Business and Business Environment : JP Morgan Finance Assignment PDF

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Various type of organizations and purpose............................................................................1
P2 Size and Scope of organization..............................................................................................4
TASK 2 ...........................................................................................................................................7
P3 Relationship between different organization and they link to the structure and objective of
JP Morgan...................................................................................................................................7
TASK 3..........................................................................................................................................10
P4 Positive and negative impact on macro environment upon the business operations...........10
P6 Strength and weakness interrelate with the external factors................................................13

INTRODUCTION
Business environment means that all the external and internal factor which effect the
business operations and functions like management, business regulations, demand and supply,
employee and customer etc. Business environment is the sum of all the individual and institution
which is control the entire business process but their business activities depend upon the affect in
the overall business performance as well as sustainability (Wu,and Lu, 2015). This assignment
will discuss about the JP Morgan Finance and Investment organization to maintain the
relationship between the different function of department and organizational.
This report will discuss about the different type of organization and its purpose. This
assignment will analyse the two different type organization structure and link to their department
and achieving the goals and objectives. This report will analysis the entire detail of macro
environment in JP Morgan Investment and Finance. This report will determine the strength and
weakness of the organization and it also impacts on the business for decision making.
TASK 1
P1 Various type of organizations and purpose
There are different type of organization and their specific purpose such as public, private
and voluntary organization discuss as following:
Public Organization- This sector is operated and controlled by government. Public organization
is based on the economy to provide the different type of services such as governmental, health
care, infrastructure, transportation and military services etc. For example- NASA is a public
organization which are undertaken in the business process on the behalf of government. This is
the most important part of public sector to manage the entire management system for long term.
This sector will focus on to increase their understanding towards the research and earth. They
will provide the best quality of services to their customer. This organization is funded by
government and they mainly focus on providing the services to the people according to their
interest. NASA is public organization to provide the more benefits regarding the research and
they also giving the important information regarding the science and technology etc.
Advantage-This organization is influence to their economy to increase their profitability
and productivity.
1

Disadvantage- It is very difficult for company to manage and control the entire business.
There are lot of time spends on the meetings as well as interacting with the employee.
Private organization- The private organization is main part of economy that is run by the group
of individuals for increasing the profit in marketplace. JP Morgan Finance and Investment
organization is private banking company to provide the best quality of services such as
investment banking, securities services, wealth and health management services etc. This
organization is owned by the individual to manage the entire business operations and functions.
The main objective of this organization to increase their profitability and productivity in
marketplace. The private organization is diverse sector to establish the biggest companies with
the help of partnership, group and individual etc. JP Morgan organization provide the
opportunities to the people such as job options, career choice etc. They are increasing more
money and also increase their profit in marketplace.
Advantage- The private organization provide the Limited Liability which is the biggest
benefits for this organization.
Disadvantage- The main disadvantage of this organization is one or more people are
director and stakeholder.
Sole trader-This organization is maintained by one owner to manage the entire business in
proper manner. There are many types of sole organization establish in UK. This organization is a
part of private sector. They mainly focus on to increase their market share and brand image.
They always increase their productivity and profitability in marketplace. JP Morgan is a private
company to increase their business all over the world.
Advantages- This organization will maintain and control the entire business process in
effective way (Wu,and Lu, 2015). All the information are kept in private and limited companies
are provided the information publicly. This organization is taking decision fast to manage their
operations and functions.
Disadvantage- It is very difficult for this private organization to raise the fund for the
business purpose.
2

Partnership- Partnership organization is a combination of one or more people to establish the
business all over the world. Partnership has two or more people invest their money resources and
skill towards the business process.
Advantage- there are many opportunities for splitting the income and saving the money
because of tax resultant saving.
It is very easy to change their legal structure according to the circumstances.
Disadvantage-Liability of partners is the major disadvantage because of the limited
business.
Voluntary organization- Voluntary organization run by the local authority to manage the
business operations in proper manner. This organization will concern about the human welfare to
provide the best quality of services. Voluntary organization is group to people to usually handle
the association on the common interest. This organization is also known as non-governmental
organization because they are increasing their services. This organization is used for the people
to provide the services regarding the society and community etc. In United Kingdom, there are
majority in other counties to increase their business for the human welfare. This organization
will make profit for growth and development. They provide the facilities and services to the
social communities and culture.
Advantage- The main advantage of voluntary organization to provide the best quality of
services to poor people, society community and society etc.
Disadvantage- Fund raising is the major challenging part for the voluntary organization
so that the rate of unemployment is very high.
P2 Size and Scope of organization
Basis Public Private Voluntary Sole trader Partnership
Size The size of
public
organization
is depended
upon the
employee and
The size of
private
organization
Can be
medium and
large
Voluntary
organization
can be small
and large
because they
can develop
Sole trade
organization
is also
depended
upon their
employee.
Partnership
organization size is
depended upon their
two or more
partnership to
manage their
3

their
structure.
according to
their business.
their business
for social
community
and human
welfare.
For
Example-
How many
employee
working
together
business operations
and functions.
Scope Public
organization
increase their
business for
the purpose
of society and
not only
provide the
best quality
of facilitates
but also
increase their
productivity
and
profitability
The scope of
private
organization
will enhance
their business
all over the
world. They
have power to
maintain their
quality so that
it will increase
their sales and
productivity.
They mainly
focus on their
profit to build
a trust on their
customers.
Voluntary
organization is
a group of
people to plan
an effective
strategy for
growth and
development.
Voluntary
organization is
based on the
charity to
provide the
facilitates and
services to
poor peoples.
All the
employee of
this
organization is
working
together to
provide the
best services.
The sole
trader is
required to
maintain
their business
operations
because they
require only
small
amount. The
size of this
organization
is small.
This organization is
contract with one or
more people to
establish the
business all over the
world.
The main scope of
this organization to
connect with the
many stakeholders
to increase their
sales and
productivity in
marketplace.
4

Legal
structure
The public
organization
is
accountable
with the
government.
The funding
is providing
by the
government
to manage
their services
in
marketplace.
Private
organization is
based on the
individual that
is followed the
separated
legal rules
which is
beneficial for
organization.
Every
stakeholder to
share the
employee
members.
This
organization is
taking fund to
the local
authority and
charity.
Voluntary
organization is
helpful for
providing the
facilities and
services.
Sole Trader
organization
is required
only small
amount for
business
development.
They are
taking
amount to
the bank For
Example-
Banking
loans.
This organization
will choose their
partner for carefully.
They are invested
the money
individually.
Objectives The main
objective of
this
organization
to increase
their
profitability
and helpful
for the
customer.
They provide
the efficient
quality of
services.
The main
objective of
private sector
to increase
their sales and
productivity.
They also
establish their
business all
over the
world.
Voluntary
organization is
mainly
concern abut
the
communities
to provide the
benefits for
improve their
conditions.
Sole trade
organization
is a type of
private
organization
so that they
also concern
about their
business
establishment
in the world.
The main aim of
partnership
organization to
coordinate with the
other partner to
maintain their
relationship. They
also increase their
business in other
countries.
5

Primary Sector- The primary sector will manage the extraction of raw material from the
earth which is extract the corn, food item and coal etc. Primary sector is mainly concerned about
the raw material which is applicable in the business to develop the best quality of product in
marketplace.
Secondary Sector- The secondary sector is used for converting the raw material into the
goods. This sector is development for creating an effective product in marketplace. It is a leading
industry to provide the best quality of good and services in marketplace. Sole trader is part of
secondary organization because they use different raw material to convert into the best quality of
good and services.
Tertiary Sector- This sector is helping to supply the best quality of good and services to
the client and business. This sector will provide to manage the business operations such as sales,
restaurants and retail etc. JP Morgan is part of tertiary sector because they provide the best
quality of services regarding the banking and investment etc. Voluntary organization will belong
to the tertiary sector because they are providing the good services in marketplace.
TASK 2
P3 Relationship between different organization and they link to the structure and objective of JP
Morgan
An organizational structure is a system to perform different activities in order to achieve
their objective and targets. Organisational structure is important as it assists in identifying the
specific role and responsibilities of company. JP Morgan is a leading financial and investment
company to follow the specific procedure for development. There are variety of structure
divided according to their functions and structures. The large and small organization has needed
to increase their sales and productivity to match the proper goals and targets.
Functional Structure- Functional structure is the important for organization to specialize
and set up the role and responsibilities towards the tasks. Functional structure is an essential for
JP Morgan company to work in a proper manner. This organization is divided the each
department according to their specific tasks. This is also helpful for coordinate with the other
department to achieve their goals and objectives. Manager will communicate with the each and
every employee to provide the information. This structure is design for increasing their
production and sales in marketplace. JP Morgan is work with the other small company while
6

every department support to their talented employee. In this way, it will increase their
productivity and sales in market. Each and Every people has to be divided their specific role
according to their capability. This organization is followed this functional structure to improve
the performance of employee and organizational.
Divisional Structure- Divisional structure is the main part of organization to divide the role of
employee according to their capabilities and skills. This structure is mainly followed the large
organization to operate the entire geographical areas (Anderssonand Holm 2015). JP Morgan is
also used this structure because they can divide the each and every department and employee
7
Illustration 1: Structure of JP Morgan
(source: Divisional structure, 2017)

according to their capability and skill. This organizational structure will helpful for operate the
each division independently. It is very expensive due to their large size of organization and its
scope. The small organization use this structure in the small scale because there are small offices
and having different city. For Example- It will cover the entire geographical areas with the help
of sales team because they will coordinate with the client and customers.
Relationship between different organizational departments and link with the objectives
and targets-
In JP Morgan Financial and investment, this organization is performing different
operations and functions for growth and development. They will divide the role and
responsibilities to each and every department (Apăvăloaie2014). It is very helpful for managing
the entire business process. All the department of this organization is connected to each other.
They provide the best services and facilitates to their customers.
Human resource management- Human resource management is a part of JP Morgan
organization to perform different task such as training and development, selection and
recruitment, managing policy, appraisal etc. these are different operations performed by HRM.
HR officer is also manage the entire business activities in proper manner. Human resource
manager use different new technology to improve their performance of employee and
organization. It is very helpful for identifying the talented people who have capabilities to
manage the entire business in proper manner (Calabrese and Sarno2018). In JP Morgan, they
have efficient manager to provide the best quality of training so that they improve their
performance in effective ways. In this way, they can be achieve their goals and objectives.
Human resource management is an essential for organization to manage the entire business
process. For growth and development, it is required to change the business policy, terms and
conditions.
Information technology- JP Morgan organization use new technology to increase the
speed of business and their performance. Most of the organization use new technology for
improvement which is beneficial for company to increase their sales and productivity (Demiland
Zot2015). The manager of this company to communicate with their employee and identify their
opinion towards the business. They provide the opportunities to give their own idea and
implements in the business development process. In this way, they innovate a new idea to
8

develop their business. Nowadays, All the employee use new technology for growth and
development. This organization use idea to provide the best quality of services such as online
banking facilitates, mobile application etc. this is very beneficial for customer to easily check the
status of account and amount of balance.
Marketing- Marketing is the best process to promote their product in marketplace which
is required to use this promoting platform to increase their sales. JP Morgan organization use
marketing for promotions HRM is related to the Marketing because they are using tool to give
advertisement regarding the job vacancy (Evans and Barlow2017). Marketing is an essential for
organization to provide the details of product in front of customer. Marketing is linked with IT
teams because they use new technology for promotions. Marketing the best medium to helpful
for growth and development.
Finance- Finance is an essential department to manage the overall budget of organization
because they will identify the actual amount invest for particular product because HR department
invest money for training and development and Marketing team invest money for promotions. It
is important to manage the over all budget of organization in proper manner. Finance department
has important duties to manage the planning, controlling the long and short term strategy for the
investment etc. (Fossand Saebi2017). It will perform different functions for managing their
business process effectively and efficiently. Finance is connected with the human resources and
Information technology, marketing because it is very helpful for maintain the over all
information of all the departments in proper ways.
TASK 3
P4 Positive and negative impact on macro environment upon the business operations
PESTLE Analysis is done to determine impact of macro factors on business. This helps
in managing stability in business management of an organisation. It is strategic tool which
includes impact of political, economic, legal, environmental, technological and social factors.
This firm is dealing with providing the financial services.
Political Factors - JP Morgan deals in financial services directly to customer. This entity is
follows all rules which are made by government. Political issues which are affecting business
operation are taxes, employment policies, banking regulation of the businesses (Frösénand
9

Tikkanen2016). If all the regulation are successfully implemented in the JP Morgan which can
help in getting success of the business. Political factors plays an important role in determining
profitability in certain country. If the employment policies are not followed by organisation then
it effects on working of entity. This factor includes, the trade regulations and tariffs which are
related to the financial activities, level of corruption, legal framework, intellectual property
protection, wage legislation which has to be followed by the JP Morgan.
Economic Factor- in supporting of the economic growth of JP Morgan which includes the
financial crisis, population growth, urbanisation and unemployment rate and these factors helps
in determining profitability position of business. This factor facilitates in making economic
policies, interest rate and pricing which is offered by financial services. In the macro factors
which are included under this is inflation rate, saving rate, foreign exchange rate, efficiency of
the financial market, infrastructure quality of the banks, education level of the economy, business
cycle stage and many more (Georgescuand Popescul. 2015). If inflation rate increases in that
case people, working under JP Morgan has to make changes in plans and strategies according to
situation. Sales of business also affecting which ultimately on the profitability position of
business. it will impact the negative on the business. Workers has to give guidance and tell them
about the new plan which are made in the inflation.
Social Factor - For growth of entity, management needs to be attentive towards socio cultural
factors of customers. There are various competitors of the company like, Bank of the America,
Citi Group incorporation and many more which entity has to move ahead. For dealing with the
customers this entity has to target potential future customers. Attitudes of the people play very
important role in this factor. Some factors which company has to include for the growth of the
business which are demographics and population skills level, hierarchy structure of the entity and
power structure, culture, leisure interest and many more (Kolk2016). If support of the entity is
there which will help in making the growth of the entity. If the JP Morgan of is not meeting the
needs according to the requirement of the demographic then it will impact negative on the
business.
Technological Factor -
this factor deal with the usage of the advanced technology which will help in making the
business to run smoothly. JP Morgan is doing its business and also considering the promotion
activities so that people will aware the services which are provided by the company. for
10

improvement in the business JP Morgan has to use the latest technology which will help in
moving ahead of the competitors. Now, the usage of the online services is most and company
can apply it in the entity which will help in performing of the services in the faster way. It can be
credit cards, payment methods which is helpful in gaining the recognition of the entity in the
market this factor includes the recent technology which will help in making the entity to run
smoothly.
Legal Factor- this relate to the changes in the laws and legislation by the government. There can
be changes in the factors which are interest rates, financial transaction charges , loans , saving
and many more which needs to be followed by the entity. This will help in the longer survival
chances of the entity (Prajogo,2016). Legal stability of the country needs to be stable because it
will not in that case after certain period there has to make certain changes in the in JP Morgan.
Ethical business help in making the entity to reach the new heights of the success. These are the
laws which needs to be followed by the JP Morgan: Anti-trust law, discrimination law, healthy
and safety law, data protection, intellectual property rights and many more.
Environmental factor- by paying attention towards the environmental factors helps in making
the entity to gain the market share of the entity and help in making the good image in the market.
Some factors which are included under this are weather, climatic change, recycling, attitude
towards the support of the renewable energy (Schalteggerand Hansen2016). Electricity which is
used by the entity is one of the factors which are not renewable has to use it wisely. if company
will take initiative ion for preservation of the energy which can help in gaining the popularity of
the entity.
Diversified revenue streams- in this JP Morgan there is diversified and revenue stream in the
five business segments such as investment banking, corporate, consumer and community
banking, asset management and commercial banking.
Weakness
Increasing expenses- by the increasing of the JP Morgan operational expenses and non interest
expenses is also weakened the expense management system (Simoesand Perin, 2015). From the
total revenue in 2013 which is 72% of the net revenue of the year.
Over dependency on the certain markets - if JP Morgan is dependent on the on specific market
of the US in that case if any of the economic situation which is faced by the market it will slow
11

down the market. Major portion of the revenue come from the North American market and
overall dependency on this is harmful for the business.
Fluctuating market - market which is full of fluctuating affects the business of the JP Morgan.
as this company is offering the financials services to the firm which is totally dependent on the
market. if market is unstable in that case it will affect the firm's operations (Sodeyfi, 2016).
Opportunities
Positive out look of the asset management - in this company has the opportunity to reach the
target $102 trillion by the 2020 with the CAGR of about the 6%. This company is benefitting the
development if the asset management.
Growing of the credit card marketing - nowadays credit cards are prevailing in the market
and this is the opportunity for the JP Morgan to make the Chase Card more advanced which
help in gaining the market share of the business. By grabbing the opportunity firm reach to the
new heights of the success (Wu,and Lu, 2015).
Expand geographically- JP Morgan is doing the business in other countries for expansion of
the business. In various market it is trying to increase the business and grabbing the opportunity
to flourish the business outside the boundaries of nation. This will help in maximising the market
share of the company.
Threats
Regulatory challenges - financials institution worldwide is affected by the changing of the rules
and regulations of the entity which is maximising the costs of compliance. It is impacting on the
operating margins of the firm. This will result in the loss occurred by the company.
Financial crisis threat - any of the economic situation of the which are prevailing in the market
is affecting the JP Morgan. This company is dealing with offering of the financial services to the
customers and it will affect the business (Wu, 2015). For example recession, inflation,
depression which is affecting the business.
P6 Strength and weakness interrelate with the external factors
In the context of the JP Morgan there are the factors which are affecting the operations
of the businesses. Political stability in the US is stable which makes the strong position of the
business. Position of the JP Morgan is strong in the market which helps in growing the business
of the entity to the new heights. Rules which are prevailing in the entity are strict which helps in
making discipline in the JP Morgan. By following the rules and regulations which are made by
12

the government and helps in making the entity to perform well by the employees. Its negative
impact is employees will feel restriction in doing the work in the entity due to the strict rules.
Freedom of doing the work is neglected and the working on the innovative ideas of the business
is also restricted by the business (Wu,and Lu, 2015). Economic stability of the business is very
strong which is helping the entity to deal with every situation which are prevailing in the market.
Like according to the economic situation of the country changes has to be made in the policies
of the business. This will affect the decision making of the entity. In the environmental activity
which is fool wed by the business like CSR activities which will increase the popularity of the
business. Image of the business in the society will increase. It will affect the decision making of
the industry. Technology used by the JP Morgan on the business is very advanced which will
affect the decision making of the business. US is the country is which is very advanced and helps
in taking the quick decision making of the business. Support of the local people in the company
is making the entity which helps in making the entity to fulfil all objectives of the JP Morgan.
This is help in making of the entity to take the decisions effectively. Any change in the
legislations of the company affect the decision making of the business. it will aid in the making
of the entity to work according to the law.
CONCLUSION
From this report this is concluded in that impact of the macro factors on the business. in
this factor include political factor, legal, environmental factor and these are affecting the
operations of the JP Morgan. it is also discussed that swot of the JP Morgan which helps in
analysis of the strength's weakness, opportunities and threats of the business. it helps in knowing
the true position of the business. it will help in knowing of the loopholes of the business . it will
also discuss the interrelation of the strengths' weakness with the macro factors of the business.
Impact of the decision making of the entity. it can be negative and the positive impacts of the
business.
13

REFERENCES
Books and Journals:
Andersson, U., Forsgren, M. and Holm, U., 2015. Balancing subsidiary influence in the
federative MNC: A business network view. In Knowledge, Networks and Power (pp. 393-
420). Palgrave Macmillan, London.
Apăvăloaie, E.I., 2014. The impact of the internet on the business environment. Procedia
Economics and finance, 15, pp.951-958.
Calabrese, M., Iandolo, F., Caputo, F. and Sarno, D., 2018. From mechanical to cognitive view:
The changes of decision making in business environment. In Social Dynamics in a
Systems Perspective (pp. 223-240). Springer, Cham.
Demil, B., Lecocq, X., Ricart, J.E. and Zott, C., 2015. Introduction to the SEJ special issue on
business models: business models within the domain of strategic
entrepreneurship. Strategic Entrepreneurship Journal, 9(1), pp.1-11.
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A. and Barlow,
C.Y., 2017. Business model innovation for sustainability: Towards a unified perspective
for creation of sustainable business models. Business Strategy and the
Environment, 26(5), pp.597-608.
Foss, N.J. and Saebi, T., 2017. Fifteen years of research on business model innovation: How far
have we come, and where should we go?. Journal of Management, 43(1), pp.200-227.
Frösén, J., Jaakkola, M., Churakova, I. and Tikkanen, H., 2016. Effective forms of market
orientation across the business cycle: A longitudinal analysis of business-to-business
firms. Industrial Marketing Management, 52, pp.91-99.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance, 20, pp.277-
282.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171,
pp.241-249.
14

Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment, 29(3), pp.264-289.
Simoes, C., Singh, J. and Perin, M.G., 2015. Corporate brand expressions in business-to-business
companies' websites: evidence from Brazil and India. Industrial Marketing
Management, 51, pp.59-68.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives, 10(2), pp.146-150.
Wu, D., Zhang, G. and Lu, J., 2015. A Fuzzy Preference Tree-Based Recommender System for
Personalized Business-to-Business E-Services. IEEE Trans. Fuzzy Systems, 23(1), pp.29-
43.
Online:
Divisional structure, 2017[Online]. Available through:
<https://www.jpmorgan.com/jpmpdf/1320744874669.pdf >.
15