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Strategic Management and Business Policy College - Essay Example
Pages 3 (753 words)
The most important problem that Jet Blue is facing is their ability to sustain their enormous growth in the industry. Jet Blue started operations in 1999 following Southwest's low cost solution but with value added in-flight features. After the 9/11 attacks, Jet Blue was one of those few airlines that managed to remain profitable…
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 had, a community doest 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' ...