JetBlue Airways Strategic Audit

JetBlue Airways Strategic Audit

MNGT 322 Project Case Analysis using Strategic Audit

Case 20 JetBlue Airways Growing Pains

A Change of Guard at JetBlue
IN MAY 2007, JETBLUE AIRWAYS INC. (JETBLUE), a low-cost carrier (LCC) based in New York, announced a new leadership structure for the company. David Barger (Barger), President and Chief Operating Officer (COO) of the airline, replaced David Neeleman (Neeleman) as CEO. Neeleman, who founded JetBlue in 1999, had been its CEO ever since. Under the new leadership structure, Neeleman was designated as the non-executive Chairman of the Board. Russell Chew, a former Federal Aviation Administration (FAA)3 executive, took over as the COO; Barger retained his position as the President of the company. Neeleman said at that time that the board’s suggestion that he step down had nothing to do with the service breakdown that JetBlue had experienced in February 2007, when the northeast region of the United States had been hit by a severe snowstorm. The airline’s slow reaction to the adverse weather had left thousands of passengers stranded at airports. In addition to having serious financial repercussions, this fiasco harmed JetBlue’s image as a customerfriendly airline and tarnished its reliability record. (Excerpt)

Weight 40% (Presentation & referencing 25 marks, Structure 25 marks and Analysis 50 marks)

Instructions to students

Students will need to complete all sections of strategic audit according to the attached document: 3. Appendix 1.A Strategic Audit Detailed Instructions.
Be sure to incorporate the EFAS, IFAS and SFAS tables. Don’t forget to also include a brief background of the case which should not exceed one page. For each section of the strategic audit students will provide a summary of their analysis.

CASE OBJECTIVES

Consider the following issues when completing the strategic audit:

o The growth of a startup turbulent and highly competitive industry, and the challenges it faces.
o The difficulties in sustaining the initial momentum of growth for a company operating in a volatile business environment.
o The effects of a dynamic business environment on a company’s performance and the importance of strong strategic planning in sustaining long term growth.
o A study of JetBlue’s growth and expansion during one of the most turbulent times in the history of is aviation.

o The reasons for JetBlue’s initial popularity and success, and whether the airline’s initial growth had been unsustainable

o The factors that caused JetBlue’s growth to falter, and whether the airline could have avoided any of its problem through better strategic planning.

o JetBlue’s future prospects in light of its main strengths and weaknesses.

o The steps that JetBlue can take in the future to avoid hurdles in its growth.

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JetBlue Airways Strategic Audit
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