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Nordstrom and JetBlue: strategy in marketplace

The question in this exercise are based on Nordstrom Inc 2004 annual report. http://phx.corporate-ir.net/phoenix.zhtml?c=93295&p=irol-reportsAnnual

1) What is Nordstrom strategy for success in the marketplace? Doe the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion.
2) Page 3 of the annual report summarizes six measures that Nordstrom collectively refer to as its scorecard. What evidence supports your conclusion.
3) Identify four measures that Nordstrom could include in the financial perspectives of a balanced scorecard. How do the measures that you have chosen differ from one another? Ideally, should eash mesure
4) What business risks does JetBlue face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks?
5) How can the concept of unit level activities be applied to an airline? More specifically, what are 2 examples of unit level activites for JetBlue? What steps has JetBlue take to manage these unit level activities more efficiently.
6) How can the concept of batch level activities be applied to an airline? More specifically, what are 2 examples of batch level activites for JetBlue? What steps has JetBlue take to manage these batch level activities more efficiently.
7) What is one example of a customer level activity and an organization sustaining activity for JetBlue?
8) 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?

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ANSWERS

Question 1
Nordstrom's strategy for success is customer intimacy and operational excellence. This is based on Nordstrom main operational strategy "[delivering] a shopping experience that's rewarding for so many customers" (Nordstrom, 2004, p. 4). Moreover, Pete Nordstrom, President of the company's full-line stores, said that the firm wants to "be the ultimate fashion destination for our customers and continue to work hard to deliver a superior experience" (Nordstrom, 2004, p. 8).

Question 2
These six measures are:
1. Sales per square foot and same-store sales percentage change
2. Gross profit as a percentage of sales
3. Selling, general and administrative expenses as a percentage of sales
4. Earnings before income taxes and cumulative ...

Solution Summary

The solution examines the strategies in marketplaces for Nordstrom and JetBlue. Measures that Nordstorm could use to include financial perspective of a balance scorecard is determined.

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