Jet Blue - Strategic Management Assignment Example | Topics and Well Written Essays - 1000 words

Jet Blue - Strategic Management - Assignment Example Jet Blue embarked on an ambitious expansion plan, adding new planes and routes much faster than it added passengers. With the added capacity for more passengers, but customer base falling due to competition, Jet Blue started to face its most crucial problems. The profits started declining until in 2006 Jet Blue reported its first ever loss. Jet Blue could not utilize its planes to full capacity to meet the increasing fuel charges. Till now, Jet Blue hasn't been able to recover fully although the company is profitable again. (Press Release - Jet Blue, 2006) (Kahn, 2004) The shareholders of a company want higher returns on the shares in the form of dividends and value of the share. On the other hand, a community does care what returns the shareholders get. They want the company to conduct a business that either gives a positive return to the community or does not hinder the community in either way. To balance between these two, a company must realize that most of the shareholders are a part of the community; hence they would want the well being of the community as well as their own interests in the company. Therefore a company should concentrate more on the needs of the community which eventually would be in the best interests of the shareholders as well. 2 - Getting loyal customers to put out a phone "request for proposal" soliciting competitors' bids - This is ethical since you don't your the customers actually don't need the bids, therefore, this practice is not encouraged. 5 - Buying competitors' products and taking them apart - after buying something, it becomes your property (unless stated otherwise) therefore taking it apart to analyze is okay. 2 - Hiring management consultants who have worked for competitors - consultants are not your employees thus this practice is not appropriate since it would be unethical if consultants give some information about the competition