Business Strategy

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Influence of macro environment over the company.........................................................3
LO 2.................................................................................................................................................5
P 2 Internal environment and capabilities..............................................................................5
LO 3.................................................................................................................................................8
P3 Porter five force model......................................................................................................8
LO 4...............................................................................................................................................11
P4 Applying range of theories and concepts........................................................................11
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy is defined as some actions and plan which the business uses in order to
run the business in successful manner. In this competitive world it is very necessary for the
companies to work in effective manner. This is pertaining to the fact that if the company uses
effective strategy then they can face the competition and sustain the market (Till and Eagleeye,
2017). The present report will outline the different business strategy option for JP Morgan which
is an investment bank and financial service company headquartered in New York.
The present report will start by outlining the external forces and its impact and influence
over the operations of the company. Further the report will discuss about the internal
environment of the company and the capabilities which the company has. Next the discussion
will highlight the competitive position of the company and the market sector of the company. in
the end some of the theories and models will be applied and a strategic plan for the company will
be outlined.
MAIN BODY
LO 1
P 1 Influence of macro environment over the company
The business operates in a dynamic environment wherein there are frequent changes taking place
which may be positive or negative for the company. Thus, it is essential for JP Morgan to
evaluate all these factors and analyse its impact over the business. For this the model of PESTLE
analysis is used. This model is used at time when the company wants to learn about the changes
in the external forces and its impact over the working of the company. Political factors- the political factors include the changes within the government
regulations, political parties and its impact over the company. This factor impacts the
working of a company to a great extent because all the banking regulation and guidelines
are prepared by the central bank and the company has to abide by all these. For JP
Morgan the political stability is there and there are not many changes in the political
structure of USA and this is beneficial for the JP Morgan as they do not have to make
much changes in their working pattern. Economic factors- this includes the changes taking place within the economy of the
country (Sia, Soh and Weill, 2016). This factor also influences the working of the

company because the company runs in accordance with the economic system running in
the country. For JP Morgan the interest rate of loan is decreasing and this is an
opportunity for Morgan because of the fact that now more of the people will take loan
and this will increase the income of the bank. Also, currently there is inflation within the
economy and this is also an opportunity for the bank (Perera, 2017). This is because of
the reason that in situation of inflation the prices are high and for the consumer to meet
the basic demands need to take loan from the banks and this increases the income of JP
Morgan. Social factors- this includes the attitude and beliefs and thinking of the people of the
society. This is also need to be considered because of the fact that this also impact the
working of the company to a great extent. Currently the trend of people within the society
has increased towards the use of heavy priced and latest technology and other gadgets
(Perera, 2017). But the income level of the people has not increased and for this they take
huge loans to cater to the need of leisure and luxury life. Thus, this is an opportunity for
the company as this will increase the loan amount for JP Morgan and will increase its
interest income. Technological factors- this factor includes all the changes which are taking place within
the technological sector. There are many advancement taking places within the
technological sector which need to be adapted by JP Morgan. Adopting these
advancements is an opportunity for JP Morgan as this will assist bank in simplifying its
working and operations with help of technology (Christodoulou and Cullinane, 2019).
The latest technology is like artificial intelligence, chatbots, blockchain technology,
mobile and digital banking and many others facilities. Legal factors- this is also an important factor which may impact the working of the
company. This is because of the fact that the bank deal in finance of many people and
business organization and any mistake can result in huge financial losses (Rastogi and
Trivedi, 2016). Thus, for this there are many laws and regulations being made and which
need to be abided by the bank. Hence, compliance with the different laws will help the
company in creating trust among the people transacting with the bank.
 Environmental factors- this is also an important factor which need to be taken into
consideration for the successful running of the banking operations (Zahari and Romli,