J P Morgan Chase & Co

6

J P Morgan Chase &amp Co

JP Morgan Chase &amp Co

JP Morgan Chase &amp Co case study

JP Morgan Chase &amp Co is one of the oldest and most successfulfinancial institutions in the United States. It provides financialand banking services to individual and corporate clients fromdifferent parts of the world. The company has its headquarters in NewYork with operations in over sixty countries and assets worth over2.3 trillion dollars. Additionally, the company employs over 240, 000employees directly. The history of the organization can be tracedback to 1799 (J P Morgan Chase &amp Co, 2013). Over the years, the JP Morgan Chase &amp Co has undergone several organizational changesmainly due to the changes in the financial services industry.

SWOTanalysis

Strengths

  • Financial strength. J P Morgan Chase &amp Co has been successful in the United States and other parts of the world because of it financial might. It has over assets of over 2.3 trillion dollars and huge shareholder equity. It is the third largest financial institution in the United States.

  • J P Morgan Chase &amp Co is an old financial organization with a track record of over two centuries. Very few organizations, if any, have such histories.

  • Committed and highly experienced staff.

  • International presence. J P Morgan Chase &amp Co has operations in over 60 countries and thus its market share is not restricted in to the United States.

  • Good reputation of the organization which attracts both customers and personnel.

  • Superior services and extensive retail networks.

Weaknesses

  • J P Morgan Chase &amp Co has not been very fast in adopting emerging technologies, especially information technology. Additionally, the information technology infrastructures in the company are not sufficient to handle to huge organization’s operations. This is despite the fact that majority of J P Morgan Chase &amp Co customers do their banking online.

  • Heavy workload among its employees, which reduce their productivity.

  • Although J P Morgan Chase &amp Co has operations in different countries, it is over dependent on the United States markets. The performance of the bank therefore affected by the health of the United States economy.

  • Overreliance on mortgage industry which exposes the bank to subprime crisis.

Opportunities

  • Majority of J P Morgan Chase &amp Co customers bank online. The bank needs to expand their online market.

  • In addition to online banking, the credit card market in major markers is growing at a phenomenon rate.

  • With it financial might, J P Morgan Chase &amp Co can expand more, especially in the emerging market.

  • A rapidly growing asset management market in different parts of the world.

  • Strategic mergers with other business organizations such as IBM.

Threats

  • J P Morgan Chase &amp Co faces intense competition in all major markets globally. Some of the major competitors include Wells Fargo and Citigroup.

  • More stringent regulations, especially in the united states as a result of the role of unethical practices by financial institutions in the recent financial crisis.

  • Weak economy, economic uncertainties and instability in major markets.

  • Emerging substitutes which are less expensive and thus attractive to customers.

Competitiveprofile matrix

JP Morgan Chase

Wells Fargo Company

Citigroup

Critical success factor

Weight

Rating

Score

Rating

Score

Rating

Score

Market share

0.3

4

1.2

3

0.9

4

1.2

Financial might

0.2

4

0.8

3

0.6

4

0.8

Human resources

0.1

3

0.3

2

0.2

1

0.1

Customer loyalty

0.02

3

0.06

3

0.06

1

0.02

Brand image

0.01

3

0.03

2

0.02

1

0.01

Technology

0.01

2

0.02

3

0.03

2

0.02

Total

2.41

1.81

2.15

Reference

JP Morgan Chase &amp Co, 2013.Strategic management cases, p 430-440.