JetBlue Airways: Start from the scratch

Embed Size (px)

Citation preview

  • 7/23/2019 JetBlue Airways: Start from the scratch

    1/17

    JetBlue Airways

    Starting from

    Scratch

    29111311 Haidir Afesina

    29111328 Hendra Winata

    29111329 Mita Listyatri

    29111338 Andek Prabowo29111344 Aprian Eka Rahadi

    29111384 Chairunnisa Mirhelina

    29111387 Franciscus Xaverius Kresna Paska

    29111393 Agung Indri Pramantyo

    MM5002 People in Organization

  • 7/23/2019 JetBlue Airways: Start from the scratch

    2/17

    Introduction

  • 7/23/2019 JetBlue Airways: Start from the scratch

    3/17

    Competitors

    JBLU AAMRQ LUV UAL

    Market Cap: 1.50B 170.99M 7.07B 8.05B

    Employees: 11,965 80,100 46,227 87,000

    Qtrly Rev

    Growth (yoy):0.19 0.09 0.29 0.05

    Revenue (ttm): 4.70B 24.48B 16.55B 37.40B

    Gross Margin

    (ttm):0.28 0.20 0.21 0.26

    EBITDA (ttm): 600.00M 926.00M 1.49B 3.50B

    Operating

    Margin (ttm):0.08 -0.01 0.04 0.06

    Net Income(ttm):

    113.00M -3.20B 271.00M 602.00M

    JBLU = JetBlue Airways

    AAMRQ = AMR Corporation

    LUV = Southwest Airlines Co.

    UAL = United Continental Holdings, Inc.

    http://finance.yahoo.com/q/co?s=JBLU+Competitors

    http://finance.yahoo.com/q?s=JBLUhttp://finance.yahoo.com/q?s=AAMRQhttp://finance.yahoo.com/q?s=LUVhttp://finance.yahoo.com/q?s=UALhttp://finance.yahoo.com/q/co?s=JBLU+Competitorshttp://finance.yahoo.com/q/co?s=JBLU+Competitorshttp://finance.yahoo.com/q?s=UALhttp://finance.yahoo.com/q?s=LUVhttp://finance.yahoo.com/q?s=AAMRQhttp://finance.yahoo.com/q?s=JBLU
  • 7/23/2019 JetBlue Airways: Start from the scratch

    4/17

    HRAnalysis

    PeopleFactor

    Business

    Strategy

    HRPractice

    sRecommendation

    Problem

    Outline

  • 7/23/2019 JetBlue Airways: Start from the scratch

    5/17

    Problem

    JetBlue Airways use HUMAN RESOURCE MANAGEMENT

    specifically a values-centered approach to MANAGING PEOPLE

    as a source of COMPETITIVE ADVANTAGE

    High Standards

    of Employee

    Competition

    Company Culture

    Organization

    10 New Aircrafts

    (modern)

    Technology

    DEVELOPING PEOPLE through COMPETENCY BASED

  • 7/23/2019 JetBlue Airways: Start from the scratch

    6/17

    A low cost airline

    thatnonunionized labor

    and delivers the vision through

    nonhierarchical, people centered

    andcustomer focused strategy

    Lesson Learn #1

  • 7/23/2019 JetBlue Airways: Start from the scratch

    7/17

    Business Strategy

  • 7/23/2019 JetBlue Airways: Start from the scratch

    8/17

    Business Strategy

    Arenas

    Vehicles

    Differentiator

    Staging

    Economic

    Logic

    Low fare commercial

    Underserved but over priced US cities

    Start from the scratch

    i.e. purchase his own airline (A320 standardized)

    Service and amenities compare to other low cost carrier

    i.e. leather seats, direct tv

    2 planes to 10 every 5 weeks

    9 departures 50 per day in 1 year

    Cost advantages

    e.g. JFK home base, paperless ticket

  • 7/23/2019 JetBlue Airways: Start from the scratch

    9/17

    Lesson Learn #2

    A low cost airline that delivers customer`s inflight experience

    with a new standardized fleet of A320, leather seats, directvby

    targeting high volume oflong haul routes

    A low cost airline thattelecommutingandissue paperless

    ticket

  • 7/23/2019 JetBlue Airways: Start from the scratch

    10/17

    People Factor

    David Neeleman Dave Berger Ann Rhoades Al Spain

    You need to go to

    where people want

    to fly

    With our friendly

    service and hassle

    free technology

    An esprit de corps

    that was fun for

    crew and

    customer

    To me, the most

    important element

    was caring

    The world`s first

    paperless airline

  • 7/23/2019 JetBlue Airways: Start from the scratch

    11/17

    Lesson Learn #3

    JetBlue was able to manage

    talented experienced executives people

    with their diversityto create shared values

  • 7/23/2019 JetBlue Airways: Start from the scratch

    12/17

    HR Practices

    Safety Caring Fun Passion Integrity

    Concern

    for order

    Costumer

    service

    orientation Self Control

    Achievement

    Orientation

    Organizational

    Commitment

    jetBlue

    Culture

    Interpersonal

    Understanding

    Iniative

    Teamwork

  • 7/23/2019 JetBlue Airways: Start from the scratch

    13/17

    Lesson Learn #4

    JetBlue was able to develop

    the values (safety,caring,fun,passion,integrity) that

    successfully represent by the employee,

    andcaring as their core value in creating

    the policies,practices and systems

    .

  • 7/23/2019 JetBlue Airways: Start from the scratch

    14/17

    Superior HR PackagesPeople don`t complaint when they have a choice

    Recruiting method based on culture fit

    Orientation program with BOD Providing performance feedback

    Use of language i.e. crew members and coaches

    Empowering the crew

    HR Practices

  • 7/23/2019 JetBlue Airways: Start from the scratch

    15/17

    Lesson Learn #5

    JetBlue was able to create

    policies, practices, and systems that

    Influence team behavior, attitudes, and performance in

    result tothe competitive environment.

  • 7/23/2019 JetBlue Airways: Start from the scratch

    16/17

    Recommendations

    Learning and development

    - Leaders create leaders program

    - Build the awareness of corporate culture & values

    - e-training resources

    Employee Engagement for certain duration threat

    employee as individual

  • 7/23/2019 JetBlue Airways: Start from the scratch

    17/17

    Recommendations

    Recruitment and Selection

    business

    strategy

    Career

    path

    Recruitment base

    on competence

    HeadHunterStaff

    ExistingManager

    Head

    Hunter

    Mid

    ManagementBoD

    Top

    Management

    Using IT System for Data Record