Business Strategy: Analysis of JP Morgan

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PESTLE and SWOT analysis of JP Morgan................................................................................3
Analysing the competitive position of the organization..............................................................6
PART B..........................................................................................................................................10
Strategic business plan...............................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy is a combination of actions or set of decisions that are taken and
performed by the business to achieve business objectives and to secure a competitive position in
the market. It is a roadmap that provides direction to the business in accomplishing the goals.
Business strategy do not remain the same as it keeps on changing with time. In this report, J.P.
Morgan is taken as an organization. It is a multinational banking corporation with large presence
in UK. It provides wide range of services such as investment banking, treasury services and
trade, security services, asset management, private banking etc. This report covers influence of
environmental factors over the organization and its business strategies and analysing the
competitive environment and position of the business. It also includes a strategic plan that can be
used to achieve strategic objectives with appropriate strategies.
PESTLE and SWOT analysis of JP Morgan
PESTLE stands for political, economic, social, technological, legal and environmental
factors. It is the best strategic business method used by many organizations to analyse, examine
and track macroeconomic elements which impact on profit margin and growth. Here, this
framework is used in context of JP Morgan a leading global financial services company and one
of the biggest banking institution in UK, with number of operations across the world.
Political factor-
Political components heavily impacted JP Morgan operations negatively, as the UK
government continues to develop and implement unpleasant regulations on financial sector
(Downing, 2019). The rules and instructions formed by the authorities are strict that affect
business procedure and activities, organization cater financial services, changes in banking
regulations affect operations of firm. United States government has complex financial regulatory
framework that features a myriad of federal regulatory agencies. Chances in these rules create
difficulty for JP Morgan which is not suitable for long term profitability.
Economic factor-
Changes in inflation rate, gross domestic product, foreign exchange rate, current stage of
economic, unemployment and interest rate are the economic factors. These elements that affect
JP Morgan share and profit margin include but not limited to: the housing market become a
buyer’s market because interest rates in UK are extremely low in comparison to last few years

that impact on organization business operations and services that they provide to its consumers
worldwide. Profitability on loans also decrease due to low interest rates (Lewin, 2017).
Social factor-
Changes in culture, attitudes, values and belief are social factors that impact on business
and its functions within specific industry. Some extent, educational background to people are
different from other that create difficulties for company to communicate with them. Differences
between company and its target market based on educational background bring challenge to
relate to and draw in target segment effectively. It creates barriers for company to understand the
actual needs of people and also make issues for consumers to comprehend the banking policies.
Technology factor-
Clear communication and interaction with consumers is the most important thing for JP
Morgan, that help to retain people with them for longer and build loyal customers base.
Technology advancement is one of these factor that impact on firm positively as it helps to make
effective relationship between JP Morgan and its clients. Modern technological ear with effective
techniques of marketing in UK, will support to generate awareness about services of business
within marketplace. They help of gain attention of people and build strong image of company in
market which is quite beneficial for them.
Legal factor-
Health and Safety laws, discrimination and intellectual property laws impact on JP
Morgan employment structure positively. It helps to make their hiring effective and beneficial
for business growth. Discrimination law of UK, such as Equality Act 2010, is good for
employees who are working since for so long in firm. Organization always treated their staff
fairly and provide same opportunities for growth regardless of age, ethnicity, disability and
orientation. This law strengthens the relationship between workers and superiors, and helps to
create positive environment around work area.
Environmental factor-
The concern of government and consumers towards environmental sustainability raise
more than previous years. Government put pressure on company to support and contribute in
CSR, it will help to gain good market share in financial service sector effectively.
SWOT-