Week 4 Discussion Research 1 - This will help the company...

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2. Business risks may threaten Jetblue's ability to satisfy their stockholder’s expectations. According to pages 17-23 of their 10-KA from March 2005, the following are some of the business risks taken by Jetblue: 1. Involved in an extremely competitive industry 2. Have a high number of fixed obligations and will continue to have more. This may cause them to not be able to meet their obligations or their growth strategy. 3. Utilize their aircraft at a high rate. Leaves them susceptible to delays. This is to keep costs low 4. May be subject to unionization, work slowdowns, or stops, increased labor costs 5. Lack an established line of credit, so they are very reliant on operating cash flows 6. Have a limited number of suppliers The following are some control actions they could take in order to reduce these risks: 1. Make sure to keep up on analysis of finances, competitors, market changes etc.
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Unformatted text preview: This will help the company to try to determine the best prices, to gain the most profit, to meet their growth goals and keep their investors happy. 2. Manage the number of fixed obligations they get themselves into. They want to avoid over promised and under producing their obligations. 3. Perform routine maintenance and safety checks on air crafts to ensure the least amount of delays possible. 4. Try to keep their employees happy by knowing what they expect from Jetblue as an employee and trying to work that into their business model. Happy employees = happy customers = happy investors. 5. Keep focused on establishing their line of credit. 6. Increase their number of suppliers Source: http://www.sec.gov/Archives/edgar/data/1158463/000104746905005739/a2153142z10-ka.htm...
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