2012 Fuel Hedging At Jetblue Airways Case Study Analysis


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2012 Fuel Hedging At Jetblue Airways Case Study Analysis

Background and Facts

2012 Fuel Hedging At Jetblue Airways an office supplies merchant for small and also average sized companies has just recently been involved in preparing for a merging with its rival Home Deport, which has affected efficiency degrees in departmentswith the senior manager associated with lawful problems presented by the federal Trade Payment. With the Advertising Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the near future. With challenges in the form of a potential cultural modification and also low staff member spirits, the company requires a total reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising and marketing division of 2012 Fuel Hedging At Jetblue Airways is increasing unpredictability in the working environment leading to different challenges for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated choices given that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the reality that the store has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to influence performance or critical goals. Federal Profession Commission's antitrust match against the merging occupied useful time of the company's elderly monitoring recommending that 'political' factors can have significant effects for a worldwide business.

Economic Factors: Financial factors such as the appearance of local business in the global situation recommend that 2012 Fuel Hedging At Jetblue Airways is growing in a setting where there is potential development of services. Along with this, fact that store clients are mostly trying to find workplace materials for home offices suggests that the market has a climbing trend of business owners as well as home businesses.

Social factors: Social fads in the economic climate reveal that customers are trying to find comfort in addition to attractive prices. Marketing research shows how the consumer for 2012 Fuel Hedging At Jetblue Airways does not have recognition about discovering options which can provide a combination of ease as well as inexpensive.

Technological factors: Technology plays a vital role in 2012 Fuel Hedging At Jetblue Airways's service approach specifically as the company is piloting Modern technology centers which would certainly supply innovation sales and also support in the form of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Behavior problems can be seen in 2012 Fuel Hedging At Jetblue Airways's case as highlighted in this section.

Concerns concerning cultural modification: There is apprehension regarding a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with most of the personnel already revealing discontent over this potential relocation. This anticipated change has developed tension in the office which has actually been paired with the previous stress of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of workers that can match the stressful environment of a fast-paced organization. Not only does this bring about problem in locating the ideal individuals, it puts anxiety on brand-new hires as can not stand up to the speed as well as pressure that the organization expects them to birth.

Dual Reporting Lines: Newcomers locate this business society troublesome as well as difficult to cope with specifically as dotted line partnerships are indicated to be weak in general and objective setup and also performance assessment is still done by the solid line manager. This means that beginners can shed clarity about their particular duties as well as purposes specifically as populated line coverage does not keep them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been capable and also proper for the job however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Worry & Work Insecurity: Fear and instability can be recognized as two major concerns that Lewis would certainly be dealing with especially as the merger has actually currently be cancelled as well as two elderly execs of the marketing department would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining about a cultural modification however would certainly also need to verify herself in her new role.

Incompatible Administration Style of Leader: Lewis's administration style and also its conflict with the marketing department's duty can also be seen as an OB obstacle specifically as she has been utilized to handling concerns in the operations department where employees are taught to concentrate on processes as well as get them. The advertising division on the various other hand can be seen as a team of people who are utilized to being supported by Krasnow that concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental disputes in between three departments, marketing, merchandizing and also procedures specifically over the allocation of the advertising mix can be identified as one more OB concern. Although the advertising division does not share the very same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not concur over the marketing mix allotment among each other either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising divisions can be determined as one more OB problem which might require further interest. The reality that the advertising and marketing sections in the marketing division are disconnected is preventing both departments from acquiring from each other's experience and also proficiency. Integration of marketing with retailing as well as operations would certainly become more difficult if the advertising department itself is disintegrated which can be another prospective OB problem.

2012 Fuel Hedging At Jetblue Airways Analysis

Various concepts have actually been made use of to explain the situations to obtain additional clarity about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are easy and also careless, have little ambition as well as stand up to change. The situation at 2012 Fuel Hedging At Jetblue Airways is not totally following Concept X, it can be seen that new hires are locating this setting instead difficult which may eventually lead to a higher disposition of the monitoring in the direction of Concept X. Even while assessing Lewis's management design, concept X may have been ideal in the procedures department to some degree but the Advertising and marketing division would require dependence on Theory Y in order to obtain the creativity and creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's concern concerning bringing harmony in between the advertising and also marketing department is worried, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising and marketing as well as marketing division's work, there may be the exact same initial detach which could lead to the second phase of 'storming' where the groups challenge one another.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), people are rather uncomfortable with modification, which is evident by the circumstance at 2012 Fuel Hedging At Jetblue Airways The situation can be seen as a regular training course of life if is examined according to Bridge's concept where he discusses that people undergo 3 phases of shift when they experience change. 'Closing, losing as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they enter stage one therefore there may be emotions like despair, uncertainty, frustration, anger, concern, rejection as well as disorientation.The circumstance at the marketing division of 2012 Fuel Hedging At Jetblue Airways is comparable so Lewis can obtain comfy with the suggestion that it is not remarkable habits. In the second phase, there might be a need to bridge the gap in between the new and old culture so Lewis may need to encounter this challenge when Krasnow leaves. There may be reduced spirits as well as reduced productivity at this phase which must not be taken as a trouble. It is throughout this stage that Lewis will need to give guidance to the division to ensure that they can find an orientation. It can be seen how Krasnow has actually already made this transition simpler by making Lewis get associated with the department a year before his real separation. As per Bridges' Version, stage three will certainly bring about visibility to knowing, High energy and commitment as people will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the importance of 'protection requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure and also out of danger' is at the 2nd degree of needs. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physiological 'and also 'Safety' needs met.

SWOT Analysis for 2012 Fuel Hedging At Jetblue Airways Case Study

Ramification of Analysis.

The OB analysis has looked at different theories to comprehend just how to handle the existing scenario handy. The adhering to 3 options have been proposed to help Lewis deal with the organizational challenges in the advertising department. Each of these options has been proposed for reducing the change needed to bring the advertising department in line with the needs of the market and for making the social adjustment that would adhere to once the present leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting as well as Production features. Integration of Marketing with Procedures.

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The internal advertising company of 2012 Fuel Hedging At Jetblue Airways is already strength for the company in terms of saving up on expenses related to advertising and marketing and promo. Because no new recruitment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the marketing function, this is a favorable chance for integrating the advertising and marketing functions. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business marketing in addition to company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate both features while minimizing the demand for hiring an additional source for advertising and marketing. In addition to this, Lewis would certainly be heading the marketing division and all the same her replacement would certainly be required for the current duty that she is doing. The disadvantage of this choice is that outside hiring may cause resentment from inner employees that may be looking at the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Offered the competitive stress and premium quality work called for from the advertising agency, it is recommended that Lewis needs to permit the production unit to be a separate function from the advertising system. Since most advertising agencies had these 2 features as different devices, it makes more sense to adhere to the norm. Along with this, both functions may be able to concentrate on their core activates a lot more successfully. Nevertheless, the negative aspect of this strategy would certainly be that additional prices would certainly need to be birthed for setting up different manufacturing functions. A manufacturing head might have to be employed which could enhance overheads for the organization.

Integration of Marketing with Workflows: Since Lewis is already dealing with the marketing and also operations divisions concurrently; it makes good sense to incorporate both features considering that she has actually been efficiently looking after both ends. The fact that the two departments already have major differences over allowance of resources recommends that this assimilation might have the ability to cause harmony particularly as Lewis would certainly be heading both ends.However there are different downsides of this step particularly as it would certainly put way too much concern over Lewis's shoulders. The truth that Lewis needs to adapt her administration style for the advertising division recommends that these 2 divisions would certainly be culturally diverse. Lewis may not be able to use one kind of leadership design to both departments which could result in ineffectiveness in either one of the 2 features.


An examination of the 3 alternatives indicates that integration of marketing and procedures would certainly not be a practical step because of the substantial distinctions between both departments although that currently Lewis is managing both. While splitting up of the production function might have been a positive move for the advertising and marketing department, the reality that it would certainly suggest putting a 3rd function under Lewis's wing indicates this must be avoided. The integration of the advertising department is the very best choice in terms of obtaining the optimum arise from the division. An action plan for this choice is gone over below.

Action Plan.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

Judith Shapiro will certainly be employed to take Lewis's place as SVP of advertising and marketing.

Production feature will certainly stay part of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will be made use of in advertising department.

Open up door plan as well as focus on cross department interaction will certainly be targeted at removing discord.

Backup plan.

If the assimilation does not work out as intended, a contingency plan would follow which would certainly separate the production feature from the advertising and marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will most definitely be divided by placing it under an SVP production.