Business Strategy: Impact of Macro-Environment, Internal Analysis, Porter Five Forces

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P1 Impact of macro-environment...........................................................................................3
M1...........................................................................................................................................4
LO2..................................................................................................................................................5
P2 Analysis of internal environment......................................................................................5
M2...........................................................................................................................................7
LO3..................................................................................................................................................7
P3 Porter five forces...............................................................................................................7
M3...........................................................................................................................................8
LO4..................................................................................................................................................9
P4 Strategic management plan...............................................................................................9
M4.........................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is basically mixture of various decisions which are taken by the
organizations and series of actions which are performed by firms for attaining their longer-term
and short-term goals. The main aim of this report is to study the various factors and forces
impacting JP Morgan and recommend the proper strategies for its development.
JP Morgan is primarily investment bank as well as financial services organizations being
established in 2000 by Asron Burr and headquartered in New York, U.S.
This report gives an overview of impact of macro-environment, analysis of internal
environment, porter five forces and strategic management plan.
MAIN BODY
LO1
P1 Impact of macro-environment
Macro-environment is basically the mixture of all the factors as well as activities which
occurs outside the business environment and hence impacts its overall operations.
BCG matrix
BCG matrix is basically the framework which is being used for evaluating the position of
business as well as its potential in market and thus helps to analyze the business units. BCG
matrix generally consist of 4 quadrants which helps organizations to assess their competitive
position in the market.
Stars
Stars are basically the business units as well as products which have the great market
share as well as generate the highest amount of cash for business. Monopolies as well as first-to-
market products are generally known by the name stars. They are termed as stars because they
are the business unit which generates a great amount of profit for then organizations and thus
helps to achieve goals and objectives. The major advantage of Stars is that it helps organizations
to achieve competitive advantage and enlarge the customer base. The financial services of JP
Morgan are generally considered as stars. JP Morgan earns the great amount of income form this
business unit and helps to attain their strategic view (Baumgartner and Mangematin, 2019). JP
Morgan should integrate vertically through acquirement of the other firms within supply chain.
This will assist in earning huge profits.

Cash cows
These are the one which generates the amount of cash then they consume. These are the
products and business units which have great market capture but have low growth prospect.
Major advantage of cash cows is that it helps business in their overall growth by providing the
fund and leveraging future expansion. Supplier services business unit of JP Morgan is cash cow
which has helped them to capture great market share but overall market generally is declining as
this organization manage suppliers by themselves instead of outsourcing it (Davids and Van
Belle, 2017). JP Morgan should stop its further investment within this business unit and thus
should operate it as long as it is profitable.
Question marks
Question marks are the business units which mainly have high prospect for growth bu
they have low share in the markets. They consume high cash but brings little return and known
by the name problem children. Confectionery business unit of JP Morgan is generally considered
as question mark which has low share in markets and does not bring much return on its sales.
Recommended strategy is that JP Morgan can seek support of market penetration to make this
product present on various outlets. This will increase sale of confectionery (Delgado‐Márquez
and Pedauga, 2017).
Dogs
Dogs are the business unit which have low share in market as well as have low growth
potential. These units and products neither consume cash nor earns for business. Plastic bags
business unit of JP Morgan is considered as dogs. This unit has been in loss from past 5 years
and is declining because of great environmental concerns. To deal with this, JP Morgan can
divest this business unit and thus can minimize its losses (Quenum and et.al.,2019).
The most recommended strategy which JP Morgan can adopt in order improve its
strategic position as well as to gain the great market share is drawing out the cash from dogs and
invest in stars. As plastic bags of JP Morgan are Dogs which are continuously in loss and is
consuming great expense for its maintenance and marketing thus company should stop investing
in thus business unit and should rather use that money for innovating their financial services to
great amount which are their stars. This will eventually help the organization to sustain its
competitive advantage and minimize its most of the losses(Pourali and et.al.,2019).