Internal and External Analysis for JP Morgan

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Internal and external analysis for JP Morgan..............................................................................3
Porters-five-forces model............................................................................................................8
PART B.........................................................................................................................................11
Different types of strategic directions for company..................................................................11
Recommendation for growth of JP Morgan business................................................................12
Strategic management plan........................................................................................................12
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy refer to the working plan of organization for achieving their aims,
prioritizing business objectives, optimizing financial performance and competing successfully
with their organizational model. It is defined as combination of all essential decisions taken and
actions performed by company to accomplish goal and to protect a competitive position within
specific marketplace.
The present report is based on JP Morgan, company is recognized as one of the largest
financial institutions in UK and provide their potential consumers with range of integrated
services from across franchises under JP Morgan Cazenove brands.
This report explains the SWOT and PESTLE analysis of company and define its
capabilities through appropriate models or framework. This study justifies competitive
environment using Porter's five force model, different types of strategic directions and
recommendation based on appropriate growth strategies & platforms. Furthermore, it also
clarifies the strategic management plan with tactics, strategies and objectives in context of
company.
PART A
Internal and external analysis for JP Morgan
External analysis
The business run in environment which changes very frequently and needs to be managed
by company to a great extent. Thus, it is very necessary for JP Morgan to timely analyse all its
environmental factors so that if there are any changes then it can be identified and addressed if
the changes are relevant for company (Aithal, 2017). For this JP Morgan uses technique of
PESTLE analysis which is discussed as below- Political- this is a factor which involves changes taking place in the political sector of the
country. JP Morgan follows all regulations and policies specified by government and
because of this there are not much political pressure over the company. But there is a
negative impact over working because of Brexit. This is pertaining to the fact that now
operations of JP Morgan are being affected in negative way and the profitability of
company is decreasing. Economic- This includes the changes taking place within the economic factors such as
interest rates, forex rates, inflation and many others. In current phase the inflation is high

and this is an opportunity for JP Morgan as the people for fulfilling their basic need will
take loans form bank and this will increase the profitability of the company and will be
beneficial for company. Social- This is the factor which includes the changes taking place within the attitude,
values, beliefs which the people within the society has for the company. In the current
scenario the consumer is getting attracted towards banking through mobile phones and
internet. Thus, this is an opportunity for JP Morgan as they can develop more facilities
for consumers over their mobile phones. Technological- This refers to the changes taking place within the technology sector of
the company. There are many advancements in the field of banking technology which
needs to be grabbed by JP Morgan to increase its profitability. This includes technology
like artificial intelligence, blockchain technology and many other. This adaption to the
latest technology will increase the efficiency of the company to work (Singh, Garg and
Luthra, 2018). Legal- This sector comprises of all rules, regulations and laws which are applicable over
the effective working of company. This is a major issue which might assist JP Morgan to
build a good image within the competitive market. This is because of the fact that if JP
Morgan abides by all the laws and regulations then this builds trust of consumers over the
company. Thus, for this JP Morgan ethically complies with all the laws and legislations. Environmental- This is a factor which involves changes taking place in the environment.
The latest trend is of companies taking care of the environment and for this JP Morgan
also takes part in CSR. The company adds a part of their profits in taking care of
environment by lowering down the carbon footprints. This impact JP Morgan because if
they will not take care of environment then their consumer will not interact with the
company and hence profitability will decrease.
Stakeholder analysis
The stakeholders are the people who are interested in the working efficiency of the
company. However, this is majorly because of the reason that the stakeholders are the people
who work for the benefit and growth of the company. The major stakeholders of JP Morgan are
of two types internal and external stakeholders. The internal are the one who are directly linked
to the performance of the company and the external are the one who are indirectly related to the