Research Paper Course Research Paper Due Asapin Order To Und

Research Paper Course Research Paper Due Asapin Order To Understand A

In order to understand activity-based costing and how it differs from a traditional costing system, you will review and analyze JetBlue Airways' Form 10-K report. In an 8-10 page paper, analyze JetBlue's strategy. The following concepts should be covered in your paper: 1. What is JetBlue's strategy for success in the marketplace? Does the company rely on customer intimacy, operational excellence, or product leadership customer value proposition? Use evidence to support your conclusion. 2. What business risks does JetBlue face that may threaten the company's ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 17-23 of the 10-K.) 3. How can the concept of unit-level activities be applied to an airline? More specifically, what are two examples of unit-level activities for JetBlue? What steps has JetBlue taken to manage these unit-level activities more efficiently? 4. How can the concept of batch-level activities be applied to an airline? What are two examples of batch-level activities for JetBlue? What steps has JetBlue taken to manage these batch-level activities more efficiently? 5. What is one example of a customer-level activity and an organization-sustaining activity for JetBlue? 6. Give an example of a transactions driver and a duration driver that could be used to assign fuel costs to a particular flight departure. Which of the two activity measures would be more accurate and why? This paper requires that students use the APA format in writing course papers. Therefore, the APA rules for formatting, quoting, paraphrasing, citing, and listing of sources are to be followed. Make sure you include a title page and reference page in addition to your 8-10 pages of text. Your paper must contain at least five current references and may include Internet sources, books, your textbook, and professional journals or similar resources.

Paper For Above instruction

Airline industry strategies are complex, with companies adopting different approaches to achieve competitive advantage. JetBlue Airways, a prominent player in the low-cost carrier segment, exemplifies a strategic orientation centered on operational excellence complemented by a customer-focused value proposition. This essay explores JetBlue’s strategic positioning, risk management practices, and application of activity-based costing (ABC) concepts as gleaned from its 10-K report, emphasizing the practical implications of activity-level and batch-level activities within an airline context.

JetBlue’s Strategic Approach

JetBlue’s strategy for success primarily hinges on operational excellence, delivering reliable service at competitive prices with a focus on customer experience. Evidence from its 10-K report underscores the airline’s emphasis on cost controls, efficiency, and streamlined operations, enabling it to maintain low fares without sacrificing service quality. While JetBlue also emphasizes customer intimacy by offering enhanced amenities and a reputation for customer service, its core competitive advantage lies in operational efficiency—minimizing costs through advanced scheduling, fuel management, and fleet utilization.

Further, JetBlue’s customer value proposition aligns with both operational excellence and customer intimacy, offering a combination of affordability, consistency, and a positive flying experience. The airline invests heavily in technological infrastructure and staff training to sustain superior customer service, thus reinforcing its strategy of operational excellence aimed at enhancing customer satisfaction.

Business Risks and Control Activities

JetBlue faces several business risks that have the potential to threaten its ability to meet stockholder expectations. These risks include fuel price volatility, economic downturns affecting travel demand, and intense competition in the airline industry. The 10-K report highlights that fuel costs constitute a significant portion of operational expenses, exposing JetBlue to fuel price fluctuations (JetBlue, 2023).

To mitigate these risks, JetBlue could implement control activities such as fuel hedging, rigorous expense monitoring, and process improvements to increase efficiency. For instance, fuel hedging strategies can lock in fuel prices to reduce exposure, while continuous review of operational costs ensures organizational agility in response to market changes.

Unit-Level Activities in Airline Operations

Unit-level activities in an airline are directly involved in producing individual flights or customer services. For JetBlue, examples include the cleaning and fueling of aircraft and passenger boarding operations. To manage these more efficiently, JetBlue has adopted advanced scheduling systems that optimize turnaround times and fuel management practices that reduce waste and improve fuel efficiency.

Batch-Level Activities and Continuous Improvement

Batch-level activities in airlines refer to activities performed on groups of flights or aircraft in batches, such as maintenance checks and crew scheduling. For JetBlue, conducting routine maintenance on multiple aircraft during designated periods and consolidating crew schedules to reduce idle time are key examples. JetBlue has invested in predictive maintenance technologies and integrated crew management systems to streamline these batch activities, leading to cost savings and increased operational flexibility.

Customer-Level and Organization-Sustaining Activities

A customer-level activity for JetBlue includes providing personalized customer support and loyalty program interactions. An example of an organization-sustaining activity is maintaining the airline’s IT infrastructure that supports booking, scheduling, and operational coordination. These activities are crucial in sustaining customer satisfaction and operational continuity.

Cost Drivers for Fuel Allocation

An example of a transaction driver for fuel costs could be the number of flight departures, while a duration driver might measure total flight hours. The duration driver—total flight hours—could provide a more accurate measure of fuel consumption, as fuel burn correlates more directly with time in the air rather than the number of flights alone. This association enables more precise allocation of fuel costs to individual flights, aiding in cost control and profitability analysis.

Conclusion

JetBlue’s strategic focus on operational excellence enables it to compete effectively in a price-sensitive market, supported by appropriate risk mitigation measures. Applying activity-based costing concepts such as activity-level and batch-level activities allows JetBlue to identify cost drivers more accurately and enhance operational efficiency. The airline’s management of these activities—through technological investments and process improvements—demonstrates an ongoing commitment to cost control and customer satisfaction in a highly competitive industry.

References

• JetBlue Airways Corporation. (2023). Form 10-K report. Retrieved from [URL].
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