The document outlines the requirements for Milestone Two of a final project, which involves analyzing the external environment, competitive position, internal environment, competitive strategy, and strengthening competitive position of a chosen company. Students must answer a series of questions for each section and submit a 5-year projected income statement, cash flow, NPV, IRR, and recommendations. The goal is to conduct a strategic analysis of the company to enhance its existing strategic management.
Milestone Two Components 2, 3, and 4In task 4-2, you will provi.docx
1. Milestone Two: Components 2, 3, and 4
In task 4-2, you will provide answers to the Components 2, 3,
and 4 assignment questions.
Component 2: External Environment and Competitive Position
Complete an industry analysis and a five forces model analysis
including an assessment of the company's closest rival. Be sure
to answer the following questions:
-What are the driving forces of change in the industry in which
your company competes? How has your company changed its
strategy to address driving forces?
-Where does the company stand within the industry based on the
five forces model of competition analysis?
-Which of the five forces exert the most pressure on the
company? What has the company done to relieve this pressure?
-What are your recommendations to further reducing pressure
from these forces?
Component 3: Internal Environment and Competitive Position
Complete a SWOT analysis and a value chain analysis of the
company you have chosen. Be sure to answer the following
questions:
-How well has the company performed to stated strategic
objectives or performance targets? Support your assessment
with factual data.
-Compare the strengths, weaknesses, opportunities, and threats
of the company to those of its competitors. How do the vision
and values affect how the company will respond to each?
-What is the core competency of the company? How does this
affect its standing within the industry?
-How has the company used its value chain activities to improve
its competitive position?
-What are your recommendations in regard to the company’s
competitive position and value chain activities?
2. Component 4: Competitive Strategy
Summarize the generic strategy employed by the company and
how it helps the company achieve sustained competitive
advantage.
-Which of the generic competitive strategy options is your
company pursuing?
-Explain how your company is pursuing this generic strategy.
How does it fit value chain activities specifically to support its
generic strategy?
-How does pursuit of this strategy help your company achieve
sustained competitive advantage?
-What are your recommendations in regard to the company's
pursuit of a generic strategy or how it uses its value chain in
this pursuit?
Milestone Three: Components 5 and 6
In task 6-2, you will provide answers to the Components 5 and 6
assignment questions.
Component 5: Strengthening Competitive Position
-Summarize how the company strengthens its generic strategy
through complementary strategic moves. Be sure to answer the
following questions:
-Outline what the company has done to fit its strategy to the
industry and company situation.
-Has your company responded offensively or defensively, or
both, to improve its strategic position? How?
-Has your company pursued complementary strategic options?
Explain your answer.
-What are your recommendations for your company to pursue
future complementary strategic options to strengthen its
competitive position.
3. Component 6: The Global Marketplace
-Summarize company operations in foreign markets and
competitive advantage possibilities. Be sure to answer the
following questions
-Describe which method(s) has been used to enter foreign
markets.
-How has the company gained competitive advantage through
competing internationally?
-What are additional actions that the company could take to
gain a competitive advantage in foreign markets?
Title
ABC/123 Version X
1
Capital Budgeting Case
QRB/501 Version 4
1
University of Phoenix MaterialCapital Budgeting CaseYour
company is thinking about acquiring another corporation. You
have two choices—the cost of each choice is $250,000. You
cannot spend more than that, so acquiring both corporations is
not an option. The following are your critical data:
Corporation A
Revenues = $100,000 in year one, increasing by 10% each year
Expenses = $20,000 in year one, increasing by 15% each year
Depreciation expense = $5,000 each year
Tax rate = 25%
Discount rate = 10%
Corporation B
Revenues = $150,000 in year one, increasing by 8% each year
Expenses = $60,000 in year one, increasing by 10% each year
Depreciation expense = $10,000 each year
5. Final Project Milestone One: JetBlue Airlines
Joshua Knowlton
Strategic Management: MBA 700-X2929
Instructor: Dr. Worden
January 12, 2014
Strategy and the Strategic Management Process at JetBlue
Airlines
1. Describe the industry in which the company operates
The following statistics are provided for the airline industry on
a global level:
6. -2000 Airlines operating more than 23,000 aircrafts, providing
service to over 3700 airports
-In 2006, there were 28 million scheduled flight departures,
carrying over 2 billion passengers
-Growth of world air travel has averaged approximately 5% per
year over the past 30 years
-Annual growth in air travel has been about twice the annual
growth in GDP
-Expected to double over next 10 – 15 years
The following statistics are provided for the airline industry in
the United States:
-100 certificated passenger airlines operate over 11 million
flight departures per year
-Carry over one‐third of the world’s total air traffic
-745 million passengers in 2006 creating over $160 billion in
total revenues
-545,000 employees and over 8,000 aircraft operating 31,000
flights per day
-Commercial aviation contributes 8 percent of the US Gross
Domestic Product, according to recent estimates
2. What is the company’s stated strategy? Is it a winning
strategy?
According to the corporate website, JetBlue’s mission is to
bring humanity back to air travel. Part of the strategy
implemented by the airline is to continuously strive to make
every part of customers’ experiences as simple and as pleasant
as possible. As a result of this mission and strategy, JetBlue
created the Customer Bill of Rights (JetBlue Airways, 2014).
This seems to be a winning strategy for the airline as it
continues to experience phenomenal growth as it works to
become “America’s favorite airline.”
7. 3. How does the company’s mission statement compare to those
of its competitors?
When it first began operations in 1999 the mission statement for
JetBlue declared that the airline would become “the premier
value-based carrier in the Americas.” However, according to
Peterson (2012), it did not take corporate leadership long to
realize that not a single customer, crewmember, or shareholder
would ever know what was meant by the phrase “premier value-
based carrier”. Luckily for JetBlue the company decided not to
go after a mission statement full of buzzwords or lofty virtue.
The mission statement that was ultimately crafted is a simple,
straight forward concept, which is to bring humanity back to air
travel (JetBlue, 2014).
This mission statement seems to be much better than that of
competitors. For example, the mission of Southwest Airlines is
“dedication to the highest quality of Customer Service delivered
with a sense of warmth, friendliness, individual pride, and
company spirit” (Southwest Airlines, 2013). This seems to be
one of those mission statements that contains lofty virtue which
JetBlue wanted to avoid.
4. How do the mission, vision, and values support strategic
objectives or performance targets of your company?
JetBlue’s mission to “bring humanity back to air travel was
created in part due to the airlines goal of becoming “Americas’
Favorite Airline,” a rallying cry that has been the airline’s
inspiration for delivering customer-friendly flying (Peterson,
2012). Despite having a phenomenal mission statement, it does
not seem that JetBlue has a formal corporate vision statement.
A quote from then CEO David Neeleman was featured in the
company’s 2005 Annual Report which serves as a summary of
8. the airline’s vision: “As JetBlue continues to grow, we know
our commitment to friendly, helpful service, combined with
amenities customers want, will continue to keep JetBlue #1 in
the eyes of our customers” (“JetBlue Annual Report,” 2005).
JetBlue’s values of safety, caring, integrity, passion, and fun
also support strategic objectives and help the airline achieve its
mission (JetBlue Airways, 2014). A huge part of not only the
mission statement but the overall strategic objective of JetBlue
is the Customer Bill of Rights, which was inspired by the values
of the organization. The JetBlue Customer Bill of Rights
details the specific compensation that customers will receive if
they are inconvenienced due to certain delays or cancellations
that are within the airline’s control (JetBlue Airways, 2014).
. Other strategic objectives which are important to JetBlue
include:
-High quality service and product
-Low operating costs
-Brand strength
-Strength of their people
(JetBlue Annual Report, 2010)
5. What do the mission, vision, and value statements say about
the company and its leadership?
Originally JetBlue substituted a formal mission statement with
five core values of safety, caring, fun, integrity, and passion
(Judd, 2003). These five values were deemed so significant that
they are printed on every paper paycheck JetBlue issues
(Effectively Managing, 2004). However, after Dave Barger
took over as President and CEO in 2007, the ultimate mission
became bringing humanity back to air travel, though these
values were never abandoned. The leadership of Barger and
founder David Neeleman helped to establish the culture at the
airline which help it achieve its mission. According to Ford
(2004), JetBlue’s culture embodies what it considers the crucial
9. “three Ps” that are introduced by high-level offers to each new
employee on his or her first day of orientation: people,
performance, and prosperity. Founder David Neeleman stated
in 2004 that he believes it is vital that everyone understands and
believes in the corporate philosophy about how people should
be treated (Ford, 2004). Additionally, JetBlue teaches its staff
that each of the three Ps has measurements associated with it
that helps JetBlue translate the essential core values into
quantifiable terms (Effectively Managing, 2004).
References:
1. Columbia University (n.d.). Airline Industry Overview.
Retrieved on 12 January 2014 from
http://www.columbia.edu/cu/consultingclub/Resources/Airlines_
Eric_Henckels.pdf
2. Effectively Managing Performance Measurement Systems
(2004). JetBlue Case Study, 79-87. Retrieved on 12 January
2014 from Business Source Complete.
3. JetBlue Airways (2014). Our Company. Retrieved on 12
January 2014 from http://www.jetblue.com/about/
4. JetBlue Annual Report (2005). The JetBlue Experience.
Retrieved on 12 January 2014 from
http://www.jetblue.com/about/ourcompany/annualreport/2005/jb
exp2.html
5. JetBlue Annual Report (2010). Retrieved on 12 January
2014 from http://phx.corporate-
ir.net/External.File?item=UGFyZW50SUQ9Mzg1MDQzfENoaW
xkSUQ9Mzg2NzExfFR5cGU9MQ==&t=1
6. Judd, H. (2003). JetBlue Succeeds with Fun and Passion,
Exec tells USU. Hard News Cafe Archive. Retrieved on 12
January 2014 from
http://newscafe.ansci.usu.edu/archive/nov2003/1120_jetblue.ht
ml
7. Peterson, Joel (2012). Just What are You Trying to Say?
Retrieved on 12 January 2014 from
10. http://www.forbes.com/sites/joelpeterson/2012/11/13/just-what-
are-you-trying-to-say/
8. Southwest Airlines (2013). Mission. Retrieved on 12
January 2014 from http://www.southwest.com/html/about-
southwest/
Overview
The final project for this course requires students to use
concepts from each module, answer questions about their
chosen company, and complete a strategic analysis of that
company in a variety of areas. Milestone drafts of your answers
are assigned in several modules leading to the strategic analysis
final project submitted in Module Ten.
You have been hired as a consultant at the company you have
been researching. This final report is an in-depth look at the
strategy and corporate management based on your detailed
research completed throughout the semester. This paper is
designed as a full report with recommendations that the
executive team will use to enhance the existing strategic
management. This project is divided into five milestones,
submitted in Modules One, Four, Six, Eight, and Ten (final
deliverable).
Main Elements
Your report should include, as a minimum, the following 11
components:
1. Strategy and the Strategic Management Process at your
Chosen Company
Describe the industry you are investigating. Identify the
company you are researching along with the mission, vision,
values, and strategic plan. Be sure to answer the following
questions:
11. · Describe the industry in which the company operates.
· What is the company’s stated strategy? Is it a winning
strategy?
· How does the company’s mission statement compare to those
of its competitors?
· How do the mission, vision, and values support strategic
objectives or performance targets of your company?
· What do the mission, vision, and value statements say about
the company and its leadership?
2. External Environment and Competitive Position
Complete an industry analysis and a five forces model analysis
including an assessment of the company's closest rival. Be sure
to answer the following questions:
· What are the driving forces of change in the industry in which
your company competes? How has your company changed its
strategy to address driving forces?
· Where does the company stand within the industry based on
the five forces model of competition analysis?
· Which of the five forces exert the most pressure on the
company? What has the company done to relieve this pressure?
· What are your recommendations to further reducing pressure
from these forces?
3. Internal Environment and Competitive Position
Complete a SWOT analysis and a value chain analysis of the
company you have chosen. Be sure to answer the following
questions:
12. · How well has the company performed to stated strategic
objectives or performance targets? Support your assessment
with factual data.
· Compare the strengths, weaknesses, opportunities, and threats
of the company to those of its competitors. How do the vision
and values affect how the company will respond to each?
· What is the core competency of the company? How does this
affect its standing within the industry?
· How has the company used its value chain activities to
improve its competitive position?
· What are your recommendations in regard to the company’s
competitive position and value chain activities?
4. Competitive Strategy
Summarize the generic strategy employed by the company and
how it helps the company achieve sustained competitive
advantage.
· Which of the generic competitive strategy options is your
company pursuing?
· Explain how your company is pursuing this generic strategy.
How does it fit value chain activities specifically to support its
generic strategy?
· How does pursuit of this strategy help your company achieve
sustained competitive advantage?
· What are your recommendations in regard to the company's
pursuit of a generic strategy or how it uses its value chain in
this pursuit?
5. Strengthening Competitive Position
Summarize how the company strengthens its generic
strategy through complementary strategic moves. Be sure to
answer the following questions:
· Outline what the company has done to fit its strategy to the
industry and company situation.
13. · Has your company responded offensively or defensively, or
both, to improve its strategic position? How?
· Has your company pursued complementary strategic options?
Explain your answer.
· What are your recommendations for your company to pursue
future complementary strategic options to strengthen its
competitive position?
6. The Global Marketplace
Summarize company operations in foreign markets and
competitive advantage possibilities. Be sure to answer the
following questions:
· Describe which method(s) has been used to enter foreign
markets.
· How has the company gained competitive advantage through
competing internationally?
· What are additional actions that the company could take to
gain a competitive advantage in foreign markets?
7. Corporate Strategy: BusinessDiversification
Summarize the company’s methods to diversify into related or
unrelated businesses. Be sure to answer the following questions:
· Which diversification strategy is used—diversification into
14. related or unrelated businesses, a mix of both or none, and/or
divestiture and retrenchment?
· How has this helped or hurt the company?
· Offer a future proposal for business diversification and
describe how it will help the company's strategic position.
8. Ethics, Social Responsibility, and Environmental
Sustainability
Summarize the corporate ethics statement, statement about
social responsibility, and sustainability statement. If none exist,
report what you believe are these unwritten statements or code
of conduct based on what the company says about itself. Be sure
to answer the following questions:
· Does company practice conform to its ethics statement or code
of conduct? Where does practice diverge from the statement?
· Does the company have a comprehensive, proactive social
responsibility statement? Does company practice support this
statement?
· Does the company follow environmentally sustainable
business practices? Does this help or hurt the company? How?
· Offer suggestions for improvement in the above areas.
9. Strategy Execution: Building the Capability to Execute
Strategy
Summarize the company’s strategic plan based on its internal
resources, capabilities, and structure. Be sure to answer the
following questions:
· How do the company’s hiring and training practices support
its strategy?
· How is the company structured?
· Would a different structure work to better implement the
strategic plan? Why? If not, why does the current structure
work?
· Offer any additional changes that may help the company to
15. deliver its strategic objectives.
10. Strategy Execution: Managing Internal Operations
Summarize an employee’s experience within the company and
its leadership. Be sure to answer the following questions:
· What best practices can you derive from the company?
· How has the company used information systems to better
execute its strategy?
· How does management motivate their teams?
· Review the compensation packages of the executive team of
the company.
· What are the monetary and non-monetary elements of the top
three executives?
· Rate the company within the industry based upon its
compensation packages.
· What future changes in these areas do you see for the
company? Offer any suggestions for change in the above areas.
11. Strategy Execution: Leadership
Summarize your recommendations to the CEO and board of
directors on how to improve strategy for your chosen company.
Be sure to answer the following questions:
· What will this company be doing differently in three to five
years to become more competitive based on your
recommendations in previous components? (“no change” is not
an option)
· What do you recommend the company's leadership focus on to
achieve this strategic position?
Write the paper in your own words. Include your own critical
analysis and remarks in the paper. If you copy and paste any
quotes from the search results, make sure to put those in
quotation marks and provide a citation and reference for the
16. source.
Following are general format guidelines:
· Cover Page
· Abstract (Executive Summary)
· Table of Contents
· Components (11)
· References
· Appendices
Milestones
Milestone One: Company Identification and Component 1
(COMPLETED)
In task 1-2, you will identify the company you are researching
along with answers to the Component 1 assignment questions.
This milestone is graded using the Final Product Rubric
(below), and you will receive formative feedback from the
instructor.
Milestone Two: Components 2, 3, and 4 (IN PROGRESS)
In task 4-2, you will provide answers to the Components 2, 3,
and 4 assignment questions. This milestone is graded using the
Final Product Rubric (below), and you will receive formative
feedback from the instructor.
Milestone Three: Components 5 and 6
In task 6-2, you will provide answers to the Components 5 and 6
assignment questions. This milestone is graded using the Final
Product Rubric (below), and you will receive formative
17. feedback from the instructor.
Milestone Four: Components 7 and 8
In task 8-2, you will provide answers to the Components 7 and 8
assignment questions. This milestone is graded using the Final
Product Rubric (below), and you will receive formative
feedback from the instructor.
Milestone Five: Final Strategic Analysis
In task 10-2, you will submit your strategic analysis final
project. It should be a complete, polished artifact containing all
of the components of the final product. It should reflect the
incorporation of feedback gained throughout the course. This
milestone will be graded using the Final Project Rubric (below).