External Environment: Opportunities and Threats for JetBlue Airway Societal environment After September 2001‚ air travel decreased sharply and major airline companies had lost the money. This makes those airline companies to increase the debt by tapping their credit lines and/or issuing bonds. These actions were vital to help the carriers survive the dramatic decline in passenger levels and fares‚ and the sharp increase in losses‚ but left most of the major airlines burdened with huge debt
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Introduction: In this essay‚ I will make an abstract of the definition about “General environment”. With examples behind to support my points in defining “General environment”. Moreover‚ I will list out the challenges provided by several types of general environment factors that make difficulties to managers. I will choose an organization (Cathay Pacific) to be an example to describe the elements that may exist in its general environment. Of course‚ related references will be provided to backup the points
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tasks associated with the key question of where are we now in relation to the external environment and industry structure currently facing your chosen organization. Description/Focus: You will conduct a ‘five forces analyses’ for an industry of your choice. Based on your analysis‚ you need to indicate how profitable do you think the industry currently is and what are the factors driving that profitability. Also discuss how will these factor change in the future and what will be the effect of these
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Analyzing the General Environment Select three categories to analyze‚ from the list of the major forces that comprise the macro/general environment. Macro environment are external factors that have a direct impact on the organizations strategy and decision making. Those factors are uncontrollable. For example‚ some of those factors are: change in interest rates‚ change in cultural tastes‚ government regulations‚ social condition‚ technological changes‚ and natural forces. Those factors are usually
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UNDERSTANDING STRATEGIC MANAGEMENT CHAPTER 2: The General Environment The external environment facing the organization consists of both: a. A general environment‚ often referred to as the macro-environment because changes that occur here will have an effect that transcends firms and specific industries. b. A competitive environment‚ consists of the industry and markets in which an organization competes. In order to scan and monitor their environment‚ firms require tools of analysis that will
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The U.S. airline industry has been in a chaotic state for a number of years. In 1993‚ a U.S. government report indicated that the industry had “Lost huge amounts of money in the past three years‚ and it has never made a sustained‚ substantial return on investment…” According to the Air Transport Association‚ the airline industry trade association‚ the loss from 1990 through 1994 was about $13 billion‚ while from 1995 through 2000‚ the airlines earned about $23 billion and then lost about $35 billion
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Porter 5 forces Analysis for JetBlue Airway Potential Competitors: Low - Rivalry among existing firms is intense‚ which affect the profits to be low. It¡¦s unattractive to the potential competitors. - High initial investments and fixed costs such as lease a fleet of safe and reliable aircraft‚ negotiate reasonable gate access and landing fees as well as high labor and fuel costs. - There are the price competitions in the airline industry‚ which some major airlines offer the low-price fares that
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I. Current Situation A. Current Performance: JetBlue Airways Corporation is a passenger airline that has established a new airline category a “value airline” based on service‚ style‚ and cost. Known for its award winning customer service and free TV as much as for its low fares‚ JetBlue believes it offers its customers the best coach product in markets it serves‚ with a strong core product and reasonably priced optional upgrades. JetBlue operates primarily on point-to-point routes with its
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UPDATING As the Case says itself JetBlues history has severely changed since its financial and operational fallout at 2007 February Valentine´s day that took several days to finish and had strong repercussions against the company’s brand and reputation; surprisingly in June 19th of the same year (2007) JetBlue ranked highest in J.D. Power and Associates North America Airline Customer Satisfaction Study; focusing more on the history and progress of JetBlue during the past seven years (2007-2014)
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The forces within the general environment‚ including politico legal‚ economic‚ technological‚ socio cultural and international forces‚ have a broad general impact on the organization. Although these forces do not always have a direct influence on the organization’s daily activities‚ they are important for several reasons. First‚ forces in the general environment can evolve into significant trends with far-reaching effects. A good example is the increasing interest in protecting natural resources
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