Valuing an Initial Public Offering (IPO) is difficult. This is due to the fact that every successful company is going to have unique valuation characteristics that can help you determine a particular company’s worth. A good case study analysis should include the following aspects:

The key thing to consider is that there are three-year periods involved: one during which the company has been in operation, one during which it is currently operating, and the final one, or period, during which it intends to operate. So a Case Study Solution for one company will differ from another case study solution for another company. This is why you want to consult with your HBR Case Solutions consultant about how to use the company’s most recent results to analyze and arrive at an appropriate valuation.

Any case study analysis should use the historical-but-not-yet-predictive elements of the business. Since they are the closest to the future that you can reasonably use, these factors are the most effective in helping you arrive at an accurate valuation.

Flight Crew Benefits. Being the leading commercial airline company in the United States, JetBlue Airways has found a niche for itself in the market. They provide numerous services to their customers including airport and rental car service, pre-flight inspections, baggage claim assistance, and last-minute flight changes. There are also various programs such as mileage rewards, points-earning programs, and pass card programs that allow customers to earn air miles and other discounts.

JetBlue offers a wide range of amenities, but some of their more popular offerings include: reasonable prices, full-service amenities, relaxed restrictions on alcohol and tobacco, wheelchair access, automated ticket gates, pre-booked seating, and fresh linen. If you like this kind of environment, then a Flight Crew Benefit/Diversity Program should be very attractive to you.

Flight Operations. When it comes to the accounting for an airline, there are two different types of assets: tangible assets and intangible assets. An example of tangible assets would be ticket reservations, baggage allowances, flight personnel, and a plane’s actual cargo.

There are also intangible assets which are more specific to a business’s image and brand. Examples of intangible assets would be airtime, a good reputation, and a physical presence at the airports where the company operates. The goodwill that JetBlue Airways has in its hometown of New York City is one of its biggest assets.

Because the airline is already established, the accounting for its assets are already working in their favor. It’s difficult to identify the actual value of intangible assets, especially when no new products or services are being introduced.

Case Study Solution: A Flight Crew Benefit is a great way to reach out to potential airline employees, but a Flight Crew Benefit with a diversity program is also a fantastic way to attract talented new workers to the company. When combined with a diversity program, the value of a Flight Crew Benefit is even greater.

Employee relations. An effective airline should also cultivate good relationships with all of its employees. However, a strong customer base is something that is absolutely essential to keeping a current customer base.

One way that JetBlue can continue to maintain its good reputation is by keeping on top of its aircraft equipment and supplies. This is especially important if it does not operate many new planes that are not maintained regularly. Having the ability to do so can give it a competitive advantage, and also keep the cost of servicing airplanes low.

JetBlue Airways is an example of a company that has several assets, but a critical weakness in its Customer Relations department. Their ability to keep customers happy with good products and service, however, is the most valuable thing that they have. It makes sense to develop a Plan B in case the current one goes under, or needs to be relocated to take on new customers.

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