Jet Blue Course Research Paper
Course Research Paper (Due Week VIII)
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. To download the 2004 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?