The questions in this exercise are based on JetBlue Airways Corporation. To answer the questions, you will need to download JetBlue’s 2004 10-K/A at www.hoovers.com . Once at this website, do a search for JetBlue Airways. Click on the matching company name and then click on the link called SEC fi lings. Download the 2004 10-K/A. You do not need to print the 10-K/A to answer the questions.

Required:

1. What is JetBlue’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

2. What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks?

3. How can the concept of unit-level activities be applied to an airline? More specifically, what are two examples of unit-level activities for JetBlue? What steps has JetBlue taken to manage these unit-level activities more efficiently?

4. How can the concept of batch-level activities be applied to an airline? What are two examples of batch-level activities for JetBlue? What steps has JetBlue taken to manage these batch-level activities more efficiently?

5. What is one example of a customer-level activity and an organization-sustaining activity for JetBlue?

6. Give an example of a transaction driver and a duration driver that could be used to assign fuel costs to a particular flight departure. Which of the two activity measures would be more accurate and why?