A Report On

JP MORGAN CHASE & COMPANY

EXTERNAL ANANLYSIS

For The Course

STRATEGIC MANAGEMENT

(CC-301)

Under The Guidance Of:

Prof. A. U. Gaikwad

Submitted By: MBA 2- BFS

02 Aditya Gurav
04 Sayali Kadam
05 Rutuja Kamble
08 Tejas Kumbhar
10 Rahul Nikam
12 Diksha Patil
13 Nandkumar Patil
16 Ajay Shinde

CHHATRAPATI SHAHU INSTITUTE OF EDUCATION BUSINESS AND

RESEARCH, KOLHAPUR – 416 004
 J P Morgan Chase & Co. External Analysis

J P Morgan is one of the largest and most successful financial institutions in the world,
providing a wide range of financial services to individuals, corporations, and governments. The
company is named after its founder, John Pierpont Morgan, who established the firm in 1871.
Since then, J P Morgan has grown to become one of the most trusted and respected names in the
financial services industry.J P Morgan offers a range of financial services, including investment
banking, asset management, private banking, and commercial banking. The company operates
in over 60 countries, with a workforce of more than 250,000 employees. The company's
headquarters are located in New York City, and it is listed on the New York Stock Exchange.

J P Morgan has a long and storied history, dating back to the late 19th century. The company
was founded by John Pierpont Morgan, a prominent banker and financier who was known for
his ability to navigate the complex financial landscape of the time. In the early years of the
company, J P Morgan was primarily focused on investment banking, providing financing and
advisory services to businesses and governments. Over the years, J P Morgan expanded its
operations to include other areas of financial services, such as asset management, private
banking, and commercial banking. Today, the company is a leading provider of financial
services worldwide, with a reputation for innovation, excellence, and integrity.

Products and Services

J P Morgan offers a wide range of financial products and services to meet the needs of its
diverse client base. Some of the company's key offerings include:

Investment Banking: J P Morgan is a leading provider of investment banking services,

providing advice and financing to companies and governments around the world. The
company's investment banking services include mergers and acquisitions, debt and equity
underwriting, and financial restructuring.

Asset Management: J P Morgan manages over $2.7 trillion in assets for clients around the
world, offering a range of investment strategies and products to meet their needs. The
company's asset management services include mutual funds, exchange-traded funds (ETFs),
and alternative investments such as private equity and real estate.

Private Banking: J P Morgan provides private banking services to high-net-worth

individuals and families, offering customized solutions to help them achieve their financial
goals. The company's private banking services include wealth management, trust and estate
planning, and philanthropic services.

Commercial Banking: J P Morgan provides a range of financial services to businesses of

all sizes, including commercial lending, cash management, and trade finance. The company's
commercial banking services are designed to help businesses manage their finances more
effectively and achieve their growth objectives
 Vision:
J P Morgan's vision is to be the world's most respected financial institution, delivering superior
results for our clients, employees, and shareholders.

Mission:
J P Morgan's mission is to build long-term relationships with our clients, providing them with
innovative and customized financial solutions that help them achieve their goals. We are
committed to excellence in everything we do, from our products and services to our operations
and corporate citizenship. We strive to attract, develop, and retain the best talent, creating a
culture that fosters innovation, collaboration, and diversity. We are dedicated to upholding the
highest standards of integrity and ethics, building trust with our clients, employees, and
communities.

PESTEL analysis provides detail about operating challenges JPMorgan Chase & Co. will face
in prevalent macro environment other than competitive forces.

Political Factors that Impact JPMorgan Chase & Co.

Political factors play a significant role in determining the factors that can impact JPMorgan
Chase & Co.'s long term profitability in a certain country or market. JPMorgan Chase & Co. is
operating in Money Center Banks in more than dozen countries and expose itself to different
types of political environment and political system risks. The achieve success in such a dynamic
Money Center Banks industry across various countries is to diversify the systematic risks of
political environment. JPMorgan Chase & Co. can closely analyze the following factors before
entering or investing in a certain market-

• Political stability and importance of Money Center Banks sector in the country's
economy.
• Risk of military invasion
• Level of corruption - especially levels of regulation in financial sector.
• Bureaucracy and interference in Money Center Banks industry by government.
• Legal framework for contract enforcement
• Intellectual property protection
• Trade regulations & tariffs related to Financial
• Favored trading partners
• Anti-trust laws related to Money Center Banks
• Pricing regulations – Are there any pricing regulatory mechanism for Financial
• Taxation - tax rates and incentives
• Wage legislation - minimum wage and overtime
• Work week regulations in Money Center Banks
• Mandatory employee benefits
• Industrial safety regulations in the financial sector.
• Product labeling and other requirements in Money Center Banks
 Economic Factors that Impact JPMorgan Chase & Co.
The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment in
an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. JPMorgan Chase & Co. can use country’s economic factor
such as growth rate, inflation & industry’s economic indicators such as Money Centre Banks
industry growth rate, consumer spending etc to forecast the growth trajectory of not only –
sector name-- sector but also that of the organization. Economic factors that JPMorgan Chase &
Co. should consider while conducting PESTEL analysis are -

• Type of economic system in countries of operation – what type of economic system

there is and how stable it is.
• Government intervention in the free market and related Financial
• Exchange rates & stability of host country currency.
• Efficiency of financial markets – Does JPMorgan Chase & Co. needs to raise capital in
local market?
• Infrastructure quality in Money Center Banks industry
• Comparative advantages of host country and financial sector in the particular country.
• Skill level of workforce in Money Center Banks industry.
• Education level in the economy
• Labor costs and productivity in the economy
• Business cycle stage (e.g. prosperity, recession, recovery)
• Economic growth rate
• Discretionary income
• Unemployment rate
• Inflation rate
• Interest rates

Social Factors that Impact JPMorgan Chase & Co.

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers
at JPMorgan Chase & Co. will understand the customers of a given market and how they design
the marketing message for Money Centre Banks industry consumers. Social factors that
leadership of JPMorgan Chase & Co. should analyse for PESTEL analysis are -

• Demographics and skill level of the population

• Class structure, hierarchy and power structure in the society.
• Education level as well as education standard in the JPMorgan Chase & Co. ’s industry
• Culture (gender roles, social conventions etc.)
• Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
• Attitudes (health, environmental consciousness, etc.)
• Leisure interests
 Technological Factors that Impact JPMorgan Chase & Co .
Technology is fast disrupting various industries across the board. Transportation industry is a
good case to illustrate this point. Over the last 5 years the industry has been transforming really
fast, not even giving chance to the established players to cope with the changes. Taxi industry is
now dominated by players like Uber and Lyft. Car industry is fast moving toward automation
led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated
an electronic car revolution.

A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
analysis involves understanding the following impacts -

• Recent technological developments by JPMorgan Chase & Co. competitors

• Technology's impact on product offering
• Impact on cost structure in Money Center Banks industry
• Impact on value chain structure in financial sector
• Rate of technological diffusion

Legal Factors that Impact JPMorgan Chase & Co.

In number of countries, the legal framework and institutions are not robust enough to protect
the intellectual property rights of an organization. A firm should carefully evaluate before
entering such markets as it can lead to theft of organization’s secret sauce thus the overall
competitive edge. Some of the legal factors that JPMorgan Chase & Co. leadership should
consider while entering a new market are -

• Anti-trust law in Money Center Banks industry and overall, in the country.
• Discrimination law
• Copyright, patents / Intellectual property law
• Consumer protection and e-commerce
• Employment law
• Health and safety law
• Data Protection
 Environmental Factors that Impact JPMorgan Chase & Co.
Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can have
different environmental laws and liability laws. For example, in United States – Texas and
Florida have different liability clauses in case of mishaps or environmental disaster. Similarly, a
lot of European countries give healthy tax breaks to companies that operate in the renewable
sector. Before entering new markets or starting a new business in existing market the firm
should carefully evaluate the environmental standards that are required to operate in those
markets. Some of the environmental factors that a firm should consider beforehand are -

• Weather
• Climate change
• Laws regulating environment pollution
• Air and water pollution regulations in Money Center Banks industry
• Recycling
• Waste management in financial sector
• Attitudes toward “green” or ecological products
• Endangered species
• Attitudes toward and support for renewable energy

Conclusion

J P Morgan is a leading provider of financial services, with a long history of excellence and
innovation. The company's diverse range of products and services, combined with its global
reach and reputation for integrity, make it a trusted partner for individuals, corporations, and
governments around the world. With a commitment to excellence and a focus on the future, J P
Morgan is well positioned to continue its success in the years ahead.

Bibliography:

• Fernfort University, May 2017.Strategic management essay Term papers and

Presentation. https://www.fernfortunity.com
• JP Morgan, 2023. https://www.jpmorgan.com/global
• https://en.wikipedia.org/wiki/J._P._Morgan