Decision Making and Impact - Case Study Example

• Decision making
• Decisions

The long-term success of JetBlue’s Cheap Flights is depended on the ethical decision making in response to the possible regulatory and ethical issues. Effective decision making and strategy will aid Cheap Flights to set the pace and standards in the air travel industry, while at the same time attaining a positive reputation for offering cheap and affordable flights and the improvement of livelihoods. In this regard, Cheap Flights approach will involve obtaining oil at lower prices and offering its flight tickets at cheap prices that will support and empower many lives and communities. Some of the primary principles that will aid this approach will engross valuing customers, investing in communities and improving the livelihoods of the people (Crowther, 2017). For this reason, the below attempts should be made to promote the livelihoods and sustainability of the communities that will be served by Cheap Flights program.

• Reducing the air ticket prices

The reduction of air ticket prices is the primary goal of the Cheap Flights program. This initiative will be aided by the oil reserves and filling stations at all JetBlue airports that will allow JetBlue buy oil in bulk and enjoy lower prices from the suppliers. JetBlue’s Cheap Flights will ensure that all its planes will fuel at its stations in its airports. The oil will be bought from renowned suppliers who will supply at lower prices. It is estimated that the oil prices will be 40% lower than refilling at other fueling stations. This is expected to reduce the ticket prices by 60% for both domestic and international flights.

• Advocating and doing what is right for the customer.

For JetBlue to be the best in the industry, the Cheap Flights program has to offer the best air ticket prices. The fundamental principle of ‘best prices’ is to understand the customers and their needs. For this reason, JetBlue should ensure that the staff members are trained and are knowledgeable when dealing with customers (Roth, 2016). It is significant to put into consideration whether the price reduction decision also makes sense for both JetBlue and the customers. JetBlue understands that companies cannot perform well when the stakeholders and the communities are not doing well. In this regard, investing in deserving communities and identifying ways on how they can improve their livelihoods are significant aspects in JetBlue’s ethical decision-making process.

• Culture

JetBlue’s Cheap Flights decisions and processes will positively affect sustainability and the aspects of the corporate culture (Simpson & Taylor, 2013). Recently, JetBlue has been rocked with passenger safety issues that have affected its reputation and public trust. This has been attributed to the increased cases of airline crashes caused by inexperienced pilots. In this case, culture in the airline industry stresses on the company’s norms and behaviors to risk awareness and management (Simpson & Taylor, 2013). The company has for the past few years been centered on business activities that bring income and put less emphasis on culture.

A good ethical and cultural structure can assist eliminate most litigation and regulatory issues (Simpson & Taylor, 2013). Also, a suitable culture should engross legalities and the consistency of JetBlue’s values in the ethical relations and handling of the customers and the society. JetBlue’s Cheap Flights ought to incorporate the stakeholders in achieving a culture that promotes economic, social and environmental welfare. Many of the customers may not trust air companies and CSR will be one way to improve trust between them and the company (Roth, 2016). The heightened trust that arises from JetBlue’s commitment to CSR within the communities where it operates. The engagement with the people in the areas that the company operates in is also likely to offer suggestions and innovations on how to improve on the products offered. This could aid JetBlue in improving its competitive advantage.

Needless to say, the improvement of the lives of the communities and the society will generate strong and sustainable communities that will offer a cultural structure that will assist in executing Cheap Flights vision and mission. For one, it will assist most of the travelers to travel cheaply and save on their travel costs. This will support the dream to travel through flights both domestically and internationally.

• Stakeholders

The program’s stakeholders may have distinct standpoints on JetBlue’s ethical decisions due to the complex nature of the industry. Additionally, at the same time, numerous activities by distinct airlines may not necessarily benefit the stakeholders but the airline. In most cases, the decision to withhold a higher proportion of profits may mean that the customers would have to pay more for their tickets (Simpson & Taylor, 2013).

For this reason, an ethical decision to reduce the flight ticket prices and improve the livelihoods of the people will go a long way in promoting both the economy and the livelihoods of the communities.

• IMPACT
• Community

JetBlue’s Cheap Flights ethical decisions will have a positive effect on the communities and the society at large. For a long time, the air travel companies have been under pressure to be socially responsible and to make ethical decisions (Simpson & Taylor, 2013). The CSR activities that Cheap Flights will engage in will improve the lives of the people while at the same time generating a reputation for the company and increasing the profits. CSR activities improve a company’s image and increase the sales and profits (Crowther, 2017). In this regard, JetBlue should first consider the basics. First, JetBlue’s approaches should be feasible in such a way that it can generate a good strategy to handle the issues faced by the communities (Simpson & Taylor, 2013). Secondly, JetBlue must ensure adherence to all the government regulations and any other commitments to stakeholders or investors. Thirdly, JetBlue should ensure that it satisfies the requirements of the airline industry and the societies where it will have operations.

• Impact of reduction of ticket prices

People have for long held the perception that airlines cannot be involved in CSR activities since almost all its activities are damaging to the environment. In our case, the reduction of air ticket prices has multiple effects on the communities where JetBlue will have its Cheap Flights program. This program aims to reduce the amount of money that customers will be paying to travel both domestically and internationally. The first impact that is anticipated from this decision is the improvement of the sentiments and perception of the people towards JetBlue (Simpson & Taylor, 2013). JetBlue will be considered one of the companies that care about its customers, and this will improve the company’s sales and profits. Secondly, this is expected to rebuild the trust that had diminished towards airlines due to a few ethical concerns. The commitment that Cheap Flights will portray will show that the company cares about its customers and employees. The commitment also shows that the company is devoted to improving the lives of people (Simpson & Taylor, 2013). Thirdly, this decision is expected to change the livelihoods of people in the communities that JetBlue will have operations. Because of the increased profits, JetBlue is expected to launch CSR projects such as educational sponsorships to the needy and well-performing students. For this reason, JetBlue will be increasing the number of people who can access good education (Simpson & Taylor, 2013). As part of the improvement of the lives of people, JetBlue is also expected to involve itself in event sponsorships especially, educational and sports events. JetBlue is also expected to establish houses for the less fortunate and children’s homes.

• The impact of advocating and doing what is right for the customer.

On the other hand, advocating for what is right for the customer will ensure that the customers are accorded the best services that the industry can offer. Every customer deserves to be treated well (Roth, 2016), and this decision will ensure that all customers are accorded the best services. For this reason, people’s lives will be improved.

• Global Environment

To prosper in the global business environment, JetBlue will need to empower the society where it operates and identifies ways on how they can solve their challenges associated with regulations and ethics and the CSR activities (Simpson & Taylor, 2013). In the previous decades, the effects of global market have been less considered since most of the airlines were operating domestically. However, the market has grown, and there is a higher demand to travel to other parts of the world (Crowther, 2017). This shift has made most of the domestic airlines to venture into the international market.

Additionally, most of the airlines and many other companies have moved their operations to other parts of the world, and now the world has become one global village. This has impacted JetBlue in many ways. Globalization affected the job market, and now companies have been able to find cheaper labor overseas. For this reason, many people in different parts of the world have gotten jobs and increased their incomes. With the expansion to other parts of the world, the only ethical concerns that the company will face will revolve around the working conditions and low wages (Simpson & Taylor, 2013). However, the company will pay its employees well, and this will improve the livelihood of the people.