitude in its employees. * Employees were free to suggest ideas and comments in order to improve operations. ...
Words: 1388 - Pages: 6
...Professor Samir Moussalli MGMT499 November 18, 2010 Analysis Conducted by PSPS Associates Outline I. Management Summary II. Introduction a. Purpose b. goals III. Background IV. Strategy Formulation a. Vision b. External Opportunities & Threats c. Internal Strengths & Weaknesses d. Long Term Objectives e. Alternative Strategies f. Strategy Selection V. Strategy Implementation a. Annual Objectives b. Policies c. Employee Motivation d. Resource Allocation VI. Strategy Evaluation a. Internal Review b. External Review c. Performance Measurement d. Corrective Action In this analysis of Jet Blue Airlines, we will take an in-depth look at the internal and external factors surrounding the operation and continued success of the airline. We will reveal the opportunities, both internally and externally. As well as expose threats that could potentially...
Words: 4121 - Pages: 17
...Problems At JetBlue Anthony Campbell XBIS219 April 27, 2012 Mickey Hendon Problems At JetBlue The problems JetBlue faced Valentines Day of 2007 was purely technological. Management followed their protocols as they were supposed to up to the point where federal regulations and safety provided the best solution. Now on the other hand, the other airlines cancelled their flights in preparation for the storm, yet JetBlue remained as to stay in accordance with their “at all cost” policy, which proved to costly but JetBlue’s customers surely find that a win in the plus section for those who favor that policy. Technology became the issue because when it was time to locate luggage, rebook, and compensate passengers for their troubles; JetBlue’s systems proved that it could not handle the large capacity of calls to their reservations system, the system could not track lost luggage, nor could JetBlue passengers get any assistance from kiosks or the website due to their lack of functionality since rebooking could not be done by those means. There is not much more that could have been done differently due to the fact that their technology could not perform under pressure situations other than shutting down when all other airlines did. However, More questions could have been asked in retrospect as to what their systems could and could not do and how much of a load that each system could handle, and what could be done in the event of an overload, and have a back up plan for such...
Words: 279 - Pages: 2
...Summarizing Thoughts In the case of the JetBlue disaster in 2007, management and IT did not work together in order to prevent a loss of 30 million dollars and more importantly a reputation. Before this incident occurred, management had made poor decisions by not allowing or innovating ideas that would have made this situation less expensive and a better experience for their customers. I also feel that the IT department should have been working with the management team by offering solutions and understanding how big their role is within the company. The IT team proved to management that had the ideas been brought to the table, many solutions could have already been in place instead of developing the programs because of their lack of planning. As a manager it is imperative that you play out any and all situations that could possibly occur, so that you can be assured that you have the tools in place for your employees to take care of the customers when disasters such as this take place. In this case, with weather being so unpredictable, after the passengers had been sitting on a plane for more than an hour, I would have started calling the planes in at that point in an attempt to keep them as calm as possible. I believe that that the IT department handled the situation to the best of their ability and as management, I definitely would have had some type of emergency plan in place and had the IT piece of the business already developed in order to better serve my...
Words: 264 - Pages: 2
...passes have been adopted by some airlines and are being tested by others. A bar code is sent to the phone and then scanned by a barcode reader at security and during boarding. The TSA actually prefers the electronic bar codes, because they are much harder to counterfeit than printable boarding passes. One of the most recent trends that will impact the air-line industry is the European emissions regulations. Everyone in the world is preparing for European green-house gas trading scheme. The trading scheme will likely increase cost and could past through to passengers or mitigated through other ways, and impact carriers credit quality over time. European airlines will most likely endure most of the impact by the new regulations. The International Air Transport Association (IATA), which represents major...
Words: 1514 - Pages: 7
...Effects of Quality Management on Domestic and Global Competition Introduction The effects of quality management on domestic and global organization have become an important factor in today’s competitive approach. In today’s global marketplace, even small companies find themselves being challenged by competitors from all over the world. It is important for businesses to adopt quality management programs to in order to continue improvements of products and services to meet customer needs (Goetschto & Davis, 2010). Several quality management concepts are available for business leaders to use like six sigma, teamwork, continual improvement, employee involvement, and customer satisfaction. Although quality management processes and procedure my differ for now and in the future, organizations goals remains the same to generate total commitment and continually increase value for customers, investors, and employees (Sebastianelli & Tamini, 2003). This paper will discuss the concepts of quality management and the effects on two different organizations but in the same industry. One will be in the domestic market and the other will be in the global market. The companies chosen are JetBlue Airways and Lufthansa Airlines. Process Similar in JetBlue Airways & Lufthansa Airlines JetBlue Airways and Lufthansa Airlines are both partners and committed to providing superior service in every aspect of their customer’s air travel experience. Both companies run on principles of value-based...
Words: 642 - Pages: 3
...Financial Implications Financial Implications Employee Budget All 12 managers attending the training will make a special pay rate. All managers are entitled to $25.00 per hour. All travel time are paid a maximum of 10 hours, which is $250 per person a day. Off days are paid a maximum of 8 hours, which is $200 per person a day. Training days are paid a maximum of 12 hours, which is $300 per person a day. The last remaining days are three off days and three travel days. Duration of pay * Travel time * 7 days total, paid 10 hours maximum per day * Off days * 4 days total, paid 8 hours per day * Training days * 2 days total, paid 12 hours per day The budget for wages throughout the training is as following: * Each managers budget = $3,150 * Travel time days = $21,000 * Off days = $9,600 * Training days = $7,200 The total cost for employee budget is $37,800. Equipment Budget All systems will be brought from the Los Angeles main office. Listed will be the equipment that needs to be purchased. * Office material = $100 * 1000ft boxed Cat 5 cable = $105 The total cost for equipment budget is $205. Travel Budget All flights and rental cars will be paid by the company. Eight managers will need flights and four will need rental cars. The budget will also include two vans for the LAX pick-up. Listed will be the flight price from their state to LAX using United Airlines and vehicle rental by enterprise. 8 flights ...
Words: 495 - Pages: 2
...Strategy of JetBlue, a U.S. Airline. Introduction In early 2003, JetBlue Airways no – frills American airlines, posted a profit of $ 17.6 million for the first quarter of 2003. In the same period, the American airline industry announced losses of around $2 billion. JetBlue was one of the few bright spots in an industry which has been reeling under the woes of over – capacity and losses for over two years. The Company managed to succeed in a period when big names in the American airline industry like American Airlines, United Airlines, US Airways and others suffered huge losses and were a few steps from the bankruptcy. The American airline industry was in a bad state owing to the effects of terrorism, war and economic downturn. The major carriers alone were estimated to have an outstanding debt of over $100 billion. Passenger traffic was also falling consistently. In this scenario, a number of low cost airlines began to make their presence felt in the industry. Southwest Airlines, was the inspiration for most of the low- cost startups. However not all start-ups airlines succeed. The most important cause for failure was the inability of these low –cost airlines to bring about a balance between cost – cutting and quality of service, which JetBlue succeed to do. JetBlue, Modeled itself on the lines of Southwest Airlines and managed to succeed in a depressed and highly competitive industry, because of its innovative approach to business and its efforts in becoming a cost...
Words: 2120 - Pages: 9
...JetBlue Airways: Growing Pains A case report prepared for MG 495 Business Policy Spring II 2014 Paige Pence Jamie Neidholdt Tyler Slayton Ja-ir Gooden Jacob Miller May 4, 2014 JETBLUE AIRWAYS: GROWING PAINS I. Introduction A. Executive Summary 1. Summary statement of the problem: JetBlue Airways was a fairly new airline that was going up against such airlines like Southwest, AirTran, and Delta. Started in 1999, JetBlue Airway was able to turn profits fairly quickly; in 2001 the company had profits of $38.5 million (George & Regani, 2008, 20-4). From there on it seemed that the company would continue to be profitable especially with expansions in the works; moving into areas that competitors ignored, ordering more planes, expanding to the west coast, and building a new terminal at JFK. However, due to various external and internal factors the company once again posted losses in 2005 and 2006. 2. Summary statement of the recommended solution: The problem is that JetBlue is expanding too fast and too soon to keep up. The company needs to slow their growth so that the company can keep up with the pace. Furthermore, the company needs to continue to do what the company does best; superior customer service, low fares, short-to-medium routes instead of offering what the competitors are doing. This is lessening JetBlue’s differentiation from other companies creating just another option for customers. Finally, JetBlue needs to continue to make cuts...
Words: 6380 - Pages: 26
...1. How could JetBlue have better communicated with its internal stakeholders across the country on Valentine’s Day and during the days that followed to enhance its image with customers? Stakeholders have their own perception before they begin their interaction with the organization. Usually, the perception is based on what they have read, been told, and what they have been exposed to. JetBlue needed to have ensured the quality of each and every interaction. Updating their web site accordingly, placing automated phone calls telling people that their flights have been canceled and that they were being given a free flight voucher. They needed to make sure that they emphasized how sorry they were and that it is due to the weather, but they were doing everything possible to alleviate the situation. 2. Should the corporate communications team at JetBlue have arrange for CEO David Neeleman to appear on the national television news and talk show circuit following the crisis? What might be the potential benefits and risks to the company’s reputation? The corporate communications team should have arranged for David Deeleman to appear on the talk shows and news shows. He could be potentially pitted against the customers that were unhappy about it, and he may interact with people who are motivated by emotion. It is how he handles the situation. He should have gone on those shows and apologized, spoke about the weather conditions, emphasized it. Also owned up the JetBlue’s mistakes...
Words: 454 - Pages: 2
...Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note that, like any company, brand perception plays a large role in the success or failure of a company within the airline industry. Because of the number of individuals impacted when a flight goes awry, it only takes one incident to completely destroy an airline company’s credibility for safety, which can also lead to reduced sales and ultimately profit. Airlines must also now adapt to the world of technology as many consumers are looking for airlines that provide high tech amenities, such as paperless boarding passes and the ability to use cell phones while in flight. To keep their customer’s content, airlines must use their Research and Development teams to meet these expectations or they will lose those customers to competition. At the creation of Jet Blue, its Chief Executive Officer, David Neelman, wanted to “combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes” (Thompson, Strickland, Gamble, 2009). He wanted leather seats...
Words: 1379 - Pages: 6
...HEAVY EDIT JetBlue Airlines: Getting “Blue” again?* JetBlue posted a net income $97 million in 2010. The airline continues to pursue its goal of becoming ―the Americas‘ Favorite Airline‖ and aims attainting positive free cash flow and long term sustainable growth while maintaining adequate liquidity position. Financially, the airline was far better than after the Valentine day fiasco in February 2007 and subsequent loss of $84 million in 2008. It focuses on controlling costs, maximizing unit revenues, managing capital expenditures and aims at achieving disciplined growth (see Exhibit 1).1 However, in the recent years, JetBlue appears to be moving away from its core strategy, in quite interesting ways, of being a low-cost player providing the distinctive ―JetBlue experience.‖ In its efforts to boost revenues, the airline began charging $10 to $20 for seats with extra legroom, doubled its ticket-change fee to $100, and introduced refundable tickets that cost more than nonrefundable ones. Further, the airline began charging $7 for a pillow-and-blanket kit, an amenity usually provided free of charge by other airlines.2 Breaking another low-cost rule, JetBlue moved away from ticket sales through its own Web site and signed up with travel agencies and the Galileo and Sabre global distribution systems in August 2006 and with online travel agencies such as Orbitz in January 2008. Further, it sold approximately 42.6 million shares of common stock to Deutsche Lufthansa, the German...
Words: 5935 - Pages: 24
